Environmental Taxation and CO2 Emission Management

Abstract

Due to the obvious ozone layer depletion and continual contamination of the air and water, environmental protection has become a global priority. In an environmentally challenged country like Nigeria, the difficulty of having clean water and air is a significant cause for environmental taxes to become unavoidable. Although these taxes are presently levied in the form of fines for gas flaring, gas exploration tax, and petroleum profit tax, which are 85 percent more than the standard business income tax of 30 percent of revenues. The argument is based on the fact that the business operations of the oil and gas sector cause a significant degree of pollution to the environment. As a result, this research looks at the influence of environmental taxes on CO2 emission control in Nigeria. The research spans the years 2010 to 2020. According to the regression findings, the gas exploration tax has an inconsequential negative influence on CO2 emission management, but the petroleum profit tax has a negligible positive impact on CO2 emission control. On the other side, the cost of environmental preservation has a large beneficial influence on CO2 emission control. As a result, the study suggests the implementation of more suitable environmental taxes and levies in order to lower pollution levels in Nigeria.