THE EFFECT OF GREEN ECONOMIC POLICY IMPLEMENTATION ON GDP IN OECD COUNTRIES THROUGH CONSUMER PRICE INDEX AS INTERVENING VARIABLE
Abstract
Climate change and environmental sustainability have become increasingly pressing global issues. In the face of these challenges, the concept of green economy has emerged as a solution to balance economic growth with environmental protection. According to UNEP, countries that successfully integrated green policies into their economic strategies showed significant increases in GDP. This study aims to analyse the effect of green economy policy implementation on GDP in OECD countries during the period of 2010-2020 and focuses on 4 green economic policies such as environmental protection expenditure, renewable energy, import in low carbon technology product, and environmental taxes and also uses “Consumer Price Index” as intervening variable. By using Ordinary Least Square, this study results that environmental protection expenditure, renewable energy, import in low carbon technology product, and environmental taxes have significant and positive impact on Consumer Price Index. Also, this is resulting environmental protection expenditure, renewable energy, and environmental taxes have significant and positive impact on GDP, while import on low carbon technology product and Consumer Price Index have significant and negative effect on GDP
References
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[2] Abdullah, A. J. (2020). The Impact of Renewable Energy On Gdp. International Journal of Management and Sustainability, Vol. 9, No. 4, pp. 239-250.
[3] Abraham Deka, S. D. (2021). Analyzing the causal relationship between exchange rate, renewable energy and inflation of Mexico (1990–2019) with ARDL bounds test approach. Renewable Energy Focus, 78-83. https://www.sciencedirect.com/science/article/pii/S1755008421000193?casa_token=jwAsI3E-CR0AAAAA:NY_7Nbhdn7SJqmwYehxQh12-yV82Zz95qobpLmkrpPm7vmagTFq2Ggeqx5VSJSKy8FWIzghAjA
[4] Abraham Deka1, B. C. (2022). Does renewable energy use enhance exchange rate appreciation and stable rate of inflation? Environmental Science and Pollution Research, 29:14185–14194. https://idp.springer.com/authorize/casa?redirect_uri=https://link.springer.com/article/10.1007/s11356-021-16758-2&casa_token=8TLmcFKbtzYAAAAA:Iq1VyF8EQBeSKM5Vku7nRjTAYv-HyVjjNlatskNYfqB2mNH15CkFCXjURo7qikRHXx95766h6xj14zc
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[6] Dr. Abdullah Ali Salamai, D. S. (2022). The relationship between inflation and GDP with reference to oil based economy. Internatinal Journal of Multidisciplinary Research and Growth Evaluation, 375-380.
[7] Eleonor Loiseau, L. S. (2016). Green economy and related concepts: An overview. Journal of Cleaner Production, 361-371.
[8] Georgiana Raluca Ladaru, R. D. (2017). Influence of the Environmental Protection Expenditure Dynamics on the Economic Growth in Romania During 2008-2015. Revista de Chimie, 68(9):2166-2171.
[9] González, M. B. (2015). Implementing a carbon tax in Spain: how to overcome the fear of inflation? Fiscal Policies and the Green Economy Transition: Generating Knowledge . Venice: Green Growth Knowledge Platform (GGKP). https://www.greenpolicyplatform.org/sites/default/files/Bunuel_Implementing_a_Carbon_Tax_in_Spain.pdf
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[11] Hui Qiao, P. Q. (2023). International energy trade and inflation dynamics: The role invoicing of currency use during the low carbon transition. Energy Economics, Vol 128. https://www.sciencedirect.com/science/article/pii/S014098832300676X?casa_token=qmqA_ji8DzcAAAAA:M3KprraHRwYkRR_1ppyjFa_EgNKvdIjYRBtq6QMJME-cEm48W0flo2DY2qupSBfT-2IuT3_yyg
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[13] Levytska, O., & Romanova, A. (2020). Assessment of the impact of government expenditure on environmental protection on the GDP in the context of environmental legislation. Journal of Eastern European and Central Asian Research, 7(3), 375. https://pdfs.semanticscholar.org/cabf/659019ff7fccc2d18afbce16597f0adbcaee.pdf
[14] Lucien Georgeson, M. M. (2017). The global green economy: a review of concepts, definition, measurement methodolgies and their interactions. Geography and Environment, 1-23. https://rgs-ibg.onlinelibrary.wiley.com/doi/abs/10.1002/geo2.36
[15] Mori Kogid, D. M. (2011). Does Import Affect Economic Growth in Malaysia . The Empirical Economics Letters. https://www.academia.edu/download/32745614/Kogid__Mulok__Ching__Lily__Ghazali___Loganathan.pdf
[16] OECD. (2024, May 12). OECD Data. Retrieved from OECD.org: https://www.oecd.org
Programme, U. N. (2009, March). Global Green New Deal: Policy Brief. Retrieved from UN Environment Document Repository: https://wedocs.unep.org
[17] Report, I. S. (2021). Climate Change 2021: The Physical Science Basis. Geneva: Intergovernmental Panel on Climate Change. https://www.slvwd.com/sites/g/files/vyhlif1176/f/uploads/item_10b_4.pdf
[18] Stamatios Ntano, M. S. (2018). Renewable Energy and Economic Growth: Evidence from European Countries. Sustainability. 10(8), 2626. https://www.mdpi.com/2071-1050/10/8/2626
[19] State, S. (2024, May 14). IMF Data, Climate Data . Retrieved from Sacrammento State University Library: https://csus.libguides.com
[20] Stern, N. (2007). The Economics of Climate Change. Cambridge: Cambridge University Press. https://pubs.aeaweb.org/doi/abs/10.1257/aer.98.2.1
[21] Taichen Chien, J.-L. H. (2008). Renewable energy: An efficient mechanism to improve GDP. Energy Policy, 3045– 3052. https://www.sciencedirect.com/science/article/pii/S0301421508001894
[22] Tchapchet-Tchouto, J.-E. (2022). Investigating the effects of environmental taxes on economic growth: Evidence from empirical analysis in European countries. Environmental Economics, 1-15. https://search.proquest.com/openview/6c9ad845f2e4f59d8377139d477e2ff2/1?pq-origsite=gscholar&cbl=4368390&casa_token=GSFmXsg0QwgAAAAA:Jk6ycGbSzCnwL5j1g1G3ByjlkGNSQhIh7bQgFslAPebcv45tFnPWaWBotBmGzfX0yGy7ksaC
Published
2025-12-31
How to Cite
SYABANA, Harfan Zulfa et al.
THE EFFECT OF GREEN ECONOMIC POLICY IMPLEMENTATION ON GDP IN OECD COUNTRIES THROUGH CONSUMER PRICE INDEX AS INTERVENING VARIABLE.
Jurnal Ekonomi dan Bisnis (EK&BI), [S.l.], v. 8, n. 2, p. 588-600, dec. 2025.
ISSN 2621-4695.
Available at: <https://jurnal.murnisadar.ac.id/index.php?journal=EKBI&page=article&op=view&path%5B%5D=2592>. Date accessed: 16 may 2026.
doi: https://doi.org/10.37600/ek&bi.v8i2.2592.
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