sustainability Article Exploring the Role of Carbon Taxation Policies on CO2 Emissions: Contextual Evidence from Tax Implementation and Non-Implementation European Countries Assaad Ghazouani 1, Wanjun Xia 2, Mehdi Ben Jebli 1,3 and Umer Shahzad 2,* 1 Faculty of Legal, Economic and Management Sciences, University of Jendouba, Jendouba 8189, Tunisia;
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[email protected]; Tel.: +86-15650576260 Received: 30 August 2020; Accepted: 9 October 2020; Published: 20 October 2020 Abstract: During the past decades, environmental related taxes, energy, and carbon taxes has been recommended by environmental scientists as a policy tool to mitigate pollutant emissions in developed and developing economies. Among developed nations, Denmark, Finland, Sweden, the Netherlands, and Norway were the first regions to adopt a tax on carbon dioxide (CO2) emissions and research into the impacts of carbon tax on carbon emissions bring significant implications. The prime objective and goal of this work is to explore the role of carbon tax reforms for environmental quality in European economies. This is probably the first study to conduct a comparative study in European context for carbon-tax implementation and non-implementation policies. To this end, the present study reports new conclusions and implications regarding the effectiveness of environmental regulations and policies for climate change and sustainability.