Impact of Environmental Taxes on Carbon Emissions: Systematic Review.

Abstract:

The study synthesises the effects of environmental taxes on carbon emissions, utilising 105 studies in academic databases published between 2014 to 2024 to emphasise their overall impact, patterns, and trends. The results indicate that environmental taxes make a substantial contribution to the reduction of carbon emissions, although the efficacy of these taxes varies substantially depending on the social and economic contexts, tax design, and implementation strategies. Research emphasises the significance of revenue recycling and complementary policies in improving the effectiveness of taxes, while compensatory measures are implemented to alleviate the regressive character of these taxes and aid lower-income households. Additionally, successful case studies demonstrate substantial emission reductions, while regions with political opposition or inadequate policy frameworks encounter obstacles to their efficacy. These results emphasise the importance of policymakers taking socio-economic factors into account when developing environmental taxes to guarantee equity and efficacy. Future research research areas were also provided.