A step towards carbon neutrality in E7: The role of environmental taxes, structural change, and green energy

Environmental management and the circular economy: Analysing the role of environmental fiscal measures in promoting clean production and consumption in OECD countries

Pollution, material waste, and emissions cause environmental degradation. The public sector implements environmental interventions to reduce pollution and emissions and to make waste circular. Environmental fiscal interventions are crucial for reducing emissions, material waste, pollution, and unsustainable production and consumption. This study focuses on the role of environmental fiscal measures in promoting clean production and consumption in 22 OECD countries. Continuously Updated Efficient Generalized Method of Moments (CUE-GMM) and 2-step Efficient GMM methods are applied to panel data from 2000 to 2022. The empirical analysis reveals the positive impact of environmental protection expenditures, renewable energy adoption, and technological innovation on clean production and consumption. However, environmental taxes and credits to the private sector negatively impact and are ineffective and distortionary for the transition to clean production and consumption. The findings validate the public good theory that environmental protection expenditures promote clean production and consumption technologies. However, the Pigouvian tax theory is not valid for the OECD countries. This study suggests re-evaluating the existing environmental taxation framework. The findings imply that tax credits, environmental research and development expenditures, adopting renewable energy sources, and technology for green practices will promote responsible production and consumption in OECD countries.

The role of taxation in environmental sustainability in G-20 economies: A double dividend theoretical assessment

This study analyses the influence of environmental taxes, renewable energy, economic growth, green innovation and financial development on environmental sustainability in G-20 countries from 1990 to 2022. To this end, the Method of Moments Quantile Regression (MMQR) was applied to obtain the reference results, complemented with Fully Modified Ordinary Least Square (FMOLS) and Driscoll-Kraay techniques to perform a comparative analysis. Our results confirm a negative relationship between environmental taxes and sustainability in all quantiles, although this relationship is only significant in the middle and upper quantiles. Furthermore, it is evident that economic growth significantly improves environmental sustainability, supporting the "double dividend" hypothesis, which argues that revenues generated by environmental taxes can be used to finance tax reductions in other areas while contributing to the regulation of environmental degradation. Our findings also show that renewable energy and green innovations play a key role in improving environmental sustainability, underlining the relevance of such variables as fundamental pillars for the fulfilment of the Sustainable Development Goals (SDGs), in particular SDG-7. On the other hand, a positive relationship between financial development and environmental sustainability is identified in the lower quantiles. In contrast, in the upper quantiles, this relationship becomes negative, although not significant. These findings are consistent with the robustness tests performed, which incorporate the use of FMOLS and Driscoll-Kraay standard error estimators.

The role of FDI and energy intensity upon the consolidation of circular economies among the European Union

This manuscript critically examines the intricate interplay between diverse foreign direct investment (FDI) flows, energy intensity, and their consequential effects on circular economies (CEs), specifically in terms of the waste recycling ratio, within the member states of the European Union over the period spanning from 2000 to 2021. Our findings substantiate that inflows and outflows of FDI have different implications for waste recycling, where an increase of 1% OFDI implies an increase of recycling ratio by 0.03%, a relationship that is potentially contingent upon the inherent characteristics of the flow itself in relation to its contributions to local productivity dynamics. In this vein, the influx of FDI, which is associated with amplified capital inputs and heightened productivity levels, is observed to exert a dampening effect on recycling capabilities, by an average of 0.01% for every 1% change. Conversely, the outflow of FDI entails reduced capital inputs, thereby curbing waste generation resulting from enhanced productivity capacities. Moreover, diminished energy intensity exerts a positive influence on the recycling ratio, thereby fostering the advancement of CE. To capitalize on their locational advantages, it is recommended that the European Union proactively foster the development of specialized zones that concentrate inflows of FDI, thereby facilitating the logistical complexities associated with waste recycling arising from FDI-driven productive activities. Such strategic initiatives hold the potential to contribute to heightened resource efficiency within the broader productivity relationship.

