Effects of environmental taxes on renewable energy: a new paper by Sedki Zaiane.

A new article "Asymmetric effects of environmental taxes on renewable energy: Evidence from developing countries" by Sedki Zaiane (LaBs Research Fellow) was published in Finance Research Letters.

Abstract

This study investigates the relationship between environmental taxes and renewable energy in developing economies over the period 2000–2022, using quantile regression (QR) and quantile-on-quantile regression (QQR). While QR results reveal that the effect of environmental taxes is heterogeneous across the renewable energy distribution— showing a negligible impact at low quantiles, positive at median and higher quantiles—the QQR analysis shows that these effects also vary with the intensity of taxation itself. This dual methodological approach uncovers both one-sided and joint heterogeneity, offering a more nuanced understanding of fiscal instruments in the energy transition. Policy implications suggest that early-transition economies should prioritize investment support, subsidies, and green finance, while environmental taxation becomes increasingly powerful as renewable adoption advances.

The article can be found - here.