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Public Opinion, Elections, and Environmental Fiscal Policy

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  • Chortareas, Georgios

    () (King's College London and National and Kapodistrian University of Athens)

  • Logothetis, Vassilis

    () (Cardiff Business School)

  • Papandreou, Andreas

    () (National and Kapodistrian University of Athens)

Abstract

We investigate how public opinion along with the electoral process affect the strength of environmental fiscal policies in the European Union (EU). Our analysis accounts for a set of economic, institutional, and political factors that can affect environmental taxes and expenditures. We pursue a dynamic panel data analysis covering 27 EU countries using public opinion data. We produce evidence showing that public concern for the environment, as gauged by opinion surveys, positively affects environmental protection expenditures, while elections negatively affect environmental tax revenues and environmental protection expenditures shrink in the aftermath of elections. We do not find evidence of partisan effects. The effect of public opinion and elections on environment-related fiscal decisions depends on the degree of integration with the global economy as well as several institutional factors including the level of corruption and the soundness of the rule of law. We also document that the results are impervious to a wide set of robustness tests.

Suggested Citation

  • Chortareas, Georgios & Logothetis, Vassilis & Papandreou, Andreas, 2018. "Public Opinion, Elections, and Environmental Fiscal Policy," Cardiff Economics Working Papers E2018/9, Cardiff University, Cardiff Business School, Economics Section.
  • Handle: RePEc:cdf:wpaper:2018/9
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    References listed on IDEAS

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    More about this item

    Keywords

    Environmental Protection; Taxes and Expenditures; Public Opinion; European Union; Panel Data;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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