The effect of economic growth and environmental taxes on quantity of emissions

Abstract

This study has been made to understand whether endless production and consumption activities which aim to achieve a wealthier life, cause environmental destruction. The study aims to determine, if the production and consumption activities have a negative effect on environment, whether environmental taxes would have a positive effect on environment or not.In general, the problem of this essay is environmental destruction, and in particular emissions. Initially, beneath the headline of environmental economics an effort to reveal relationship between environment and economics has been made, later on some information about the emission, environmental taxes, gross domestic product and per capita income has been given as a basis to our analysis. While explaining the interaction between economic growing process and environmental destruction; Environmental Kuznets Curve (EKC) and Pollution Heaven Hypothesis have been benefited. It is found out that Turkey is coherent with EKC and environmental destruction is in decrease from 4090 dollars of Gross Domestic Product. In addition, environmental costs have to been taken into account in calculation of GDP. The link between environmental destruction and environmental taxes has been exposed via proportion of the environmental tax in total tax revenue.Our analysis has been based on data gathered from European Environmental Agency, European Commission and The World Bank's web sites. In this way, EU countries have been compared with OECD countries in terms of economic growth, environmental tax and quantity emission. As a result, economic growth cause varied environmental destruction in different level of development and in between countries. Less quantity of emission is expected in some countries which are keen to use effectively environmental taxes in their tax systems.