Investigating the role of environmental taxes and regulations for renewable energy consumption: evidence from developed economies

Figures & data

Table 1. Data and Variables specification.

Variables	Specification	Source
Renewable Energy (lnRE)	Renewable energy consumption (% of total final energy consumption)	WDI
Environmental Tax (lnETAX)	Environmental taxes collected in current US $, Millions	OECD
GDP (lnGDP)	Per capita constant 2010 US$	WDI
Industrialization (lnIND)	Industry (including construction), value added (constant 2010 US$)	WDI
Environmental technologies (lnENVT)	Environmental technologies as a share of all technologies	OECD
Environmental Policy Stringency Index (lnENVP)	degree of stringency of environmental policy instruments with a score range from 0 (lowest) to 6 (highest)	OECD
Environmental expenditures (lnENVE)	Total current expenditure in Million US$, 2010 PPP prices	OECD
Financial development index (lnFD)	Stability, access, efficiency, and depth of the financial system	IMF

Source: Authors.

Table 2. Descriptive statistics.

Variables	Mean	Std. Dev.	Min	Max
lnRE	3.01	1.744	−2.303	6.619
lnETAX	9.472	1.172	6.55	11.662
lnGDP	10.388	.641	8.72	11.626
lnIND	25.68	1.345	22.427	28.813
lnENVT	2.191	.393	−.163	3.443
lnENVP	3.477	1.722	0	5.628
lnENVE	9.689	2.239	3.17	17.453
lnFD	−.477	.32	−1.609	0

Note: ** p < 0.05, *** p < 0.01.

Source: Authors.

Table 3. Results of cross-sectional and unit-root tests.

		CIPS		CADF
Variable	CD-test	Level	Diff.	Level	Diff.
lnRE	70.440**	−1.222	−5.218**	−2.522	−4.291**
lnETAX	48.010**	−1.402	−5.948**	−1.062	−7.927**
lnGDP	77.840**	−0.600	−3.002**	−2.029**	−2.702**
lnIND	43.680**	−1.009	−3.464**	−1.645	−2.851**
lnENVT	41.280**	−1.393	−3.574**	−2.614	−10.213**
lnENVP	29.660***	−0.753	−4.281**	−1.224	−3.478**
lnENVE	15.120***	−1.567	−5.789**	−0.461	−2.872**
lnFD	23.360***	−1.901**	−5.118**	−2.198**	−3.430**

Note: **, *** represent 1% and 5% level.

Source: Authors.

Table 4. Results of the panel Westerlund co-integration test.

	Model-1			Model-2			Model-3
Statistic	Value	Z-value	p-value	Value	Z-value	p-value	Value	Z-value	p-value
Gt	−3.435*	2.570	0.011	−1.623**	1.424	0.000	0.054*	1.424	0.000
Ga	−5.635	3.638	1.000	−1.726	5.966	1.000	0.064	5.966	1.000
Pt	−8.422**	5.927	0.000	−5.243**	1.138	0.000	−2.524**	1.138	0.000
Pa	−5.164*	1.519	0.068	−1.568**	3.221	0.000	2.968 **	2.221	0.000

Note: ** and * denote the statistical significance at 1% and 5% level.

Source: Authors.

Figure 1. Estimates of coefficients from quantile regressions for variables.

Source: Authors.

Table 5. Results of quantile regression for three models.

	Model-1			Model-2			Model-3
Variables	q0.25	q0.50	q0.75	q0.25	q0.50	q0.75	q0.25	q0.50	q0.75
lnETAX	−0.892***	−0.826***	−1.002***	−0.649***	−0.518**	−0.706***	−0.439	−0.456***	−0.234**
lnGDP	0.158**	0.231*	0.192*	0.674***	0.711***	0.273	−0.082*	0.214	0.564***
lnIND	1.804***	1.619***	1.532***	1.409***	1.291***	1.416***	1.913***	1.798***	1.315***
lnFD	−0.260**	0.067**	0.038*	0.173	0.441**	0.596***	0.947***	0.963***	0.853***
lnENVT	1.131***	0.603***	0.116*	–	–	–	–	–	–
lnENVP	–	–	–	−0.042*	−0.040**	−0.041**	–	–	–
lnENVE	–	–	–	–	–	–	−0.292***	−0.324***	−0.247***
Constant	−39.958***	−34.403***	−28.159***	−34.468***	−32.179***	−28.212***	−38.429***	−37.429***	−30.971***

Note: ***, **, * Denote the statistical significance at p < 0.01, p < 0.05, and p < 0.1 level.

Source: Authors.

Table 6. Results from conventional long-run estimators.

	FMOLS			OLS with fixed effect
Variables	Model-1	Model-2	Model-3	Model-1	Model-2	Model-3
lnETAX	−1.137***	−0.704*	−1.014*	−0.017	−0.235**	−0.384**
lnGDP	0.064*	0.500*	−0.174	5.133***	5.435***	7.481***
lnIND	1.822***	1.364***	2.246***	−2.056***	−2.326***	−3.082***
lnFD	−0.756*	−0.107	0.771**	−0.613***	−0.599***	−0.527***
lnENVT	0.698*	–	–	0.129***	–	–
lnENVP	–	−0.045*	–	–	−0.053***	–
lnENVE	–	–	−0.265**	–	–	−0.047*
Constant	−35.556***	−30.402***	−40.227***	1.657	4.367*	6.923*

***, **, * Denote the statistical significance at p < 0.01, p < 0.05, and p < 0.1 level.

Source: Authors.

Availability of data and materials

The datasets used during the current study are available from the corresponding or first author on reasonable request.