Blue seas: how green tech and green taxes drive OECD ocean prosperity

What the paper says

Purpose This study aims to investigate the impact of green technological innovation, taxes and environmental pollution on the blue economy within OECD countries. Design/methodology/approach The Method of Moments Quantile Regression (MMQR) and Bootstrap Quantile Regression methods were used to investigate the relationship between Gross Domestic Product (GDP), Natural Resources Rents, carbon dioxide (CO2) emissions, green taxation, green innovation and blue economy. This study uses panel data covering the period from 1990 to 2022. Findings Green taxes demonstrate a stronger positive impact on the blue economy at lower quantiles, with this effect diminishing progressively across the distribution to higher quantiles. Green innovation exhibits a consistently robust positive relationship with the blue economy throughout the distribution, remaining statistically significant across all quantiles examined. Carbon emissions display a significant negative association with the blue economy across the entire conditional distribution, with this adverse effect intensifying at higher quantiles. The findings further reveal that both GDP and natural resources rents exert positive effects on the blue economy across all quantiles, suggesting their role as consistent drivers of blue economy development regardless of the level of blue economy performance. Originality/value By combining MMQR with Bootstrap Quantile Regression, this study conducts a detailed examination of how environmental and economic determinants influence blue economy performance across varying quantiles. The findings contribute to the existing body of knowledge on sustainable ocean economies and provide practical guidance for policymakers seeking to promote economic development while safeguarding environmental integrity.