Validity of double dividend hypothesis in EU-15 countries
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Abstract
The increases in climate change, biological diversity loss, ecosystem degradation, effects of chemical pollution on the human health, scarcity of the sources, energy and water security have been experienced in the world in recent years together with globalization and the sharp increases in the mass production. In this regard, especially developed countries have begun to implement the policies such as environmental tax reforms to overcome these problems. This study examines the impact of environmental tax reforms on both environment and employment in EU-15 countries (Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, United Kingdom) during the period 1995-2012 by using panel cointegration and Panel FMOLS tests. We found that the double dividend hypothesis was valid in EU-15 countries.
Keywords: double dividend hypothesis, environmental tax reform, panel data analysis
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