Unveiling the heterogeneous impacts of environmental taxes on energy consumption and energy intensity: Empirical evidence from OECD countries

By M. F. Bashir, Ben-jiang Ma, Muhammad Shahbaz, Umer Shahzad, X. Vo. Energy, 2021

191 citations recorded by the source corpus.

Abstract This study sheds new light on the ambiguous role of environmental taxes in reducing energy usage and energy intensity from 1994 to 2018. We contribute to the energy economics literature by unveiling the interaction between environmental taxes, energy intensity, and energy consumption in 29 OECD economies. Owing to the recent environmental reforms and focus on SDGs, it is necessary to examine the impact of environmental taxes on energy consumption and energy efficiency function. The empirical results from FMOLS, DOLS, and panel quantile regression reveal that the implementation of environmental tax helps to control overall energy usage and promotes energy efficiency by encouraging policymakers, industries, and residents to promote innovation in environment related technologies. We conclude by arguing that the efforts towards a sustainable environment by reducing energy consumption should adopt innovative policies by ensuring the displacement of non-renewables and improve energy efficiency.

Subfields: Economics and Econometrics, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/4c9ca5aea944760028241251af7f5bb06011595c

Citations in the corpus

• Investigating the role of environmental taxes and regulations for renewable energy consumption: evidence from developed economies (2021, unknown): “Recent studies (Bashir et al., 2021; Dong et al., 2019; Lin & Li, 2011) concluded that the carbon taxes and policies possess some varied impacts in different countries or different areas within the same region.”