This study examines the impact of aggregate and disaggregated renewable energy consumption while considering economic growth, remittances, urbanisation and foreign direct investment (FDI) on environmental degradation, proxied by the ecological footprint, across major renewable energy-consuming countries over the period 1984-2020. Employing the Dynamic Common Correlated Effects (DCCE) estimator, the study captures long-run impacts while accounting for cross-sectional dependence and heterogeneity. The findings reveal that aggregate renewable energy consumption significantly reduces environmental degradation. However, the disaggregated analysis uncovers heterogeneous effects across energy types: solar energy consumption reduces the ecological footprint, whereas hydropower and wind energy increase environmental pressure, likely due to lifecycle and infrastructure-related impacts. Furthermore, economic growth, remittances and FDI are found to exacerbate environmental degradation, while urbanisation contributes to environmental improvement. These results highlight the importance of moving beyond aggregate energy measures and adopting a component-specific approach to renewable energy policy. The study provides policy-relevant insights for advanced renewable energy-consuming countries, emphasising the need to prioritise solar energy expansion while mitigating the environmental impacts of other renewable sources.
Despite the decrease in global energy intensity, OPEC countries still have relatively low productivity and high energy intensity. Therefore, this study examines the impact of the influencing variables, such as technology, financial development, and trade openness, on energy intensity in OPEC countries between 2008 and 2020. For this purpose, the spatial econometric method has been used. The Spatial Durbin model was employed to ascertain the direct effect of technology, trade openness, financial development, and economic growth on OPEC members, as well as the spillover effect on each other. Our analysis revealed that technological innovation has the most significant direct effect on energy intensity, while the spillover effect between OPEC countries is not significant. The direct effect of economic growth is negative, but the indirect effect of economic growth is positive and significant. In contrast, financial development exhibits a positive direct effect on energy intensity, suggesting that policies promoting financial development may need to be revisited to align with energy efficiency goals. Finally, trade openness has no effect on energy intensity among OPEC countries. The study suggests that OPEC member countries should focus on policies that foster technological advancement while simultaneously addressing financial efficiency and trade patterns.
This study explores the relationship between trade, industrial energy efficiency, energy losses, and natural gas consumption on China's ecological sustainability from 1990 to 2021, with a focus on the Inverted Load Capacity Factor (ILCF). Using advanced econometric methods, including Fourier Engle-Granger cointegration and various regression techniques (FMOLS, CCR, DOLS) and ARDL, the analysis identifies a stable long-term relationship between ILCF and key economic indicators. The findings support the existence of an inverted U-shaped relationship between trade and ILCF, thus proving the validity of the Inverted Load Capacity Curve (ILCC) hypothesis. This hypothesis suggests that trade initially has a negative impact on ecological sustainability, but increases in trade volume and improvements in trade practices can positively affect ecological sustainability once a certain threshold is exceeded. These findings emphasize that the environmental impacts of trade may change over time. Industrial energy efficiency emerges as a crucial factor in reducing ecological impact, highlighting the need for sustained policy efforts in this area. Additionally, addressing energy losses and accelerating the transition from natural gas to renewable energy are identified as important for achieving ecological goals. These insights provide valuable guidance for China's policy strategies, emphasizing the balance between economic growth and ecological sustainability.
Despite growing policy efforts toward sustainable development, the mechanisms through which artificial intelligence, institutional quality, and macroeconomic policy variables jointly shape green growth remain insufficiently understood in advanced economies. This study investigates the key determinants of green growth across the G7 economies from 2000 to 2023, employing a panel ARDL framework combined with wavelet-based time-frequency analysis. The model incorporates AI research activity, renewable energy use, natural resource rents, government effectiveness, environmental taxation, and education expenditure. The findings reveal that AI research and renewable energy adoption serve as major engines of sustainable growth, whereas natural resource rents and education spending exert adverse long-run effects, suggesting inefficiencies and misalignment between fiscal and environmental objectives. Distinct national patterns emerge: innovation-oriented economies such as Germany, Japan, and the United States benefit from the synergy between digitalization and green investment, while more resource-dependent economies face institutional barriers that slow their green transition. The study further illustrates how the integration of AI and institutional effectiveness can reshape policy frameworks. The results underscore the importance of data-informed policymaking, education reform toward environmental competencies, and smarter environmental taxation, providing actionable insights for governments aiming to align technological innovation with ecological resilience in advanced economies.
