IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v254y2022ipcs0360544222011781.html
   My bibliography  Save this article

Do energy-pollution-resource-transport taxes yield double dividend for Nordic economies?

Author

Listed:
  • Alola, Andrew Adewale
  • Nwulu, Nnamdi

Abstract

With the policy performance of the Nordic countries especially from the aspects of energy security, energy equity, and environmental sustainability, this study provides more in-depth on the performance of the countries’ disaggregated environmental taxes. To examine the greenhouse gas emission and energy intensity effects of energy tax, pollution tax, resource tax, and transport tax alongside controlling for the role of employment rate and gross domestic product over the period 1995–2020, empirical tools such as the method of moments quantile regression, short- and long-run cointegration, and Granger causality approaches were utilized. Importantly, there are series of interesting results from this investigation. Firstly, the result posits the feasibility of Green growth in the panel of Nordic countries while a significant and negative nexus between GDP and energy intensity was also established. Secondly, also from the panel result, we found that only energy tax significantly mitigates both emissions and energy intensity across the quantiles while pollution tax and resource tax exacerbate emissions and energy intensity. Thus, for the panel case, only energy tax could validate the double dividend hypothesis. Thirdly, the result revealed that double dividend hypothesis and by large extent co-benefit is achievable with pollution and resource tax policies in Finland but in the short-run. Similarly, pollution, resource, and transport tax policies in Sweden are all desirable for achieving both environmental and economic benefits in the short-run. However, there is no valid evidence to support the validity of double dividend hypothesis in Denmark and Norway. Lastly, we found a one-way Granger causality from GDP, energy tax, resource tax, and transport tax to greenhouse gas emission while a one-way Granger causality also exists from GDP, energy tax, and transport tax to energy intensity. Overall, compelling policy dimensions are inferred from the investigation.