The role of financial inclusion and technological innovation in stimulating environmental sustainability in the European countries: A new perspective based on load capacity factor

Given the alarming level of climate change, policymakers across the globe are seeking strategies to mitigate environmental pollution to achieve sustainable development. In this context, renewable energy and technological advancements have emerged as an effective way to lower pollution and attain sustainable development. This study evaluates the effect of financial inclusion, technological innovation, and renewable energy on the load capacity factor (LCF) in European countries from 2004 to 2018. LCF is considered the most comprehensive indicator of ecological sustainability, combining both the biocapacity factor and ecological footprint. Hence, the present work fills the literature gap by exploring, for the first time, the effect of financial inclusion on the LCF. Applying the advanced Method of Moment Quantile Regression (MMQR), the study demonstrates that technological innovation and economic growth have adverse effects on LCF while renewable energy and financial inclusion promote LCF. The study indicates that technological innovation and economic growth undermine ecological excellence in European nations while green energy and financial inclusion enhance it. Moreover, the findings of the causality analysis reveal a causal association between financial inclusion, renewable energy, and LCF. Our study recommends prioritizing financial inclusion alongside investments in renewable energy to enhance ecological sustainability.

Examining public private partnership investment in energy towards achieving sustainable development goal 7 for ASEAN region

The gradual progress in aligning financial flows with the adoption of clean technologies reveals a persistent funding gap, signaling a global misallocation of capital. Addressing this challenge necessitates political leadership and robust policies to counteract the insecurities impeding the redirection of financial flows. This study investigates into the impact of energy-related public-private partnership investments (PPPIE) and macro-environmental variables on the attainment of Sustainable Development Goal 7 (SDG7) across Association of Southeast Asian Nations (ASEAN) member countries from 1999 to 2021. Employing the Dynamac command technique, we conduct autoregressive distribution lag analysis and the Bounds Cointegration Test to evaluate ASEAN's efforts in achieving SDG7. Results indicate that a ten-year exogenous shock to the GDP growth rate initially causes a temporary decline in both GDP and PPPIE, albeit not statistically significant. However, in the long run, the shock becomes statistically significant, correlating with a negative decline in the GDP growth rate. This underscores the negative impact of external factors like the COVID-19 pandemic on the economic growth of ASEAN member countries. Specifically, a percentage increase in PPPIE leads to an 8.3% reduction in the GDP growth rate, revealing a detrimental and unsustainable impact on the economy. This signifies that energy investments in the ASEAN region, are predominantly unsustainable and adversely impact economic growth. Moreover, these energy investments contribute to a significant 52.6% increase in greenhouse gas emissions, indicating a substantial setback in the region's progress towards meeting SDG7's clean energy objectives by 2030. This suggests the present state of PPPIE does not align with sustainable clean energy goals of the region. Therefore, recommendations should include diversifying energy sources and investment strategies to enhance sustainable clean energy. Also, policymakers and researchers should reassess the terms and conditions of PPPIE, refining frameworks for private sector involvement to align with long-term economic sustainability goals.

A simultaneous impact of digital economy, environment technology, business activity on environment and economic growth in G7: Moderating role of institutions

This study investigates the simultaneous influence of the digital economy, environmental technologies, business activity, and institutional quality on both the environment and economic growth in G7 economies from 1996 to 2020. The study provides an in-depth analysis to investigate the influence of institutional quality, particularly the regulatory environment, on business activity. Employing a rigorous methodology encompassing correlation analysis, long-term examination using Driscoll and regression estimators, and the utilization of various digital economy indicators such as internet usage and cell subscriptions, we uncover significant insights. The findings underscore the substantial impact of digital economies in mitigating carbon emissions and driving economic growth at an accelerated rate. Moreover, the study reveals that certain regulatory constraints on corporate operations can paradoxically facilitate carbon emission management while also fostering economic expansion. The study validates the presence of an inverted U-shaped Environmental Kuznets Curve (EKC) in G7 economies. This suggests that there is a specific point at which economic activities start to contribute more to carbon emissions. Moreover, the study highlights the importance of achieving a balance between economic growth driven by foreign direct investment and the goals of environmental sustainability. Environmental technology is becoming increasingly important in the regulation of emissions. Significantly, the study highlights the need to enhance the quality of implementing institutional regulations. It suggests that G7 economies can improve both environmental quality and economic growth by adopting superior regulatory methods. These findings are relevant for governments seeking economic growth and environmental protection. They suggest the need for specific policy actions to accomplish sustainable development goals.

