Environmentally related taxes and their influence on decarbonization of the economy
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Received January 25, 2024;Accepted May 10, 2024;Published June 3, 2024
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Author(s)Link to ORCID Index: https://orcid.org/0000-0002-4159-8446Link to ORCID Index: https://orcid.org/0000-0001-7525-2104Link to ORCID Index: https://orcid.org/0000-0002-4691-636XLink to ORCID Index: https://orcid.org/0000-0001-8584-3338Link to ORCID Index: https://orcid.org/0000-0003-2540-862X
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DOIhttp://dx.doi.org/10.21511/ee.15(1).2024.13
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Article InfoVolume 15 2024, Issue #1, pp. 174-189
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Cited by2 articlesJournal title: E3S Web of ConferencesArticle title: Prospects for financing measures for post-war environmental restoration in UkraineDOI: 10.1051/e3sconf/202455801033Volume: 558 / Issue: / First page: 01033 / Year: 2024Contributors: Nadiia Davydenko, Zoia Titenko, Olena Lemishko, Inna Demianenko, Y. Kazançoğlu, S. Karamperidis, S. Jagtap, V. KovalJournal title: Економіка та суспільствоArticle title: ПОДАТКОВІ ІНСТРУМЕНТИ РЕГУЛЮВАННЯ ЕКОНОМІЧНОГО РОЗВИТКУDOI: 10.32782/2524-0072/2024-65-34Volume: / Issue: 65 / First page: / Year: 2024Contributors: Тетяна Канєва, Руслан Тесля
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Environmental taxes ensure sustainable development, but their fiscal and environmental effectiveness differs for countries with different socio-economic characteristics. This study aims to compare the impact of environmental tax revenues on economy’s decarbonization (measured through carbon productivity – the ratio of GDP to carbon dioxide emissions) in different countries, considering their green technologies development and carbon emissions. The paper analyzed OECD and World Bank statistical data for 38 OECD countries for 2002–2021 using linear panel regression models with fixed and random effects (using Hausman test and STATA 18). To identify explicit and latent patterns of this influence, which are common to certain countries, this analysis did not consider each country separately but targeted clusters, distinguished by Ward and Sturges methods based on the effective tax rate on carbon emissions, total environmental tax revenues, total carbon emissions, and carbon productivity. The positive influence of environmental tax revenues on the economy’s decarbonization level has been confirmed for 29 countries (four from six clusters). The effect is the largest for the USA (an increase in tax revenues by 1% leads to an increase in carbon productivity by 0.9% on average) and the smallest – for the cluster including Austria, Belgium, Canada, Costa Rica, Czechia, Estonia, France, Germany, Hungary, Iceland, Korea, Lithuania, New Zealand, Poland, Portugal, Slovakia, Spain, and the Great Britain (increase – 0.1%). The negative impact was confirmed for nine countries (two from six clusters): Denmark, Finland, Israel, Latvia, and Sweden (decrease – 0.3%) and Greece, Italy, the Netherlands, and Slovenia (decrease – 0.21%).
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JEL Classification (Paper profile tab)H23, O44, Q56
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References88
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Tables6
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Figures5
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- Figure 1. Comparative analysis of ECR in OECD member countries in 2021
- Figure 2. Rating of OECD member countries according to Carbon Productivity in 2021
- Figure 3. Dendrogram for Ward link cluster analysis
- Figure 4. Descriptive characteristics of cluster analysis
- Figure 5. Results of Hausman test to determine the specification of linear regression model for countries panel of the first cluster
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- Table 1. Normalized input data
- Table 2. The country’s distribution in the formed clusters
- Table 3. Generalized results of country clustering
- Table 4. Linear regression model with fixed effects for countries panel of cluster 1
- Table 5. Linear regression model with random effects for countries panel of cluster 1
- Table 6. The generalized results of the regression analysis to confirm the impact of environmentally related taxes (Environmentally Related Tax Revenue) on the decarbonization of the economy (Carbon Productivity)
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Conceptualization
Olena Dobrovolska, Swen Günther, Olga Chernetska, Natalia Dubrova, Svitlana Kachula
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Data curation
Olena Dobrovolska, Olga Chernetska
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Formal Analysis
Olena Dobrovolska, Swen Günther
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Funding acquisition
Olena Dobrovolska, Natalia Dubrova, Svitlana Kachula
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Investigation
Olena Dobrovolska, Olga Chernetska
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Methodology
Olena Dobrovolska, Swen Günther, Svitlana Kachula
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Project administration
Olena Dobrovolska, Swen Günther, Svitlana Kachula
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Resources
Olena Dobrovolska, Olga Chernetska, Natalia Dubrova
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Software
Olena Dobrovolska, Natalia Dubrova
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Supervision
Olena Dobrovolska, Swen Günther, Svitlana Kachula
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Validation
Olena Dobrovolska, Olga Chernetska
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Visualization
Olena Dobrovolska, Swen Günther, Natalia Dubrova, Svitlana Kachula
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Writing – original draft
Olena Dobrovolska, Swen Günther, Olga Chernetska, Natalia Dubrova, Svitlana Kachula
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Writing – review & editing
Olena Dobrovolska, Swen Günther, Olga Chernetska, Natalia Dubrova, Svitlana Kachula
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Conceptualization
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Fair market value of bitcoin: halving effect
Investment Management and Financial Innovations Volume 16, 2019 Issue #4 pp. 72-85 Views: 3821 Downloads: 1036 TO CITE АНОТАЦІЯThe purpose of this article is to analyze the effect that halving has on the fair market value of bitcoins. The main hypothesis of the study is that the decline in the cost of miners’ remuneration for mining is a significant factor that affects the price of cryptocurrencies. The article examines the factors that regulate the issuing process. The significance of a limited supply of bitcoin is detailed in the article, as well as the mechanism for the implementation of the issue of new bitcoins. The study compares the historical inflation data of the US dollar and the projected data on the inflation of bitcoin. The article analyzes the main technical element of cryptocurrency – halving – when the miner’s reward is halved. This analysis includes the mathematical methods of statistical data processing. Research results show that reducing remuneration by half every four years leads to an increased market value of the cryptocurrency. This relationship is clearly illustrated by the Kendall rank correlation method. The results of the study can have a significant impact on the fundamental assessment of bitcoin and can also enable investors to assess any of the existing and operating cryptocurrencies according to this method.
