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The long and short-term effects of environmental tax on energy efficiency: Perspective of OECD energy tax and vehicle traffic tax

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  • He, Pinglin
  • Sun, Yulong
  • Niu, Hanlu
  • Long, Chengfeng
  • Li, Shufeng

Abstract

Based on the data from 1995 to 2016 in the OECD countries, we use the autoregressive distribution lag (ARDL) model to empirically study the overall effect of energy taxes, vehicle traffic taxes, and environmental taxes on energy efficiency. It was found that the energy tax significantly improves energy efficiency in the short term, the vehicle traffic tax significantly improves energy efficiency in the long term, and the environmental tax improves energy efficiency in the long and short term, and is more significant in the long term. And the industrial structure upgrade helps strengthen the impact of environmental taxes on energy efficiency. The grouping study shows that the environmental tax of the high GDP group has a more significant effect on improving energy efficiency. When the environmental tax of the low GDP group improves energy efficiency, the synergy of industrial structure upgrade should be emphasized. The research in this paper is helpful to understand the internal impact mechanism of environmental taxes on energy efficiency in OECD countries, and has reference significance for the study of environmental taxes in non-OECD countries.

Suggested Citation

  • He, Pinglin & Sun, Yulong & Niu, Hanlu & Long, Chengfeng & Li, Shufeng, 2021. "The long and short-term effects of environmental tax on energy efficiency: Perspective of OECD energy tax and vehicle traffic tax," Economic Modelling, Elsevier, vol. 97(C), pages 307-325.
    • Handle: RePEc:eee:ecmode:v:97:y:2021:i:c:p:307-325
    DOI: 10.1016/j.econmod.2020.04.003
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    2. Yuxi Chen & Mengting Zhang & Chencheng Wang & Xin Lin & Zhijie Zhang, 2023. "High-Tech Industrial Agglomeration, Government Intervention and Regional Energy Efficiency: Based on the Perspective of the Spatial Spillover Effect and Panel Threshold Effect," Sustainability, MDPI, vol. 15(7), pages 1-29, April.
    3. Feng, Xuesong & Tao, Zhibin & Shi, Ruolin, 2024. "The Spatiotemporal exploration of intercity transport energy efficiency in the mainland of China on the basis of improved stochastic frontier modelling," Renewable Energy, Elsevier, vol. 224(C).
    4. D’Errico, Maria Chiara, 2024. "Sustainable economic growth and energy security nexus: A stochastic frontier analysis across OECD countries," Energy Economics, Elsevier, vol. 132(C).
    5. Sami Ullah & Rundong Luo & Tomiwa Sunday Adebayo & Mustafa Tevfik Kartal, 2023. "Dynamics between environmental taxes and ecological sustainability: Evidence from top‐seven green economies by novel quantile approaches," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(2), pages 825-839, April.
    6. Shah, Syed Ale Raza & Zhang, Qianxiao & Abbas, Jaffar & Tang, Hui & Al-Sulaiti, Khalid Ibrahim, 2023. "Waste management, quality of life and natural resources utilization matter for renewable electricity generation: The main and moderate role of environmental policy," Utilities Policy, Elsevier, vol. 82(C).
    7. Wei Zhang & Jing Cheng & Xuemeng Liu & Zhangrong Zhu, 2023. "Heterogeneous industrial agglomeration, its coordinated development and total factor energy efficiency," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(6), pages 5511-5537, June.
    8. Li, Shan & Liu, Jianjiang & Shi, Daqian, 2021. "The impact of emissions trading system on corporate energy efficiency: Evidence from a quasi-natural experiment in China," Energy, Elsevier, vol. 233(C).
    9. Ying Li & Mi Zhou & Huaping Sun & Jia Liu, 2023. "Assessment of environmental tax and green bonds impacts on energy efficiency in the European Union," Economic Change and Restructuring, Springer, vol. 56(2), pages 1063-1081, April.
    10. Chunji Zheng & Feng Deng & Chengyou Li, 2022. "Energy-Saving Effect of Regional Development Strategy in Western China," Sustainability, MDPI, vol. 14(9), pages 1-22, May.
    11. Pinar, Mehmet, 2024. "Convergence in renewable energy innovation and factors influencing convergence club formation," Renewable Energy, Elsevier, vol. 220(C).
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    13. Li, Mengjie & Du, Weijian, 2022. "Opening the black box of capacity governance: Environmental regulation and capacity utilization of microcosmic firms in China," Economic Modelling, Elsevier, vol. 108(C).

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