Suggested Citation

  • Alola, Andrew Adewale & Nwulu, Nnamdi, 2022. "Do energy-pollution-resource-transport taxes yield double dividend for Nordic economies?," Energy, Elsevier, vol. 254(PC).
    • Handle: RePEc:eee:energy:v:254:y:2022:i:pc:s0360544222011781
    DOI: 10.1016/j.energy.2022.124275
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544222011781
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2022.124275?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pinglin He & Lu Chen & Xiaonan Zou & Shufeng Li & Huayu Shen & Jianhui Jian, 2019. "Energy Taxes, Carbon Dioxide Emissions, Energy Consumption and Economic Consequences: A Comparative Study of Nordic and G7 Countries," Sustainability, MDPI, vol. 11(21), pages 1-17, November.
    2. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
    3. Nilsson, Lars J., 1993. "Energy intensity trends in 31 industrial and developing countries 1950–1988," Energy, Elsevier, vol. 18(4), pages 309-322.
    4. Paredes, Dusan & Rivera, Nathaly M., 2017. "Mineral taxes and the local public goods provision in mining communities," Resources Policy, Elsevier, vol. 53(C), pages 328-339.
    5. Pearce, David W, 1991. "The Role of Carbon Taxes in Adjusting to Global Warming," Economic Journal, Royal Economic Society, vol. 101(407), pages 938-948, July.
    6. Festus Victor Bekun, 2022. "Mitigating Emissions in India: Accounting for the Role of Real Income, Renewable Energy Consumption and Investment in Energy," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 188-192.
    7. Westerlund, Joakim & Edgerton, David L., 2007. "A panel bootstrap cointegration test," Economics Letters, Elsevier, vol. 97(3), pages 185-190, December.
    8. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    9. Machado, José A.F. & Santos Silva, J.M.C., 2019. "Quantiles via moments," Journal of Econometrics, Elsevier, vol. 213(1), pages 145-173.
    10. Dumitrescu, Elena-Ivona & Hurlin, Christophe, 2012. "Testing for Granger non-causality in heterogeneous panels," Economic Modelling, Elsevier, vol. 29(4), pages 1450-1460.
    11. Fang, Guochang & Tian, Lixin & Fu, Min & Sun, Mei, 2013. "The impacts of carbon tax on energy intensity and economic growth – A dynamic evolution analysis on the case of China," Applied Energy, Elsevier, vol. 110(C), pages 17-28.
    12. Tilsted, Joachim Peter & Bjørn, Anders & Majeau-Bettez, Guillaume & Lund, Jens Friis, 2021. "Accounting matters: Revisiting claims of decoupling and genuine green growth in Nordic countries," Ecological Economics, Elsevier, vol. 187(C).
    13. Koenker, Roger, 2004. "Quantile regression for longitudinal data," Journal of Multivariate Analysis, Elsevier, vol. 91(1), pages 74-89, October.
    14. Kao, Chihwa, 1999. "Spurious regression and residual-based tests for cointegration in panel data," Journal of Econometrics, Elsevier, vol. 90(1), pages 1-44, May.
    15. Cheng, Ya & Sinha, Avik & Ghosh, Vinit & Sengupta, Tuhin & Luo, Huawei, 2021. "Carbon Tax and Energy Innovation at Crossroads of Carbon Neutrality: Designing a Sustainable Decarbonization Policy," MPRA Paper 108185, University Library of Munich, Germany, revised 2021.
    16. Bruvoll, Annegrete & Larsen, Bodil Merethe, 2004. "Greenhouse gas emissions in Norway: do carbon taxes work?," Energy Policy, Elsevier, vol. 32(4), pages 493-505, March.
    17. Bashir, Muhammad Farhan & MA, Benjiang & Shahbaz, Muhammad & Shahzad, Umer & Vo, Xuan Vinh, 2021. "Unveiling the heterogeneous impacts of environmental taxes on energy consumption and energy intensity: Empirical evidence from OECD countries," Energy, Elsevier, vol. 226(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Viktor Koval & Olga Laktionova & Iryna Udovychenko & Piotr Olczak & Svitlana Palii & Liudmyla Prystupa, 2022. "Environmental Taxation Assessment on Clean Technologies Reducing Carbon Emissions Cost-Effectively," Sustainability, MDPI, vol. 14(21), pages 1-19, October.
    2. Gao, Zhiyuan & Zhang, Yahui & Li, Lianqing & Hao, Yu, 2024. "Will resource tax reform raise green total factor productivity levels in cities? Evidence from 114 resource-based cities in China," Resources Policy, Elsevier, vol. 88(C).
    3. Olga E. Bashina & Marina D. Simonova & Lilia V. Matraeva & Irina P. Mamiy & Nataliya A. Korolkova, 2023. "Specifics of Public Administration in Countries With a Developed Energy Sector: The Case Study," SAGE Open, , vol. 13(2), pages 21582440231, May.
    4. Zhe Yang & Zhenwu Xiong & Wenhao Xue & Yuhong Zhou, 2022. "The Impact of Pollution Fee Reform on the Emission of Water Pollutants: Evidence from Manufacturing Enterprises in China," IJERPH, MDPI, vol. 19(17), pages 1-17, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Khan, Yasir & Hassan, Taimoor & Guiqin, Huang & Nabi, Ghulam, 2023. "Analyzing the impact of natural resources and rule of law on sustainable environment: A proposed policy framework for BRICS economies," Resources Policy, Elsevier, vol. 86(PA).
