This study examines the factors that influence fossil fuel consumption in European economies, with a specific emphasis on renewable energy, alternative technologies, foreign investment, and economic growth. The study explores the factors of fossil fuel consumption (FFC) in 23 EU countries over the period 2005–2022, by focusing on the roles of renewable energy output (REO), climate adaptation technologies (CTA), environmental taxation (TET), foreign direct investment (FDI), and economic growth (GDP per capita). We use annual panel data with dynamic panel estimators, such as the autoregressive distributed lag model, system generalized method of moments, and random effects models to incorporate both short-term and long-term dynamics. The Pedroni cointegration test demonstrates a long-run equilibrium relationship. The dynamic ARDL specification’s results show a strong persistence of fossil fuel use, as indicated by a significant lagged dependence of FFC, which underscores the entrenched reliance of European economies on carbon-intensive energy sources. Fossil fuel consumption is found to be significantly reduced by renewable energy output across all models, thereby supporting the substitution hypothesis that the deployment of renewable energy directly reduces reliance on fossil fuels. Foreign direct investment and GDP per capita growth, however, are positively correlated with FFC, in line with environmental Kuznets curve dynamics and the “pollution haven” effect. Climate adaptation technologies exhibit varying effects, decreasing reliance on fossil fuels in the short term but increasing it over the long term, illustrating transitional energy expenses and rebound phenomena. Overall, the results imply that technological innovation and renewable expansion are crucial in driving decarbonization, but structural economic growth and investment patterns still perpetuate dependence on fossil energy. Emphasizing policy implications highlights the necessity for enhanced integration of renewables, adapted energy efficiency measures, and environmentally friendly investment strategies to ensure long-term sustainability goals are met.

Abstract In light of renewed United States of America (USA) commitments to the Paris Agreement, this study dissects the nation’s carbon emission problem by tracking how carbon pricing, regulatory stringency, resource dependence, trade, and global integration interact to shape per capita CO 2 emissions (CPC) from 1990 to 2021. By establishing the intricate dynamics among environmental policies, economic factors, resource dependency, and globalization in shaping the trajectory of carbon emissions, this study modelled the autoregressive distributed lag (ARDL) and the resulted long-run estimates have shown that environmental tax revenue (ETR) is paradoxically associated with increasing the emissions in long-run, hinting at design flaws or lagged adjustment in the USA fiscal instruments. The policy-related predictor, such as environmental policy stringency (EPS), has only been seen as an important player in keeping emissions downward with a significant reduction potential. However, total natural resource rents (TNR), likewise, nudge emissions upward, similar to the globalization’s (GBKOF) impact on the emissions, and trade openness (Trade). Dynamic simulations of ± 10% shocks underline the asymmetry of policy effects: cutting the ETR sparks a sharp increase in emissions, whereas tighter regulation yields great and steadier gains. A highly significant error-correction term (−0.9) signals rapid convergence to equilibrium, and Granger causality tests reveal that the stringent policy has reverse causality with emissions, where the rest of the predictors show forward causality. Only GBKOF has shown significant bidirectional causality. The findings urge USA policymakers to recalibrate environmental tax policies, hard-wire regulatory ambition into federal-state frameworks, and ensure green globalization to diffuse low-carbon technologies to reduce environmental degradation.

ABSTRACT This paper exploits China’s Environmental Protection Tax Reform (CEPTR) as a quasi-natural experiment to examine whether market-based environmental regulation can simultaneously enhance productivity and reduce pollution. Using panel data on A-share listed firms over the period 2012–2024 and a difference-in-differences (DID) framework, we evaluate the reform’s impact on firms’ total factor productivity (TFP) and pollutant emissions. The results reveal a clear ‘double dividend’ effect: CEPTR significantly increases TFP while simultaneously reducing emissions. Mechanism analyses indicate that these effects are primarily driven by three channels: the promotion of green innovation, increased R&D investment and the alleviation of financing constraints. Heterogeneity analysis shows that firms in moderately polluting industries experience the most pronounced improvements in both productivity and emission reduction, suggesting that the reform is particularly effective where regulatory pressure is neither too weak nor excessively stringent. Overall, the findings provide firm-level evidence supporting the Porter Hypothesis in the context of a major developing economy and highlight the role of environmental taxation as an effective policy instrument for achieving coordinated economic and environmental gains.

