How are industrial sector optimization, mitigation policies and taxes contributing to carbon neutrality? Threshold Evidence from Europe

Xinyu Wang (), Wensen Wu, Jin Zhang (), Gheorghe Hurduzeu (), Teodora Odett Breaz () and Vasile Cosmin Nicula ()
Additional contact information
Xinyu Wang: North China University of Technology, Beijing, China.
Wensen Wu: North China University of Technology, Beijing, China.
Jin Zhang: Corresponding Author: School of Humanities, Shanghai Normal University, Shanghai.
Gheorghe Hurduzeu: Bucharest University of Economic Studies, Bucharest, Romania
Teodora Odett Breaz: Faculty of Economic Science, 1 Decembrie 1918 University, 5100009 Alba Iulia Romania.Faculty of Engineering, Lucian Blaga University Sibiu, 550024, Sibiu, Romania
Vasile Cosmin Nicula: Romanian Court of Accounts

Journal for Economic Forecasting, 2022, issue 2, 187-201

Abstract: There is a growing interest in the significance of product and process innovations in the battle against global emissions. However, from an innovation standpoint, mitigating strategies concentrated on patents, not the role played by trademarks. As a result, we compare the effectiveness of trademarks and patents in Europe in terms of mitigating the effects of patents. Their complementary role is tested using the interaction between the patent and the trademark (INV). Similarly, the study examines the threshold effect of carbon pricing (CTAX) and environmental policies (EPLY) for a period spanning from 2001 to 2019. The outcomes reveal that product and process innovation are driving towards carbon neutrality. The evidences further suggest that if innovation is above threshold (INV> 10.5) point, 1% increase in it can lower the emission by 2.09%. Moreover, further strengthening the environmental policies and 1% increase in taxes can neutralize emission by 6.9% and 2.93%, respectively. It is further observed that trade openness, energy consumption, economic growth and urbanization have detrimental effect on the environment. The study concludes that taxes can be used as a short run tool however, innovations in different sectors and stringent environmental policy can guide the economies towards sustainable economic growth while protecting the environment.

Keywords: Innovation; Carbon Taxes; Environmental Policy; Carbon Neutrality; Threshold regression (search for similar items in EconPapers)
JEL-codes: C24 H23 Q55 Q58 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.ipe.ro/RePEc/rjef/rjef2_2022/rjef2_2022p.pdf

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:rjr:romjef:v::y:2022:i:2:p:187-201

Access Statistics for this article

Journal for Economic Forecasting is currently edited by Lucian Liviu Albu and Corina Saman

More articles in Journal for Economic Forecasting from Institute for Economic Forecasting Contact information at EDIRC.
Bibliographic data for series maintained by Corina Saman ( this e-mail address is bad, please contact ).