Impact of Carbon Pricing Policies on Environmental Sustainability

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:Provides a robust empirical comparison of CT vs. ETS using panel data and diagnostic tests, contributing to carbon pricing literature.

🏢実務担当者:Helps corporate sustainability teams assess regulatory risk and compliance costs under different carbon pricing regimes.

🏛政策担当者:Offers evidence that ETS may outperform carbon taxes in long-run emission reductions, informing policy design.

Carbon pricing is a policy tool that has become one of the most significant tools in the global effort to address the problem of climate change through the internalisation of the externality of greenhouse gas emissions. Carbon taxes (CT) and emissions trading schemes (ETS) are two phenomena that have become key instruments in supporting the global campaign against climate change. Despite this fact, empirical research disregarded the role played by these instruments in mitigating carbon emissions by expressly considering the countries that have CT and ETS in place. In this paper, the author will analyze the effects that the two carbon pricing policies will have on carbon dioxide emissions between the years 1990 and 2024. The empirical approach is followed by the thorough method of diagnostics, and the tests of cross-sectional dependence, slope heterogeneity, panel unit roots, and cointegration. The results showthat ETS has better performance in reducing emissions compared with CT whose effects are less and statistically unimportant in the long term. This paper can be seen as a contribution to the literature as it connects the policy, providing viable insights to policymakers striving to effect net-zero changes.

• semanticscholar https://qtanalytics.in/journals/index.php/ANUSANDHAN/article/download/5564/2758first seen 2026-07-13 06:34:19