This paper employs the panel nonlinear autoregressive distributed lag model to investigate
the asymmetric effects of environmental taxes on CO2 emissions embodied in domestic final
demand (CDFD) in 23 developing economies. The results indicate that a reduction in
environmental tax has a more adverse effect on CDFD than an increase in tax, implying that
environmental taxes alone may not be sufficient to reduce CO2 emissions, especially in the
context of rapid economic growth. Additionally, the study finds that fluctuations in GDP and …

Motivated by the pressing need to address environmental concerns, this study explores the
relationship between environmental taxes and CO2 emissions embodied in domestic final
demand in South Africa. The study uses a non‐linear autoregressive distributed lag
(NARDL) model to analyse the asymmetric impact of environmental taxes. Results indicate
that environmental taxes have an asymmetric impact on CO2 emissions embodied in
domestic final demand in both the short and long runs. Specifically, both positive and …