Meta-Analysis of Socio-Economic Factors, Sustainability Initiatives, and Carbon Taxation Strategic Adaptation

Abstract

Climate change is an existential threat with impacts including floods, wildfires, prolonged droughts, and extreme heat. To understand efforts to contain carbon emissions and implications for developing economies, this study conducted a meta-analysis of socioeconomic factors, sustainability initiatives, and carbon taxation, anchored on Sustainable Development Theory, Resource-based View Theory, and Institutional Theory. Data were extracted from Scopus and Web of Science using the PRISMA flow; 16412 records (1990 to 2025) were screened, 56 studies met the inclusion criteria, and 137 data points across 5 study domains and 9 regions were analyzed. A random effects model revealed an overall negligible pooled effect (-0.002) with a true effect close to zero (95% CI -0.011 to 0.008), a not statistically significant relationship (Z-value = -0.377; p = 0.706), extreme heterogeneity (Q-value = 3725.706; p < 0.001; I2 = 96%), and between study variance (Tau2 = 0.002). Subgroup heterogeneity showed mixed results: competitiveness and innovation (Q = 50.15; I2 = 70.1%); macroeconomic effects (Q = 209.75; I2 = 87.6%); environmental effectiveness (Q = 1902.03; I2 = 92.7%); distributional implications (Q = 832.57; I2 = 99.0%). Pooled effects indicated statistically significant positive associations for competitiveness and innovation (Mean = 0.012; 95% CI 0.004 to 0.020), environmental effectiveness (Mean = 0.041; 95% CI 0.027 to 0.055), and sustainability initiatives (ES = 0.038; 95% CI 0.021 to 0.056). Distributional implications (Mean = -0.018; 95% CI -0.055 to 0.019) and macroeconomic effects (Mean = 0.009; 95% CI -0.004 to 0.022) showed mixed evidence, depending on contextual policies, revenue recycling, and investment of carbon taxation revenues. Moderation analysis of sustainability initiatives on the pooled effect size (ES = 0.0072; Q = 0.31; p = 0.575) revealed a small, statistically insignificant effect. The study concluded that competitiveness and innovation are feasible where regional policies promote innovation uptake; carbon taxation does not systematically hinder GDP growth and employment but depends on national economic structures and policy design mechanisms; and carbon taxation promotes environmental effectiveness in reducing carbon emissions, but efforts must not disproportionately burden low-income groups. Redistributive mechanisms and revenue recycling, including compensatory transfers, are key determinants in mitigating regressive effects, and green technologies and green energy should be anchored in policies and tax designs to promote uptake. Policies should prioritize redistributive mechanisms; practices should enhance transparent communication and regional approaches; theories should improve theoretical assumptions in the ever-changing climate change environment. Ethical considerations were fully adhered to in this study.