Environmental taxes, R&D expenditures and renewable energy consumption in EU countries: Are fiscal instruments effective in the expansion of clean energy?

Degirmenci T., Yavuz H.

ENERGY, vol.299, 2024 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 299
  • Publication Date: 2024
  • Doi Number: 10.1016/j.energy.2024.131466
  • Journal Name: ENERGY
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Academic Search Premier, PASCAL, Aerospace Database, Applied Science & Technology Source, Aquatic Science & Fisheries Abstracts (ASFA), CAB Abstracts, Communication Abstracts, Compendex, Computer & Applied Sciences, Environment Index, INSPEC, Metadex, Pollution Abstracts, Public Affairs Index, Veterinary Science Database, Civil Engineering Abstracts
  • Azerbaijan State University of Economics (UNEC) Affiliated: No

Abstract

In today's world, where energy demand and climate change are experienced, the transition to renewable energy comes to the fore. The main tools used in the expansion of renewable energy are taxes and expenditures. This study examines the impact of R&D expenditures, environmental taxes and economic growth on renewable energy consumption in selected EU countries from 1995 to 2019. This study used augmented mean group (AMG) and dynamic common correlated effects (DCCE), which are novel estimators. Two different long-run estimators were used to obtain robust results. According to the results of the study, Environmental taxes have a positive effect on renewable energy consumption in Germany and France, while they have a negative effect in Spain and Slovenia. R&D expenditures positively impact renewable energy in Portugal, Lithuania, and Slovakia, while negatively affecting it in Germany and Spain. EU countries, which have equal responsibilities in expanding renewable energy, need to review their tax and expenditure policies and implement them in a coordinated manner.