Assessing the Effects of Green Tax Policy on CO2 Emission with Emphasis on Renewable Energy Development (Case study of D8 Countries)

In recent years, fossil energy consumption has increased because of economic growth and this has led to carbon dioxide emissions and environmental crises.  Governments struggle to solve this problem by appropriate policies such as green or environmental tax policies. This policy is based on costs and can control pollution and increase renewable energy consumption as a substitute for fossil energies.  The main aim of this paper is to analyze the effects of green taxes on renewable energy consumption and CO2 emission for D8 group countries by applying the GMM method to 2000-2017 data.  JEL Classification: H23, Q20, Q40, Q53 Keywords: CO2 emission, Green Tax, Renewable energy, Generalized Method of Moments (GMM), D8 countries