ENVIRONMENTAL TAXES AS THE INSTRUMENT OF ENVIRONMENTAL POLICY IN DEVELOPING COUNTRIES

Abstract

Many environmental and naturalresource problems, which have been solved indeveloped countries with the use of appropriateinstruments, are becoming increasingly common indeveloping countries. Due to poverty, theefficiency of conceiving environmental policiesand minimizing costs, are inherent issues of thesecountries. The aim of this paper is to highlight theimportance of environmental taxes in developingcountries, as environmental taxes are aninstrument of environmental policy that conveneswith the level of their development. Most countriestoday pay great attention to environmental taxes.However, in the tax systems of developingcountries, their significance is neglected. Weanalyzed 12 developing countries, which aremembers of the European Union, with thetendency to point out the benefits they could havefrom environmental taxes. A regression analysiswas applied on the data series for the period 2001-2016. The results of the model show that thegrowth of tax revenues from ecological taxesimplicitly increases the state allocation in the fieldof environmental protection.

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