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Symphony or Solo: Does Convergence Exist in Environmental Taxation among EU Countries?

Author

Listed:
  • Zhengzheng Li

    (School of Economics, Qingdao University, Qingdao 266071, China)

  • Zhongyang Sun

    (School of Economics, Qingdao University, Qingdao 266071, China)

  • Kaihua Wang

    (School of Economics, Qingdao University, Qingdao 266071, China)

  • Oana-Ramona Lobonț

    (School of Economics, Qingdao University, Qingdao 266071, China)

Abstract

This study sought to ascertain the existence of convergence in environmental taxation among EU countries. By employing the sequential panel selection method and the panel KSS unit root test, it is demonstrated that the environmental taxation sequences in Luxembourg, Germany, Spain, France, and Cyprus diverge, while those of the remaining 22 countries converge. Similarly, the energy tax sequences of Croatia, Spain, Germany, and France are unstable, indicating divergence, while the remaining 23 countries exhibit significant convergence. Finally, transport taxes show a convergent trend across all EU countries. The convergence of environmental taxation can be explained by the catch-up and spatial spillover effects, and the non-convergence of a few EU countries is attributed to their minimal implementation of environmental goals. This study provides recommendations for improving environmental policies.

Suggested Citation

  • Zhengzheng Li & Zhongyang Sun & Kaihua Wang & Oana-Ramona Lobonț, 2024. "Symphony or Solo: Does Convergence Exist in Environmental Taxation among EU Countries?," Sustainability, MDPI, vol. 16(17), pages 1-21, September.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:17:p:7678-:d:1471179
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