Energy tax harmonization in EU: Time series and panel data evidence
AbstractThis paper searches statistical evidence of tax harmonization initiated and motivated by EU Commission since 1980. The purpose of energy tax harmonization is to reach more efficient use of energy among members and thereby to establish more competitive markets in EU. The tax harmonization in EU, in this work, is analyzed through convergence tests to see whether total taxes applied to oil and diesel used by industries and households are adjusted among EU members. This study, therefore, employs minimum Lagrange multiplier unit root tests with structural breaks developed by Lee and Strazicich (2003). Upon observations the data for panels, it is revealed that panels for oil industry tax, diesel industry tax, oil household tax and diesel household tax converge to average total taxes of members. Time series data for individual countries, on the other hand, give both convergence and non-convergence results.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 24013.
Date of creation: 05 Mar 2010
Date of revision:
oil and diesel taxes; households and industries; harmonization; convergence; European Union; LM unit root tests with structural breaks;
Find related papers by JEL classification:
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
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