Emissions Reduction Policies and Their Effects on Economy

Apoorva Gurtu (), Vidhisha Vyas and Amulya Gurtu
Additional contact information
Apoorva Gurtu: Paul H. O’Neill School of Public and Environmental Affairs, Indiana University, Bloomington, IN 47405, USA
Vidhisha Vyas: School of Management, IILM University, Gurugram, HR, Gurugram 122003, India
Amulya Gurtu: Cofrin School of Business, University of Wisconsin-Green Bay, Green Bay, WI 54311, USA

JRFM, 2022, vol. 15, issue 9, 1-17

Abstract: The two broad carbon-reducing policies, carbon tax and cap-and-trade, have been implemented at various national and sub-national levels. This paper examines the relationships between emissions-reducing policies and their effect on the country’s economic growth (GDP) using carbon tax and CO 2 emission as explanatory variables and population and R&D as control variables. The study employs Granger causality analysis (GCA) and panel data regression analysis to find the relationships between GDP, emissions, and carbon tax. GDP usually increases as a country’s carbon emissions, carbon tax, R&D, and population increase. The analysis of carbon reduction policies, especially carbon tax and their general impact on a country’s economy, is a unique contribution of this study. The applications of this study are to motivate governments to form a national carbon abatement policy and encourage corporate leaders to invest in clean technology to grow the economy.

Keywords: emissions; carbon tax; emissions policy; economic impact; environmental impact (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.mdpi.com/1911-8074/15/9/404/pdf (application/pdf)
https://www.mdpi.com/1911-8074/15/9/404/ (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:jjrfmx:v:15:y:2022:i:9:p:404-:d:912454

Access Statistics for this article

JRFM is currently edited by Ms. Chelthy Cheng

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