IDEAS home Printed from https://ideas.repec.org/a/prg/jnlpol/v2023y2023i4id1391p422-446.html
   My bibliography  Save this article

Implications of Environmental Taxation for Economic Growth and Government Expenditures in Visegrad Group countries

Author

Listed:
  • Vera Mirović
  • Branimir Kalaš
  • Jelena Andrašić
  • Nada Milenković

Abstract

The paper shows an econometric approach to environmental taxes, economic growth and go- vernment expenditures in Visegrad Group (VG) countries from 1995 to 2018. The aim of this research is to explore how environmental taxes affect economic growth in Czechia, Hungary, Poland and Slovakia in the observed period. The subject of the research is to identify the relationship between total environmental tax revenues, energy tax revenues, transport tax revenues and economic growth. Also, empirical research includes the relation between environmental taxation and government expenditures to identify the character of their effects and influence on economic growth through government expenditures. The findings of VAR model I manifest that shocks in total environmental tax revenues and energy tax revenues positively and significantly affect the economic growth, whereas transport tax revenues have a negative and significant effect on economic growth. The results of VAR model II show that total environmental tax revenues are significantly positively related to government expenditures, which is not the case with energy tax revenues and transport tax revenues. Furthermore, empirical research finds a bidirectional causality between environmental taxes and economic growth, as well as unidirectional causality between environmental taxes and government expenditures in VG economies.

Suggested Citation

  • Vera Mirović & Branimir Kalaš & Jelena Andrašić & Nada Milenković, 2023. "Implications of Environmental Taxation for Economic Growth and Government Expenditures in Visegrad Group countries," Politická ekonomie, Prague University of Economics and Business, vol. 2023(4), pages 422-446.
    • Handle: RePEc:prg:jnlpol:v:2023:y:2023:i:4:id:1391:p:422-446
    DOI: 10.18267/j.polek.1391
    as

    Download full text from publisher

    File URL: http://polek.vse.cz/doi/10.18267/j.polek.1391.html
    Download Restriction: free of charge
    File URL: http://polek.vse.cz/doi/10.18267/j.polek.1391.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.polek.1391?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. Fischer, Carolyn & Springborn, Michael, 2011. "Emissions targets and the real business cycle: Intensity targets versus caps or taxes," Journal of Environmental Economics and Management, Elsevier, vol. 62(3), pages 352-366.
    2. Xuexian Gao & Haidong Zheng & Yan Zhang & Naser Golsanami, 2019. "Tax Policy, Environmental Concern and Level of Emission Reduction," Sustainability, MDPI, vol. 11(4), pages 1-17, February.
    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. Branimir Kalaš & Boris Radovanov & Nada Milenković & Aleksandra Marcikić Horvat, 2024. "Macroeconomic Determinants of Circular Economy Investments: An ECM Approach," Sustainability, MDPI, vol. 16(15), pages 1-14, August.
    2. Nino Stameski & Magdalena Radulescu & Vera Zelenović & Vera Mirović & Branimir Kalaš & Nataša Pavlović, 2024. "Investigating the Effects of Environmental Tax Revenues on Economic Development: The Case of Nordic Countries," Sustainability, MDPI, vol. 16(18), pages 1-17, September.

