The intensity of exploitation of natural resources has increased over the past decades, making environmental protection policy one of the most important priorities of government institutions. Various economic instruments, including taxation, may help policy makers in the EU meet environmental...

We estimate the long-run effect of a uniform carbon tax on energy consumption by using a new and unique dataset in which effective tax rates of OECD countries are calculated in terms of carbon dioxide emissions. The effective tax rates account for the widely discussed tax deductions for specific...