Decarbonizing the economy effectively mitigates climate change, accelerates the transition to sustainable development, and corresponds to the Kyoto Protocol and Paris Climate Accords. The key objective of this research is to estimate the influence of different social, economic, political and technological factors on decarbonization processes. The scientific novelty of the study is that it investigates decarbonization from a dual perspective, assessing it both in terms of greenhouse gas (GHG) emissions levels and carbon intensity of gross domestic product (GDP). This research applies random-effects generalized least squares regression, fixed-effects robustness checks and dynamic System GMM for 27 EU economies in 2013-2021. The results indicate that (i) renewable energy is a vital decarbonization driver (a 10-percentage-point increase in the share of renewable energy leads to a decrease in the amount of GHG emissions by 1.52 thousand metric tons and to a decrease in the carbon intensity of GDP by 0.14 metric tons/thousand USD). (ii) A larger service sector and higher technological employment also contribute positively to the low-carbon transition, while (iii) corruption acts as an important institutional barrier. (iv) GDP per capita is associated with lower carbon intensity and emissions, supporting the view that more advanced economies are better positioned to implement sustainable transformation. Research results provide specific policy implications for designing more effective climate and energy policies, including green finance development, virtual economy growth, and innovation implementation.
Carbon pricing mechanisms are central policy instruments for climate mitigation. This study assesses the comparative environmental effectiveness of carbon tax (CT) and emissions trading system (ETS), using a panel dataset of 74 countries over the period 2010-2022 under a fixed-effects estimation framework. We found that when effective policy intensity was measured using both price levels and sectoral scope, CT and ETS achieved statistically equivalent emission reductions: a US$10 per tCO2e increase in coverage-adjusted carbon price reduced per-capita GHG emissions by approximately 1.31%. This equivalence was obscured when nominal prices were used, as CT performed better than ETS in most specifications; however, this effectiveness attenuated significantly with the inclusion of year fixed effects, indicating that observed emission reductions in CT-adopting countries partly reflected global trends rather than the tax itself. ETS coefficients remained robust across specifications, reflecting stronger identification from idiosyncratic market-driven price variation. Dynamic analysis revealed that CT induced delayed but durable emission reductions, consistent with gradual structural adjustments, while ETS produced more immediate responses. The findings suggest that policymakers should prioritize coverage expansion and adequate price levels for effective policy intensity, adapt policy design to institutional capacity, and complement carbon pricing with renewable energy deployment.
This study examines how green innovation interacts with green growth and carbon emissions over the business cycle, with a particular focus on its dynamic role in shaping macro-environmental outcomes. It employs a multivariate time-series framework based on Fourier-based unit root and cointegration techniques combined with a vector error correction model, allowing for smooth structural changes and distinguishing between long-run equilibrium relationships and short-run dynamics. The empirical findings reveal that green innovation is strongly procyclical and responds significantly to capital accumulation and green investment. Its contribution to green growth emerges gradually rather than instantaneously, reflecting delayed diffusion and adjustment processes. The results further show that innovation-driven shocks account for an increasing share of fluctuations in both green growth and carbon emissions over longer horizons. While economic expansions initially increase emissions due to scale effects, innovation-induced efficiency gains lead to a reduction in emissions in the medium to long run. Conversely, recessions weaken innovation activity, resulting in persistent losses in green growth and delayed environmental improvements. The study contributes to the literature by providing a dynamic framework that links macroeconomic conditions, innovation processes, and environmental outcomes over the business cycle. It highlights green innovation as a key transmission channel and offers new evidence on the timing and persistence of innovation shocks. The findings also provide policy-relevant insights by emphasizing the importance of countercyclical support for green innovation to avoid recession-driven setbacks in sustainable growth and emissions mitigation.
Belt and Road Initiative (BRI) has primarily been studied for its economic benefits; its role in promoting greener energy transitions and carbon neutrality goals is not well explored. This study examines the effects of BRI across 90 BRI countries from 1995 to 2021 with a focus on greener energy transition and carbon neutrality. Quantile Treatment Effect (QTE) models are used to compare the effectiveness of BRI across quantile levels and groups of countries. In general, results show evidence that BRI has effectively reduced CO 2 emissions and enhanced renewable energy consumption, with the effects being more pronounced in countries that exhibit high CO 2 and renewable energy consumption. The developed countries and countries with high renewable energy potential and high pollution levels are most benefitted from joining BRI. The impact of BRI in the developing and low-income countries is less prominent. In summary, the BRI tends to create the most significant environmental benefits in countries that already have a relatively high level of development, allowing them to leverage new technologies and investments for further decarbonization.
The article delineates the system boundaries of wind power projects through life cycle assessment framework, integrates shadow prices and the Inclusive Wealth Index (IWI) to assess the sustainability of such projects in China. The article provides statistical descriptions of the life cycle table, greenhouse gas emissions, and life cycle energy consumption of wind power systems. Additionally, the study estimates the actual shadow prices across different wind power projects to evaluate the IWI. Furthermore, the article employs learning curves to analyze the stock and price of relevant production capital to compare the sustainability characteristics of wind power projects under both static and dynamic conditions based on IWI measurements. Recognizing regional disparities, the article underscores the importance of addressing the “wind curtailment” issue. Finally, the article suggests strategies for developed nations to foster the sustainable development of wind power in China. This study provides a theoretical reference for the feasibility and sustainable development of subsequent wind power projects.
