Abstract: Different countries have introduced different schemes
and policies to counter global warming. The rationale behind the
proposed policies and the potential barriers to successful
implementation of the policies adopted by the countries were
analyzed and estimated based on different models. It is argued that
these models enhance the transparency and provide a better
understanding to the policy makers. However, these models are
underpinned with several structural and baseline assumptions. These
assumptions, modeling features and future prediction of emission
reductions and other implication such as cost and benefits of a
transition to a low-carbon economy and its economy wide impacts
were discussed. On the other hand, there are potential barriers in the
form political, financial, and cultural and many others that pose a
threat to the mitigation options.
Abstract: The paper examines the interaction between the
environmental taxation, size of government spending on
environmental protection and greenhouse gas emissions and gross
inland energy consumption. The aim is to analyze the effects of
environmental taxation and government spending on environmental
protection as an environmental policy instruments on greenhouse gas
emissions and gross inland energy consumption in the EU15. The
empirical study is performed using a VAR approach with the
application of aggregated data of EU15 over the period 1995 to 2012.
The results provide the evidence that the reactions of greenhouse gas
emission and gross inland energy consumption to the shocks of
environmental policy instruments are strong, mainly in the short term
and decay to zero after about 8 years. Further, the reactions of the
environmental policy instruments to the shocks of greenhouse gas
emission and gross inland energy consumption are also strong in the
short term, however with the deferred effects. In addition, the results
show that government spending on environmental protection together
with gross inland energy consumption has stronger effect on
greenhouse gas emissions than environmental taxes in EU15 over the
examined period.