Analysis of the Impact of an Environmental Tax on the Import of Polluting Products: Case of Madagascar

Abstract

The management of waste and various sources of pollution is one of the new environmental risks that the country must face. Thus, “Developing protective measures against the introduction into the national territory of harmful and dangerous products and waste” is a main action set out in Article 20 of the Environmental Charter in Madagascar. Fiscal policy by introducing an environmental tax on imports could be a proposal in this direction. Therefore, the objective of this study is to analyze the impacts of a potential environmental tax on imported products that generate pollution and waste. The models chosen have highlighted the environmental gain, in terms of reduction in the volume of polluting products (with the simple linear regression model), although the reduction is limited to specific goods (with the multiple linear regression model), as well as the obtaining of additional revenue likely to be allocated to the financing of well-defined projects.