Do the energy taxes, green technological innovation, and energy productivity enable the green energy transition in EU countries? Evidence from novel panel data estimators

Mucahit Aydin, Tunahan Degirmenci, Zahoor Ahmed and Nicholas Apergis

Renewable Energy, 2025, vol. 249, issue C

Abstract: Increased fossil energy consumption and its environmental effects highlight the need to the transition to green energy sources. A transition to cleaner energy sources can be achieved through green technological innovation and increasing energy productivity. On the other hand, since the renewable energy market is not yet fully developed and fossil fuels are offered at competitive prices, energy taxes are a vital instrument in the transition to green energy. Therefore, this study examines the impact of energy tax, green technological innovation, and energy productivity on the green energy transition in 18 European Union (EU) countries from 1994 to 2019. The second-generation panel unit root test, the Durbin-Hausman panel cointegration test, and the Cross-sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) long-run estimator were applied for empirical investigations to achieve this objective. According to the results, energy productivity and green technological innovation reduce the green energy transition, while economic growth increases the green energy transition in Slovakia. Energy tax and green technological innovation are increasing the transition to green energy in France. Energy tax reduces the green energy transition in Austria. EU countries should review their energy and environmental policies to ensure innovation and productivity in green energy.

Keywords: Energy taxes; Green innovation; Energy productivity; Renewable energy; CS-ARDL (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:249:y:2025:i:c:s0960148125008985

DOI: 10.1016/j.renene.2025.123236

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