Fiscal Policy, Renewable Energy, and Energy Efficiency: Impact on Carbon Emissions and Economic Growth

This thesis investigates the role of fiscal policies, renewable energy (RE) consumption, and energy efficiency (EE) in reducing carbon emissions and promoting sustainable economic growth across 37 countries from 1995 to 2022. Using panel quantile regression, it reveals that environmental taxes and government investments in RE effectively reduce emissions, especially in developed economies. However, fossil fuel subsidies increase emissions in high-emission countries. The study also finds that EE reduces emissions, while RE consumption has mixed effects on economic growth, benefiting developed countries more. The research emphasizes the need for tailored fiscal and energy policies to balance sustainability with economic growth.