Do environmental taxes, environmental innovation, and energy resources matter for environmental sustainability: Evidence of five sustainable economies

Kishwar Ali; Du Jianguo; Dervis Kirikkaleli; Judit Oláh; Satar Bakhsh

doi:10.1016/j.heliyon.2023.e21577

Do environmental taxes, environmental innovation, and energy resources matter for environmental sustainability: Evidence of five sustainable economies

Heliyon. 2023 Nov 7;9(11):e21577. doi: 10.1016/j.heliyon.2023.e21577. eCollection 2023 Nov.

Authors

Kishwar Ali¹, Du Jianguo¹, Dervis Kirikkaleli^{2

3}, Judit Oláh^{4

5}, Satar Bakhsh⁶

Affiliations

¹ School of Management, Jiangsu University, Zhenjiang, PR China.
² European University of Lefke, Faculty of Economics and Administrative Sciences, Lefke, Northern Cyprus, Turkey.
³ Adnan Kassar School of Business, Lebanese American University, Beirut, Lebanon.
⁴ John von Neumann University, Kecskemét, Hungary.
⁵ College of Business and Economics, University of Johannesburg, Johannesburg, 2006, South Africa.
⁶ School of Economics and Management, China University of Geosciences, Wuhan, PR China.

Abstract

This study explores the relationship between environmental taxation, environmental technologies, energy resources, and consumption-based carbon emissions in five leading green economies from 2000 to 2019. The study applied the Cross-Sectional Auto-Regressive Distributed Lag (CS-ARDL) model to derive benchmark results, with Augmented Mean Group (AMG) and Common Correlated Effect Mean Group (CCEMG) techniques being utilized for conducting robustness analyses. The empirical findings suggest that environmental taxation, environmental innovations, and the consumption of renewable energy are associated with a reduction in consumption-based carbon emissions, thereby contributing to enhanced environmental sustainability. Conversely, the utilization of non-renewable energy is linked to an increase in consumption-based carbon emissions. These results align with the objectives outlined in the Sustainable Development Goals' 2030 agenda, particularly SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 13 (Climate Action), offering valuable policy implications.

Keywords: Energy resources; Environmental innovation; Environmental taxes; Sustainable development.