Abstract
Objectives
This paper aims to analyze the relationship between carbon tax implementation and CO₂ emissions reduction in European countries. It also seeks to assess the compatibility of national carbon tax policies with international climate commitments adopted under successive COP agreements. In addition, the study examines the impact of carbon taxation on industrial competitiveness within the European context.
Methodology
The study adopts a mixed -methods approach combining qualitative policy analysis and semi -quantitative data interpretation. A systematic review of peer -reviewed literature published between 2015 and 2024 was conducted using the Scopus and Web of Science databases, focusing on carbon taxation, climate policy, and industrial impacts in the European Union. Official policy documents from the European Commission and national governments were analysed to assess the design and evolution of carbon tax frameworks. A comparative case study approach was applied to selected European countries to evaluate differentiated policy outcomes. Quantitative data on carbon tax rates, industrial production indices, and CO₂ emissions trends were extracted from Eurostat, OECD, and World Bank databases and analysed to identify correlations and divergences between environmental objectives and industrial performance.
Findings
The results indicate that countries without explicit carbon taxes, such as Poland, exhibit significantly lower CO₂ emission reductions compared to countries with long -standing carbon taxation. The findings also show that industrial competitiveness is not necessarily undermined by carbon taxation when appropriate complementary mechanisms are implemented.
Value Added
This paper contributes to the literature by bridging the gap between international climate commitments and domestic economic realities. It provides a comparative, data -driven evaluation of carbon tax effectiveness across EU member states and highlights the critical role of policy design in determining environmental and economic outcomes. The study further offers empirically grounded insights relevant to current European climate policy debates.
Recommendations
The paper recommends greater harmonization of carbon taxation across EU member states, the indexation of carbon tax rates to emission reduction targets, and the reinvestment of carbon tax revenues into the green transition. It also emphasizes the need to protect industrial competitiveness while maintaining climate integrity, improve transparency and monitoring of carbon tax impacts, and strengthen public engagement to enhance policy acceptance.