The impact of governance indicators on share of environmental taxes in total tax revenues in France, an econometric study using the ARDL model during the period (2002-2022)

Abstract

The study aims to evaluate how governance indicators affect environmental taxes in France from 2002 to 2022, using the autoregressive distributed lag (ARDL) method. The findings suggest a long-term relationship between governance indicators and SETR, indicating that RQ, PV, and VA indices have a negative impact, while RL and GE indices have a positive effect. However, the CC index does not significantly influence SETR. In the short term: RL, RQ, and VA indices negatively affect SETR, while PV and CC indices have a positive impact. Interestingly, the GE index doesn't seem to affect SETR significantly. Additionally, diagnostic tests confirm the reliability of the model used in the study.