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Ensuring sustainable transportation in the OECD countries: Does stringent environmental policy matter?

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  • Erdogan, Sinan
  • Solarin, Sakiru Adebola
  • Uzuner, Gizem
  • Koz, Gulsen

Abstract

Transportation is a significant economic activity that causes substantial increases in greenhouse gas (GHGs) emissions, particularly carbon emissions. However, the existing literature has overlooked the drivers of transportation-induced carbon emissions (TCO2) and whether environmental policy stringency (EPS) can be an effective tool for reducing TCO2 in Organisation for Economic Co-operation and Development (OECD) countries. Therefore, the primary motivation of the present study is to examine the impact of the EPS on TCO2 in OECD countries by using the recently proposed Regularized Common Correlated Effects (RCCE) estimator. Empirical results show that (i) a cross-section dependence and cointegration nexus exists in established models, (ii) the Environmental Kuznets Curve (EKC) hypothesis is not validated in OECD countries, while economic development and EPS have a positive impact on TCO2, and (iii) clean energy utilization and urbanization have a negative impact on TCO2. Policy suggestions are provided in the body of the text.

Suggested Citation

  • Erdogan, Sinan & Solarin, Sakiru Adebola & Uzuner, Gizem & Koz, Gulsen, 2026. "Ensuring sustainable transportation in the OECD countries: Does stringent environmental policy matter?," Transport Policy, Elsevier, vol. 185(C).
    • Handle: RePEc:eee:trapol:v:185:y:2026:i:c:s0967070x26002167
    DOI: 10.1016/j.tranpol.2026.104206
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