The environmental protection tax （EPT） is beneficial to improving the green economy efficiency （GEE）， but due to the difference of the total amount， structure， and intensity of pollutants in cities， the role of EPT in the local green development transformation is not consistent. In the sustainable development goals （SDGs） proposed by the United Nations， core indicators for the coordinated development of "economic-social-environmental" dimensions have been identified. The super-efficiency slacks-based measure （super-SBM） model， which encompasses expected outputs from both production and consumption activities， was employed to assess the GEE of the Guanzhong Plain urban agglomeration from 2010 to 2022. The aim was to explore the impact of EPT on GEE and the transmission role of the advanced industrial structure （AIS） and technological innovation level， including technological innovation （TI） and investment of research and development （R＆D） in the Guanzhong Plain urban agglomeration， by developing a bidirectional fixed effects model and two-step intermediary effect model. To further discuss the role of EPT in affecting the GEE， heterogeneity tests were conducted by grouping regional policies， marketization levels， and population density， and on this basis， the differentiated impact of EPT on the GEE was analyzed. The results show that： ① The impact of EPT on the GEE in the Guanzhong Plain urban agglomeration presented a "U"-shaped relationship from 2010 to 2022. It showed the nonlinear characteristic of "inhibition first and then promotion，" and the result was robust and significant at the 1% level. The positive effect of EPT on the GEE will be manifested in the long term. ② In the process of the impact of EPT on the GEE of urban agglomerations， there was a "U"-shaped intermediary effect on TI and R＆D in the level of technological innovation， and the results were robust and significant at the level of 1%， respectively， while the intermediary effect of AIS was not robust. ③ The heterogeneity tests showed that within urban agglomerations， the "U"-shaped impact of EPT within Shaanxi Province and technological innovation levels in cities with a high level of marketization on the GEE was more significant， at the levels of 1% and 5%， respectively. However， the EPT in cities with a lower population density will have a negative impact on the GEE.

This study aimed at looking at the impact of environmental policy instruments on green accounting in North-West Nigeria. The study was motivated by the emerging environmental challenges, poor compliance to environmental regulations and the need to have effective policy mechanisms for environmental sustainability. In particular, the study examined the impact that environmental regulation, environmental taxation, environmental tax shifting and voluntary methods have on green accounting practices. A mixed method research design was applied with primary and secondary sources of data. Secondary data were from selected Organizations in North-West Nigeria for the period 2012-2024 analyzed using panel data techniques, while primary data were collected using structured questionnaires to relevant stakeholders and analyzed using multiple regression analysis. The results of the primary data showed that environmental regulation had a positive and significant effect (β = 0.345, p < 0.001), environmental tax shifting had a positive and significant effect (β = 0.171, p = 0.004), and voluntary approaches had a positive and significant effect (β = 0.115, p = 0.021). But, a negative, yet statistically non-significant relationship between environmental taxation and green accounting was found (β = −0.112, p = 0.051). The model explained 14.9% of the variation in green accounting practices (Adjusted R² = 0.149) and was statistically significant overall (F = 18.454, p < 0.001). Likewise, the results of the secondary data analysis revealed that environment regulation had a positive and significant impact on environmental sustainability accounting (β = 0.444, p = 0.019) while pollution abatement activities had a negative significant effect (β = −1.156, p = 0.001). The study concludes that environmental regulation, environmental tax shifting and voluntary environmental initiatives are important factors that influence the adoption of green accounting practices in North-West Nigeria while environmental taxation has not yet proven to be effective. The study calls for greater enforcement of environmental laws and more widespread environmental tax transfers, more promotion of voluntary environmental measures, and better environmental tax regimes to support environmental accountability and sustainability reporting.

