Role of energy natural resource productivity and environmental taxation in controlling environmental pollution: Policy‐based analysis for regions

The present study explores the impact of energy natural resource productivity and environmental tax on environmental sustainability in six major CO2‐emitting economies: the Euro Area, China, South Korea, Japan, the United Kingdom and the United States, from 1997 to 2019. This analysis aims to reveal novel findings and implications for different energy natural resource productivity types and environmental regulations. We employed data regarding leading national and regional CO2 emitters from 1997 to 2020 to conduct an empirical analysis using the panel non‐linear auto‐regressive distributed lag (NARDL) and panel quantile ARDL (QARDL) methods. The results show that energy natural resource productivity and environmental tax are crucial components in reducing CO2 emissions by controlling for innovation technology and renewable energy consumption. The main findings demonstrate that the impact is stronger in the presence of increased energy natural resource productivity and vice versa. These findings have novel implications for sustainable development and carbon neutrality.