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Examining the Impact of Tax Policies on Renewable Energy Investment and Greenhouse Gas Emissions in Developing Countries: A Generalized Method of Moments (GMM) Approach
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Pouria Mahmoodi1   , Amirhosein Anvari2 , Ahmad Chehrghani *3 |
1- Master's degree in Theoretical Economics, University of Tehran, Tehran, Iran.
2- PhD student in Health Economics, Tarbiat Modares University, Tehran, Iran.
3- Assistant Professor, Department of Economics, Faculty of Administrative Sciences and Economics, Arak University, Arak. , a-chehreghani@araku.ac.ir |
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Abstract: (15 Views) |
Taxation is a key tool in economic policy that can play a crucial role in financing environmental projects and renewable energy initiatives. In many developing countries, optimal use of tax revenues can facilitate the expansion of renewable energy infrastructure, reduce dependency on fossil fuels, and strengthen sustainable development capacities. This study aims to investigate the impact of economic, social, and environmental factors on greenhouse gas emissions in developing countries. Using the Generalized Method of Moments (GMM) and panel data from the period 2000 to 2020, the study examines the relationship between various variables such as per capita GDP, renewable energy consumption, fossil fuel consumption, foreign direct investment, and government tax revenues on greenhouse gas emissions. The results indicate that per capita GDP in developing countries is significantly associated with increased greenhouse gas emissions, which can be explained by the Kuznets Curve theory. Furthermore, fossil fuel consumption has a positive and significant impact on pollution, while renewable energy consumption helps to reduce greenhouse gas emissions. Additionally, foreign investment plays a dual role in this context; while it promotes economic growth, it can also contribute to increased pollution due to the transfer of pollutive technologies. Government tax revenues are also identified as a key factor in improving environmental policies and reducing pollution. |
Article number: 17 |
| Keywords: Tax policies, Renewable energy, Greenhouse gas emissions, developing countries, Generalized Method of Moments (GMM) |
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Full-Text [PDF 577 kb]
(6 Downloads)
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Article type: Research |
Subject:
General
Received: 2025/06/23 | Accepted: 2025/10/8 | Published: 2026/08/23
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