Environmental tax effectiveness in Africa is neither universal nor linear. It operates only above a critical income threshold, technology adoption paradoxically raises rather than reduces emissions, and policy responsiveness varies so dramatically across countries and emission levels that uniform regional frameworks prove inadequate. Drawing on panel data from 18 African nations over 2000–2020, this study deploys complementary multi-method estimation to capture structural breaks, cross-national heterogeneity, and distributional variation in emissions dynamics. The results establish that carbon pricing generates meaningful emission reductions exclusively among economies surpassing an identifiable GDP per capita threshold, where institutional prerequisites for effective tax enforcement are sufficiently developed. Technological adoption consistently increases emissions across the sample, driven by dependence on imported carbon-intensive industrial equipment, weak indigenous innovation systems, and inadequate complementary infrastructure rather than green technological progress. Urbanization, by contrast, emerges as a robust and broadly effective mitigation lever, with emission-reducing effects that deepen as urban systems mature. Biodiversity conservation demonstrates the most consistent suppressive effect on emissions across all estimation approaches and country contexts. These findings collectively call for differentiated policy frameworks calibrated to national income levels, institutional capacity, and emission profiles rather than continent-wide prescriptions.

Environmental tax shocks and economic growth: Global evidence from local projections

Purpose This paper aims to examine the impact of international business (IB) activities on environmental quality using a country-level data set from 1990 to 2023. Design/methodology/approach This study first uses generalized method of moment (GMM) controlling for unobservable factors to estimate the impact of IB activities on environmental issues (CO2 and greenhouse gas emission) on a panel data set of 4,250 observations. Furthermore, using moderating models, this study examines how environmental impact of IB is influenced by governance such as environmental tax rates and regulation levels. Findings The authors’ analysis confirms that increased IB activities are associated with higher emissions, which are mitigated during the COVID-19 pandemic. More importantly, when environmental tax rates increase or regulations are stronger, more IB activities lead to less emissions, which confirms pollution haven hypothesis. Research limitations/implications These findings highlight the importance of robust governance frameworks in mitigating the adverse environmental impacts of cross-border business, suggesting that targeted policies can help balance the benefits of IB activities with environmental sustainability objectives to achieve both SDG 8 (Economic growth) and SDG 13 (Climate Action). Originality/value This research offers a significant contribution by integrating moderation analysis with GMM estimation to explore how governance factors, such as environmental tax rates and regulation, condition the environmental impact of IB.

The prevailing approach in green innovation research merges adoption and generation into a single measurement, and while traditional innovation studies indicate that these modes can have dissimilar antecedents, this distinction remains unexplored for green innovation. Addressing this gap, this study draws on institutional theory to examine which specific institutional actors: state authorities (environmental tax), corporate customers, and contact networks, are universal in driving both adoption and generation of green innovation, and which are mode-specific. Analyzing a sample of 1,116 Russian small- and medium-sized enterprises (SMEs) using logistic regression, we separately model green innovation adoption and generation as functions of tax, customer pressure, and network membership. We find that environmental tax is positively associated with both adoption and generation of green innovation, while pressure from corporate customers only stimulates adoption, not generation. Notably, contact networks have a positive effect on adoption but a negative effect on generation. By explicitly distinguishing between these two innovation modes, the study clarifies contradictory findings in green innovation literature and offers a more robust methodological approach to the use of institutional theory in green innovation research. For policymakers in emerging and developing economies, the results imply that different institutional actors require tailored interventions: taxes can drive both diffusion and novelty, customer pressure is suitable for spreading existing practices, and networks should be redesigned to avoid discouraging in-house innovation while still promoting adoption.

