Petroleum University of Technology Petroleum Business Review 2645-4726 2 3 2018 09 01 Investigating Impact of Environmental Tax Policy on Behavior of Investors in Renewable Energies Using a Dynamic Panel Data Approach 2 13 93598 10.22050/pbr.2018.93598 EN Asghar Mir-Mohammad Tabar M.A. Student in Oil & Gas Economics, Energy Economics & Management Department, Petroleum Faculty of Tehran, Petroleum University of Technology, Tehran, Iran Asgar Khademvatani Assistant Professor, Department of Energy Economics and Management, Tehran Faculty of Petroleum, Petroleum University of Technology, Tehran, Iran Vahid Mohammadi M.A. Student in Oil & Gas Economics, Energy Economics & Management Department, Petroleum Faculty of Tehran, Petroleum University of Technology, Tehran, Iran Hamid Reza Hosseinimehr M.A. Student in Oil & Gas Economics, Energy Economics & Management Department, Petroleum Faculty of Tehran, Petroleum University of Technology, Tehran, Iran Journal Article 2018 07 10 Expanding use of renewable energies (RE) around the world is a critical mission to reach to global environmental policies. Largest share of global energy mix relates to deployable and carbon-intensive fossil fuels. So, it is necessary to create proper incentives for investors to invest in RE in order to move toward low carbon economy. In this regard, one of the implemented policies is imposing tax on using deployable energies which includes tax on both energy consumption and motor vehicle transportation. This paper investigates impact of environmental tax policy on investors’ behavior for 13 leading selected developed and developing countries during the period 2004-2016. Based on economic theory, investment, particularly in capital-intensive energy industries would have a long gestation period. To capture this feature and evaluate dynamic relations of investments in RE, a partial-adjustment dynamic model is applied and estimated using Generalized Method of Moments (GMM) method. The results show that imposing tax on fossil fuel energy consumption and transportation systems, in particular that use fossil fuels, has a significant negative and positive impact on investing in RE, respectively. Also, empirical results demonstrate that there is a significant negative relation between interest rate (IR) and Investments in Renewable Energies (IRE). Renewable Energy Tax policy energy consumption tax motor vehicles tax investors’ behavior https://pbr.put.ac.ir/article_93598_2056b1f7d8dbbcc59755d36538f22f7e.pdf