Carbon Tax Policies and Green Economic Growth: Comparative Evidence from Developing Economies
Keywords:
Carbon Tax, Green Economic Growth, Renewable Energy, Developing EconomiesAbstract
This study aims to examine the impact of carbon tax policies on green economic growth in developing economies, exploring how fiscal instruments influence environmental sustainability and economic performance simultaneously. The research employs a comparative quantitative approach, integrating secondary data from multiple sources and analyzing key indicators such as GDP growth, CO₂ emissions reduction, renewable energy adoption, and green innovation. Data were condensed, standardized, and analyzed using descriptive statistics and comparative evaluation across different policy contexts. The findings indicate that carbon taxes positively contribute to green economic growth, with stronger effects observed in countries implementing moderate to high tax rates combined with complementary measures, including renewable energy incentives and technological innovation support. Regions with limited institutional and technological capacity show smaller economic and environmental gains, highlighting the importance of context-specific policy design. Carbon pricing is associated with reductions in carbon intensity, increased renewable energy adoption, and stimulation of green innovation, demonstrating its dual role in promoting both environmental and economic objectives. The study has important theoretical implications by validating the principles of environmental economics and the Porter Hypothesis in developing contexts, and practical significance by offering evidence-based guidance for policymakers seeking to implement effective carbon pricing strategies. Overall, the research emphasizes the need for integrated approaches to achieve sustainable, low-carbon economic growth.
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