Is carbon tax really working for reducing carbon emissions? – A bibliometric and systematic literature review

Purpose As climate challenges grow and countries set increasingly ambitious climate goals, the drive to find effective policy tools to address these issues is accelerating. This research aims to describe how the carbon tax and its impacts reduce carbon emissions. Design/methodology/approach This study employs bibliometric analysis to identify research trends and a systematic literature review to offer insights into how carbon taxes, as policy measures, can help reduce carbon emissions. It sourced relevant articles from Scopus databases using a range of keywords and keyword combinations. Findings The findings of this study indicate that the carbon tax is just one of many variables that can reduce carbon emissions. Its effectiveness varies by market maturity, with reductions of 5–21% in established markets. The best results come from hybrid approaches that use both carbon taxes and emission trading systems. When combined with carbon capture, utilization and storage technologies, these approaches could lead to a 32.5% reduction by 2060. Research limitations/implications Practically, policymakers should consider the effectiveness of the carbon tax (policy) in reducing carbon emissions. The study theoretical implications include highlighting various theories for future research and sharing the mapping variables related to organizations’ carbon emission reduction. Originality/value The study adds originality and value to the existing literature by establishing a connection between carbon taxes and carbon emissions. To the best of the authors’ knowledge, this study is the first research that combines bibliometric analysis with systematic literature review to answer how carbon tax and its impacts reduce carbon emissions.