An Analysis of the Impact of Green Tax on Foreign Direct Investment Attraction in Selected OECD Countries
Many countries seek to create an attractive environment for foreign investors for economic growth and prosperity. On the other hand, the expansion of energy consumption and combustion of fossil fuels in the direction of economic growth has increased the emission of greenhouse gases in the world. The...
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University of Sistan and Baluchestan
2024-12-01
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| Series: | اقتصاد باثبات |
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| Online Access: | https://sedj.usb.ac.ir/article_8764_c612201498104dfb7a1ada5f4a7ae0a1.pdf |
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| author | Hossein Akbarifard SeyedJalal Tohidi Alireza Hassanzadeh Jozdani Sayyed Abdolmajid Jalaee Esfand Abadi |
| author_facet | Hossein Akbarifard SeyedJalal Tohidi Alireza Hassanzadeh Jozdani Sayyed Abdolmajid Jalaee Esfand Abadi |
| author_sort | Hossein Akbarifard |
| collection | DOAJ |
| description | Many countries seek to create an attractive environment for foreign investors for economic growth and prosperity. On the other hand, the expansion of energy consumption and combustion of fossil fuels in the direction of economic growth has increased the emission of greenhouse gases in the world. Therefore, many countries have implemented green taxes to protect their environment. Many studies have been done on the relationship between taxes and foreign direct investment. The purpose and innovation of this research is to investigate the effect of green tax in particular, instead of the general effects of taxes on the attraction of foreign direct investment in member countries of the Organization for Economic Development and Cooperation (OECD). In this research, using panel data during the twenty-year period from 2003 to 2022 for twenty OECD member countries that have a tax on carbon production, it is intended to investigate the effect of some economic variables on foreign direct investment. The ARDL panel estimation results indicate that the variables of GDP and the degree of openness have a positive effect and the variables of exchange rate and green tax in the long term have a negative effect on foreign direct investment in the countries under review; Therefore, countries with lower green taxes will be more likely to attract foreign direct investments. As a result, in order to achieve sustainable development and preserve the environment, it is necessary to design and implement policies that, in addition to maintaining the attractiveness of foreign investments, prevent environmental destruction and realize environmental goals. |
| format | Article |
| id | doaj-art-feef599e2e644acb95dcc1044d18bd07 |
| institution | OA Journals |
| issn | 2821-1049 |
| language | fas |
| publishDate | 2024-12-01 |
| publisher | University of Sistan and Baluchestan |
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| series | اقتصاد باثبات |
| spelling | doaj-art-feef599e2e644acb95dcc1044d18bd072025-08-20T02:17:01ZfasUniversity of Sistan and Baluchestanاقتصاد باثبات2821-10492024-12-015416519610.22111/sedj.2025.50136.15218764An Analysis of the Impact of Green Tax on Foreign Direct Investment Attraction in Selected OECD CountriesHossein Akbarifard0SeyedJalal Tohidi1Alireza Hassanzadeh Jozdani2Sayyed Abdolmajid Jalaee Esfand Abadi3Associate Professor, Department of Economics, Faculty of Management and Economics, University of Shahid Bahonar, Kerman, IranPh.D. Candidate, Department of Economics, Faculty of Management and Economics, University of Shahid Bahonar, Kerman, Iran.Assistant Professor, Department of Economics, Faculty of Management and Economics, University of Shahid Bahonar, Kerman IranProfessor, Department of Economics, Faculty of Management and Economics, Shahid Bahonar University of Kerman, Kerman, IranMany countries seek to create an attractive environment for foreign investors for economic growth and prosperity. On the other hand, the expansion of energy consumption and combustion of fossil fuels in the direction of economic growth has increased the emission of greenhouse gases in the world. Therefore, many countries have implemented green taxes to protect their environment. Many studies have been done on the relationship between taxes and foreign direct investment. The purpose and innovation of this research is to investigate the effect of green tax in particular, instead of the general effects of taxes on the attraction of foreign direct investment in member countries of the Organization for Economic Development and Cooperation (OECD). In this research, using panel data during the twenty-year period from 2003 to 2022 for twenty OECD member countries that have a tax on carbon production, it is intended to investigate the effect of some economic variables on foreign direct investment. The ARDL panel estimation results indicate that the variables of GDP and the degree of openness have a positive effect and the variables of exchange rate and green tax in the long term have a negative effect on foreign direct investment in the countries under review; Therefore, countries with lower green taxes will be more likely to attract foreign direct investments. As a result, in order to achieve sustainable development and preserve the environment, it is necessary to design and implement policies that, in addition to maintaining the attractiveness of foreign investments, prevent environmental destruction and realize environmental goals.https://sedj.usb.ac.ir/article_8764_c612201498104dfb7a1ada5f4a7ae0a1.pdfgreen taxfdiardl approach |
| spellingShingle | Hossein Akbarifard SeyedJalal Tohidi Alireza Hassanzadeh Jozdani Sayyed Abdolmajid Jalaee Esfand Abadi An Analysis of the Impact of Green Tax on Foreign Direct Investment Attraction in Selected OECD Countries اقتصاد باثبات green tax fdi ardl approach |
| title | An Analysis of the Impact of Green Tax on Foreign Direct Investment Attraction in Selected OECD Countries |
| title_full | An Analysis of the Impact of Green Tax on Foreign Direct Investment Attraction in Selected OECD Countries |
| title_fullStr | An Analysis of the Impact of Green Tax on Foreign Direct Investment Attraction in Selected OECD Countries |
| title_full_unstemmed | An Analysis of the Impact of Green Tax on Foreign Direct Investment Attraction in Selected OECD Countries |
| title_short | An Analysis of the Impact of Green Tax on Foreign Direct Investment Attraction in Selected OECD Countries |
| title_sort | analysis of the impact of green tax on foreign direct investment attraction in selected oecd countries |
| topic | green tax fdi ardl approach |
| url | https://sedj.usb.ac.ir/article_8764_c612201498104dfb7a1ada5f4a7ae0a1.pdf |
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