Recently, the European Union has officially announced that its' objective in terms of environmental policy is to achieve climate neutrality, including long-term low greenhouse gas emission, by 2050. In light of this, the current study aims to offer a new and updated perspective on the effectiveness of environmental taxes in reducing air pollution in the European Union. Firstly, cluster analysis is used to group the member states of the European Union according to characteristics that will make the research results more robust. Secondly, panel data dynamic error correction models were estimated for each cluster to assess the effect of environmental taxes (and other explanatory variables) on emissions of carbon dioxide on the one hand, and greenhouse gases in general on the other hand. The research looks at both short-run and long-run effects on air pollution. The results show a statistically significant negative long-run relationship between environment taxes and atmospheric pollutants emissions. However, this effect would happen with a certain delay and it would be short lived, which makes additional environment policy measures necessary to achieve the 2050 targets.
The COVID-19 pandemic has led to an economic crisis with farreaching effects throughout the entire world. In the EU, governments face the need for policies that will counter the negative economic effects. To do this, they require reliable tax revenue predictions to help plan and finance policies that will set the European economies on the road to recovery. The current study aims to offer up-to-date accurate forecasts of tax revenues for the 27 EU member states for the period 2020-2022. A time trend model regression model adjusted with the unemployment rate is estimated for each member state using data for the period 1995-2019. Based on this regression model, forecasts for tax revenues are made. The results show a decline in tax revenues in 2020 and 2021 followed by a slight recovery in 2022 for most EU member states. The study also offers fiscal policy recommendations for the EU aimed at improving and stabilizing tax revenue collection in the future.
The COVID-19 pandemic has taken its toll on the economies of the EU member states. While policymakers have been faced with rising government spending in an effort to combat the health crisis, this has led to unprecedented levels of government debt and budget deficits. Debt sustainability has been severely affected by decreasing fiscal space, and there are significant concerns that a debt crisis is looming on the horizon for the EU. The current study aims to analyze environmental taxes as a potential solution for rebuilding fiscal space and thus improving debt sustainability in the EU. The research method used to study the impact that the four types of environmental taxes may have on fiscal space is the dynamic panel regression model, estimated using the Generalized Method of Moments (GMM). The conclusions show that all four categories of environmental taxes can help the EU member states regain fiscal space and improve their debt sustainability. The research results show that the strongest positive impact on fiscal space will be achieved by energy taxes and transport taxes.
Bureaucracy is a common problem in most countries, including the Member States of the European Union. This issue impacts all areas of civil services, including the fiscal system through tax collection and tax compliance. This study aims to analyze the impact of tax reforms on the business environment by using different business confidence indicators as an estimation of the expected evolution of the industrial sector, the construction sector, the retail sector and the services sector, as well as the tax burden as a proxy for the tax reforms. Our research is based on quarterly data collected for the 28 European Union Member States, for a period of 30 years. The conclusions were reached following multiple regression estimations, done for each Member State separately, and followed by a detailed analysis of the results obtained. Thus, focusing on each country individually, the study reveals the influence of reforms in the tax systems on business confidence.
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