Environmental taxes and pollution reduction have been the subject of several studies. By factoring the costs of pollution and other environmental costs into pricing, environmental taxes assist in ...correcting erroneous price mechanisms in the marketplace. It did, however, overlook the government's potential to facilitate the use of efficient energy sources, which is critical for environmental neutrality. The competence of a government is determined by its tax revenues, which allow the state to participate more in renewable energy technologies, offer an excellent opportunity to reduce greenhouse gas emissions and global warming by replacing traditional energy sources. To that aim, the impact of government revenues and debts, as well as renewable energy on environmental neutrality in the United States, is the only motive to conduct this research. A significant outcome of the renewable energy-environment nexus is revealed by tax revenue and debt. Since there seems to be no causation in the first moment, but higher-order interconnectedness emerges, as the quarterly data from 1990Q1 to 2020Q4 has been obtained to test for causality-in-mean and causality-in-variance employing novel non-parametric causality-in-quantiles algorithms. The findings reveal that renewable energy consumption and financial depth have significant predictive power for ecological footprint, uncovering asymmetric prediction across ecological transmission. Also, tax revenues and government debts found a significant connection and predictive potential in estimating the environmental footprint level. Thus, out of multiple suggestions, the study suggests that the government push tax reform policies to obtain investment in renewable energy sources. This shift toward renewable technology innovation allows the US to go green and retain environmental sustainability, which is also an utmost urgency of the UN's Sustainable development Goals (SDG-7).
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
The scholarly modeling of property tax has always posed a challenge, with two primary concerns to be addressed: first, maintaining sustainability in the collection, which is primarily a concern for ...local governments; and second, ensuring fair distribution, which is of greater concern for citizens. In today’s practices, assessment-based property tax increases unmatched expenses in bubble economies. There is a substitution problem in rapid falls, the tendency to not decrease the assessments gives way to black holes and opens the door to ghost cities. This paper proposes alternative approaches, aside from market/land value or last sold price, aimed at improving sustainability and fairness rates. The dataset examined is based on 93.7K records and 88 attributes for assessed value of properties within the City of Buffalo, the United States of America. Since the label (Total Value) is a numerical and continuous value, regression models are selected, where ensemble machine learning methods categorically work well with larger datasets, combined with weak learners, like decision trees. Stacked Ensemble led the least error for regression with 0.98 R2, followed by Gradient Boosting. Results show a 79% dominance of uncontrollable attributes, such as Land Value, Neighborhood, and Sale (last sold) Price, compared to controllable attributes, such as Total Living Area, Construction Grade, Second Story Area, and many others. This article suggests having a more balanced split between uncontrollable and controllable attributes would contribute to both sustainability and fair distribution.
In 2008, British Columbia implemented the first comprehensive and substantial carbon tax in North America. By 2012, the tax had reached a level of C$30/t CO2, and it covers about three-quarters of ...all greenhouse gas emissions in the province. This paper reviews existing evidence on the effect of the tax on greenhouse emissions, the economy, and the distribution of income, and provides new evidence on public perceptions of the tax. Empirical and simulation models suggest that the tax has reduced emissions in the province by between 5% and 15% since being implemented. At the same time, models show that the tax has had negligible effects on the aggregate economy, despite some evidence that certain emissions-intensive sectors face challenges. Studies differ on the effects of the policy on the distribution of income, however all studies agree that the effects are relatively small in this dimension. Finally, polling data shows that the tax was initially opposed by the majority of the public, but that three years post-implementation, the public generally supported the carbon tax.