Against the backdrop of growing resource constraints and ecological degradation, green development has emerged as the core pathway for advancing sustainable economic transformation. Using data from Chinese A-share listed companies on the Shanghai and Shenzhen Stock Exchanges between 2010 and 2023, this study examines the impact and underlying mechanisms of the environmental fee-to-tax reform (EPFT) on corporate green governance performance (GGP). We find that EPFT significantly improves corporate GGP and this positive effect exhibits clear heterogeneity. It is stronger in non-resource-based cities while insignificant in resource-based cities, where stronger local environmental regulation can offset the policy's ineffectiveness. In terms of industry characteristics, the effect is significant in non-heavy-polluting and capital-intensive industries but insignificant in heavy-polluting and non-capital-intensive industries. For managerial characteristics, the effect is concentrated in firms led by executives with environmental education or work experience, particularly CEOs, while it is insignificant for those without such backgrounds. Mechanistically, EPFT enhances GGP by alleviating financing constraints, attracting green investors, and promoting green innovation. Furthermore, EPFT strengthens the spillover effects of GGP on corporate ESG performance and CSR fulfillment, and ultimately reduces carbon emission intensity by elevating GGP levels. These findings provide empirical support and actionable insights for optimizing the environmental tax system and advancing regional sustainable development.

Under China’s dual-carbon goals, Green Finance Policy (GFP) and the Environmental Protection Tax Policy (ETP) are key tools for firm-level green transformation, yet their joint micro-effects remain underexplored. Using Shanghai and Shenzhen A-share listed firms from 2011–2022, this study treats the overlapping rollout of the Green Finance Reform and Innovation Pilot Zones and the Environmental Protection Tax reform as a staggered quasi-natural experiment and applies a multi-period DID to identify their synergistic effect on Corporate Green Technology Innovation. Results show that each policy alone promotes green innovation and that their coordination further strengthens the effect. The synergy operates mainly by easing financing constraints and increasing R&D investment. The effect is stronger among firms with better resources, governance, and digitalization, and in regions with stronger institutional environments; it is also more evident in non-heavy-polluting and non-manufacturing sectors. While the policy mix raises both innovation quantity and quality, it does not significantly improve total factor productivity, indicating a “weak Porter effect.” These findings provide micro-level evidence on GFP–ETP synergy and inform the refinement of green finance, environmental tax design, and firm-level green transition policies.

Rapid expansion in urbanisation, along with the rising demand for energy consumption, has deepened environmental apprehensions among developing economies and intensified their concerns about long-run environmental sustainability. This article examines how urban expansion and rising energy consumption impact environmental sustainability, and whether environmental taxes moderate this relationship, by using a panel of 110 developing countries over the period of 2010 to 2024. To capture both static and dynamic relationships among the variables, we have applied complementary econometric methodologies that allow for cross-country heterogeneity and persistence in emissions. The estimated outcomes show that urban expansion and energy consumption are significantly increasing gas emissions, and this outcome is consistent with the idea that environmental costs of urban-led growth and energy-intensive development. But as we have added environmental taxes as a moderating policy instrument, the positive impact of energy consumption and urbanisation on emissions becomes negative in most specifications. The significant impact of both interaction terms, i.e., environmental taxes and urbanisation, and environmental taxes and energy consumption, across different estimation strategies, suggests that environmental taxation weakens emissions and encourages structural change with rising energy use. Renewable energy consumption and foreign direct investment have significant influences on emissions, emphasising the role of energy structure and investment composition in shaping environmental outcomes, whereas the income effect varies across models. The outcomes of dynamic models also confirm emissions persistence, but over time, environmental taxes reduce the degree of emissions persistence. The estimated outcomes imply that environmental taxes can support a decoupling of urbanisation and energy-driven growth from environmental degradation. Thus, developing countries should balance urban development, energy demand, and environmental sustainability through credible market-based regulations.

Synergizing renewable energy, women empowerment, and policy for emissions reduction

Tax policy, energy efficiency, and sustainable growth: empirical evidence from China

