Innovative development of Oil & Gas industry: role of environmental taxation

Abstract

The article is devoted to studying the relationship between environmental taxes and the innovative development of the oil and gas industry. The bibliometric analysis of the directions of scientific research of the chain «innovative management - oil and gas industry - environmental taxes» testified to the central place of the issue of sustainable development in ensuring innovative transformations of the industry. It is determined that at the present stage, the application of environmental taxes aims not only to reduce environmental pollution but also to ensure structural transformations of the economy on the way to ensuring its sustainable development. It has been proven that innovations in the oil and gas industry are connected with implementing more efficient technologies and the search for prospects for its transformation under the green economy goals. It is determined that the application of environmental taxes to stimulate sustainable development progress requires the complexity of their application with other instruments of state support for environmental innovation. An empirical analysis of the relationship between environmental taxation and oil and gas production and consumption using statistics for OECD countries for 2010-2019. Correlation analysis results identified the inverse relationship between the dynamics of indicators of environmental tax intensity and the parameters of the oil and gas industry. Regression with Newey-West standard errors dependences of changes in oil and gas production and consumption under the influence of changes in environmental tax revenues confirmed the existence of an inverse relationship. It is determined that with the growth of tax revenues from environmental taxes, there are significant reductions in both production and consumption of oil and gas. Accordingly, it is confirmed that environmental taxes are one of the reasons for the innovative transformations of the oil and gas industry, associated with reducing its traditional operation and the transition to more advanced technologies for energy production. The obtained results create a basis for adjusting the state strategies for regulating the functioning of the oil and gas industry and ensuring its innovative development.