From black to green: Quantifying the impact of economic growth, resource management, and green technologies on CO2 emissions

In an exploration of environmental concerns, this groundbreaking research delves into the relationship between GDP per capita, coal rents, forest rents, mineral rents, oil rents, natural gas rents, fossil fuels, renewables, environmental tax and environment-related technologies on CO2 emissions in 30 highly emitting countries from 1995 to 2021 using instrumental-variables regression Two-Stage least squares (IV-2SLS) regression and two-step system generalized method of moments (GMM) estimates. Our results indicate a significant positive relationship between economic growth and CO2 emissions across all quantiles, showcasing an EKC with diminishing marginal effects. Coal rents exhibit a statistically significant negative relationship with emissions, particularly in higher quantiles, and mineral rents show a negative association with CO2 emissions in lower and middle quantiles, reinforcing the idea of resource management in emissions reduction. Fossil fuels exert a considerable adverse impact on emissions, with a rising effect in progressive quantiles. Conversely, renewable energy significantly curtails CO2 emissions, with higher impacts in lower quantiles. Environmental tax also mitigates CO2 emissions. Environment-related technologies play a pivotal role in emission reduction, particularly in lower and middle quantiles, emphasizing the need for innovative solutions. These findings provide valuable insights for policymakers, highlighting the importance of tailoring interventions to different emission levels and leveraging diverse strategies for sustainable development.

Eco-friendly revenues for healthcare: assessing the relationship between green taxation, public health expenditures, and life expectancy in China

Introduction

The synergy of green taxation, public health expenditures, and life expectancy emerges as a compelling narrative in the intricate symphony of environmental responsibility and public well-being. Therefore, this study examine the impact of green taxation on life expectancy and the moderating role of public health expenditure on the said nexus, particularly in the context of China, an emerging economy.

Methods

Statistical data is collected from the National Bureau of Statistics of China to empirically examine the proposed relationships. The dataset contains provincial data across years.

Results

Using fixed-effect and system GMM regression models alongwith control variables, the results found a positive and statistically significant influence of green taxation on life expectancy. Moreover, public health expenditures have a positive and statistically significant partial moderating impact on the direct relationship.

Discussion

These findings suggest that the higher cost of pollution encourages individuals and businesses to shift to less environmentally harmful alternatives, subsequently improving public health. Moreover, government investment in the health sector increases the availability and accessibility of health facilities; thus, the positive impact of green taxation on public health gets more pronounced. The findings significantly contribute to the fields of environmental and health economics and provide a new avenue of research for the academic community and policymakers.

The impact of Chinese foreign direct investment and environmental tax revenues on air degradation in Europe: a spatial regression approach, 2000-2020

This study analyzes air pollution through the effects of China's FDI in 27 European countries over a 20-year period, with a focus on the impact of environmental tax revenues (ETRs) and the environmental context in China. The relationship is estimated through spatial regressions that account for the presence of air pollutants in neighboring countries. The findings suggest that China's FDI in Europe does not contribute to air pollution but rather has a positive impact. The presence of environmental charges filters out non-polluting investments, which has a non-linear relationship with PM2.5 pollution rates. The study also concludes that air pollution is closely linked to the global environmental context, highlighting the positive effects of international agreements in the fight against climate change. Specifically, the study finds a link between China's efforts to address its polluting activities and their impact on European air quality.

Environmental taxation and inclusive green growth in developing countries: does the quality of institutions matter?

The promotion of inclusive green growth is one of the most debated topics in international forums and is considered a major concern by all countries in the world. Although the existing literature has examined several determinants of inclusive green growth, the impact of environmental taxation on inclusive green growth is relatively little explored. This study is therefore the first attempt to examine the impact of the environmental tax on inclusive green growth for developing countries from 2000 to 2021. To do this, we apply the system generalised method of moments (GMM) that controls unobserved heterogeneity, heteroskedasticity, simultaneity, reverse causality and endogeneity. The empirical results show that environmental tax promotes inclusive green growth. In addition, our results indicate that the control of corruption, government efficiency, the quality of regulation and the rule of law interact with the environmental tax to promote inclusive green growth. Furthermore, this study reveals interestingly that the environmental tax has a positive impact on the two components of inclusive growth and green growth, but the institutional factors that accentuate the impact of the environmental tax are somewhat nuanced. The results of the study have important policy implications for decision-makers in developing countries in promoting inclusive and environmentally friendly growth.