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Inflation and economic growth: the search for a compromise for the Central Bank's monetary policy
Volodymyr Mishchenko , Svitlana Naumenkova , Svitlana Mishchenko , Viktor Ivanov doi: http://dx.doi.org/10.21511/bbs.13(2).2018.13Banks and Bank Systems Volume 13, 2018 Issue #2 pp. 153-163 Views: 2407 Downloads: 699 TO CITE АНОТАЦІЯThe article analyzes the influence of inflation on economic growth and substantiates the main directions of increasing the effectiveness of the central bank's anti-inflation policy.
In order to determine the limit of inflation, the excess of which has a negative impact on the economic growth, the relationship is analyzed between the inflation rate and the real GDP growth rate on the basis of IMF statistics using the example of 158 countries. It was determined that in 2010–2017, in the global economy, the 6.0% inflation was the marginal value of the inflation rate, beyond which the economic growth rate declined or slowed down.
Given the inverse relationship between the inflation rate and the real GDP growth rates as well as empirical calculations for the period 1996–2017, the threshold for inflation rate for Ukraine at the level of 4.51% was determined based on empirical calculations for the 1996–2017 period. The results indicate that the National Bank of Ukraine set the inflation target above the level of the calculated threshold inflation.
It has also been established that the link between the rates of nominal GDP growth, as opposed to real GDP, and the inflation rate, is more direct and more tight. It is substantiated that to analyze such dependence it is better to use GDP deflator instead of CPI. The results indicate that deflation constrains economic growth much less than inflation.
In order to increase the effectiveness of the central bank’s pro-cyclical monetary policy aimed at supporting economic growth, the relationship between the rates of real GDP growth and the indicator characterizing the gap between the growth rates of M3 and inflation, which actually reflects the real money supply dynamics, is determined. The results obtained allowed to conclude that in 2009 and 2014-2017, the artificial “squeezing” of the money supply took place in Ukraine, resulting in a decrease in the level of the economy monetization by 22.0% in 2017 compared to 2013.
It has been proved that in order to minimize the negative impact of inflationary processes on economic growth, the policy of the National Bank of Ukraine should be aimed at eliminating the artificial squeezing of the money supply through a reasonable increase in the economy monetization and the implementation of an effective monetary policy. -
Travel and tourism: growth potentials and contribution to the GDP of Saudi Arabia
Problems and Perspectives in Management Volume 16, 2018 Issue #1 pp. 417-427 Views: 2332 Downloads: 395 TO CITE АНОТАЦІЯSaudi Arabia is well known in the world for the holy places Makkah and Madinah. Hajjis and visitors come to perform hajj and Umrah every year in Makkah and Madinah from all around the world. Hajj and Umrah visits play a vital role in the inbound tourism of Saudi Arabia. The tourism revenue of Kingdom of Saudi Arabia is increasing absolutely but losing its contribution to the GDP proportionately. So, this paper tries to find out the economic activities of all components of tourism sector which are responsible for the negative trend. It also explains the relationships and variability of tourism revenues and expenditures with GDP and offers suggestions to enhance revenue of tourism sector. This study is based upon secondary data obtained from the website of SAMA (Saudi Arabian Monetary Authority) and General Authority for Statistics of Saudi Arabia. In tourism sector of Saudi Arabia, the increasing trend of expenditures of some economic activities is more than its revenue. The increasing trend of expenditures comparatively its revenues lowering contribution of tourism towards GDP. To improve the level of tourism revenue, government has to provide world class facilities and develop new tourist spots and allow the visitors to visit such places according to the Shariah and Kingdom rules. Government has to focus on developing passenger rail transport and other means of transport to connect all the tourist spots to provide easy conveyance, and on improving and developing tourism sector by helping the government and private organizations that are engaged directly or indirectly in providing services to the domestic and inbound tourists to assure more contribution to GDP.