After the Montreal Protocol was implemented in 1989, nations committed to reducing ozone-depleting substances (ODS) emissions to improve environmental conditions and mitigate UV radiation effects. These regulations significantly influenced industrial production practices and energy use patterns in various countries. This study investigates the interconnected relationships among GDP, energy use, and ODS emissions. Robust estimates from the Generalised Method of Moments (GMM) are employed to design and analyse a panel Vector Autoregression (VAR) model on data from Latin America and the Caribbean from 1998 to 2018. The main conclusions show that there is an EKC for ODS emissions, a unidirectional causal relationship between GDP and ODS emissions, and a bidirectional relationship between GDP and energy use. These results suggest that continued enforcement of environmental regulations and the promotion of more efficient energy sources are essential to sustaining economic growth while mitigating environmental impacts. Enhanced international cooperation and investment in green energy are crucial for achieving long term sustainability. The research also explores the topic of laws and practical campaigns that try to solve these problems.
The COVID-19 pandemic has significantly impacted global economies, disrupting various sectors, including energy production. This study examines the effects of COVID-19 on oil and natural gas production in 14 producer countries between January 2020 and December 2021. Using the generalised method of moments (GMM) and panel data analysis, we explore the relationship between pandemic-related disruptions, energy prices and trade openness on the production of non-renewable energy sources. Results indicate that COVID-19 negatively influenced both oil and gas production, with a stronger impact observed on oil. While trade openness positively contributed to energy production, rising energy prices exacerbated the decline in output. The findings underscore the importance of resilience strategies, including robust energy policies and adaptive measures, to mitigate the effects of future global crises. This research contributes to the literature by providing comprehensive insights into the production challenges and opportunities within the energy sector during a pandemic.
Even in the face of daunting challenges like climate change in Pakistan, every small step towards conservation and sustainability is a beacon of hope for a brighter, environmental quality. Thus, this study assesses the effect of green financing, economic growth, human capital, oil price, gas price and technological innovation on Pakistan's carbon dioxide emissions. The Residual Augmented Least Square-Engle and Granger (RLAS-EG) cointegration is performed to evaluate the effective long-term association among variables and the Autoregressive Distributed Lag (ARDL) model to assess the coefficients. The results indicate that green finance, human capital and oil prices decrease carbon emissions in both the short and long term. Economic growth and increases in gas prices contribute to long-term effects, whereas economic expansion decreases carbon emissions in the near term. The outcomes suggest endorsing policies that facilitate sustainable economic growth, enhance the uptake of environmentally friendly investments, foster technical advancements and bolster resilience against catastrophic events as measures to address climate change and mitigate CO2 emissions in Pakistan.
Nigeria has plentiful sources of renewable energies that are yet to be efficiently utilised, despite the country committing to net-zero emissions by 2060, declared at the 26th United Nations Climate Change Conference in 2021, which necessitates lower consumption of fossil fuels. However, this commitment may divert the country from ending poverty as the main goal of sustainable development. This study seeks to identify the asymmetric effects of renewable and non-renewable sources of energy used in electricity generation, along with CO2 emissions on the economic growth of Nigeria through asymmetric approaches. The findings indicate that Nigeria should mainly pursue policies concentrating on increased consumption of non-renewable energies in the short run and more renewable energy in the long run to achieve higher economic growth. Furthermore, the long run causality results approving the only feedback relationship existing between renewable energy and economic growth, paves the way for Nigeria so that over the time the country will be able to significantly increase the share of renewable energy through which it can achieve a higher level of economic growth and approach its target of net-zero emissions by 2060, both of which are the main goals of sustainable development.
