Antecedents and impacts of climate and energy policies: a global analysis of carbon pricing and energy policy effectiveness

<p dir="ltr">This Doctor of Philosophy thesis presents a comprehensive examination of carbon pricing and its role in promoting renewable energy and energy efficiency policies across diverse global contexts. Through four interrelated studies, this research explores how carbon pricing - often regarded as the most economically efficient yet politically challenging policy tool - catalyses the transition to sustainable energy systems and reduces carbon emissions when combined with other policy mechanisms. Together, these studies provide insights into both the direct and indirect effects of carbon pricing, offering a multi-dimensional framework for understanding how different economic, environmental, and social factors shape its effectiveness. </p><p dir="ltr">Following this framework, the first study investigates factors that influence the effectiveness of carbon pricing, using a between estimator to analyse how environmental, social, political, and economic factors impact carbon-pricing outcomes. The findings show that larger coal reserves per capita negatively impact the adoption of carbon pricing, while enhanced governance - particularly control of corruption and political globalisation - positively correlates with better outcomes. Additionally, greater stocks of domestic credit facilitate the adoption of carbon pricing, though public perception of climate change shows mixed effects. </p><p dir="ltr">Building on this, the second study examines the mechanisms through which carbon pricing reduces emissions by effectively lowering energy intensity and consumption. Using an iterated Generalized Method of Moments dynamic panel estimation to address endogeneity and capture carbon price dynamics, the study highlights the importance of integrating carbon pricing with other policies to achieve sustainable outcomes. </p><p dir="ltr">Extending the focus to the broader policy environment, the third study investigates emission reduction through energy efficiency and renewable energy policy development. It finds that larger oil reserves per capita hinder renewable energy policy development, while factors such as education and political globalisation significantly enhance policies aimed at energy efficiency and renewable energy. This suggests that engagement in global political networks can indirectly foster national energy policy development, especially where direct implementation of policies is challenging. </p><p dir="ltr">Finally, the fourth study examines how carbon pricing drives policy advancement in renewable energy and energy efficiency across 140 countries. The findings reveal that carbon pricing significantly improves policy scores, facilitating the transition to renewable energy and advancing energy efficiency policies. This study also emphasizes the importance of political and economic contexts in shaping the effectiveness of carbon pricing as part of a comprehensive climate change mitigation strategy. </p><p dir="ltr">Together, these studies provide a robust framework for understanding the multifaceted impacts of carbon pricing on global energy policies and the factors that shape their development. They underscore the complexity of interactions between carbon pricing, energy policies, governance, economic resources, and public perceptions, offering insights into the design and implementation of effective climate policies. This body of work significantly contributes to policy discourse, assisting policymakers in crafting strategies that integrate climate policies with broader environmental and energy objectives.</p>