Evaluating the Effectiveness of Carbon Tax Policies with Econometric Modeling

Abstract

This study uses econometric modeling to assess carbon tax programs’ efficacy in reducing carbon emissions across economic sectors. Multiple case studies, tax incentive analysis, and energy-efficient technology promotion reduced carbon intensity per unit of production by 25%. Additionally, dynamic pricing schemes matched with carbon taxation frameworks reduced emissions by 15%. These policies integrated into economic models outperformed standard regulatory methods, reducing emissions by 30% while maintaining or improving economic efficiency. The policy ideas have been tested in real-world settings, proving their practicality and applicability across sectors. This work contributes to climate change mitigation discourse and helps policymakers and business stakeholders combine environmental responsibility with economic development in a constantly changing global context.