Energy, Pollution, and Transport Taxes as Instruments of Sustainable Development of Manufacturing Enterprises in Emerging Economies in the European Union

Anita Fajczak-Kowalska, Anna Misztal, Magdalena Kowalska
European Research Studies Journal, Volume XXIV, Issue 2B, 724-742, 2021
DOI: 10.35808/ersj/2261

Abstract:

Purpose: The paper's primary purpose is to assess environmental taxes' impact on sustainable development of manufacturing enterprises in emerging and developing economies in the European Union in 2008-2019. Design/Methodology/Approach: This paper is both theoretical and empirical. The survey covers the European Union countries classified as emerging and developing economies by the International Monetary Fund including Bulgaria, Croatia, Poland, Romania and Hungary. The first part discusses the fundamental issues related to sustainable development and environmental taxes. The empirical part includes the methodology and results of the study. To determine the relationship between environmental taxes and sustainable development, we use the Pearson correlation coefficient and the Least Square Method. Findings: The results indicate that there is a statistically significant relationship between the variables. Environmental taxes are one of the critical determinants of sustainable development of manufacturing enterprises. The models show that the impact of individual taxes is different in the analyzed countries. Practical Implications: The results show that environmental taxes are essential to sustainable development. Hence, it is necessary to increase their importance and reform the tax system in the EU. Originality/Value: The statistical assessment of the impact of environmental taxes on enterprises' sustainable development is relatively poorly understood. The issue is new and contemporary and requires further analysis. Environmental taxes are a significant issue in the era of counteracting climate change. It is necessary to increase the importance of environmental taxes and their effects on economic processes.


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