Energy tax harmonization in EU: Time series and panel data evidence

Bilgili, Faik (2010): Energy tax harmonization in EU: Time series and panel data evidence. Published in: Research Journal of International Studies No. 14 (May 2010): pp. 12-20.

Abstract

This paper searches statistical evidence of tax harmonization initiated and motivated by EU Commission since 1980. The purpose of energy tax harmonization is to reach more efficient use of energy among members and thereby to establish more competitive markets in EU. The tax harmonization in EU, in this work, is analyzed through convergence tests to see whether total taxes applied to oil and diesel used by industries and households are adjusted among EU members. This study, therefore, employs minimum Lagrange multiplier unit root tests with structural breaks developed by Lee and Strazicich (2003). Upon observations the data for panels, it is revealed that panels for oil industry tax, diesel industry tax, oil household tax and diesel household tax converge to average total taxes of members. Time series data for individual countries, on the other hand, give both convergence and non-convergence results.

• Item Type: MPRA Paper
• Language: English
• Keywords: oil and diesel taxes, households and industries, harmonization, convergence, European Union, LM unit root tests with structural breaks
• Subjects: H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H31 - Household; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q48 - Government Policy; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models; H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H32 - Firm

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