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Spatial Patterns in Fiscal Impacts of Environmental Taxation in the EU

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  • Vít Pászto

    (Department of Geoinformatics, Palacký University Olomouc, 17. listopadu 50, 77146 Olomouc, Czech Republic
    Department of Computer Science and Applied Mathematics and Department of Economics, Moravian Business College Olomouc, tř. Kosmonautů 1288/1, 779 00 Olomouc, Czech Republic)

  • Jarmila Zimmermannová

    (Department of Computer Science and Applied Mathematics and Department of Economics, Moravian Business College Olomouc, tř. Kosmonautů 1288/1, 779 00 Olomouc, Czech Republic)

  • Jolana Skaličková

    (Department of Computer Science and Applied Mathematics and Department of Economics, Moravian Business College Olomouc, tř. Kosmonautů 1288/1, 779 00 Olomouc, Czech Republic)

  • Judit Sági

    (Finance Department, Budapest Business School, University of Applied Sciences, Buzogány u. 10-12, H-1149 Budapest, Hungary)

Abstract

There are several reasons for environmental taxation implementation. Besides its environmental impact, the main reason for such taxation is its fiscal impact, particularly in generating revenues of public budgets. The main goal of this paper is to observe possible spatial patterns in fiscal impacts of environmental taxation in the EU countries, and to depict the groups of countries with the same (or similar) fiscal impact of these instruments on public budget revenues, including environmental and economic characteristics. Two methods of cluster analysis are used, Ward linkage and K-nearest neighbors (spatial) cluster analysis to observe potential geographical links or implication of fiscal impact. The study is performed for the years 2008 and 2017. Based on the results, we can say that in the year 2008, the EU countries were divided into “the west” and “the east”, with some exceptions. The western countries were characterized by high environmental tax revenues, the eastern countries by low environmental tax revenues. For 2017, the situation is different. The border between old and new EU member states is not so abrupt and clear. The results show higher diversification between EU countries concerning the fiscal impacts of environmental taxation.

Suggested Citation

  • Vít Pászto & Jarmila Zimmermannová & Jolana Skaličková & Judit Sági, 2020. "Spatial Patterns in Fiscal Impacts of Environmental Taxation in the EU," Economies, MDPI, vol. 8(4), pages 1-18, November.
    • Handle: RePEc:gam:jecomi:v:8:y:2020:i:4:p:104-:d:448312
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    References listed on IDEAS

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