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The role of environmental taxes and other political instruments on the road to climate neutrality
[Role environmentálních daní a dalších politických nástrojů na cestě za klimatickou neutralitou]

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  • Josef Gotvald

Abstract

Climate change and climate neutrality targets for 2050 in the case of the EU bring the need for effective environmental policy instruments. Environmental taxes, green innovations, carbon pricing, emission allowances and other instruments are attracting increasing attention in academic as well as economic and environmental policy debates. This paper provides a detailed review of the theoretical and empirical literature on the role of policy instruments in the path towards climate neutrality, in particular on the effectiveness of environmental taxes, innovations, and established policies across the globe. A separate section also examines the two most widely used approaches for putting a price on carbon - carbon taxes and emission allowances. Environmental policy instruments are combined, however, none of them alone contributes to significant environmental improvements, as confirmed by several major studies. But stricter regulation and improved instruments go a long way towards achieving climate neutrality.

Suggested Citation

  • Josef Gotvald, 2024. "The role of environmental taxes and other political instruments on the road to climate neutrality [Role environmentálních daní a dalších politických nástrojů na cestě za klimatickou neutralitou]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2024(1), pages 47-76.
    • Handle: RePEc:prg:jnlcfu:v:2024:y:2024:i:1:id:588:p:47-76
    DOI: 10.18267/j.cfuc.588
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    More about this item

    Keywords

    Environmental taxes; Innovations; Environmental policies; Carbon tax; Emission allowances; Climate neutrality; Efficiency; Environmentální daně; Inovace; Environmentální politiky; Uhlíková daň; Emisní povolenky; Klimatická neutralita; Účinnost;
    All these keywords.

    JEL classification:

    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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