    2. Talan, Amogh & Rao, Amar & Sharma, Gagan Deep & Apostu, Simona-Andreea & Abbas, Shujaat, 2023. "Transition towards clean energy consumption in G7: Can financial sector, ICT and democracy help?," Resources Policy, Elsevier, vol. 82(C).
    3. Mehmet Balcilar & Ojonugwa Usman & George N. Ike, 2023. "Investing green for sustainable development without ditching economic growth," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(2), pages 728-743, April.
    4. Wu, Anbing & Chen, Junying & Zhang, Yanyan, 2023. "Natural resources and energy resources prices an answer to energy insecurity? The role of mineral, forest, coal resources and financial development," Resources Policy, Elsevier, vol. 87(PA).
    5. Kabiru Kamalu & Wan Hakimah Binti Wan Ibrahim, 2023. "Conditional Effect of Environmental Degradation and Institutional Environment on Human Development in Developing Countries: Evidence from Method of the Moment-Quantile Regression with Fixed Effect," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 667-677, September.
    6. Han, Guixin & Cai, Xuesen, 2024. "The linkages among natural resources, sustainable energy technologies and human capital: An evidence from N-11 countries," Resources Policy, Elsevier, vol. 90(C).
    7. Meng Lingyan & Ze Zhao & Haider Ali Malik & Asif Razzaq & Hui An & Marria Hassan, 2022. "Asymmetric impact of fiscal decentralization and environmental innovation on carbon emissions: Evidence from highly decentralized countries," Energy & Environment, , vol. 33(4), pages 752-782, June.
    8. Yang, Qiang & Huo, Jiale & Saqib, Najia & Mahmood, Haider, 2022. "Modelling the effect of renewable energy and public-private partnership in testing EKC hypothesis: Evidence from methods moment of quantile regression," Renewable Energy, Elsevier, vol. 192(C), pages 485-494.
    9. Khan, Syed Abdul Rehman & Ponce, Pablo & Yu, Zhang & Ponce, Katerine, 2022. "Investigating economic growth and natural resource dependence: An asymmetric approach in developed and developing economies," Resources Policy, Elsevier, vol. 77(C).
    10. Inuwa, Nasiru & Adamu, Sagir & Hamza, Yusuf & Sani, Mohammed Bello, 2023. "Does dichotomy between resource dependence and resource abundance matters for resource curse hypothesis? New evidence from quantiles via moments," Resources Policy, Elsevier, vol. 81(C).
    11. Yasmeen, Rizwana & Huang, Haiping & Shah, Wasi Ul Hassan, 2024. "Assessing the significance of FinTech and mineral resource depletion in combating energy poverty: Empirical insights from BRICS economies," Resources Policy, Elsevier, vol. 89(C).
    12. Junwook Chi, 2024. "Tourism development and income inequality in OECD countries: New insights from method of moments quantile regression," Tourism Economics, , vol. 30(3), pages 767-784, May.
    13. Onwe, Joshua Chukwuma & Bandyopadhyay, Arunava & Hamid, Ishfaq & Rej, Soumen & Hossain, Md Emran, 2023. "Environment sustainability through energy transition and globalization in G7 countries: What role does environmental tax play?," Renewable Energy, Elsevier, vol. 218(C).
    14. Ma, Yechi & Chen, Zhiguo & Shinwari, Riazullah & Khan, Zeeshan, 2021. "Financialization, globalization, and Dutch disease: Is Dutch disease exist for resources rich countries?," Resources Policy, Elsevier, vol. 72(C).
    15. Wang, Xiang & Yin, Jian & Yang, Yao & Muda, Iskandar & Abduvaxitovna, Shamansurova Zilola & AlWadi, Belal Mahmoud & Castillo-Picon, Jorge & Abdul-Samad, Zulkiflee, 2023. "Relationship between the resource curse, Forest management and sustainable development and the importance of R&D Projects," Resources Policy, Elsevier, vol. 85(PA).
    16. Liu, Dongwang & Yang, Ziqi, 2024. "Asymmetric linkages among fintech, oil prices, governance, and growth in Southeast Asian economies," Resources Policy, Elsevier, vol. 88(C).
    17. Shahbaz, Muhammad & Nwani, Chinazaekpere & Bekun, Festus Victor & Gyamfi, Bright Akwasi & Agozie, Divine Q., 2022. "Discerning the role of renewable energy and energy efficiency in finding the path to cleaner consumption and production patterns: New insights from developing economies," Energy, Elsevier, vol. 260(C).
    18. Razzaq, Asif & Ajaz, Tahseen & Li, Jing Claire & Irfan, Muhammad & Suksatan, Wanich, 2021. "Investigating the asymmetric linkages between infrastructure development, green innovation, and consumption-based material footprint: Novel empirical estimations from highly resource-consuming economi," Resources Policy, Elsevier, vol. 74(C).
    19. Deng, Wei & Akram, Rabia & Mirza, Nawazish, 2022. "Economic performance and natural resources: Evaluating the role of economic risk," Resources Policy, Elsevier, vol. 78(C).
    20. Zhou, Hui & Awosusi, Abraham Ayobamiji & Dagar, Vishal & Zhu, Guohua & Abbas, Shujaat, 2023. "Unleashing the asymmetric effect of natural resources abundance on carbon emissions in regional comprehensive economic partnership: What role do economic globalization and disaggregating energy play?," Resources Policy, Elsevier, vol. 85(PA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:254:y:2022:i:pc:s0360544222011781. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.