The impact of environmentally related taxes and productive capacities on climate change: Insights from european economic area countries.

In a world increasingly threatened by climate change and its associated risks, there's an urgent need to actively seek solutions for environmental protection and sustainable economic development. Central to this effort is understanding the role of environmental taxes and productive capacities in shaping environmental outcomes. Focusing on countries within the European Economic Area (EEA), this research uses advanced second-generation econometric techniques to examine this relationship. The use of cross-sectional autoregressive distributive lag (CS-ARDL) and dynamic common correlated effects (DCCE) models allows for a robust examination of panel data and provides reliable results. The results reveal an inverted U-shaped relationship, or Environmental Kuznets Curve (EKC), between GDP growth and environmental degradation in the EEA economies. Furthermore, while our data reveal a significant negative correlation between environmental taxes and CO2 emissions, we find that productive capacities have a more significant impact on reducing these emissions. These findings call for further research into the effectiveness of policies to support productive capacities in achieving environmental protection goals in the EEA.

In-depth analysis of the effect of decomposed growth on the environment: A global perspective.

The traditional Environmental Kuznets Curve (EKC) theory, which establishes a relationship between economic growth and a select number of pollutants, does not fully capture the broad and nuanced impacts on environmental qualityThis research examines the implications of decomposed economic growth by considering the separate contributions of scale, composition, and technique effects on environmental health and ecosystem vitality. The research spans 121 countries from 2001-2019, using robust statistical methods, including Driscoll-Kraay standard error, fully modified ordinary least squares, and panel quantile estimation techniques. The study reveals complex relationships that depend on countries' income levels. A predominantly positive and non-linear relationship between the scale effect and environmental health is observed for the full sample of countries and for low-income countries. The scale effect also shows a non-linear and predominantly positive relationship with ecosystem vitality in lower-middle-income, upper-middle-income, and high-income countries. The association between the composition effect and environmental health is inverted U-shaped in lower-middle-income countries, while it is mostly negative and non-linear in low-income and high-income countries. For ecosystem vitality, the composition effect shows a negative, non-linear relationship in all sampled countries, but a positive, non-linear relationship in higher-income countries. The relationship between the technology effect and environmental health is largely positive and non-linear in all sampled countries, lower-middle-income countries, upper-middle-income countries, and higher-income countries. However, the relationship is negative in lower-middle-income countries. These results have important policy implications. Governments are encouraged to adopt renewable, sustainable, and low-carbon technologies to address the scale effect. In addition, the formulation and enforcement of stringent environmental regulations for polluting industries is crucial, given the significant impact of the composition effect.

The unprecedented reaction of equity and commodity markets to COVID-19.

Using a drifting spillover index approach (Diebold and Yilmaz, 2012) and a continuous time-frequency tool (Torrence and Webster, 1999), this paper attempts an empirical investigation of the spillovers and co-movements among commodity and stock prices in the major oil-producing and consuming countries. While our results point to the existence of a significant interdependence among the markets considered, Chinese and Saudi Arabian stock markets seem to be weakly integrated into the world market. Moreover, the spillovers are time-varying and reached their highest levels during the COVID-19 medical shock.