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Do Environmental Taxes and Green Electricity Matter for Environmental Quality? Fresh Evidence in France Based on Fourier Methods

Author

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  • Seyed Alireza Athari

    (Business School, Holy Spirit University of Kaslik, Jounieh 1200, Lebanon
    Department of Economics, Korea University, Seoul 02841, Republic of Korea
    Department of Business Administration, Faculty of Social and Human Sciences, Cyprus Health and Social Sciences University, Guzelyurt, Mersin 99750, Turkey)

  • Kwaku Addia

    (Faculty of Economics and Administrative Sciences, European University of Lefke, Lefke 99800, Turkey)

  • Dervis Kirikkaleli

    (Faculty of Economics and Administrative Sciences, European University of Lefke, Lefke 99800, Turkey
    Department of Economics, Adnan Kassar School of Business, Lebanese American University, Beirut 1102, Lebanon)

  • Souha Hanna Al Geitany

    (Business School, Holy Spirit University of Kaslik, Jounieh 1200, Lebanon)

  • Latifa Al Fadhel

    (School of Business, Bahrain Polytechnic, Isa Town 33349, Bahrain
    ARUCAD Research Centre, Arkin University of Creative Arts and Design, Northern Cyprus, Kyrenia, Mersin 99300, Turkey)

  • Chafic Saliba

    (Business School, Holy Spirit University of Kaslik, Jounieh 1200, Lebanon)

Abstract

The environment has generally served as the foundation and support of human existence and survival over the years through agricultural development, health supply, industrialization, and transportation. This process has resulted in massive environmental degradation. In this postindustrial period, global consensus calls for taking steps to rebalance the degraded environment by planning economic development and social progress while preserving the quality of the environment. In recent years, experts have recognized key factors affecting the quality of the environment where policy is required. The study seeks to explore the impacts of ecological taxes and green electricity on the quality of the environment in France. The work employed Fourier ADL cointegration, novel Fourier autoregressive distributive lag econometric (N-ARDL), and Fourier Toda Yamamoto causality methods. The outcomes of the N-ARDL long-run cointegration estimates imply that both environmental tax and green electricity improve environmental quality in France. Furthermore, the Fourier Toda Yamamoto causality test denotes that both green electricity and environmental tax affect environmental quality in France without a rebound effect. The results recommend that since the “bonus–malus” system of France has suffered a significant rebound effect, the economy could reverse this with environmental taxes focused on reducing pollution. Additionally, the government of France could commit to its current alternative energy plan of 560 TWh of decarbonized electricity yearly from 463 TWh, given the fact that the energy sector is responsible for approximately 11% of total greenhouse gas (GHG) emissions.

Suggested Citation

  • Seyed Alireza Athari & Kwaku Addia & Dervis Kirikkaleli & Souha Hanna Al Geitany & Latifa Al Fadhel & Chafic Saliba, 2025. "Do Environmental Taxes and Green Electricity Matter for Environmental Quality? Fresh Evidence in France Based on Fourier Methods," Energies, MDPI, vol. 18(19), pages 1-24, September.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:19:p:5046-:d:1755910
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    References listed on IDEAS

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