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We also found unidirectional causality running from environmental policy stringency to CO2 emission. CO2 emission was negatively and significantly related to total environmental tax with causality running from total environmental tax to CO2 emission thus supporting the "green dividend" hypothesis of improving environmental quality. In contrast, CO2 emission and energy taxes were not causality related but CO2 emission was negatively and significantly related to energy taxes. Robustness checks using the FMOLS also show that both environm
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