Do environmental taxes and renewable energy consumption play a role in climate change mitigation? International evidence from developing economies

Climate change and environmental degradation are largely attributed to increased carbon dioxide emissions (CO2). This study investigates the effectiveness of environmental taxes and renewable energy consumption on reducing CO2 emissions in 36 developing countries from 1994 to 2018, using the Cross-S...

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Main Authors: Ayoub Rabhi, Ismail Soujaa, Brandon Parsons
Format: Article
Language:English
Published: Elsevier 2024-12-01
Series:Research in Globalization
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2590051X24000753
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author Ayoub Rabhi
Ismail Soujaa
Brandon Parsons
author_facet Ayoub Rabhi
Ismail Soujaa
Brandon Parsons
author_sort Ayoub Rabhi
collection DOAJ
description Climate change and environmental degradation are largely attributed to increased carbon dioxide emissions (CO2). This study investigates the effectiveness of environmental taxes and renewable energy consumption on reducing CO2 emissions in 36 developing countries from 1994 to 2018, using the Cross-Sectional Autoregressive Distributed Lag (CS-ARDL) panel data methodology. Our findings indicate that renewable energy consumption plays a crucial role in lowering CO2 emissions, underscoring the need for increased investment in renewable energy infrastructure and technological advancements. Conversely, environmental taxes do not have a significant impact on emissions reduction in these countries, possibly due to inadequate implementation and institutional constraints. These findings suggest that policies promoting renewable energy, such as subsidies, incentives, and investments in research and development, are crucial for achieving meaningful emission reductions. Therefore, international efforts may be more effective by providing financial support and technological assistance rather than emphasizing environmental taxes, which may not be suitable for developing nations.
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spelling doaj-art-d0c53fb255764b4d86e80babc79bf8ae2025-08-20T02:52:08ZengElsevierResearch in Globalization2590-051X2024-12-01910026610.1016/j.resglo.2024.100266Do environmental taxes and renewable energy consumption play a role in climate change mitigation? International evidence from developing economiesAyoub Rabhi0Ismail Soujaa1Brandon Parsons2Center for Global Studies, International University of Rabat, Morocco; Corresponding author.Public Policy, Albany State University, Albany Georgia, USADepartment of Economics, Graziadio School of Business, Pepperdine University, Malibu, USAClimate change and environmental degradation are largely attributed to increased carbon dioxide emissions (CO2). This study investigates the effectiveness of environmental taxes and renewable energy consumption on reducing CO2 emissions in 36 developing countries from 1994 to 2018, using the Cross-Sectional Autoregressive Distributed Lag (CS-ARDL) panel data methodology. Our findings indicate that renewable energy consumption plays a crucial role in lowering CO2 emissions, underscoring the need for increased investment in renewable energy infrastructure and technological advancements. Conversely, environmental taxes do not have a significant impact on emissions reduction in these countries, possibly due to inadequate implementation and institutional constraints. These findings suggest that policies promoting renewable energy, such as subsidies, incentives, and investments in research and development, are crucial for achieving meaningful emission reductions. Therefore, international efforts may be more effective by providing financial support and technological assistance rather than emphasizing environmental taxes, which may not be suitable for developing nations.http://www.sciencedirect.com/science/article/pii/S2590051X24000753Climate changeCO2 EmissionsEnvironmental taxRenewable energyCS-ARDL Panel data
spellingShingle Ayoub Rabhi
Ismail Soujaa
Brandon Parsons
Do environmental taxes and renewable energy consumption play a role in climate change mitigation? International evidence from developing economies
Research in Globalization
Climate change
CO2 Emissions
Environmental tax
Renewable energy
CS-ARDL Panel data
title Do environmental taxes and renewable energy consumption play a role in climate change mitigation? International evidence from developing economies
title_full Do environmental taxes and renewable energy consumption play a role in climate change mitigation? International evidence from developing economies
title_fullStr Do environmental taxes and renewable energy consumption play a role in climate change mitigation? International evidence from developing economies
title_full_unstemmed Do environmental taxes and renewable energy consumption play a role in climate change mitigation? International evidence from developing economies
title_short Do environmental taxes and renewable energy consumption play a role in climate change mitigation? International evidence from developing economies
title_sort do environmental taxes and renewable energy consumption play a role in climate change mitigation international evidence from developing economies
topic Climate change
CO2 Emissions
Environmental tax
Renewable energy
CS-ARDL Panel data
url http://www.sciencedirect.com/science/article/pii/S2590051X24000753
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