This research investigates the intricate relationship between energy policy uncertainty (EGU) and foreign direct investment (FDI) within the BRIC economies over a comprehensive 27-year period, spanning from 1996 to 2022. Employing advanced econometric techniques such as FMOLS and DOLS for regression analysis, the study unravels the nuanced impacts of EGU on both FDI inflows (IFD) and outflows (OFD). Drawing upon a comprehensive data set, the analysis reveals a significant negative correlation between EGU and IFD, indicating that heightened energy policy uncertainties deter foreign capital from entering BRICS nations. Contrarily, the study unveils a paradoxical positive relationship between EGU and OFD, suggesting that energy policy uncertainties stimulate the outflow of FDI, reflecting the adaptive strategies of multinational corporations navigating uncertainties. The study further explores the role of government effectiveness, labour force and financial sector development, shedding light on their positive influences on IFD and negative impacts on OFD. These findings underscore the importance of effective governance, a skilled labour force, and financial sector development in attracting and retaining foreign investments. This research contributes to the literature on energy policy, governance and FDI, offering policymakers and businesses nuanced insights into crafting strategies that enhance the attractiveness of BRIC nations for foreign investments. The study's findings have implications for shaping stable energy policies, improving governance effectiveness and fostering conditions conducive to sustained economic growth and development.
The motive of the study is to examine real effective exchange rates (REER) for Dutch disease effect (DDE) and evaluate the favourite exchange rate regime (ERR) for oil exporters, besides considering the time effect and development stages. This study included yearly data from 2001 to 2010 for 51 oil-exporting nations. For empirical estimation, this study employed the dynamic panel threshold model. The study deduced that a nonlinear relationship in net oil-exporting countries. The findings revealed that oil-exporting countries experiencing a reduction in non-oil exports if the real exchange rate (RER) exceeds than 3% (from the previous year), validating the Dutch disease phenomenon in oil-exporting countries. Moreover, exposure to this threat increases with a fixed ERR, developing countries and early periods of exporting oil. Specifically, the results of the study contribute to empirical knowledge in economic sciences and provide useful insights into political implications and strategic planning for policymakers in oil-exporting countries.
We address the shortcomings associated with modelling national aggregate electricity consumption in a large and diverse country with unique regional characteristics. Focusing on Saudi Arabia, we employ an econometric approach to analyse the distinct responses of its regions to electricity prices and income levels. The study employs a general to specific modelling approach, utilizing data from 1990 to 2019 within the conventional energy demand theoretical framework. Our region-specific estimations reveal income and price as the primary drivers, with the southern region exhibiting a higher sensitivity to income, while the eastern region shows a comparatively smaller response to prices attributed to its significant industrial presence. Elasticities for the central and western regions align with previous research, while eastern and southern regions exhibit larger elasticities. Weather impacts are observed only in the warmest western region, characterised by a substantial share of residential electricity consumption. Furthermore, we utilise our estimated model to project a regional baseline demand for electricity in Saudi Arabia and demonstrate how prices affect regions differently. This information is important for an oil-exporting country like Saudi Arabia, considering the diverse fuel mix used for electricity generation across regions. Assuming moderate economic growth and no price change, our baseline projections indicate a total electricity demand of 366 terawatt hours (TWh) by 2030.
Poor environmental quality is usually observed in developing blocs. Some plausible explanations are due to the high poverty level and their economic characterisation. The present study focuses on exploring the effect of poverty on environmental degradation over annual data from 1990 to 2018 for MINT economies (Mexico, Indonesia, Nigeria, Turkiye). By leveraging panel econometrics procedures that are robust to cross-sectional and slope homogeneity issues, the results show evidence of an equilibrium relationship among the examined variables namely households final consumption expenditure, CO2 emissions, GDP, electricity consumption and population over the sampled period. Findings from this study establish that poverty is a core to environmental degradation in T & uuml;rkiye and the plausible explanation is due to the country's demography while on the contrary, Nigeria, Indonesia and Mexico show that poverty is not a core contributor to environmental degradation. Thus, from a policy lens, there is need for concerted efforts by government officials and all stakeholders in the examined countries to reduce environmental degradation by improving per capita income (SDG-8) in the region productive economic activities to raise income level in the bloc. Additionally, there is a need for energy transition from fossil fuel-based energy to cleaner energy alternative options. More policy caveats are elucidated in the concluding section.
