EKOLOŠKA DIMENZIJA FISKALNE POLITIKE U ZEMLJAMA ZAPADNOG BALKANA
THE ECOLOGICAL DIMENSION OF FISCAL POLICY IN THE COUNTRIES OF THE WESTERN BALKANS

Author(s): Biljana Srdić Gojković, Sanja Popović, Marijana Đukić
Subject(s): Energy and Environmental Studies, Political Ecology, Environmental interactions, EU-Approach / EU-Accession / EU-Development, Fiscal Politics / Budgeting
Published by: Finrar d.o.o Banja Luka
Keywords: environmental taxation; fiscal policy; energy efficiency; Western Balkans; sustainable development;
Summary/Abstract: Environmental taxation represents a significant instrument for promoting sustainable development and energy efficiency, particularly in the context of the Western Balkan countries striving for European Union membership. This paper provides a comparative analysis of environmental taxation in the region, focusing on the fiscal relevance and structure of environmental taxes during the period 2014–2022. Although the countries of the region record relatively higher revenues from environmental taxes compared to the EU average, the findings indicate a predominantly fiscal rather than ecological motivation, with a strong reliance on energy excise duties and a marginal share of pollution and resource use taxes. The empirical analysis confirms a statistically significant negative correlation between environmental tax revenues and energy intensity, highlighting the potential of these instruments to improve energy efficiency. The results underscore the need to strengthen the environmental dimension of fiscal policy in the Western Balkan countries in order to enhance the internalization of environmental costs, protect the environment, and accelerate the process of European integration.

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