Evaluating forest depletion and structural change effects on environmental sustainability in Pakistan: Through the lens of the load capacity factor

The pace of species extinction and deforestation has increased dramatically due to the substantial increase in global environmental degradation. This trend is approaching the crucial temperature threshold of 2 °C and calls for more attention. Although previous research has observed the individual impacts of forest depletion, structural change, economic growth, and urbanization on various sustainability outcomes, there has been no previous research into their interrelationships with an emphasis on the load capacity factor (LCF). Furthermore, no previous study has examined the environmental impacts of the abovementioned variables by contrasting the results of LCF and CO2 emissions in Pakistan. Therefore, this research suggests a theoretical framework that integrates these concepts, provides a roadmap for an effective and sustainable mitigation strategy for Pakistan and compares LCF results with CO2 emissions. Using the time-series data from 1970 to 2021, a unique and sophisticated dynamic Autoregressive Distributed Lag (DARDL) technique, the authors found that (i) a 1 % rise in forest depletion leads to a decline in load capacity factor by 0.026 %. (ii) A one per cent upsurge in structural change fosters environmental sustainability by raising the load capacity factor by 0.084 %. (iii) An increase of 1 % in economic growth dwindles the load capacity factor by 0.027 %. (iv) A one per cent surge in urbanization enhances the load capacity factor by 0.029 %. The findings suggest that Pakistan's Government should promote afforestation by emphasizing the constructive role of structural change in achieving environmental sustainability.

Curbing methane emissions from Italian cattle farms. An agroeconomic modelling simulation of alternative policy tools

Methane (CH4) emissions from cattle farms have been prioritised on the EU agenda, as shown by recent legislative initiatives. This study employs a supply-side agroeconomic model that mimics the behaviour of heterogeneous individual farms to simulate the application of alternative economic policy instruments to curb CH4 emissions from Italian cattle farms, as identified by the 2020 Farm Accountancy Data Network survey. Simulations consider increasing levels of a tax on each tonne of CH4 emitted or of a subsidy paid for each tonne of CH4 curbed with respect to the baseline. Individual marginal abatement costs are also derived. Besides, to consider possible technological options to curb emissions, a mitigation strategy is simulated, with different levels of costs and benefits to appraise the potential impacts on the sector. Relevant reductions in operating income are foreseen, the most substantial in farm types and size classes characterised by lower levels of carbon productivity. The introduction of the mitigation strategy shows that the outcome in terms of mitigation potential, without undermining production level, highly depends on the implementation costs, but can also vary widely due to heterogeneous farms' economic performances. Policy implications are also derived.

Effect of green taxation on renewable energy technologies: an analysis of commonwealth and non-commonwealth countries in Sub-Saharan Africa

African nations encounter difficulties enforcing regulations and providing incentives for using renewable energy sources. However, several nations are making efforts to encourage renewable energy through financial and tax advantages. Therefore, a shift to renewable energy is essential for African nations to experience sustainable growth and lessen environmental deterioration. Similarly, the extant literature examining green taxes' influence on renewable energy technology has documented equivocal findings. Hence, there is a need for a more thorough investigation. This study, therefore, explores the influence of green taxation on renewable energy technologies of emerging countries in Sub-Saharan Africa. We employed data from a sample of 28 countries of 54 African countries spanning 21 years from 2001 to 2021, providing a panel of 588 country-year observations. The Organisation for Economic Co-operation and Development (OECD) and the World Bank Dataset provided all the study's data. A heterogeneous dynamic panel data modelling using the autoregressive distributed lag (ARDL) has been adopted. The study found that green taxes might be used to mitigate the adverse effects of non-renewable energy activities on the environment in Africa. Considering the findings of the components of green taxes, it was recognised that an increase in energy-related tariffs would lead to a growth in Africa's use of renewable energy. It was further established that an increase in transport taxes increases the adoption of renewable energy technologies in Africa. A comparative analysis between the commonwealth and non-commonwealth countries showed that green taxes of commonwealth countries in Africa significantly contribute to the growth of renewable energy technologies compared to non-commonwealth countries in Africa. Primarily, the results of this study can be a valuable resource for African governments and policymakers as they develop policies and evaluate legislation about the usage of renewable energy sources and other green practices. Finally, the study can shed light on creating and using efficient tax laws that support renewable energy sources.

Battling for net zero carbon: the position of governance and financial indicators

Africa, over the past years, has put various measures in place in the fight against carbon emissions. Achieving net zero carbon has caused the continent researchers to investigate various conditions required for a successful transition. Therefore, the political system cannot be left out since it plays a major role in decision-making. This study contributes to previous literature analyzing the empirical effect of financial development and governance quality on carbon emissions. The study is focused on 52 African countries with data from 1996 to 2021. Panel quantile and generalized method of moments are used for the analysis. The result indicates that financial development contributes to environmental degradation, government effectiveness, rule of law, and political stability which promote environmental pollution; however, control of corruption, renewable energy, and economic growth promote ecological sustainability. According to the aforementioned, it is crucial for governments to include financial development plans in national environmental strategies, particularly for those in African nations. Furthermore, governments should put restrictions on trade to control the trade of high-carbon technologies.

