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Environmental Policy and Economic Growth: Empirical Evidence from Europe

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  • Bruce Morley

    (University of Bath)

Abstract

The aim of this study is to determine whether environmental policies affect economic growth. Using a standard model of economic growth and a panel of European data, there is evidence that environmental taxes have had a negative effect on economic growth over the last ten years, indicating the ‘double dividend’ does not hold. This effect is particularly evident when other distortionary taxes are included in the model. A second contribution of this study is to incorporate the complimentary measure of renewable energy provision into the model. Again the results indicate a negative relationship between renewable energy and economic growth, offering support for the curse of natural resources.

Suggested Citation

  • Bruce Morley, 2010. "Environmental Policy and Economic Growth: Empirical Evidence from Europe," Department of Economics Working Papers 12/10, University of Bath, Department of Economics.
    • Handle: RePEc:eid:wpaper:21167
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    File URL: https://purehost.bath.ac.uk/ws/files/282815/1210.pdf
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    References listed on IDEAS

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    Cited by:

    1. Mahmoud Hassan & Walid Oueslati & Damien Rousselière, 2020. "Exploring the link between energy based taxes and economic growth," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 22(1), pages 67-87, January.
    2. Magdalena Ziolo & Iwona Bak & Anna Spoz & Beata Zofia Filipiak & Jaroslaw Kozuba & Piotr Niedzielski, 2020. "Financial and Energy Markets - A Sustainable Approach. Perspective of European Countries Belonging to the OECD," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 491-511.

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