•We review the experience with the carbon tax in British Columbia.•The carbon tax has reduced greenhouse gas emissions by 5–15%.•The carbon tax has a negligible impact on overall economic activity.•Public support for the carbon tax increased over time.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UL, UM, UPCLJ, UPUK
This paper analyzes the effect of mobile money adoption on tax revenue performance in a large sample of 104 developing countries over the period 1990–2019. Estimations, based on the entropy balancing ...method, show that mobile money significantly increases tax revenue in mobile money countries relative to non-mobile money countries. This result remains robust to various robustness tests and may depend on time perspective, the type of mobile money service, and some structural factors, including a country's level of development, corruption level, rural population size, inflation rate, education level, tax revenue sample 25th percentile and average, revenue administration efficiency, and mature markets. A first level of disaggregation of tax revenue into direct and indirect tax revenue shows that mobile money increases both types of tax revenue, with a larger impact on direct tax revenue. A second level of disaggregation of these two components into different sub-categories shows that the effect on direct tax revenue is driven by personal income tax revenue and corporate income tax revenue and that on indirect tax revenue is determined by taxes on goods and services. Finally, a broadening tax base (proxied by GDP per capita), better institutional quality, and tax payment process simplification are the main channels through which mobile money adoption increases tax performance in developing countries.
•We analyze the effect of mobile money on tax revenue.•Mobile money increases tax performance in developing countries.•The effect is larger on direct tax revenue compared to indirect tax revenue.•Tax base, institutional quality and tax payment simplicity are the key channels.•The results reveal some heterogeneity.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
The study examines tax revenue, capital market performance and foreign direct investment (FDI) in Nigeria. The broad objective of this study is to find out the relationship between tax revenue, ...capital market performance and FDI in Nigeria. The study adopted a longitudinal research design and covers a period of 1994-2021. Secondary data were obtained from annual report and bulletins of the Central Bank of Nigeria. This study employed the ADF and Philips-Perron (PP) unit root test, panel Johansen cointegration test, VAR model, dynamic ordinary least square regression, full modified ordinary least regression and pairwise granger. The findings amongst others revealed that; value added tax has a bidirectional relationship with foreign direct investment in Nigeria; company income tax has no significant relationship with foreign direct investment in Nigeria; custom and exercise duty has a unidirectional relationship with foreign direct investment in Nigeria; stock market capitalization has no significant relationship with foreign direct investment in Nigeria. Based on the findings, the study recommended amongst others that policy makers should concentrate effort on long run policies that will stimulate capital market development in Nigeria, Also, a healthier and more robust friendly foreign investment policies should be created and maintained and the government should partners with foreign investors to enhance capital market development in Nigeria.
This letter analyzes the distributional effects of a carbon tax reform when households must consume carbon-intensive goods above a subsistence level. The reform is progressive if revenues are ...recycled as uniform lump-sum transfers, in other cases it is regressive.
•Poor households spend a larger share of their income on carbon intensive goods.•Therefore carbon taxation is often considered regressive.•We use a small analytical model in which we analyze this hypothesis.•We compare the distributional impacts of 3 distinct designs of a carbon tax reform.•A carbon tax reform can be both re- or progressive, depending on its design.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UL, UM, UPCLJ, UPUK, ZRSKP
Purpose
This paper aims to explore the effect of non-resource tax revenue instability on non-resource tax revenue in developed and developing countries.
Design/methodology/approach
The analysis has ...used an unbalanced panel data set of 146 countries over the period 1981–2016, as well as the two-step system generalized methods of moment approach.
Findings
The empirical analysis has suggested that non-resource tax revenue instability influences negatively non-resource tax revenue share of gross domestic product. The magnitude of this negative effect is higher in less developed countries than in relatively advanced countries. This negative effect materializes through public expenditure instability: non-resource tax revenue instability exerts a higher effect on non-resource tax revenue share as the degree of public expenditure instability increases. Finally, non-resource tax revenue instability exerts a higher negative effect on non-resource tax revenue share as economic growth volatility rises, inflation volatility increases and terms of trade instability increases.
Research limitations/implications
The main policy implication of this analysis is that policies that help ensure the stability of non-resource tax revenue also contribute to improving countries’ non-resource tax revenue share. For example, governments’ measures that help cope with or prevent the severe adverse effects of shocks on economies (shocks that could translate into higher tax revenue instability) would ultimately help enhance countries’ tax revenue performance.