    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. Christian Schoder & Remzi Baris Tercioglu, 2024. "A climate-fiscal policy mix to achieve Türkiye’s net-zero ambition under feasibility constraints," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 21(2), pages 331-359, April.
    2. Zhibo Zhou & Weiguo Zhang & Xinxin Pan & Jiangfeng Hu & Ganlin Pu, 2019. "Environmental Tax Reform and the “Double Dividend” Hypothesis in a Small Open Economy," IJERPH, MDPI, vol. 17(1), pages 1-21, December.
    3. Jie Yan & Ruiliang Wang, 2024. "Green Fiscal and Tax Policies in China: An Environmental Dynamic Stochastic General Equilibrium Approach," Sustainability, MDPI, vol. 16(9), pages 1-24, April.
    4. Eric Jondeau & Gregory Levieuge & Jean-Guillaume Sahuc & Gauthier Vermandel, 2022. "Environmental Subsidies to Mitigate Transition Risk," Swiss Finance Institute Research Paper Series 22-45, Swiss Finance Institute.
    5. Ren Wang & Yuxiang Bian & Han Gao & Jie Hou, 2023. "Optimal Environmental Policy for Heterogeneous Governments in China," IJERPH, MDPI, vol. 20(4), pages 1-12, February.
    6. Patrick Gruning, 2022. "Fiscal, Environmental, and Bank Regulation Policies in a Small Open Economy for the Green Transition," Working Papers 2022/06, Latvijas Banka.
    7. Chan, Ying Tung & Zhao, Hong, 2023. "Optimal carbon tax rates in a dynamic stochastic general equilibrium model with a supply chain," Economic Modelling, Elsevier, vol. 119(C).
    8. Newbery, David, 2018. "Policies for decarbonizing a liberalized power sector," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 12, pages 1-24.
    9. Coenen, Günter & Lozej, Matija & Priftis, Romanos, 2024. "Macroeconomic effects of carbon transition policies: An assessment based on the ECB’s New Area-Wide Model with a disaggregated energy sector," European Economic Review, Elsevier, vol. 167(C).
    10. Anton Nakov & Carlos Thomas, 2023. "Climate-conscious monetary policy," Working Papers 2334, Banco de España.
    11. Huang, Bihong & Punzi, Maria Teresa & Wu, Yu, 2022. "Environmental regulation and financial stability: Evidence from Chinese manufacturing firms," Journal of Banking & Finance, Elsevier, vol. 136(C).
    12. Woerdman Edwin & Nentjes Andries, 2019. "Emissions Trading Hybrids: The Case of the EU ETS," Review of Law & Economics, De Gruyter, vol. 15(1), pages 1-32, March.
    13. Barbara Annicchiarico & Fabio Di Dio, 2014. "Ramsey Monetary Policy and GHG Emission Control," CEIS Research Paper 330, Tor Vergata University, CEIS, revised 24 Sep 2014.
    14. Tang, Maogang & Li, Xiuzhen & Zhang, Yun & Wu, Yingtao & Wu, Baijun, 2020. "From command-and-control to market-based environmental policies: Optimal transition timing and China’s heterogeneous environmental effectiveness," Economic Modelling, Elsevier, vol. 90(C), pages 1-10.
    15. Marco Carli, 2025. "Green Ambiguity," CEIS Research Paper 591, Tor Vergata University, CEIS, revised 05 Feb 2025.
    16. George Economides & Anastasio Xepapadeas, 2019. "The effects of climate change on a small open economy," CESifo Working Paper Series 7582, CESifo.
    17. Li, Zhe & Sun, Jianfei, 2015. "Emission taxes and standards in a general equilibrium with entry and exit," Journal of Economic Dynamics and Control, Elsevier, vol. 61(C), pages 34-60.
    18. Chan, Ying Tung, 2020. "Are macroeconomic policies better in curbing air pollution than environmental policies? A DSGE approach with carbon-dependent fiscal and monetary policies," Energy Policy, Elsevier, vol. 141(C).
    19. Adriana Gama, 2020. "Standards and social welfare in Cournot oligopolies," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 22(3), pages 467-483, July.
    20. Lu, Yunguo & Zhang, Lin, 2022. "National mitigation policy and the competitiveness of Chinese firms," Energy Economics, Elsevier, vol. 109(C).

    More about this item

    Keywords

    Environment; taxes; economic growth; government expenditure; VG economies;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

    Statistics

    Access and download statistics

    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:prg:jnlpol:v:2023:y:2023:i:4:id:1391:p:422-446. 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: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    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.