Abstract

Fossil fuels utilized in energy production, transportation, industrial processes, and agricultural activities continuously emit harmful gases into the atmosphere. These emissions contribute to the greenhouse effect, elevating the Earth's average temperature and leading to global warming and changing climate. Reducing human-induced emissions of greenhouse gases is crucial for ensuring sustainable development. One of the policy instruments to be implemented for this purpose is taxes that aim to reduce environmental pollution directly and indirectly. Analysing the relationship between greenhouse gas emissions and such taxes is of great importance for the effectiveness of tax policies and instruments to combat climate change and for future practices that aim to directly reduce environmental pollution, such as carbon taxation. Given the context provided, this study aims to examine the causal relationship between energy taxes and transport taxes, which are regarded as measures to alleviate environmental pollution, in Türkiye. Additionally, the study seeks to assess their influence on CO2 emissions. The results of the Hatemi-J Causality Analysis reveal a distinct causal link from CO2 emissions to both total environmental taxes and energy and transport taxes.