Environmental Taxation and Carbon Emission in G20 Nations

Environmental taxation has emerged as a promising policy tool to combat the pressing challenge of carbon emissions and address the adverse impacts of climate change. This study presents a comprehensive analysis of environmental taxation in the G20 nations, a diverse group of major economies that collectively contribute to a significant share of global greenhouse gas emissions. The objective of this research is to assess the role of environmental taxation in influencing carbon emission levels across G20 countries. To achieve this, review of the literature on environmental taxation, and carbon emission reduction strategies in each G20 nation was conducted. Additionally, data from international databases, governmental reports, and academic studies were analysed and Johansen co-integration test was applied to test the hypothesis. It was found that environment taxation is important variable to manage CO2 emissions and to focus on sustainable growth of the nations. The findings of this research provide valuable insights for policymakers seeking to enhance the effectiveness of environmental taxation measures in their respective countries. By identifying successful policy approaches and lessons learned from G20 nations, this study contributes to a deeper understanding of how environmental taxation can play a pivotal role in addressing carbon emissions and advancing global efforts to combat climate change.