Yaryna Samusevych

Department of Accounting and Taxation, Sumy State University,

Ukraine

y.samusevych@uabs.sumdu.edu.ua 

ORCID 0000-0001-7048-8388

Environmental tax reform efficiency: Prerequisites and consequences

Izabela Rącka

Faculty of Social Sciences, University of Kalisz,

Poland

i.racka@uniwersytetkaliski.edu.pl

ORCID 0000-0002-2344-0901

Tetyana Vasylieva

Department of Financial Technologies and Entrepreneurship, Sumy State University,

Ukraine

tavasilyeva@fem.sumdu.edu.ua

ORCID 0000-0003-0635-7978

Árpàd Tóth

Széchenyi Istvàn University 

totha@ga.sze.hu

ORCID 0000-0002-7856-0097

Abstract. Ensuring green transformations of the national economy requires the careful development of effective mechanisms for influencing the behaviour of key stakeholders who impact the environment. Implementing environmental tax reforms (ETR) to balance environmental and economic effects was successful for many European countries. Adapting this experience for developing countries requires considering the impact of national specifics on the expected result. In the first stage, the key consequences of the ETR implementation were assessed using the Differences-in-Differences method. In the second stage, the impact of economic, social, technological and institutional factors on the result of the ETR implementation was tested using panel regression modelling. The calculations showed that the positive effect of increasing the security of the national economy due to the ETR implementation occurs with a relatively long time lag. This indicates that ETR should be considered a strategic instrument for regulating the national economy and developed for the long term, supported by tactical operational tools. At the same time, the most significant manifestations of ETR are observed in the context of their impact on business activity and foreign trade. The key prerequisites for ensuring the ETR's effectiveness are the role of the fiscal and budgetary system, the welfare and gender equality of society, the spread of digital technologies among the population and the rule of law.

Received: January, 2024

1st Revision: September, 2024

Accepted: December, 2024

DOI: 10.14254/2071-8330.2024/17-4/6

JEL Classification: G18, H21, H30, F52

Keywords: taxation, national security, economic security, energy security, environment security, tax burden, regulation, policy, economic activity