Practical implications
The severity of the current COVID-19 pandemic shock (which is a supply and demand shock) and the macroeconomic uncertainty that it has generated – inter alia, in terms of economic growth instability, terms of trade instability, inflation volatility and public expenditure instability – are likely to result in severe tax revenue losses. Governments in both developed and developing countries would surely learn from the management of this crisis so as to prepare for possible future economic, financial and health crises with a view to dampening their adverse macroeconomic effects, including here their negative tax revenue effects.
Originality/value
To the best of the author’s knowledge, this topic is being addressed in the empirical literature for the first time.
We assess the COVID-19 pandemic’s implications for state government sales and income tax revenues. We estimate that the economic declines implied by recent forecasts from the Congressional Budget ...Office will lead to a shortfall of roughly $106 billion in states’ sales and income tax revenues for the third quarter of 2020 through the second quarter of 2021 (the 2021 fiscal year for most states). This is equivalent to 0.5 percent of gross domestic product and 11.5 percent of our pre-COVID sales and income tax projection. Additional tax shortfalls from the second quarter of 2020 (the final quarter of most states’ 2020 fiscal years) may amount to roughly $42 billion. We discuss how these revenue declines fit into several pieces of the broader economic context. These include other revenues (e.g., university tuition and fees) that are also at risk, as well as spending needs necessitated by the public health crisis itself. Further dimensions of context involve fiscal support enacted through several pieces of federal legislation.
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CEKLJ, IZUM, KILJ, NUK, PILJ, SAZU, UL, UM, UPUK
This paper investigates the impacts of money transfers on tax revenue in the post-socialist countries. I evaluate the effects of these money transfers on direct, indirect, and total tax revenues in ...post-socialist countries. The Westerlund Cointegration test assesses the presence of a long-term relationship between money transfers and tax revenues, while the panel ARDL (Autoregressive Distributed Lag) model measures the effects of money transfers on tax revenues. The results show that money transfers increase tax revenue primarily via both direct and indirect taxes. Money transfers are not directly taxed, due to difficulties to tax and the possible discouraging effects on remitting. They can provide financial resources for entrepreneurs and facilitate the employment of idle production capacities, which results in increased economic activity and employment. As a consequence, money transfers could indirectly increase direct taxes via income taxes on bolstered economic activities and employment. In addition, money transfers are primarily used for improving and sustaining household welfare, which increases consumer spending. Therefore, increased consumption is taxed via indirect taxes.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
Tax revenue performance represents one of the most essential issues to every government when creating and profiling fiscal policy according to the macroeconomic framework of each country. In ...particular, this issue comes to the fore in extraordinary circumstances and unstable trends when governments are exposed to greater costs of financing budget deficits and public debts. Tax revenue mobilization shows the government’s ability to collect sufficient revenue to finance government expenditures, as well as cover public needs. By using static and dynamic panel approaches, this research investigates the effect of tax revenue performance in Baltic countries (Estonia, Latvia and Lithuania) for the period 1995–2020. The main objective of this paper is to identify which determinants are crucial for improving tax revenue performance in the Baltic region. Namely, this research identifies how the main macroeconomic determinants affect the tax revenue performance in Baltic countries, which enables these economies to adjust to their favorable and unfavorable effects from the aspect of tax revenue mobilization. The empirical results show that gross domestic product per capita, industry value added, trade, and government expenditures have positive effects on tax revenue performance, while inflation, gross government debt, and exchange rate volatility negatively affect the tax revenue performance in these economies. Furthermore, the joining of Baltic countries to the European Union upgraded the tax revenue performance of this region in the short-run and long-run. Precisely, Baltic countries should focus on a higher level of economic growth, greater industry share and trade of GDP, as well as lower inflation rate, lesser exchange rate volatility, and smaller government gross debt.
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