The dynamic influence of energy consumption, fiscal policy and green innovation on environmental degradation in BRICST economies

Beiling Ma, Arshian Sharif (), Madiha Bashir and Muhammad Farhan Bashir

Energy Policy, 2023, vol. 183, issue C

Abstract: The global consensus on overcoming climate change and environmental sustainability has increased the urgency towards formulating stringent environmental and fiscal policy instruments in achieve environmental sustainability. The current study extends policy deliberations by studying how energy transition and fiscal policy measures impact the ecological footprint of BRICST economies from 1995 to 2021. Our findings from Driscoll-Kraay standard errors, FMOLS, DOLS, and method of moments quantile regression identify that energy transition, renewable energy, taxation revenues and green innovation improve environmental sustainability, while non-renewable energy consumption and governmental expenditures exacerbate environmental challenges. Our econometric analysis allows us to propose that policymakers must use fiscal policy measures to introduce structural changes and foster the adoption of environmental technologies in the industrial sector. Furthermore, developing economies must broaden tax base to increase environmental spending on upgrading renewable energy infrastructure and lower ecological burden.

Keywords: Energy transition; Fiscal policy; Renewable energy; Government expenditures; Taxation revenues; BRICST economies (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:183:y:2023:i:c:s0301421523004081

DOI: 10.1016/j.enpol.2023.113823

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