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A way forward in reducing carbon emissions in environmentally friendly countries: the role of green growth and environmental taxes

Author

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  • Eyup Dogan
  • Sabina Hodžić
  • Tanja Fatur Šikić

Abstract

Given recent environmental reforms and the focus on the problem of climate change, it is necessary to evaluate whether green growth and environmental taxes can reduce CO2 emissions for countries. Even though a number of studies have analysed the ways to reduce environmental pollution, the literature lacks enough evidence for the role of green growth and environmental taxes in determining the level of carbon emissions. Therefore, the objective of the empirical analysis is to estimate the impacts on CO2 emissions of green growth and environmental taxes by including sustainable indicators for a group of 25 environmentally friendly countries from 1994 to 2018 by applying advanced panel data analysis models. By applying the novel quantile regressions on the largest amount of available data from 1994 to 2018, this article shows that the coefficients of green growth, environmental taxes, renewable energy and energy efficiency are negative at lower, medium and higher quantiles. According to the results of the quantile regression, environmental taxes, renewable energy and energy efficiency are key factors in decreasing CO2 emissions. Overall, renewable energy should be given greater priority through research supports, subsidies and government incentives while environmental taxes should be more implemented to discourage activities that promote pollution.

Suggested Citation

  • Eyup Dogan & Sabina Hodžić & Tanja Fatur Šikić, 2022. "A way forward in reducing carbon emissions in environmentally friendly countries: the role of green growth and environmental taxes," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 5879-5894, December.
    • Handle: RePEc:taf:reroxx:v:35:y:2022:i:1:p:5879-5894
    DOI: 10.1080/1331677X.2022.2039261
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    Citations

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    Cited by:

    1. Muryani Muryani & Khoirun Nisa’ & Miguel Angel Esquivias & Siti Hafsah Zulkarnain, 2023. "Strategies to Control Industrial Emissions: An Analytical Network Process Approach in East Java, Indonesia," Sustainability, MDPI, vol. 15(10), pages 1-17, May.
    2. Li, Hongmei & Xu, Ruizhe, 2023. "Impact of fiscal policies and natural resources on ecological sustainability of BRICS region: Moderating role of green innovation and ecological governance," Resources Policy, Elsevier, vol. 85(PB).
    3. Chika A. Anisiuba & Ishaku Prince Abner & Charles Ogechukwu Ugbam & Sylvester Ebosetale Okoebor & Hillary Chijindu Ezeaku, 2024. "Asymmetric effect of environmental tax on CO2 emissions embodied in domestic final demand in developing economies: A panel NARDL approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(8), pages 20781-20805, August.
    4. Wang, Tianyang & Umar, Muhammad & Li, Menggang & Shan, Shan, 2023. "Green finance and clean taxes are the ways to curb carbon emissions: An OECD experience," Energy Economics, Elsevier, vol. 124(C).
    5. Dogan, Eyup & Hodžić, Sabina & Šikić, Tanja Fatur, 2023. "Do energy and environmental taxes stimulate or inhibit renewable energy deployment in the European Union?," Renewable Energy, Elsevier, vol. 202(C), pages 1138-1145.
    6. Zhu, Yongfeng & Taylor, David & Wang, Zilong, 2023. "The role of environmental taxes on carbon emissions in countries aiming for net-zero carbon emissions: Does renewable energy consumption matter?," Renewable Energy, Elsevier, vol. 218(C).
    7. Voumik, Liton Chandra & Ghosh, Smarnika & Rashid, Mamunur & Das, Mihir Kumar & Esquivias, Miguel Angel & Rojas, Omar, 2024. "The effect of geopolitical risk and green technology on load capacity factors in BRICS," Utilities Policy, Elsevier, vol. 88(C).
    8. Weijiang Liu & Min Liu & Yangyang Li & Tingting Liu, 2024. "How to promote China's green economic development? The combination effects of consumption tax and carbon tax policies," Energy & Environment, , vol. 35(3), pages 1374-1395, May.
    9. Xuesen Cai & Xiaowei Song, 2024. "Towards sustainable environment: Unleashing the mechanism between green finance and corporate social responsibility," Energy & Environment, , vol. 35(2), pages 986-1003, March.
    10. Li, Menghan & Zaidan, Amal Mousa & Ageli, Mohammed Moosa & Wahab, Salman & Khan, Zeeshan, 2023. "Natural resources, environmental policies and renewable energy resources for production-based emissions: OECD economies evidence," Resources Policy, Elsevier, vol. 86(PA).
    11. Xu, Ye & Wen, Shuang & Tao, Chang-Qi, 2023. "Impact of environmental tax on pollution control: A sustainable development perspective," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 89-106.
    12. Jiao, Lei & Xie, Baiwei & Lu, Sijin, 2023. "Understanding the economy of natural resources: Fundamental role of natural resources in sustainable development," Resources Policy, Elsevier, vol. 86(PB).
    13. Cai, Xuesen & Wei, Changjing, 2023. "Does financial inclusion and renewable energy impede environmental quality: Empirical evidence from BRI countries," Renewable Energy, Elsevier, vol. 209(C), pages 481-490.
    14. Sun, Bohan & Gao, Ke & Liu, Shuai & Wei, Qiaoqiao & Wang, Hui, 2023. "Assessing the performance and economic viability of solar home systems: A way forward towards clean energy exploration and consumption," Renewable Energy, Elsevier, vol. 208(C), pages 409-419.

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