The impact of environmental technology innovation and energy credit rebate on carbon emissions: A comparative analysis

Abstract

AbstractThis study investigates the impact of environmental‐technological innovation and energy credit rebates on carbon reductions in Australia and its global comparison. We applied a system generalized method of moment (S‐GMM) on a dataset of 11 years (from 2008 to 2019) for Australia and 23 top green scheme economies. The main findings suggested that Australia's environmental innovation and energy credit rebates are associated with carbon reduction. Similarly, we found that environmental innovation is associated with carbon reduction in the 23 top green schemes economies, but energy credit rebate increases carbon emissions. This is due to the weak green financial system in the 23 top green schemes economies. We robust our findings, and the result confirmed a robust alternative model. These findings offer numerous essential policies for the government and stakeholders in the energy and environmental sectors. More specifically, it recommends more investment in environmental innovation and an overhaul of the green financial market.