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Causality Relationship Among Carbon Tax, Economic Growth and Co2 Emission: Evidence from Denmark, Finland, Netherlends, Sweden and Norway

Author

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  • Yılmaz Bayar

    (Usak University)

  • Mahmut Ünsal Şaşmaz

    (Usak University)

Abstract

Environment is a very important living place for all creatures. Moreover, environment is one of the most important instruments in establishment of ecological balance. However, there have been increases in the factors posing a threat to the environment in recent years and environmental pollution has become a global problem. In this regard, Denmark, Finland, Netherlands, Sweden and Norway began to take carbon tax from carbon dioxide emissions in the context of combat with environmental pollution. This study examines the interaction among carbon tax, CO2 emission and economic growth in Denmark, Finland, Netherlands, Sweden and Norway during the period 1996-2011. We found that there was unidirectional causality from economic growth to carbon dioxide emission.

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Handle: RePEc:bau:ijaefs:v:1:y:2016:i:1:id:96
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