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Eco-innovations, green growth, and environmental taxes in EU countries: a panel quantile regression approach

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Abstract

The purpose of this study is to examine how environmental taxation, green growth, and eco-innovations contribute to a more sustainable environment. This study examines the influence of green growth, environmental taxes, and eco-innovations on carbon dioxide emissions in 26 environmentally responsive European Union (EU) countries from 2000 to 2020. The analysis was conducted using the second-generation panel unit root test, cross-sectional dependence, panel cointegration, and panel quantile regression. Theoretical and empirical research has demonstrated that both linear and non-linear green growth strategies are effective in reducing CO2 emissions. There is evidence that CO2 emissions can be reduced through the implementation of environmental taxes, eco-innovations, the use of renewable energy sources, and enhanced energy efficiency. In contrast, economic growth has a positive effect on carbon emissions, and its square term verifies the environmental Kuznets curve. Nevertheless, our research findings provide empirical support for the hypothesis that sustainable development contributes to the maintenance of stringent environmental standards. For the sampled countries, the study’s findings have significant policy implications. These results encourage governments to prioritize green growth over traditional economic growth and to encourage eco-innovations in renewable energy technology.

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Data availability

The data used in this paper is available on OECD database and on the website of World Bank world development indicator (https://databank.worldbank.org/source/world).

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Acknowledgements

This work is supported by the Soft Science Research Program of Zhejiang Province under grant No. 2022C25058.

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Authors and Affiliations

  1. School of Economics and Management, Zhejiang University of Science and Technology, Hangzhou, China

    Hayat Khan & Ying Dong

  2. Human and Social Sciences Doctoral School, Ştefan cel Mare University of Suceava, Suceava, Romania

    Florian Marcel Nuţă

  3. College of Economics, Shenzhen University, Shenzhen, China

    Itbar Khan

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  1. Hayat Khan
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  2. Ying Dong
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  4. Itbar Khan
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Formal analysis was done by Hayat Khan, proofread and correction were done by Ying Dong, Florian Marcel Nuţă has arranged the literature, and formal writing was done by Itbar Khan.

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Correspondence to Itbar Khan.

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Khan, ., Dong, Y., Nuţă, F.M. et al. Eco-innovations, green growth, and environmental taxes in EU countries: a panel quantile regression approach. Environ Sci Pollut Res 30, 108005–108022 (2023). https://doi.org/10.1007/s11356-023-29957-w

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