Do Environment-Related Policy Instruments and Technologies Facilitate Renewable Energy Generation? Exploring the Contextual Evidence from Developed Economies

Umer Shahzad (), Magdalena Radulescu, Syed Rahim, Cem Işık, Zahid Yousaf and Stefan Alexandru Ionescu
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Magdalena Radulescu: Faculty of Economics and Law, University of Pitesti, Bd. Republicii, No.71, 110062 Pitesti, Romania
Syed Rahim: Pakistan Institute of Development Economics (PIDE), Islamabad 44000, Pakistan
Zahid Yousaf: Government College of Management Sciences, Khyber Pakhtunkhwa, Mansehra 21300, Pakistan
Stefan Alexandru Ionescu: Faculty of Tourism Economics, American-Romanian University, Bd. Expoziției, No.1B, Sector 1, 012101 Bucharest, Romania

Energies, 2021, vol. 14, issue 3, 1-25

Abstract: Attaining sustainable development and cleaner production is a major challenge both for developed and developing economies; income, institutional regulations, institutional quality and international trade are the key determinants of environmental externalities. The current work attempts to study the role of environmental taxes and regulations on renewable energy generation for developed economies. For that, the authors have used the annual dataset for the period 1994 to 2018. More specifically, the study investigates the impacts of environmental taxes, environment-related technologies and the environmental policy stringency index on renewable electricity generation in 29 developed countries. Given the short available data of these countries, the authors have developed panel cointegration and panel regressions models (fully modified ordinary least square (FMOLS), quantile regressions). The heterogeneous panel empirics stated that environmental regulations and income level support renewable electricity generation. The conclusions further mention that bureaucratic qualities such as decision making and trade openness tend to reduce renewable energy generation. The empirical findings allowed us to draw new narrative and implications. Overall, the conclusions argue that innovative regulations and policies can be useful for attaining specific sustainable development goals (e.g., SDG-7: cleaner and cheap energy).

Keywords: environment-related taxes; environmental technologies; renewable energy; developed countries; panel analysis; sustainable development goals (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (69)

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