The Impact of Renewable Energy Output and Consumption Policies and Environmental Taxes on the Environmental Sustainability

Abstract

Due to extensive environmental degradation, environmental sustainability has recently become an important issue, and this aspect requires the regulators' and researchers' attention. Consequently, this article examines the effect of renewable energy (RE) policies on RE output, RE consumption, and environmental taxes on environmental sustainability in four major industrial nations, including China, India, the United States, and Australia. The research also utilized the control variable, which included industrialization and population growth. From 2001 to 2020, this article extracted secondary data from World Development Indicators (WDI). The researchers used the Methods of Moments-Quantile-Regression (MMQR) technique to examine the relationship between constructs. In China, India, the United States, and Australia, the RE output, RE consumption, environmental taxes, industrialization, and population growth have a positive relationship with environmental sustainability and a negative relationship with carbon dioxide (CO2) emissions. The study assists policymakers in formulating environmentally sustainable policies utilizing effective RE policies.