A bibliometric review analysis into environmental kuznets curve phenomenon: A retrospect and future direction

The present study presents a retrospect into environmental Kuznets curve hypothesis (EKC). The EKC debate is dated over four decade long and worthy of empirical scrutiny. To this end, the present study leverages on over 200 previous studies curated from SCOPUS and Web of science (WOS) core collection database respectively. The present study also presented both literature schematic on the evolution, trends, gaps, and future directions on the EKC debate. This paper endeavors to enhance our comprehension of the inherent paradoxes present in sustainability discourses by delving into the fundamental assumptions underlying the Environmental Kuznets curve (EKC). By conducting a bibliometric analysis, we aim to shed light on the factors contributing to the prominence of thematic keywords within sustainability discourses. This study seeks to provide valuable insights into these dynamics and implications on sustainability debates. Key empirical findings outlines predominant and influential studies and journal outlets on the theme under consideration. The present study bibliometric analysis displays that Ozturk i. with 13 published papers 3153 citations and a link strength of 2, Dogan e. Had 7 papers with 2190 citations with no link strength, Shahbaz. B 7 papers 1347 citations and 1 link strength, Saboori b.7 papers 677 citations 1 strength link and Liu y. 6 papers 582 citations with no link strength. From a policy dimension, the present bibliometric study presents valuable depth on the evolution and development of the EKC phenomenon by identifying's the extant literature leaders, action-step for future studies on environmental sustainability without compromise on economic growth as the EKC theme express the tradeoff between economic growth and environmental degradation. Further insights are rendered in the concluding section.

Unveiling the environmental efficiency puzzle: Insights from global green innovations

The latest surge of global uncertainty and disruptions in global supply networks put policymakers under pressure to emprise green innovations as a vital tool to address environmental concerns. However, producing green innovations doesn't always help in achieving environment-related sustainable development goals. Therefore, in this study, we endeavour to investigate to what extent green innovations are efficient in improving environmental efficiency. To this end, a network bias-corrected data envelopment analysis and clustering analysis is applied. The data used in this study covers 42 countries from different regions, spanning from 2000 to 2020. The results reveal that most countries have not made major advancements in environmental efficiency signifying the low level of green innovations utilization to achieve environment-related sustainable development goals (SDGs). Additionally, the results demonstrate a U efficiency curve for inputs-oriented green innovations efficiency over time, indicating that the initial stages of green innovations production are associated with a decreased return. However, over time, the efficiency exhibits an upward trend. The benchmarking analysis reveals that South American and European Union nations set the bar for other countries in terms of efficiently leveraging green innovations to achieve SDGs. Our findings also suggest that environmental efficiency is more dependent on green-supporting policies such as green energy production and green taxes. As a result, we conclude that achieving environmental SDGs while utilizing green innovations does not always result in the development of other SDGs. Therefore, policymakers need to prioritize pursuing a green developmental approach and supporting policies to achieve environment-related SDGs and other SDGs.

Clean cooking technologies, information, and communication technology and the environment

In recent years, researchers and politicians have become concerned about the ever-increasing energy consumption of ICT gadgets. Any effort to reduce greenhouse gas emissions should take the ICT industry's carbon emissions into account, given the widespread usage of ICT products across all economic sectors. Employing Driscoll-Kraay Panel Corrected Estimators for E7 economies from 2000 to 2020, we examine the direct impacts of ICT on ecology as well as the indirect implications through connections with the availability of clean fuel and technology for cooking and trade while also adjusting for population and renewable energy. From the empirical findings, it was observed that the two proxies of ICT services (i.e., internet-penetration and mobile-subscriptions) were negatively significantly connected with E7's (Brazil, China, India, Indonesia, Mexico, Russia, and Turkey) carbon emissions. Similarly, access to clean fuel and technologies for cooking and renewable energy decreases emission levels within the E7 economies, while trade openness and population growth increase emission levels within the said economies. Moreover, the method of moment quantile regression used as a robustness check affirms the baseline technique. According to the findings, the E7 economies can safely boost internet usage and associated technologies to lower emissions. They may lessen their negative impact on the ecosystem by increasing the utilization of renewable energy and expanding access to clean fuel and cooking technologies.

