Can environmental taxes decrease final energy consumption in the old and new EU countries?

Figures & data

Table 1. Descriptive statistics.

	Variable	Number of observations	Mean	Std. Dev.	Min	Max
EU16	FEC	416	51,056.90	60,736.18	366.84	231,106.90
	ENVTAX	416	14,337.33	16,944.44	87.60	61,119
	GDP	416	583,680.90	746,825.10	2,846.60	3,473,260
	GHG	416	216.75	264.53	4.56	1155.30
EU11	FEC	286	15,728.66	16,870.92	2429.04	74,879.22
	ENVTAX	286	1918.40	2411.044	25.61	13,545.47
	GDP	286	77,267.73	95,316.68	2988.10	532,504.70
	GHG	286	88.38	111.75	10.19	462.62

Source. Authors computation.

Figure 1. The change in final energy consumption, revenues from environmnetal tax and greenhouse gas emissions in old EU countries (index 1995 = 100). Source. Authors calculation based on data from Eurostat (2023).

Figure 2. The change in final energy consumption, revenues from environmental tax and greenhouse gas emissions in new EU countries (index 1995 = 100). Source. Authors calculation based on data from Eurostat (2023).

Table 2. Results of cross-sectional and unit-root tests.

			CADF		Breitung
	Variable	CD-test	Level	Difference	Level	Difference
EU16	lfec	19.73***	−1.499	−3.908***	−0.7731	−3.4741***
	lenvtax	48.71***	−1.989	−2.992***	1.6171	−3.6174***
	lgdp	51.88***	−1.452	−3.160***	3.5314	−3.2359 ***
	lghg	25.55***	−1.467	−3.634***	1.7294	−3.0464***
EU11	lfec	11.47***	−1.937	−3.784***	−1.4165*	−2.8777***
	lenvtax	35.45***	−3.029***	−3.825***	−2.3900	−1.4575*
	lgdp	37.18***	−2.833***	−3.706***	2.9496	−2.0446**
	lghg	18.04***	−1.427	−3.221***	0.2756	−4.7942***

Notes. *, ** and *** denote the statistical significance at 10%, 5% and 1% level.

Source. Authors computation.

Table 3. Panel cointegration test results.

Pedroni cointegration
	EU16	EU11
Modified Phillips-Perron	−1.5610*	0.9501
Phillips-Perron	−6.4703***	−3.0274**
Augmented Dickey-Fuller	−5.7238***	−2.5748**
Westerlund cointegration
Variance ratio	−2.8225**	−1.1896*

Notes. *, ** and *** denote the statistical significance at 10%, 5 % and 1% level.

Source. Authors computation.

Table 4. Estimation results of the dynamic panel model.

Variables	Old EU countries		New EU countries
	PMG	MG	PMG	MG
Long-run coefficients
lenvtax	−0.101***	−0.063	−0.033**	−0.729
	−0.0342	−0.0472	−0.0166	−0.4675
lgdp	0.208***	0.169***	0.187***	−0.576
	−0.0294	−0.0442	−0.018	−0.9621
lghg	0.421***	0.497***	0.546***	−10.459
	−0.0392	−0.0892	−0.033	−10.5868
Short-run coefficients
Error correction coefficients	−0.295***	−0.679***	−0.316***	−0.435***
	−0.0574	−0.0743	−0.1046	−0.1026
Δlenvtax	0.094**	0.072	−0.005	0.033
	−0.043	−0.0493	−0.0142	−0.0229
Δlgdp	0.226**	0.246***	0.008	−0.002
	−0.0925	−0.0732	−0.0222	−0.0281
Δlghg	0.455***	0.228***	0.548***	0.474***
	−0.0845	−0.0758	−0.0944	−0.0732
constant	1.832***	4.349***	1.662***	2.388***
	−0.336	−0.7786	−0.5483	−0.6414
Number of observations	400	400	275	275
Number of groups	16	16	11	11
Hausman test	2.02		5.16
	[0.5676]		[0.1605]

Notes. *, **, ***, indicate significance level of 10%, 5% and 1%, all variables are expressed in logarithms.

Source: Authors computation.

Eurostat. (2023). Environmental tax revenues statistics. Retreived February 17, 2022, from https://ec.europa.eu/eurostat/databrowser/view/ENV_AC_TAX__custom_4951251/default/table?lang=en

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