The Effect of Green Tax on Total Tax Income (Case Study of Selected OECD Countries)

Abstract

Among the various government incomes, taxes, as a permanent and predictable source, have always been a matter for government attention. But, since this instrument generates disruptions in the economy, economists have been contemplating introducing new tax bases that t create the least inefficiency in the economic system. Green taxes which are based on costs, have such a feature. This study deals with environmental taxes and examines the effect of these type of taxes on total state tax revenues in 35 selected OECD countries over the period of 1980-2015. The results of the applied panel model show that the application of green taxes will lead to an increase in total government tax revenues.

Keywords

• green taxes
• environmental taxes
• pigo taxe
• income
• government revenues
• value-added tax