Does the Quality of Political Institutions Matter for the Effectiveness of Environmental Taxes? An Empirical Analysis on <scp>CO<sub>2</sub></scp> Emissions
ABSTRACT Focusing on a sample of 39 countries in the period 1996–2017, we analyze whether the relationship between environmental taxes and CO 2 emissions depends on the quality of political institutions. Our results show that an increase in the environmental tax revenue is related to a reduction in CO 2 emissions only in countries with more consolidated democratic institutions, higher civil society participation, and less corrupt governments. Moreover, the relationship between CO 2 emissions and revenue neutral shifts to different tax sources depends not only on the quality of political institutions, but also on the kind of externality the policymaker aims at correcting.
Authors
- Donatella Baiardi (ORCID: https://orcid.org/0000-0001-9003-8106)
- Simona Scabrosetti (ORCID: https://orcid.org/0000-0002-0142-6439)
Institutions
- University of Parma (IT)
- University of Pavia (IT)
- European Centre for Theoretical Studies in Nuclear Physics and Related Areas (IT)
- Bocconi University (IT)
Publication Details
- Journal
- Environmetrics
- Published
- 2025-02-12
- DOI
- https://doi.org/10.1002/env.2895
- Citations
- 1
- Primary Topic
- Energy, Environment, Economic Growth
- Type
- article
- Field-Weighted Citation Impact
- 3.13
Funders
- Università degli Studi di Parma