The Nexus between GFCF, Environmental Tax and Air Pollution Effects in Eu-16 Countries

The paper studies the impact of Environmental Tax (Etax), GDP, and air-pollution effects (APE) on the GFCF of EU-16 countries by taking the annual data from 1991-2020 through second-generation panel data analysis. All the variables are crosssectionally dependent, differenced stationary, and cointegrated over the long term, according to the empirical estimations. Additionally, it is discovered that GFCF and GDP have a positive relationship. Moreover, the environmental tax is estimated to be negatively related with GFCF in EU-16 countries