The Impact of Technology and Government Policies on OECD Carbon Dioxide Emissions

Fatemeh Dehdar, Nuno Silva, José Alberto Fuinhas (), Matheus Koengkan and Nazia Nazeer
Additional contact information
Fatemeh Dehdar: Faculty of Economics, University of Coimbra, 3004-512 Coimbra, Portugal
Nuno Silva: Faculty of Economics, and Centre for Business and Economics Research (CeBER), University of Coimbra, 3004-512 Coimbra, Portugal
Matheus Koengkan: GOVCOPP, Department of Economics, Management, Industrial Engineering and Tourism (DEGEIT), University of Aveiro, 3810-193 Aveiro, Portugal
Nazia Nazeer: FAST—School of Management, National University of Computer and Emerging Sciences, Karachi 44000, Pakistan

Energies, 2022, vol. 15, issue 22, 1-17

Abstract: This study investigated the effect of technology and government policies on carbon dioxide (CO 2 ) emissions in 36 Organisation for Economic Co-operation and Development (OECD) countries from 1994 to 2015. This empirical investigation uses econometric models, such as panel quantile regression and ordinary least squares (OLS). The research uses the method proposed by Lin and Ng in 2015 to deal with parameter heterogeneity across countries that identified two separate groups. The empirical results indicated that Gross Domestic Product (GDP), fossil fuel consumption, industrialisation and taxation to GDP intensify CO 2 emissions. In contrast, urbanisation (% of the total population), environmental patents, and environmental tax as a percentage of total tax reduce CO 2 gas emissions. Estimates with homogeneity preserve the signs of the parameters but reveal substantial differences in intensity and that environmental tax revenues (as % of GDP and % of tax) are only statistically significant for our studied group 1. The conclusions of this study have important policy implications. The effect of industrialisation on environmental degradation is an observable fact. When the country reaches the allowable thresholds, it needs to maximize energy consumption. Policymakers should design policies that help them to promote environmentally sustainable economic growth by imposing and accumulating environmental taxes. In addition, environmental taxes, the discharge system and credit could support the modification of in-industrial structures and modes of economic growth. Policymakers should also use policies that encourage trade in nuclear-generated electricity to neighbouring OECD countries.

Keywords: carbon dioxide emissions; patents on environment technologies; environmental tax revenue; economic policy; OECD countries (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: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/1996-1073/15/22/8486/pdf (application/pdf)
https://www.mdpi.com/1996-1073/15/22/8486/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:15:y:2022:i:22:p:8486-:d:971859

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().