Research
Tax Productivity in Post Reform Ethiopia
The paper was designed to analyze tax productivity in post reform Ethiopia from 1991/92 to 2013/14 using ARDL co-integration approach. Tax productivity is defined in terms of tax buoyance and tax elasticity. Tax Elasticity were estimated by adjusting total tax revenue data using proportional adjustment method. In its analysis the study founds buoyance coefficient of 0.95 which is less than unit. It implies that for a one percentage increases in economic growth revenue from total tax system grows on average by 0.95 percent. The implication is that a decreasing proportion of incremental income was transferred to the government in terms of total tax revenue. The elastic coefficient of 2.12 implies that for a one percentage increases in automatic economic growth rather than any discretionary tax policy, revenue from total tax system grows on average 2.12 percent. The indication is that total tax is elastic with respect to automatic economic growth and an increasing proportion of incremental automatic economic growth was transferred to the government in terms of total tax revenue.
Energy Consumption, Carbon Dioxide Emissions and Economic Growth in Ethiopia
This study has attempted to investigate the relationship between, energy consumption, CO2 emissions and economic growth in Ethiopia, using time series data from 1970/71 to 2010/11. The finding indicates variables of interests are integrated of the same order I (1). Cointegration test approves existence of one co-integrating equation among the variables. The causality test result shows energy consumption causes Economic Growth in Ethiopia. Based on the outcome shocks to energy consumption have a negative impact on economic growth. The contributions of energy consumption to CO2 emissions were insignificant and economic growth is positively related to CO2 emissions. To secure the sustenance of CO2 emissions free economic growth in Ethiopia, cost effective, carbon free, and efficient utilization of renewable energy consumption based on the country comparative advantage that consider alternative use of resources are advisable like Hydro and Geothermal.
