Main Article Content
The increases in climate change, biological diversity loss, ecosystem degradation, effects of chemical pollution on the human health, scarcity of the sources, energy and water security have been experienced in the world in recent years together with globalization and the sharp increases in the mass production. In this regard, especially developed countries have begun to implement the policies such as environmental tax reforms to overcome these problems. This study examines the impact of environmental tax reforms on both environment and employment in EU-15 countries (Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, United Kingdom) during the period 1995-2012 by using panel cointegration and Panel FMOLS tests. We found that the double dividend hypothesis was valid in EU-15 countries.
Keywords: double dividend hypothesis, environmental tax reform, panel data analysis
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
Bento, A.M., & Jacobsen, M. (2007). Ricardian Rents, Environmental Policy and The Double dividend Hypothesis, Journal Environmental Economic Management, 53, 17–31.
Bovenberg, A. Lans, & Frederıck Van Der Ploeg. (1998), Consequences of Environmental Tax Reform for Unemloyment and Welfare, Environmental and Resource Economics, 12, 137-150.
Bovenberg, A.L., & Mooij, R.A. (1994). Environmental Levies and Distortionary Taxation, The American Economic Review, 84, 1085–1089.
Conefrey, Thomas, John D. Fitz, Gerald, Laura Malaguzzi, Valeri and Richard S.J., TOL. (2008). The Impcact of A Carbon Tax on Economic Growth and Carbon Dioxide Emissions in Ireland, ESRI Working Paper, 251, 1-43.
EUROSTAT(2015),Environmental Tax Revenues,
Retrieved November 07, 2015 from: http://appsso.eurostat.ec.europa.eu/nui/submitViewTableAction.do,
EUROSTAT (2015), Greenhouse Gas Emissions, November 01, 2015 from:
EUROSTAT (2015), Unemployment, September 15, 2015 from:
EUROSTAT (2015), Real GDP, November 13, 2015 from:
EUROSTAT (2015), Energy Consumption, November 13, 2015 from:
Florczak, Waldemar. (2006). Macroekonomic Consequences Inroducing Taxes on Carbon Dioxide Emission In Poland, Paper Elaborated for TranSust.Scan Project, February 24, 2015 from: http://www.transust.org/workplan/papers/wp2_task_3_poland3.pdf
Fraser, I., & Waschik, R. (2013). The Double Dividend Hypothesis in a CGE model: Specific Factors and the Carbon Base, Energy Economics, 39, 283–295.
Goulder, L.H., & Schneider, S.H. (1999). Induced Technological Change And The Attractiveness of CO2 Abatement Policies, Resource Energy Economic, 21, 211–253.
Günaydin, I. (1999). Çevre Vergilerinin İstihdam Üzerine Etkisi, Süleyman Demirel Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 4, 277-292.
Hur, Ga-hyeong. (2000). Double Dividend Hypothesis of Environmental Tax in Republic of Korea: For Sustainable Development, 2nd International Critical Geography Conference Taegu University, Taegu, Korea.
Lutz, C. & Bernd, M. (2010). Environmental Tax Reform in the Europan Union: Impact on CO2 Emissions and Economy, Zeitschrift fur Energiewirtschaft, 34, 1-10.
Manresa, A., & Sancho, F. (2005). Implementing a Double Dividend: Recycling Ecotaxes Towards Lower Labour Taxes. Energy Policy, 33, 1577–1585.
Markandya, A., González-Eguino, M., & Escapa, M. (2012). Environmental Fiscal Reform and Unemployment in Spain, BC3 Working Paper Series, 2012-04.
Nerudová, D., & Dobranschia, M. (2014). Double Dividend Hypothesis: Can it Occur When Tackling Carbon Emissions?, Enterprise and the Competitive Environment Conference, Brno, Czech Republic.
Orlov, A., Grethe, H., & McDonald, S. (2013). Carbon Taxation in Russia: Prospects for a Double Dividend and Improved Energy Efficiency, 37, 128–140.
Parry, I.W.H., & Bento, A.M. (1998). Tax Deductions, Environmental Policy, and The “Double Dividend” Hypothesis, Journal Environmental Economic Management, 39, 67–96.
Taheripour, F., Khanna, M., & Nelson, C.H. (2008). Welfare Impacts of Alternative Public Policies for Agricultural Pollution Control in an Open Economy: A General Equilibrium Framework, American Journal of Agricultural Economics, 90(3), 701–718.
Takeda, S. (2007). The Double Dividend From Carbon Regulations In Japan, Journal of Japanese and International Economies, 21, 336–364.
Vandyck, Toon & Denise Van, Regemorter. (2014). Distributional and Regional Economic Impact of Energy Taxes in Belgium, Energy Policy, 72, 190-203.
Williams, R.C. (2002). Environmental Tax Interactions When Pollution Affects Health or Productivity, Journal Environmental Economic Management, 44, 261-270.