IDEAS home Printed from https://ideas.repec.org/a/kap/ecopln/v56y2023i2d10.1007_s10644-022-09465-6.html
   My bibliography  Save this article

Assessment of environmental tax and green bonds impacts on energy efficiency in the European Union

Author

Listed:
  • Ying Li

    (Tianjin University of Commerce)

  • Mi Zhou

    (Nankai University)

  • Huaping Sun

    (Jiangsu University)

  • Jia Liu

    (Tianjin University of Finance and Economics)

Abstract

Owing to the increased greenhouse gas emissions and threat of environmental pollution, scholars have drawn attention to the issue of energy efficiency in recent decades. One of the main practical policies related to energy efficiency is deploying green tax and green financing tools. The main purpose of this paper is to analyze the impacts of issued green bonds and environmental taxes on energy efficiency in the 27 European Union (EU) member states from 2010 to 2021. The major results confirm that green bonds accelerate the process of improvement of the level of energy efficiency in EU members. In the EU, environmental taxation is an efficient fiscal policy to encourage enterprises to conduct different policies and projects to improve their energy efficiency levels. In addition, a 1% increase in the gross domestic product leads to an increase in energy efficiency of the EU by nearly 0.39%. The recommended practical policies are promoting the green bond market through more transparency and marketing among private investors, paying attention to the concept of green economic recovery, and issuing digital green bonds (DGBs).

