Carbon Tax and its Impact on Egyptian Exports to EU Countries | ||
| Journal of Environmental Science | ||
| Articles in Press, Accepted Manuscript, Available Online from 18 November 2025 | ||
| Document Type: Original Article | ||
| DOI: 10.21608/jes.2025.359981.1967 | ||
| Authors | ||
| Manar Mahmoud Ismaeil* 1; Eman Hashem2; Nihal Mohamed Fathey Elshahat1 | ||
| 1Faculty of Environmental Studies and Research | ||
| 2كلية التجارة جامعة عين شمس | ||
| Abstract | ||
| This study aims to examine the impact of implementing a carbon tax on Egyptian exports to the European Union, with a particular focus on a case study of an Egyptian company operating in the textile and apparel sector. The study employed a descriptive-analytical approach and utilized the Cobb–Douglas production function to estimate the relationship between independent variables (investment, wages, production inputs, and carbon tax) and dependent variables (production value and gross value added) over the period 2014–2023. The results revealed that investment and wages represent the most influential factors in enhancing production performance compared to the carbon tax, where the elasticity of investment was 0.57 and that of wages was 0.49 when gross value added was used as the dependent variable. Moreover, the production function proved to be the most consistent with economic theory in this case, as the independent variables explained more than 97% of the variation in output. The study recommends strengthening investments in the export sector, with particular attention to the wage component to stimulate production efficiency, alongside developing a national strategy for implementing the carbon tax that ensures a balance between environmental protection and supporting the competitiveness of Egyptian exports. | ||
| Keywords | ||
| Carbon tax; Egyptian exports; European Union; Cobb–Douglas production function | ||
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