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How Economic Policies Drive Climate Change: A Comparative Analysis of Groups of Middle- and High-Income Countries

Author

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  • Abonazel, Mohamed R.

    (Department of Applied Statistics and Econometrics, Faculty of Graduate Studies for Statistical Research, Cairo University, Giza, Egypt)

  • Ahmed, Elsayed G.

    (Department of Statistics and Insurance, Faculty of Commerce, Arish University, North Sinai, Egypt)

  • El-Baz, Shawky Taha

    (Department of Economics, Faculty of Commerce, Arish University, North Sinai, Egypt)

  • Ebrahim, Ehab Ebrahim Mohamed

    (Department of Economics, Faculty of Commerce, Kafrelsheikh University, Kafrelsheikh, Egypt; & Department of Economics, College of Business, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh, Saudi Arabia)

Abstract

Fiscal and monetary policies are considered a main tool for any economy to achieve the desirable goals or to counter-cycle any problem facing the economy and one of the biggest deals facing any society is climate change. Thus, in this paper we are studying the effect of these policies on climate change by using panel data models across various countries according to income levels in the period from 1990 to 2020. The study explores how economic policies influence carbon dioxide (CO?) emissions to provide valuable insights for policymakers and researchers to integrate environmental considerations into economic decision-making processes. The findings indicate that economic policies significantly influence CO? emissions in both middle and high-income countries, except for the tax revenue in high-income countries. Findings reveal significant relationships between fiscal and monetary outcomes, highlighting the role of economic policies in addressing climate change.

Suggested Citation

  • Abonazel, Mohamed R. & Ahmed, Elsayed G. & El-Baz, Shawky Taha & Ebrahim, Ehab Ebrahim Mohamed, 2024. "How Economic Policies Drive Climate Change: A Comparative Analysis of Groups of Middle- and High-Income Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 15(1), pages 447-455, December.
    • Handle: RePEc:eco:journ2:v:15:y:2024:i:1:id:17853
    DOI: 10.32479/ijeep.17853
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