Abstract:

The problem of environmental pollution, which is struggled at the global level, has reached dimensions that threaten all bios. In this context, it is critical to examine the factors that cause environmental pollution and to develop policies to limit them. On the other hand, the variable on which environmental pollution is represented in the analyzes also affects the results. In the paper, the more comprehensive ecological footprint indicator is preferred instead of the carbon emission variable, which is often used to represent environmental pollution. The aim of the paper is to examine the effect of environmental taxes on environmental pollution in selected G20 countries for the 1998-2016 period with panel data analysis. In the empirical part, the second generation panel cointegration test developed by Westerlund (2007) and the Emirmahmutoglu-Kose (2011) panel causality test are applied. According to the findings, there is no cointegration relationship between environmental taxes and ecological footprint. In addition, it is determined that there is no causality from environmental taxes to ecological footprints and from ecological footprints to environmental taxes. However, cross-section causality results provide evidence for unidirectional causality from environmental taxes to ecological footprints in Japan and Turkey, and from ecological footprint to environmental taxes in Germany and Australia. The results indicate that environmental taxes are not effective on environmental pollution. Therefore, the paper reveals that there is a need for reforms to increase environmental quality in environmental taxes.

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