Suggested Citation

  • Ying Li & Mi Zhou & Huaping Sun & Jia Liu, 2023. "Assessment of environmental tax and green bonds impacts on energy efficiency in the European Union," Economic Change and Restructuring, Springer, vol. 56(2), pages 1063-1081, April.
    • Handle: RePEc:kap:ecopln:v:56:y:2023:i:2:d:10.1007_s10644-022-09465-6
    DOI: 10.1007/s10644-022-09465-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10644-022-09465-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10644-022-09465-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Backlund, Sandra & Thollander, Patrik & Palm, Jenny & Ottosson, Mikael, 2012. "Extending the energy efficiency gap," Energy Policy, Elsevier, vol. 51(C), pages 392-396.
    2. Dumitrescu, Elena-Ivona & Hurlin, Christophe, 2012. "Testing for Granger non-causality in heterogeneous panels," Economic Modelling, Elsevier, vol. 29(4), pages 1450-1460.
    3. Naoyuki Yoshino & Ehsan Rasoulinezhad & Farhad Taghizadeh-Hesary, 2021. "Economic Impacts of Carbon Tax in a General Equilibrium Framework: Empirical Study of Japan," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 23(01n02), pages 1-25, June.
    4. Joakim Westerlund, 2007. "Testing for Error Correction in Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 709-748, December.
    5. Hassan, Taimoor & Song, Huaming & Khan, Yasir & Kirikkaleli, Dervis, 2022. "Energy efficiency a source of low carbon energy sources? Evidence from 16 high-income OECD economies," Energy, Elsevier, vol. 243(C).
    6. Bashir, Muhammad Farhan & MA, Benjiang & Shahbaz, Muhammad & Shahzad, Umer & Vo, Xuan Vinh, 2021. "Unveiling the heterogeneous impacts of environmental taxes on energy consumption and energy intensity: Empirical evidence from OECD countries," Energy, Elsevier, vol. 226(C).
    7. Tu, Chuc Anh & Rasoulinezhad, Ehsan & Sarker, Tapan, 2020. "Investigating solutions for the development of a green bond market: Evidence from analytic hierarchy process," Finance Research Letters, Elsevier, vol. 34(C).
    8. Li, Ke & Lin, Boqiang, 2015. "Metafroniter energy efficiency with CO2 emissions and its convergence analysis for China," Energy Economics, Elsevier, vol. 48(C), pages 230-241.
    9. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    10. Phung Thanh Quang & Doan Phuong Thao, 2022. "Analyzing the green financing and energy efficiency relationship in ASEAN," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 23(4), pages 385-402, May.
    11. Shidong, Li & Chupradit, Supat & Maneengam, Apichit & Suksatan, Wanich & Phan The, Cong & Nguyen Ngoc, Quynh, 2022. "The moderating role of human capital and renewable energy in promoting economic development in G10 economies: Evidence from CUP-FM and CUP-BC methods," Renewable Energy, Elsevier, vol. 189(C), pages 180-187.
    12. de Miguel, Carlos & Manzano, Baltasar, 2011. "Green tax reforms and habits," Resource and Energy Economics, Elsevier, vol. 33(1), pages 231-246, January.
    13. Baniassadi, Amir & Heusinger, Jannik & Gonzalez, Pablo Izaga & Weber, Stephan & Samuelson, Holly W., 2022. "Co-benefits of energy efficiency in residential buildings," Energy, Elsevier, vol. 238(PB).
    14. T. S. Breusch & A. R. Pagan, 1980. "The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 239-253.
    15. Feng, Long & Zhao, Ping & Ding, Yanling & Liu, Binghui, 2021. "Rank-based tests of cross-sectional dependence in panel data models," Computational Statistics & Data Analysis, Elsevier, vol. 153(C).
    16. Popkova, Elena G. & Sergi, Bruno S., 2021. "Energy efficiency in leading emerging and developed countries," Energy, Elsevier, vol. 221(C).
    17. He, Pinglin & Sun, Yulong & Niu, Hanlu & Long, Chengfeng & Li, Shufeng, 2021. "The long and short-term effects of environmental tax on energy efficiency: Perspective of OECD energy tax and vehicle traffic tax," Economic Modelling, Elsevier, vol. 97(C), pages 307-325.
    18. Ehsan Rasoulinezhad, 2022. "Identification of the Success Factors of the Green Bond Market for Sustainable Development in the COVID-19 Era," Energy RESEARCH LETTERS, Asia-Pacific Applied Economics Association, vol. 3(Early Vie), pages 1-4.
    19. Mirza, Faisal Mehmood & Sinha, Avik & Khan, Javeria Rehman & Kalugina, Olga A. & Zafar, Muhammad Wasif, 2022. "Impact of Energy Efficiency on CO2 Emissions: Empirical Evidence from Developing Countries," MPRA Paper 111923, University Library of Munich, Germany, revised 2022.
    20. Zakari, Abdulrasheed & Khan, Irfan & Tan, Duojiao & Alvarado, Rafael & Dagar, Vishal, 2022. "Energy efficiency and sustainable development goals (SDGs)," Energy, Elsevier, vol. 239(PE).
    21. Saboori, Behnaz & Gholipour, Hassan F. & Rasoulinezhad, Ehsan & Ranjbar, Omid, 2022. "Renewable energy sources and unemployment rate: Evidence from the US states," Energy Policy, Elsevier, vol. 168(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stefan Petrov & Svetlana Aleksandrova & Silvia Kirova, 2024. "Environmental Effects of Green Bonds and Other Forms of Financing in the European Union," International Journal of Economic Sciences, European Research Center, vol. 13(1), pages 81-105, May.
