AI Article Synopsis
- The research investigates the effectiveness of market-based policy instruments, like carbon taxes and eco-friendly innovations, in reducing global emissions and achieving climate change mitigation targets set for 2030.
- It focuses on 15 EU countries from southern and western regions, analyzing data from 2000 to 2018 using advanced statistical methods to understand the relationships between emissions, economic activities, and environmental policies.
- Findings reveal that while carbon taxes are effective in the short term for emission reduction, a long-term focus on eco-innovations and a shift to green energy are essential for sustainable development and achieving climate goals by 2030.
Article Abstract
The dynamics of global emissions and the increasing focus on market-based policy instruments have prompted this research to examine the extent to which such instruments are successful in emission control. The study explores the influence of carbon taxes, eco-friendly innovations, and ecological policy in attaining sustainable development goals and fulfilling the mitigation targets of climate change for 2030. The article selected 15 EU countries from southern and western regions and tested the empirical relationship between 2000 and 2018. This work used second-generation testing approaches and error correction-based modeling approaches to analyze the relationship between the variables. The results show that eco-friendly innovations and environmental policies help reduce emissions in the long and short run. On the other hand, carbon taxes have a more prominent effect on mitigation efforts, specifically in the short run. Factors such as urbanization, economic growth, and energy consumption are the most prominent polluting elements, the results being consistent in all models. The results further show a unidirectional and bidirectional causality relationship between the variables, and outcomes are more country-specific. Given these arguments, carbon taxes are a short-term instrument in combating carbon emissions. However, the sustainable development vision 2030 relies on eco-innovations linked with research and development and the transition from gray to green energy.
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| http://dx.doi.org/10.1007/s11356-021-18043-8 | DOI Listing |
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