Can, UfukCan, Zeynep Gizem2026-02-272026-02-2720252214-84502214-846910.1016/j.bir.2025.03.005http://dx.doi.org/10.1016/j.bir.2025.03.005https://hdl.handle.net/20.500.14669/4425Carbon emissions are of significant concern, as they pose a growing threat to the integrity of ecological systems. This paper investigates the effectiveness of consumption-based carbon emissions reduction programs. We use an innovative quantile panel regression methodology as well as a comprehensive preliminary analysis and robustness analysis with a sample of 38 member countries of the Organization for Economic Cooperation and Development (OECD). Our empirical findings demonstrate that output and foreign trade have a significant impact on carbon emissions, thus supporting the trade-extended environmental Kuznets curve. Furthermore, environmental taxes and green finance play a pivotal role in mitigating carbon emissions, and the latter emerges as a particularly effective policy instrument. The sector-and product-specific determination of environmental taxes, coupled with the strategic channeling of green finance to clean and renewable energy sources and production processes, will catalyze advancements in environmental sustainability.eninfo:eu-repo/semantics/openAccessCarbon emissionsEnvironmental taxesGreen financePanel quantile regressionSustainabilityArticle708470025WOS:001532509900005