Emission taxation and sustainability in the mineral resources industry

Abstract

The main objective of this research is to analyze the relationship between emission taxes and mineral resource efficiency in 32 Chinese administrative regions from 2000 to 2021. This analysis is conducted using the panel co-integration estimator, specifically the continuously updated full modified approach. The empirical estimations indicate that mineral resource efficiency is positively influenced by emission taxation policies, green finance initiatives, and improvements in industrial green technology indexes. However, carbon dioxide emissions and waste generation are identified as two significant challenges hindering the enhancement of mineral resource efficiency in Chinese administrative regions. Furthermore, mineral resource efficiency appears to be more responsive to green monetary policies, such as sustainable finance, compared to green fiscal policies like emission taxes. To enhance mineral resource efficiency, China could prioritize the improvement of the national emissions trading scheme (ETS) system, the development of sustainable power generation plants, and the establishment of a digital green financial market based on cryptocurrencies.