Assessing the impact of climate mitigation technology and environmental tax on renewable energy development: A dynamic threshold approach

Lili Wang and Jun Pang

Renewable Energy, 2025, vol. 244, issue C

Abstract: The development and application of climate mitigation technology and environmental tax alleviating the pressure on energy transitions in OECD countries, but little effort has been made to clarify the role of climate mitigation technology and environmental tax in renewable energy consumption-economic growth. To fill this gap, this study uses panel data for 38 OECD countries over the period 2000–2020, and examines the nonlinear impact of renewable energy consumption, climate mitigation technology, environmental tax and economic growth by using a dynamic panel threshold model. Our investigation verifies the threshold effect of climate mitigation technology and environmental tax in the relationship between renewable energy consumption and economic growth. Our findings highlight the fact that, with the development of climate mitigation technology, renewable energy consumption has a significant positive impact on economic growth, and the impact coefficient is more significant in high-carbon areas. The threshold effect of renewable energy consumption on economic growth is larger in high-carbon regions than in low-carbon areas, using environmental taxes as the threshold variable. The results of this study are unique and our findings deepen the literature's understanding of the relationship between climate mitigation technology, environmental tax, renewable energy consumption, and economic growth.

Keywords: Renewable energy consumption; Climate mitigation technology; Economic growth; Dynamic threshold effect (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:244:y:2025:i:c:s0960148125003453

DOI: 10.1016/j.renene.2025.122683

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