Environmental taxation in Europe and Spain. Harmonisation, convergence and reforms

Abstract

Faced with the challenge of the fight against climate change and the necessary energy transition, this article analyses recent trends in environmental taxation in the European Union (EU), with a special focus on Spain. A convergence analysis of the environmental tax burden reveals a lack of integration and harmonisation at EU level, although groups of countries with similar patterns of behaviour are identified. The results show the need to review environmental taxation at European level, improving the tax framework and harmonising regulation in a way that facilitates the achievement of climate objectives and commitments. In this context, and in coordination with the EU, Spain should strengthen environmental taxation with a comprehensive reform to make it effective in correcting negative externalities on the economy's natural capital.

Keywords:

clubs, convergence, environmental taxes, fiscal harmonisation, EU

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