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Exploring the Causal Relationship among Green Taxes, Energy Intensity, and Energy Consumption in Nordic Countries: Dumitrescu and Hurlin Causality Approach

Author

Listed:
  • Nihal Ahmed

    (Orléans Institute of Economics, Orléans University, CNRS, LEO, FRE, 2014, F-45067 Orléans, France)

  • Adnan Ahmed Sheikh

    (Department of Business Administration, Air University Multan Campus, Multan 59300, Pakistan)

  • Zeeshan Hamid

    (Department of Management Sciences, Shaheed Zulfiqar Ali Bhutto Institute of Science and Technology (SZABIST) Islamabad Pakistan, Sindh 75600, Pakistan)

  • Piotr Senkus

    (Faculty of Management Sciences, Universidad Autónoma del Perú, Lima 15842, Peru)

  • Ricardo Cosio Borda

    (Faculty of Management Sciences, Universidad Autónoma del Perú, Lima 15842, Peru)

  • Aneta Wysokińska-Senkus

    (Faculty of Management and Command, War Studies University Warsaw, 00-910 Warszawa, Poland)

  • Waldemar Glabiszewski

    (Faculty of Economic Sciences and Management, Nicolaus Copernicus University, 87-100 Torun, Poland)

Abstract

Improving energy efficiency and minimizing environmental concerns through environmental laws and green taxes are regarded as the primary motivating factors of climate change policy. This analysis clarifies the significance of green taxes in lowering energy use and intensity from 1994 to 2020. As part of our contribution to the literature on energy economics, this study examines how green taxes interact with energy intensity and consumption in four Nordic nations. Environmental policies and sustainable development goals (SDGs) are driving new research into the effects of green taxes on energy consumption and intensity. According to the outcomes of fully modified ordinary least square (FMOLS), panel dynamic ordinary least square (PDOLS), and panel quantile regression, a green tax helps to reduce total energy consumption. It increases energy efficiency by motivating governments, companies, and citizens to encourage innovation in environment-related technology. When it comes to creating a more sustainable environment, the study argues that regulations that ensure the displacement of non-renewable resources while increasing energy efficacy should be implemented.

Suggested Citation

  • Nihal Ahmed & Adnan Ahmed Sheikh & Zeeshan Hamid & Piotr Senkus & Ricardo Cosio Borda & Aneta Wysokińska-Senkus & Waldemar Glabiszewski, 2022. "Exploring the Causal Relationship among Green Taxes, Energy Intensity, and Energy Consumption in Nordic Countries: Dumitrescu and Hurlin Causality Approach," Energies, MDPI, vol. 15(14), pages 1-15, July.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:14:p:5199-:d:865313
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    2. Grzegorz Mentel & Waldemar Tarczyński & Hossein Azadi & Kalandar Abdurakmanov & Elina Zakirova & Raufhon Salahodjaev, 2022. "R&D Human Capital, Renewable Energy and CO 2 Emissions: Evidence from 26 Countries," Energies, MDPI, vol. 15(23), pages 1-13, December.
    3. Xueying Meng & Tianqing Li & Mahmood Ahmad & Guitao Qiao & Yang Bai, 2022. "Capital Formation, Green Innovation, Renewable Energy Consumption and Environmental Quality: Do Environmental Regulations Matter?," IJERPH, MDPI, vol. 19(20), pages 1-14, October.
    4. Nihal Ahmed & Franklin Ore Areche & Guillermo Gomer Cotrina Cabello & Pedro David Córdova Trujillo & Adnan Ahmed Sheikh & Mohamad G. Abiad, 2022. "Intensifying Effects of Climate Change in Food Loss: A Threat to Food Security in Turkey," Sustainability, MDPI, vol. 15(1), pages 1-12, December.
    5. Nihal Ahmed & Adnan Ahmed Sheikh & Farhan Mahboob & Muhammad Sibt e Ali & Elżbieta Jasińska & Michał Jasiński & Zbigniew Leonowicz & Alessandro Burgio, 2022. "Energy Diversification: A Friend or Foe to Economic Growth in Nordic Countries? A Novel Energy Diversification Approach," Energies, MDPI, vol. 15(15), pages 1-15, July.
    6. Enas Taha Sayed & Abdul Ghani Olabi & Abdul Hai Alami & Ali Radwan & Ayman Mdallal & Ahmed Rezk & Mohammad Ali Abdelkareem, 2023. "Renewable Energy and Energy Storage Systems," Energies, MDPI, vol. 16(3), pages 1-26, February.
    7. Nihal Ahmed & Adnan Ahmed Sheikh & Bilal Hassan & Sajjad Nawaz Khan & Ricardo Cosio Borda & Juan Martín Campos Huamán & Piotr Senkus, 2022. "The Role of Educating the Labor Force in Sustaining a Green Economy in MINT Countries: Panel Symmetric and Asymmetric Approach," Sustainability, MDPI, vol. 14(19), pages 1-12, September.
    8. Fang, Shuya & Fang, Wei, 2023. "How fiscal decentralization and trade diversification influence sustainable development: Moderating role of resources dependency," Resources Policy, Elsevier, vol. 84(C).
    9. Yang, Bin & Wu, Qiong & Sharif, Arshian & Uddin, Gazi Salah, 2023. "Non-linear impact of natural resources, green financing, and energy transition on sustainable environment: A way out for common prosperity in NORDIC countries," Resources Policy, Elsevier, vol. 83(C).
    10. Nihal Ahmed & Franklin Ore Areche & Dante Daniel Cruz Nieto & Ricardo Fernando Cosio Borda & Berenice Cajavilca Gonzales & Piotr Senkus & Paweł Siemiński & Adam Skrzypek, 2022. "Nexus between Cyclical Innovation in Green Technologies and CO 2 Emissions in Nordic Countries: Consent toward Environmental Sustainability," Sustainability, MDPI, vol. 14(18), pages 1-20, September.

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