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June 17, 2026Economies0 citationsOpen Access

Green Transition in Europe: Effectiveness of Taxes and Innovation on CO2 Emissions

Green Transition in Europe: The Effectiveness of Environmental Taxes and Green Innovation in Reducing CO2 Emissions

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Authors

JBJafar BabakhonovHQHilola QosimovaSMSamariddin Makhmudov

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Overview

Demonstrates the impact of environmental taxation and green innovation on CO2 emissions in EU countries, highlighting necessary policy integrations.

Key Points

  • The study aims to analyze how environmental taxation and green innovation influence carbon dioxide emissions in 25 EU countries from 2000 to 2021.
  • Applied comprehensive econometric framework to account for cross-sectional dependence and endogeneity.
  • Utilized various estimators including FMOLS, DOLS, CCR, CCEMG, and System GMM for robust analysis.
  • Conducted panel unit root tests and cointegration tests to establish long-run relationships among variables.
  • Environmental taxation has a positive association with CO2 emissions, implying ineffectiveness in discouraging pollution.
  • Green innovation significantly reduces CO2 emissions, emphasizing the importance of technological progress for environmental improvement.
  • Economic growth and urbanization are linked to higher emissions, while imports help in reducing emissions, indicating trade-related adjustments.

Cite This Study

Babakhonov et al. (2026) studied this question.

synapsesocial.com/papers/6a323c29d50b63ecad20673dhttps://doi.org/10.3390/economies14060231
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