article · Journal of Environmental Management
An assessment of Europe's four largest agrarian economies, namely France, Germany, Italy, and Spain, evaluates the dual impact of environmental taxation between 1995 and 2020. Using Method of Moments Quantile Regression alongside other analytical approaches, the research investigates whether environmental taxes deliver green dividends across both ecological targets and farming practice. The findings confirm that environmental taxation generates co-benefits, supporting environmental sustainability while increasing value-added output in the agricultural sector. Furthermore, renewable energy consumption and population density both contribute positively towards carbon-neutral targets. The analysis also validates the environmental Kuznets curve hypothesis, demonstrating that environmental quality improves after economic income crosses a specific threshold. Consequently, establishing resilient environmental tax structures can provide viable mechanisms to stimulate credit and private investment in sustainable agricultural development.
Balancing economic productivity in agriculture with stringent climate commitments represents a critical challenge for governments. Demonstrating that environmental taxes can simultaneously improve ecological health and generate agricultural value helps align food security frameworks with net-zero mandates. These insights show how targeted fiscal policies can drive clean energy adoption without compromising the economic viability of primary agricultural producers.
The abstract outlines macro-level econometric policy analysis rather than a direct commercial product or technical invention. The findings could inform advisory services, regulatory frameworks, and green lending programmes developed by agricultural banks and development finance institutions seeking to direct capital into clean energy transitions. As an empirical economic assessment, this research is distant from direct commercial application, offering strategic evidence for public policy design and institutional credit structures.
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The increasing human activities amidst competition for resources across the globe has made environmental challenges an ongoing classic problem, thus prompting policymakers to continually seek effective solution while ensuring sustainable development. With the wide coverage of the relevance of the double dividend hypothesis in explaining the co-benefit of environmental tax, there is a dearth of evidence in the literature to suggest that environmental tax offers green dividends for both the environment and agricultural practice in the European countries. As such, this study employed the more recent Method of Moments Quantile Regression (MMQR) alongside other approaches for Europe's largest agrarian economies (France, Germany, Italy, and Spain) over the annual period 1995-2020. The investigation affirms the validity of the co-benefit of environmental tax as far as environmental sustainability and value-added to agriculture are concerned in this panel of 'Big Four' economies, thus motivating the countries to relentlessly pursue the carbon-neutral 2050 target. Moreover, the study aligns with the expectation that renewable energy utilization and population density are desirable factors for achieving a carbon-neutral target. Lastly, the findings suggest that environmental quality is attainable in the panel, especially as increasing income surpasses a certain threshold, thus validating the environmental Kuznets curve hypothesis. Above all, the findings provide timely policy insight that accommodates both the environmental sustainability and food security framework of the European Union. The policy options relevant in light of the study's conclusions include that the decision makers in the selected agrarian economies should ramp up energy transition opportunities through a resilient environmental tax system that incentives availability of credit and investment financing in the agriculture sector.
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DOI: 10.1016/j.jenvman.2022.116748
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