Nexus between Environmental Tax, Economic Growth, Energy Consumption, and Carbon Dioxide Emissions: Evidence from China, Finland, and Malaysia Based on a Panel-ARDL Approach

Based on the environmental Kuznets curve theory (EKC) and the double-dividend hypothesis of environmental tax, this paper aims to examine the relationship between environmental tax, economic growth, energy consumption, and carbon dioxide emissions in China, Finland, and Malaysia from 1985 to 2014 us...

Full description

Saved in:
Bibliographic Details
Published in:Emerging markets finance & trade 2021-02, Vol.57 (3), p.698-712
Main Authors: He, Pinglin, Ya, Qiao, Chengfeng, Long, Yuan, Yuan, Xiao, Chen
Format: Article
Language:English
Subjects:
Carbon dioxide
carbon dioxide emissions
double-dividend theory
Economic growth
Energy consumption
environmental Kuznets curve
Environmental tax
environmental taxes
GDP
Gross Domestic Product
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Based on the environmental Kuznets curve theory (EKC) and the double-dividend hypothesis of environmental tax, this paper aims to examine the relationship between environmental tax, economic growth, energy consumption, and carbon dioxide emissions in China, Finland, and Malaysia from 1985 to 2014 using panel autoregressive distribution lag (ARDL) models. This paper discovers an N-shaped relationship between the volume of carbon dioxide emissions and the value of the gross domestic product. Furthermore, this study confirms that the double-dividend effect of environmental tax exists in all three countries in the long run. Overall, this study argues that evidence from Finland and Malaysia on environmental taxes that help the country to save energy and reduce carbon dioxide emissions can provide a reference for China and other developing countries.
ISSN:1540-496X
1558-0938
DOI:10.1080/1540496X.2019.1658068