Exploring the dynamic effects of climate change policies on energy access: Evidence from G-7 economies
摘要
Considering the vital role of climate change technologies in shaping energy access, this study builds upon existing literature by examining the evolving impact of environmental technologies and environmental taxes on energy access in G7 countries. To achieve this, the study employs the wavelet-quantile correlation method and the time-varying Granger causality test, using data from the first quarter of 1994 to the last quarter of 2020. The findings exhibit that environmental technologies significantly deteriorate energy access in Canada while environmental taxes encourage it. In France, energy access shows evolving associations over time, shifting from adversity to positivity for technologies and consistently adverse effects for taxes. In Germany, energy access undergoes a notable shift from initially negative to positive associations with technologies, while taxes consistently impede it. The case of Italy exhibits the positive effects of technologies but the adverse impacts of taxes on energy availability. The energy sector in Japan endures mixed effects in the short run that turn into positive effects from technologies. However, the implementation of taxes significantly discourages energy production. In the UK, technology deteriorates energy access, and taxation significantly supports it, specifically in the long run. The USA's energy access faces the detrimental effects stemming from both policies. The paper concludes with a call for G-7 and global policymakers to foster energy access by establishing long-term research and development centres to facilitate innovation in green technologies and encouraging collaboration with international institutions and G-7 nations.