Baris Kocaarslan is an Associate Professor at EDC Paris Business School. He holds an MBA and a PhD in Business Administration from Middle East Technical University. His research interests encompass financial markets, machine learning algorithms, financial econometrics, sustainable finance, and investment management. His articles have been published in high-quality journals, including the Journal of Cleaner Production, Energy Policy, Technological Forecasting and Social Change, Energy Economics, and Finance Research Letters, among others.
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The goal of this study is to examine how environmental taxes influence the comparative advantage in environmental products and carbon emissions within emerging economies. To gain a better understanding, we examine whether this impact changes depending on the level of government integrity. The results indicate that increased environmental taxes mitigate the comparative advantage in environmental goods for emerging markets. However, for countries with high levels of government integrity, higher environmental taxes enhance their competitive edge in environmental goods. Additionally, our findings show that although a rise in environmental taxes is associated with higher carbon emissions, raising such taxes results in a reduction in carbon emissions for emerging economies with solid government integrity. These findings suggest that robust political institutions are crucial in promoting the comparative advantage of emerging markets in environmental goods and mitigating climate change. In the absence of substantial confidence in political or governmental institutions, the efficient implementation of climate taxes poses considerable challenges. Furthermore, we observe that an increase in the comparative advantage of environmental goods results in a decrease in carbon emissions.
- Research
- Sustainable Development and CSR
