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Does Environmental Tax Affect Energy Efficiency? An Empirical Study of Energy Efficiency in OECD Countries Based on DEA and Logit Model

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  • Pinglin He

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China
    Beijing Key Laboratory of New Energy and Low-Carbon Development, North China Electric Power University, Beijing 102206, China)

  • Yulong Sun

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Huayu Shen

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Jianhui Jian

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Zhongfu Yu

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

Abstract

OECD countries are the largest energy consuming economies in the world, improving energy efficiency and reducing pollution emissions is one of the important goals of the environmental tax policies of OECD countries. Based on the total factor energy efficiency index, this paper establishes an epsilon based measure-data envelopment analysis (EBM-DEA) model to measure the energy efficiency levels of 32 OECD countries during 1995–2016 when undesired outputs are included and not included. The effect of environmental factors on energy efficiency evaluation is compared by efficiency analysis and projection value analysis. On this basis, a Panel Logit model was established to empirically examine the impact of energy taxes on energy efficiency in 32 OECD countries. This paper finds that undesired output has a large impact on the energy efficiency level of OECD countries. Measuring energy efficiency levels without considering undesired outputs tends to lead to overestimation of the energy efficiency level of environmentally friendly countries and underestimate the energy efficiency level of countries that value environmental protection. The collection of energy tax has an important impact on energy consumption efficiency. Without considering the unexpected output, the energy tax has a significant impact on improving the efficiency of coal energy consumption. When considering the unexpected output, the energy tax has a significant impact on improving the efficiency of oil energy consumption. Regardless of the expected output or not, the energy tax has a positive effect on improving the efficiency of natural gas energy consumption. The experimental results also show that the energy structure and energy price have a negative impact on energy efficiency, while the progress of environmental protection technology and industrial structure have a positive impact on energy efficiency. Energy taxes have a “double dividend”. This paper argues that when evaluating a country’s energy efficiency, it should consider the undesired output factors of environmental constraints; governments should pay attention to the role of energy taxes in improving energy efficiency, improve the energy tax system, optimize industrial structure upgrades, stabilize energy prices and support the development of environmental technologies and improve energy efficiency.

Suggested Citation

  • Pinglin He & Yulong Sun & Huayu Shen & Jianhui Jian & Zhongfu Yu, 2019. "Does Environmental Tax Affect Energy Efficiency? An Empirical Study of Energy Efficiency in OECD Countries Based on DEA and Logit Model," Sustainability, MDPI, vol. 11(14), pages 1-21, July.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:14:p:3792-:d:247372
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    2. Umer Shahzad & Magdalena Radulescu & Syed Rahim & Cem Isik & Zahid Yousaf & Stefan Alexandru Ionescu, 2021. "Do Environment-Related Policy Instruments and Technologies Facilitate Renewable Energy Generation? Exploring the Contextual Evidence from Developed Economies," Energies, MDPI, vol. 14(3), pages 1-25, January.
    3. Zhibo Zhou & Weiguo Zhang & Xinxin Pan & Jiangfeng Hu & Ganlin Pu, 2019. "Environmental Tax Reform and the “Double Dividend” Hypothesis in a Small Open Economy," IJERPH, MDPI, vol. 17(1), pages 1-21, December.
    4. He, Pinglin & Sun, Yulong & Niu, Hanlu & Long, Chengfeng & Li, Shufeng, 2021. "The long and short-term effects of environmental tax on energy efficiency: Perspective of OECD energy tax and vehicle traffic tax," Economic Modelling, Elsevier, vol. 97(C), pages 307-325.
    5. Hongcheng Shen & Zihao Yang & Yuxin Bao & Xiaonuan Xia & Dan Wang, 2022. "Impact of Urban Mining on Energy Efficiency: Evidence from China," Sustainability, MDPI, vol. 14(22), pages 1-16, November.
    6. Laura Vidal-Hernández & Diana de Yta-Castillo & Blanca Castellanos-Basto & Marco Suárez-Castro & Evelia Rivera-Arriaga, 2021. "Fiscal Economic Instruments for the Sustainable Management of Natural Resources in Coastal Marine Areas of the Yucatan Peninsula," Sustainability, MDPI, vol. 13(19), pages 1-20, October.
    7. Karmaker, Shamal Chandra & Hosan, Shahadat & Chapman, Andrew J. & Saha, Bidyut Baran, 2021. "The role of environmental taxes on technological innovation," Energy, Elsevier, vol. 232(C).
    8. Hao Wu & Xinwei Gao, 2021. "Multimodal Data Based Regression to Monitor Air Pollutant Emission in Factories," Sustainability, MDPI, vol. 13(5), pages 1-17, March.
    9. Tao Xu & Jianxin You & Hui Li & Luning Shao, 2020. "Energy Efficiency Evaluation Based on Data Envelopment Analysis: A Literature Review," Energies, MDPI, vol. 13(14), pages 1-20, July.
    10. Assaad Ghazouani & Wanjun Xia & Mehdi Ben Jebli & Umer Shahzad, 2020. "Exploring the Role of Carbon Taxation Policies on CO 2 Emissions: Contextual Evidence from Tax Implementation and Non-Implementation European Countries," Sustainability, MDPI, vol. 12(20), pages 1-16, October.
    11. Aydin, Mucahit & Bozatli, Oguzhan, 2023. "The effects of green innovation, environmental taxes, and financial development on renewable energy consumption in OECD countries," Energy, Elsevier, vol. 280(C).
    12. Rafique, Muhammad Zahid & Fareed, Zeeshan & Ferraz, Diogo & Ikram, Majid & Huang, Shaoan, 2022. "Exploring the heterogenous impacts of environmental taxes on environmental footprints: An empirical assessment from developed economies," Energy, Elsevier, vol. 238(PA).
    13. Liangen Zeng, 2021. "China’s Eco-Efficiency: Regional Differences and Influencing Factors Based on a Spatial Panel Data Approach," Sustainability, MDPI, vol. 13(6), pages 1-19, March.
    14. Yue Liu & Pierre Failler & Zhiying Liu, 2022. "Impact of Environmental Regulations on Energy Efficiency: A Case Study of China’s Air Pollution Prevention and Control Action Plan," Sustainability, MDPI, vol. 14(6), pages 1-21, March.
    15. Kiril Simeonovski & Tamara Kaftandzieva & Gregory Brock, 2021. "Energy Efficiency Management across EU Countries: A DEA Approach," Energies, MDPI, vol. 14(9), pages 1-19, May.

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