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Green taxes innovation and energy imports in advancing renewable transitions in developing countries

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  • Rasoulinezhad, Ehsan

Abstract

This research investigates how green taxes influence the importation of sustainable energy across 20 developing economies from 2005 to 2021, using the advanced CUP-FM technique. The study finds that a negative coefficient (−0.238) linked with green taxes acts as an incentive for adopting sustainable energy, leading to reduced imports of conventional energy components. Conversely, a positive coefficient (0.195) associated with the official exchange rate encourages the importation of green energy. Factors such as innovation, measured through patent applications (0.089), and domestic commitments to renewables, indicated by renewable energy consumption (0.159), significantly drive the importation of green energy. The study also highlights the challenges faced by countries with higher poverty levels, reflected in the negative coefficient for the poverty ratio (−0.120). To effectively promote sustainable energy, a comprehensive strategy is necessary, encompassing efficient implementation of green taxes, promotion of green finance, establishment of regional agreements, and incentivization of private investment.

Suggested Citation

  • Rasoulinezhad, Ehsan, 2025. "Green taxes innovation and energy imports in advancing renewable transitions in developing countries," Resources Policy, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:jrpoli:v:102:y:2025:i:c:s0301420725000595
    DOI: 10.1016/j.resourpol.2025.105517
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    More about this item

    Keywords

    Non-renewable mineral resources; Renewable transformation; Green tax; Private participation; Green utilities imports;
    All these keywords.

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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