The aim of this study is to determine whether environmental policies affect economic
growth. Using a standard model of economic growth and a panel of European data,
there is evidence that environmental taxes have had a negative effect on economic
growth over the last ten years, indicating the ‘double dividend’ does not hold. This
effect is particularly evident when other distortionary taxes are included in the model.
A second contribution of this study is to incorporate the complimentary measure of
renewable energy provision into the model. Again the results indicate a negative
relationship between renewable energy and economic growth, offering support for the
curse of natural resources.
|Name||Bath Economics Research Working Papers|
- economic growth
- renewable energy
- Environmental policy