Energy, Pollution, and Transport Taxes as Instruments of Sustainable Development of Manufacturing Enterprises in Emerging Economies in the European Union

Abstract

Purpose: The paper's primary purpose is to assess environmental taxes ' impact on sustainable development of manufacturing enterprises in emerging and developing economies in the European Union in 2008-2019. Design/Methodology/Approach: This paper is both theoretical and empirical. The survey covers the European Union countries classified as emerging and developing economies by the International Monetary Fund including Bulgaria, Croatia, Poland, Romania and Hungary. The first part discusses the fundamental issues related to sustainable development and environmental taxes. The empirical part includes the methodology and results of the study. To determine the relationship between environmental taxes and sustainable development, we use the Pearson correlation coefficient and the Least Square Method. Findings: The results indicate that there is a statistically significant relationship between the variables. Environmental taxes are one of the critical determinants of sustainable development of manufacturing enterprises. The models show that the impact of individual taxes is different in the analyzed countries. Practical Implications: The results show that environmental taxes are essential to sustainable development. Hence, it is necessary to increase their importance and reform the tax system in the EU. Originality/Value: The statistical assessment of the impact of environmental taxes on enterprises' sustainable development is relatively poorly understood. The issue is new and contemporary and requires further analysis. Environmental taxes are a significant issue in the era of counteracting climate change. It is necessary to increase the importance of environmental taxes and their effects on economic processes.

The Impact of Environmental Taxes on Transportation and Storage Enterprises’ Development – The Case of Balkan Countries

“…Our results corroborate those of other scientists who indicate the complexity of sustainable development and its determinants (Siebenhüner & Arnold, 2007;Bebbington & Unerman, 2018;Weidinger, 2014;Dhahri & Omri, 2018). We prove that environmental taxes have a statistically significant (p-value < 0.05) impact on the development of transportation and storage enterprises happens within the sustainability principle (Castellucci & Markandya, 2012;Misztal, 2020;Cadoret et al, 2020;Fajczak-Kowalska et al, 2021).…”

“…In our paper, we use the definition of environmental taxes proposed in Regulation (EU) No 691/2011, which indicates that it is "a tax whose base is a physical unit (or a proxy of a physical unit) of something that has a proven, specific negative impact on the environment, and which is identified in ESA as a tax" (Bashir et al, 2020;Fajczak-Kowalska et al, 2021).…”

Energy Efficiency and Decarbonization in the Context of Macroeconomic Stabilization

“…Financial outlays on environmental protection, environmental taxes, renewable energy sources, prices of futures contracts for carbon dioxide emissions, outlays on R&D, EU Emissions Trading System should be of key importance here. Essential is to increase the share of environmental taxes in the total fiscal burden and implement a more efficient emissions trading system [43,44,47,49].…”

“…There is a consensus in the scientific literature that limiting global warming requires a profound and rapid transformation in economic activity structure (production, urban, industrial, transport) [26]. It is related to the necessity of changes in relative energy prices, investments in green infrastructure, production capacity, renewable energy sources [27,48,49].…”