Carbon taxation and environmentally adjusted productivity: Global evidence from 52 countries using panel DiD
Economic Systems, 2026 (SSCI, Scopus)
- Yayın Türü: Makale / Tam Makale
- Basım Tarihi: 2026
- Doi Numarası: 10.1016/j.ecosys.2026.101429
- Dergi Adı: Economic Systems
- Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, Periodicals Index Online, ABI/INFORM, EconLit
- Anahtar Kelimeler: Carbon Tax, Climate Change, Dynamic Panel DiD, Ecological and Economic Productivity, Paris Agreement
- Atatürk Üniversitesi Adresli: Evet
Özet
This study examines the association between carbon tax implementation and environmentally adjusted total factor productivity (EATFP), drawing on a panel dataset of 52 countries at different stages of development over the period 1996–2020. Using the OECD's EATFP indicator, the analysis employs the multi-period Difference-in-Differences (DiD) approach developed by Callaway and Sant'Anna (2021) to examine how the effects of carbon taxation evolve over time. The results reveal that carbon taxes are associated with statistically significant positive differences in cumulative EATFP paths in developed countries. In contrast, no persistent statistically significant post-treatment effects are detected in developing economies. This divergence may be associated with underlying structural factors such as institutional capacity, technological infrastructure, and the coherence of environmental policies. However, these mechanisms are not directly tested in the present study. The event-study results further show that statistically significant positive differences in cumulative EATFP paths emerge only after approximately eight years of carbon tax implementation in developed countries and persist thereafter. By contrast, statistically significant positive differences for the pooled sample of all countries emerge only after approximately twelve years of carbon tax implementation. Additionally, seven robustness checks provide generally supportive evidence for the main findings, although some alternative specifications yield weaker or statistically insignificant estimates. This study contributes to the literature in three main ways. First, by employing EATFP (an indicator capturing both economic and ecological dimensions), it offers a comprehensive assessment of the association between carbon pricing policies and sustainable development. Second, it extends the literature beyond the traditional focus on emission reduction by examining the broader implications of carbon taxes for environmental productivity. Third, leveraging a large, comparative multinational sample, the analysis highlights the heterogeneity of carbon tax effects and underscores the need for differentiated policy recommendations based on a country's level of development. In sum, the study provides new insights into the delayed and cumulative impacts of carbon taxes on environmental productivity and emphasizes the importance of long-term, sustainable policy design.