Effect of environmental protection tax law on firm markup

Property tax competition: A quantitative assessment

This article examines international taxation as an important tool for regulating global economic and financial processes in the context of globalization, the digitalization of the economy, and increased international coordination of tax policy. It is argued that modern international taxation goes beyond the traditional fiscal approach and is taking on the characteristics of a systemic regulator of international capital flows, investment flows, tax competition among states, income redistribution among jurisdictions, and the assurance of financial stability. Scientific approaches to interpreting the essence of international taxation are summarized, and its main functions are identified: fiscal, regulatory, coordinating, redistributive, and stabilizing. It is demonstrated that international tax agreements, transfer pricing mechanisms, and the concept of a global minimum tax play a special role in the transformation of the international tax environment. It is determined that these instruments form a new architecture of international tax coordination aimed at reducing destructive tax competition, increasing the transparency of international financial flows, and ensuring a more equitable distribution of taxing rights among states. Particular attention is paid to the impact of the digitalization of the economy on international taxation, as the growing role of digital platforms, intangible assets, and virtual business models complicates the application of traditional approaches to determining tax presence and necessitates the modernization of tax administration. It is argued that international taxation is of fiscal and strategic importance for Ukraine, as it involves adapting national legislation to European and global standards, strengthening control over transfer pricing, improving the network of tax treaties, and enhancing the country’s financial security. The practical significance of the results lies in the possibility of using the formulated provisions to improve tax policy, develop international tax coordination, and enhance the effectiveness of state regulation of global financial processes.

ABSTRACT Despite growing policy efforts toward sustainable development, the mechanisms through which artificial intelligence, institutional quality, and macroeconomic policy variables jointly shape green growth remain insufficiently understood in advanced economies. This study investigates the key determinants of green growth across the G7 economies from 2000 to 2023, employing a panel ARDL framework combined with wavelet‐based time–frequency analysis. The model incorporates AI research activity, renewable energy use, natural resource rents, government effectiveness, environmental taxation, and education expenditure. The findings reveal that AI research and renewable energy adoption serve as major engines of sustainable growth, whereas natural resource rents and education spending exert adverse long‐run effects, suggesting inefficiencies and misalignment between fiscal and environmental objectives. Distinct national patterns emerge: innovation‐oriented economies such as Germany, Japan, and the United States benefit from the synergy between digitalization and green investment, while more resource‐dependent economies face institutional barriers that slow their green transition. The study further illustrates how the integration of AI and institutional effectiveness can reshape policy frameworks. The results underscore the importance of data‐informed policymaking, education reform toward environmental competencies, and smarter environmental taxation, providing actionable insights for governments aiming to align technological innovation with ecological resilience in advanced economies.

This paper proposes a bi-level optimal dispatch model for a wind–solar–thermal-storage hybrid power system that considers the optimal curtailment rate. The upper-level model minimizes net-load fluctuations and curtailment penalties by coordinating renewable curtailment and energy storage scheduling under multiple uncertainty scenarios. The lower-level model minimizes the total operating cost by optimizing thermal unit commitment and dispatch while accounting for deep peak-regulation costs, spinning reserve costs, environmental taxes, and the environmental benefits of renewables. A piecewise nonlinear cost model is introduced to characterize the increasing wear-and-tear and oil-support costs of thermal units operating under deep peak regulation. Simulation results obtained on a modified IEEE 30-bus system demonstrate that, compared with benchmark models, the proposed approach significantly smooths the net-load curve, reduces the peak-to-valley difference, and lowers the total system operating cost. The results further indicate that moderate active curtailment, when coordinated with energy storage, can be more economical than rigid full renewable accommodation. Consequently, active curtailment should be regarded not merely as a loss of renewable energy utilization but as a flexible and economically rational resource for enhancing system security, flexibility, and overall dispatch performance.

This study develops a robust measure of corporate tax avoidance by decomposing the book-tax difference (BTD) into permanent and temporary components. Furthermore, it examines the moderating role pf digital transformation in the relationship between environmental disclosure, innovation culture and tax avoidance. The study employs Moderated Regression Analysis (MRA) to test the hypothesis. The sample comprises 620 observations from 310 company listed on The Indonesia Stock Exchange (IDX) for 2023-2024 period, excluding the financial and service company. The results indicates that the proposed corporate tax avoidance measure is robust compared to extant measurements. The study finds that environmental disclosure has a significant negative effect on tax avoidance, whereas innovation culture exhibits no significant influence. Furthermore, digital transformation strengthens the negative impact of environmental disclosure on tax avoidance; however, it does not moderate the non-significant relationship between innovation culture and tax avoidance. This finding suggests that integrating digital transformation with transparent environmental disclosure can serve as an effective corporate governance mechanism to mitigate tax avoidance.