In this paper we study the effectiveness of environmental taxes and policies of the regional level of government to reduce GHG emissions. We use panel data for the 17 Spanish regions in the period 1999–2017, controlling the spatial nexus between regions and using a dynamic Durbin model. The results show there is spatial dependence and spatio-temporal persistence of GHG emissions at the regional level in Spain, and that in this context, the taxes and policies intended to manage emissions introduce a slight disincentive to generating them. This fact, together with some relative decoupling which seems to exist between growth and emissions at the regional level, would suggest the need for tougher measures to combat environmental pollution in order to meet EU commitments.
This work examines in depth the hypotheses explaining the tax capacity of regional governments, also determining their tax effort and explanatory factors. The study is done for the Spanish regions, using different techniques which have rarely been applied in this area. The results show that these jurisdictions have exercised their tax autonomy responsibly, in response to different budget and demographic factors and to the economic cycle. Also, an asymmetrical tax behaviour linked to income is observed: some regions have practically exhausted the possibilities of current sub-central taxes, while others still have ample fiscal space.
Based on a model of behavioural response to taxes, and using the Taxpayers Panel from the Instituto de Estudios Fiscales for the period 1999–2009, we analyse whether the dual nature of the Spanish personal income tax (PIT), reinforced by the 2007 reform, has influenced taxpayers’ behaviour, causing them to convert part of their ‘general income’ (from labour, real estate or economic activities) into ‘savings income’ (from movable capital or capital gains). We also extend the analysis of income shifting and study whether Spanish taxpayers also responded to the different tax treatments given to the two types of savings income (from movable capital and capital gains) until 2007, transforming savings income from one type to the other. The results of our study demonstrate three facts. First, Spanish taxpayers did respond to the different tax rates, shifting income from the general base to different forms of savings, especially capital gains. The highest‐income individuals and the self‐employed and business owners are the groups where this behaviour was most marked. Second, the self‐employed and business owners also turned income from movable assets into capital gains, guided by their different tax rates. And third, we find signs of ‘anticipation’ and ‘learning’ effects caused by the 2007 tax reform. We believe that the results obtained will enrich the growing literature on income shifting.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.