    2. Boqiang Lin & Chongchong Xu, 2024. "RETRACTED ARTICLE: Evaluating the effect of green fiscal policy on firm energy performance: evidence from China," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-29, April.
    3. Tang, Zhao & Qin, Danghong, 2024. "Sustainable mining and the role of environmental regulations and incentive policies in BRICS," Resources Policy, Elsevier, vol. 90(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cheng, Xuanmei & Yan, Chengnuo & Ye, Kaite & Chen, Kanxiang, 2024. "Enhancing resource efficiency through the utilization of the green bond market: An empirical analysis of Asian economies," Resources Policy, Elsevier, vol. 89(C).
    2. Guan, Zepeng & Hossain, Mohammad Razib & Sheikh, Muhammad Ramzan & Khan, Zeeshan & Gu, Xiao, 2023. "Unveiling the interconnectedness between energy-related GHGs and pro-environmental energy technology: Lessons from G-7 economies with MMQR approach," Energy, Elsevier, vol. 281(C).
    3. Liu, Biao & Lyu, Yifei, 2024. "Economic corruption, green recovery, and mineral trade relationships in emerging economies," Resources Policy, Elsevier, vol. 90(C).
    4. Zhang, Can & Zhang, Liangyu & Liu, Liyan & Du, Chaofei, 2024. "The study of the relationship between green finance and resource efficiency in east asian economies," Resources Policy, Elsevier, vol. 89(C).
    5. Liu, Shijie & Lin, Minhua, 2024. "Trade dynamics of ferrous metals in emerging and developing countries," Resources Policy, Elsevier, vol. 90(C).
    6. Zheng, Li & Yuan, Ling & Khan, Zeeshan & Badeeb, Ramez Abubakr & Zhang, Leilei, 2023. "How G-7 countries are paving the way for net-zero emissions through energy efficient ecosystem?," Energy Economics, Elsevier, vol. 117(C).
    7. Chishti, Muhammad Zubair & Patel, Ritesh, 2023. "Breaking the climate deadlock: Leveraging the effects of natural resources on climate technologies to achieve COP26 targets," Resources Policy, Elsevier, vol. 82(C).
    8. Tang, Wenguang & Mai, Liuqing & Li, Meifeng, 2023. "Green innovation and resource efficiency to meet net-zero emission," Resources Policy, Elsevier, vol. 86(PB).
    9. Muhammad Shahbaz & Syed Jawad Hussain Shahzad & Mantu Kumar Mahalik & Perry Sadorsky, 2018. "How strong is the causal relationship between globalization and energy consumption in developed economies? A country-specific time-series and panel analysis," Applied Economics, Taylor & Francis Journals, vol. 50(13), pages 1479-1494, March.
    10. Aladejare, Samson Adeniyi, 2022. "Natural resource rents, globalisation and environmental degradation: New insight from 5 richest African economies," Resources Policy, Elsevier, vol. 78(C).
    11. Usman, Muhammad & Makhdum, Muhammad Sohail Amjad, 2021. "What abates ecological footprint in BRICS-T region? Exploring the influence of renewable energy, non-renewable energy, agriculture, forest area and financial development," Renewable Energy, Elsevier, vol. 179(C), pages 12-28.
    12. Francisco García-Lillo & Eduardo Sánchez-García & Bartolomé Marco-Lajara & Pedro Seva-Larrosa, 2023. "Renewable Energies and Sustainable Development: A Bibliometric Overview," Energies, MDPI, vol. 16(3), pages 1-22, January.
    13. Pan, Wei-Fong, 2018. "Does the stock market really cause unemployment? A cross-country analysis," The North American Journal of Economics and Finance, Elsevier, vol. 44(C), pages 34-43.
    14. Ansari, Mohd Arshad, 2022. "Re-visiting the Environmental Kuznets curve for ASEAN: A comparison between ecological footprint and carbon dioxide emissions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    15. Aladejare, Samson Adeniyi, 2023. "Economic prosperity, asymmetric natural resource income, and ecological demands in resource-reliant economies," Resources Policy, Elsevier, vol. 82(C).
    16. Jin, Taeyoung, 2022. "Impact of heat and electricity consumption on energy intensity: A panel data analysis," Energy, Elsevier, vol. 239(PA).
    17. Khan, Yasir & Hassan, Taimoor & Guiqin, Huang & Nabi, Ghulam, 2023. "Analyzing the impact of natural resources and rule of law on sustainable environment: A proposed policy framework for BRICS economies," Resources Policy, Elsevier, vol. 86(PA).
    18. Huang, Lingyun & Zou, Yanjun, 2020. "How to promote energy transition in China: From the perspectives of interregional relocation and environmental regulation," Energy Economics, Elsevier, vol. 92(C).
    19. Bo Yang & Minhaj Ali & Shujahat Haider Hashmi & Mohsin Shabir, 2020. "Income Inequality and CO 2 Emissions in Developing Countries: The Moderating Role of Financial Instability," Sustainability, MDPI, vol. 12(17), pages 1-24, August.
    20. Hind Alofaysan, 2024. "Discovering the E-Government and COVID-19 Effect on Sustainable Development: Novel Findings from the China Provinces," Sustainability, MDPI, vol. 16(13), pages 1-15, June.

    More about this item

    Keywords

    Green bonds; Green fiscal policy; European Union; Energy efficiency;
    All these keywords.

    JEL classification:

    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:ecopln:v:56:y:2023:i:2:d:10.1007_s10644-022-09465-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.