The Potential of Renewable Energy Green Financing through Carbon Taxation to Achieve Net-Zero Emissions Target

Freida Ozavize Ayodele, Siti Indati Mustapa and Bamidele Victor Ayodele
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Freida Ozavize Ayodele: School of Management, Universiti Sains Malaysia, 11800 USM, Penang, Malaysia,
Siti Indati Mustapa: Institute of Energy Policy and Research, Universiti Tenaga Nasional, Jalan IKRAM-UNITEN, Kajang 43000, Selangor, Malaysia
Bamidele Victor Ayodele: Department of Chemical Engineering, Universiti Teknologi PETRONAS, Seri Iskandar 32610, Perak, Malaysia; & CO2 Research Centre (CO2RES), Institute of Contaminant Management, Universiti Teknologi PETRONAS, Seri Iskandar 32610, Perak, Malaysia.

International Journal of Energy Economics and Policy, 2023, vol. 13, issue 6, 388-396

Abstract: Climate change is mostly caused by anthropogenic emissions of greenhouse gases like carbon dioxide. By establishing green financing initiatives and levying taxes on carbon pollution, green financing and carbon taxes are seen as viable policy tools for reducing harmful environmental externalities. This study examines the role of carbon taxes as an emerging source of renewable energy green financing to achieve net-zero emissions targets. Raising research questions such as: Can carbon taxation be employed as a means of offsetting carbon emissions? What is the people’s perception of a carbon tax? Can carbon taxation be a potential source of green financing for renewable projects? The study established that the implementation of a carbon tax has a significant effect in offsetting carbon emissions to a large extent. However, there are divergent views of people toward the implementation of a carbon tax as indicated by studies from different countries. The findings established that the revenue generated from carbon tax could be channeled towards the funding of renewable energy projects as obtainable in Japan and other countries.

Keywords: Carbon Taxation; Greenhouse Gases; Renewable Energy; Green Financing; Net-zero Emissions (search for similar items in EconPapers)
JEL-codes: Q2 Q3 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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