Evaluation of the effects of environmental taxes and renewable energy on carbon emissions within the scope of the European Green Deal from the perspective of European Union countries and Turkey

The European Green Deal has been a roadmap used by the European Union to achieve green economic goals and find solutions to environmental problems. In addition to encouraging the use of renewable energy sources to reduce dependence on fossil fuels, the European Green Deal also aimed to prevent environmental pollution through policies such as the development of carbon pricing mechanisms and increasing environmental taxes. In this context, the aim of this study is to test the interaction of carbon dioxide emissions, one of the most important causes of environmental pollution, with national income, renewable energy and environmental taxes through panel data analysis. In the study, the relationship between renewable energy, environmental taxes, national income and carbon dioxide emissions was analyzed by panel data method for the period 1997-2021 in European Union countries and Turkey. According to the results of the analysis, an increase in national income increases carbon dioxide emissions, while an increase in renewable energy decreases emissions. In this context, it is necessary to utilize renewable energy sources by preventing the development of economic growth based on fossil fuels. Directing the resources obtained from environmental taxes to renewable energy investments will ensure that the tax will be effective on carbon dioxide emissions.