Affiliation:
1. University of Education, Winneba, Ghana
Abstract
This study examines the impact of various environmental taxes on energy intensity using panel data from 20 European countries and 17 Sub-Saharan African countries for the period 2000-2019. The autoregressive distributed lag model (ARDL) was used to analyze both the long-term and short-term effects, employing a Pool Mean Group estimator. Results indicate that the influence of disaggregated environmental taxes, specifically air pollution taxes and climate change taxes, on energy intensity is not always consistent across different regions. The findings highlight that the effects vary based on income groups and time periods. These results suggest that policymakers need to tailor environmental tax policies to the unique economic and temporal contexts of each region, balancing the goals of economic growth and environmental sustainability.