ENVIRONMENTAL TAXES AS THE INSTRUMENT OF ENVIRONMENTAL POLICY IN DEVELOPING COUNTRIES

Abstract

Many environmental and natural
resource problems, which have been solved in
developed countries with the use of appropriate
instruments, are becoming increasingly common in
developing countries. Due to poverty, the
efficiency of conceiving environmental policies
and minimizing costs, are inherent issues of these
countries. The aim of this paper is to highlight the
importance of environmental taxes in developing
countries, as environmental taxes are an
instrument of environmental policy that convenes
with the level of their development. Most countries
today pay great attention to environmental taxes.
However, in the tax systems of developing
countries, their significance is neglected. We
analyzed 12 developing countries, which are
members of the European Union, with the
tendency to point out the benefits they could have
from environmental taxes. A regression analysis
was applied on the data series for the period 2001-
2016. The results of the model show that the
growth of tax revenues from ecological taxes
implicitly increases the state allocation in the field
of environmental protection.