Green Growth in Scandinavia: Assessing the Role of Environmental Taxation, Green Innovation, Trade, and Urbanization in Advancing Clean Energy Consumption

Sackitey Gabriel Mordzifa, Oddei Josephine Abena, Boğa Semra (), Fumey Michael Provide and Bekun Festus Victor
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Sackitey Gabriel Mordzifa: Northwestern Polytechnical University, School of Public Policy and Administration, Xi’an, China
Oddei Josephine Abena: Kwame Nkrumah University of Science and Technology, Faculty of Built Environment, Department of Planning, Kumasi, Ghana
Boğa Semra: Doğuş University, Faculty of Economics and Administrative Sciences, Department of Economics, Istanbul, Türkiye
Fumey Michael Provide: Northwestern Polytechnical University, School of Public Policy and Administration, Xi’an, China
Bekun Festus Victor: Faculty of Economics Administrative and Social Sciences, Department of International Logistics and Transportation, Istanbul Gelisim University, Istanbul 34310, Turkiye & VIZJA University & Research Centre of Development Economics, Azerbaijan State, University of Economics (UNEC), Baku, Azerbaijan

Economics, 2025, vol. 13, issue 3, 27-52

Abstract: The research analyses the drivers of clean energy use (CEU) in Scandinavian countries by assessing the influence of environmental taxation (ETR), green innovation (GRI), trade openness (TRD), economic growth (ECG), and urbanization (URB). In exploring these relationships, the research is mainly theorized within the Energy Transition Theory and Environmental Kuznets Curve (EKC) hypothesis framework while employing panel data from 1990 to 2023 and advanced econometric tools. Results show that while GRI and ECG significantly contribute to adopting clean energies, the URB process enhances CEU through improved infrastructure and technology adoption. It reveals that environmental taxation has an adverse short-term impact by raising energy costs, while trade openness yields ambiguous results. The study confirms the theoretical frameworks and highlights the interplay among socio-technical and economic dimensions as critical enablers and barriers for energy transitions. Thus, environmental taxation should be complemented with subsidies, more significant investments in green innovation should be made, and economic growth should be used to ensure clean energy infrastructure and clean energy in urban planning. These findings provide actionable strategies to fast-track clean energy transitions in Scandinavia and beyond, thus ensuring economic growth and harmony with environmental sustainability.

Keywords: Carbon taxes; Renewable transitions; Nordic Region; Urban Planning; Technology infrastructure (search for similar items in EconPapers)
JEL-codes: O44 Q28 Q55 Q56 R11 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:econom:v:13:y:2025:i:3:p:27-52:n:1002

DOI: 10.2478/eoik-2025-0054

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