Mathematical model shows that environmental tax will not slow economic growth
Scientists have created a new mathematical model that will provide support for environmental taxation without slowing economic growth.
These environmental taxes are a result of the worldwide “green development” movement in which governments are proposing said taxes on climate-harming products like carbon emissions in order to promote environmentally friendly practices.
Few studies have quantified the effects of environmental taxes on linked factors involved in green development. So researchers from Jiangsu University developed a mathematical model that shows the relationships between environmental taxation, economic growth, pollution emissions, and utilization of resources like water and fossil fuels.
They applied their model to real-world data and analyzed the toll environmental taxes had on China.
The team found that environmental taxes can not only help stimulate economic growth, but also decrease emissions and improve resource utilization.
Furthermore, they found that benefits of an environmental tax are heightened by advanced technology, increased consumer awareness, and strict government control.
The hope is that this mathematical model can be applied to other countries interested in exploring the effects of environmental taxation.
Their model and research is published in PLOS ONE.
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