DÖKMEN, Gökhan Bülent Ecevit Üniversitesi - İİBF - Maliye Bölümü, Turkey

ENVIRONMENTAL TAX AND ECONOMIC GROWTH: A PANEL VAR ANALYSIS

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In recent years there has been tremendous debate among academics and policy makers about the interactions between economic growth and environmental taxation. In this study, the relationship between environmental taxes and economic growth is analyzed using 29 European countries yearly data for the period 1996 to 2010. The main objectives of this study are to determine the reaction of economic growth in the face of a shock in different kinds of environmental taxes and to examine whether environmental taxation has a positive or negative effect on national economies. Using Panel Vector Autoregressive models, we find positive and statistically significant responses to an environmental tax shock.

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Environmental Taxation , Economic Growth , Panel Vector Autoregressive Models

Erciyes University Journal Of Economics an‎d Administrative Sciences

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