Ensuring sustainable transportation in the OECD countries: Does stringent environmental policy matter?
Transport Policy, vol.185, 2026 (SSCI, Scopus)
- Publication Type: Article / Article
- Volume: 185
- Publication Date: 2026
- Doi Number: 10.1016/j.tranpol.2026.104206
- Journal Name: Transport Policy
- Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, Compendex, Geobase, Index Islamicus, Public Affairs Index, Urban Studies Abstracts, Academic Search Ultimate (EBSCO), Business Source Ultimate (EBSCO)
- Keywords: Environmental policy stringency, OECD, Panel data, Sustainable development, Transportation
- Hatay Mustafa Kemal University Affiliated: Yes
Abstract
Transportation is a significant economic activity that causes substantial increases in greenhouse gas (GHGs) emissions, particularly carbon emissions. However, the existing literature has overlooked the drivers of transportation-induced carbon emissions (TCO2) and whether environmental policy stringency (EPS) can be an effective tool for reducing TCO2 in Organisation for Economic Co-operation and Development (OECD) countries. Therefore, the primary motivation of the present study is to examine the impact of the EPS on TCO2 in OECD countries by using the recently proposed Regularized Common Correlated Effects (RCCE) estimator. Empirical results show that (i) a cross-section dependence and cointegration nexus exists in established models, (ii) the Environmental Kuznets Curve (EKC) hypothesis is not validated in OECD countries, while economic development and EPS have a positive impact on TCO2, and (iii) clean energy utilization and urbanization have a negative impact on TCO2. Policy suggestions are provided in the body of the text.