Participation of environmental taxes in government expenditures for environmental protection: The case of selected EU countries

Abstract

The aim of this paper is to show whether the current system of environmental taxation and environmental policies of the states is efficient for solving environmental problems. We analyze the link between environmental tax revenues and total government expenditure as independent variables and government expenditures for environmental protection as dependent variable in selected EU countries. By the implementation of panel data regression analysis on a defined sample, we came to the conclusion that among the observed variables there is a positive relationship. However, this relationship shows that the growth of expenditures for environmental protection is slower than the growth of total expenditure. The results also suggest that the relationship between revenues from environmental taxes and expenditures of the state in the area of environmental protection is a little weaker. With respect to the result of analysis, it can be concluded that the existing state policy in is not sufficiently effective.

Taxation and Environmental Protection in the Function of Sustainable Growth: The Case of Serbia

“…According to mentioned, environmental protection tax and green tax law popularize ecological development and growth (Yu et al 2022). Environmental taxes are levies paid by environmental polluters or paid on goods that pollute the environment (Stojanović et al, 2022) and these taxes protect the environment by combating negative externalities (Karmaker et al, 2021). In fact, environmental taxes are recognized one of the most important fiscal policy tools used in the internalization of negative externalities (Ayding and Esen, 2018).…”