Abstract
The global effort to meet the Paris Agreement's target of limiting global warming to 1.5 °C and achieving net-zero CO2 emissions by 2050 is currently off track, with Poland facing significant challenges related to energy inefficiency and rising CO2 emissions. In Poland, the energy sector is responsible for 43% of greenhouse gas emissions, with transportation and buildings contributing 19% and 16%, respectively (Brzeziński and Kolinski, 2024). This study explores the role of carbon taxes and renewable energy generation in shaping the macroeconomic effects of electricity generation in Poland, focusing on the period from 1990 to 2020. We employ multivariate quantile-on-quantile regression with Granger causality to analyse the relationships between carbon taxation, renewable energy generation, and CO2 emissions. The findings suggest that effective carbon tax policies, coupled with increased investment in renewable energy, are crucial for reducing emissions in Poland's electricity generation sector. These measures are essential for aligning with global climate goals and achieving carbon neutrality. The study contributes to the growing literature by examining these moderating factors in the context of Poland's energy transition.
•Investigates how carbon taxation and renewable energy impact CO2 emissions in Poland's electricity sector.•Applies a multivariate quantile-on-quantile regression with Granger causality to analyse these relationships.•Findings show that effective carbon tax policies enhance renewable energy adoption, significantly lowering emissions.•Highlights the moderating role of carbon tax in Poland's transition toward carbon neutrality.•Provides policy insights for coal-dependent economies striving to meet global climate targets.