Sustainable electricity consumption in South Africa: the impacts of tourism and economic growth

The current study examines sustainable electricity consumption for economic growth in a small open and tourist economy. The energy-tourism nexus is evaluated for the relationship between sustainable electricity consumption and the international tourist arrival for the South African economy. The present study leverages on annual frequency data for South Africa from 1995 to 2019 for empirical analysis using the ARDL technique. Accordingly, empirical findings indicate a significant direct connection between the sustainable electricity consumption and the international tourism arrival; the study affirms that tourism-induced energy hypothesis is valid in South Africa. However, from a policy standpoint, alternative energy efficiency mechanisms such as renewable energy systems and emancipation of current energy management capabilities are recommended in South Africa. This is necessary for sustainable eco-friendly tourism that engenders clean energy consumption for the study area. More insights into policy caveats are presented in the concluding section.

Dynamic relationship between green finance, environmental taxes, and CO2 emissions in transition toward circular economy: what causes what?

The study was aimed at investigating the dynamic relationship between environmental taxes, green financing, and carbon dioxide (CO2) emissions in Brazil, China, India, and South Africa from 1994 to 2019. To thoroughly examine the proposed relationship, a family of robust econometric methods is used to get reliable and accurate results. Our evidence indicates that green finance and CO2 emissions are negatively connected with each other. Similarly, positive relationship is found between environmental taxes and CO2 emissions. Additionally, environmental taxes and green finance are positively related as well. Further, the results of the Method of Moments Quantile Regression estimator indicate that green finance and CO2 emissions decrease in countries with higher pollution compared to those with lower pollution. Interestingly, environmental taxes only contribute to pollution in countries with higher emissions, whereas CO2 emissions increase environmental taxes in all sample countries. Lastly, green finance has a mitigating effect only in countries with greater pollution, and CO2 emissions have a negative rebound effect on green finance in countries with greater CO2 emissions. According to the evidence, green financing can be an effective tool for promoting environmental quality. By allocating the funds collected from environmental taxes to green financing, environmental sustainability can be promoted in sample countries.

Driving factor analysis and dynamic forecast of industrial carbon emissions in resource-dependent cities: a case study of Ordos, China

Urban carbon emissions are one of the most important areas contributing to the growth of carbon emissions, and resource-dependent cities with natural resource extraction and processing as their leading industries tend to have higher carbon emissions. Ordos is the city with the highest coal production in China, and its economic development is dominated by coal, oil and gas, and other resource extraction and processing industries, with industrial activities making a large contribution to carbon emissions. At the same time, Ordos has undergone rapid industrialization in recent years, but still faces the problem of environmental pollution, epitomizing a typical resource-dependent city in China. Therefore, this paper takes Ordos as an example and uses the Generalized Divisa Index Method (GDIM) to study the drivers of industrial carbon emissions in Ordos from 2005-2020, a typical resource-dependent city in China, and further analyzes are conducted in relation to the three phases of development. Based on the key drivers, the Monte Carlo method is used to forecast industrial carbon emissions from 2021 to 2030. The results show that the most important factors driving the growth of industrial carbon emissions are the scale of industrial output and industrial energy consumption, while the intensity of industrial energy investment is the most important factor mitigating industrial carbon emissions, and that energy efficiency and carbon intensity of energy consumption can also mitigate carbon emissions after economic transformation. At the same time, investment is the factor with the greatest potential for optimization on the path to emissions reduction.

Green industrial transition: Leveraging environmental innovation and environmental tax to achieve carbon neutrality. Expanding on STRIPAT model

Anthropogenic global warming strategies on carbon mitigation are driven by encouraging green innovation and using carbon taxes, yet an empirical model to validate this is non-existing. Moreover, the existing stochastic effects by regression on population, wealth, and technology (STIRPAT) model has been found to lack policy tools on taxes and institutions that cut carbon emissions. This study amends the STIRPAT model with environmental technology, environmental taxes, and strong institutional frameworks to create a new model STIRPART(stochastic impacts by regression on population, affluence, regulation, and technology) to understand the factors impacting carbon pollution using the emerging 7 economies. Using data from 2000 to 2020, the Driscoll-Kraay fixed effects are employed in this analysis to conduct evidential tests of the impacts of environmental policies, eco-friendly innovations, and strong institutions. The outcomes indicate that environmental technology, environmental taxation, and institution quality decrease E7's carbon emissions by 0.170%, 0.080%, and 0.016%, respectively. It is recommended that E7 policymakers should adopt the STIRPART postulate as the theoretical basis for policies favoring environmental sustainability. The key contribution is the amendment of the STIRPAT model and the enhancement of the market-based mechanisms, such as patents, strong institutions, and carbon taxes, to enable environmental policy to be carried out sustainably and cost-effectively.