Foreign remittance has become an essential source of wealth in recent decades, with far-reaching effects on various economic indices and CO2 emissions. This research examines the impact of remittances and disaggregated energy consumption on CO2 emissions in an 'Environmental Kuznets Curve (EKC)' framework utilising a global sample of 46 top remittance-receiving countries during 1996-2020. The study confirms the EKC proposition and demonstrates that a decline in CO2 emissions is connected to remittance, renewable energy use and financial development. Additionally, our results stand up to various robustness tests, ensuring the reliability of our findings. Our research suggests that to reduce the adverse effects of non-renewable energy on environmental quality, governments, regulators and other stakeholders should implement rigorous market regulations and allocate substantial financial resources to R&D for innovating environmentally friendly production technologies. The government may also provide incentives for importing environmentally friendly production tech, such as tax rebates and subsidies. Lastly, foreign remittance and renewable energy are two tools governments may employ to cut CO2 emissions and improve environmental quality.
This study sets out to examine the effects of the interaction of subsidy removal on premium motor spirit (PMS) and exchange rate devaluation on macroeconomic instability in Nigeria. In this regard, this study adopted the Bayesian vector autoregressive model (BVAR) identified with sign-and-zero restrictions for annual data between 1985 and 2022. The empirical results reveal that both the removal of subsidies on PMS and the devaluation of the naira exchange rate significantly undermine real gross domestic product (GDP) growth and raise inflationary pressures in Nigeria. One important implication of this finding is that the ongoing subsidy reforms in the energy sector and associated devaluation of the naira exchange rate raise the risk of stagflation in Nigeria. Secondly, the simulation shows that simultaneous subsidy removal on PMS and exchange rate devaluation can trigger macroeconomic instability. This finding implies that stabilising PMS price and the exchange rate is key to achieving macroeconomic stability in Nigeria. Thus, this study recommends that Nigeria should be cautious and act quickly to cushion the price of PMS from the vagaries of foreign exchange market fluctuations to improve macroeconomic stability in the country.
This paper examines the causal impact of the technological innovation, trade openness and economic growth on the renewable energy use (RE) in Germany, the United Kingdom and Turkey. To this end, Breitung and Candelon (Journal of Econometrics, 2006, 132, 363) causality test linked to Toda and Yamamoto (Journal of Econometrics, 1995, 66, 225) procedure is applied on data for the period 1985–2021. Our results indicate that the German RE is mainly affected by the technological innovation and economic growth, but over the long‐term. Regarding the United Kingdom, its RE dynamics is found to be significantly impacted by the technological progress, trade openness and output growth all together, but only during the long‐run. However, in Turkey, the RE long‐term pattern is mainly led by the technological innovation, while the RE short‐term dynamics is primarily drown by the trade openness. This study provides policymakers a better understanding of RE pattern to formulate appropriate policies dealing with energy security, sustainable development and environmental pollution.
The influence of oil proceeds on an economy remains a subject of debate among scholars. Most scholars agree that income from oil has direct effect on economic expansion. We explore the impact of revenue from oil on economic growth in Nigeria from 1986 to 2016. Data were collected from the Nigerian Central Bank and the World Data Indicators. We employed a non-linear autoregressive distributive lag approach to analyse the data. The outcome exposes a direct and significant association between revenue from oil and GDP both in the short and long term. Trade openness exhibits a significant negative effect on GDP from both short- and long-term perspectives. Gross capital formation directly influences GDP in the short and long run, with significant impacts primarily in the long term. The study suggests that revenue from oil has a direct and significant impact on the Nigerian economy during the period from 1981 to 2016. We recommend that the Nigerian government create a conducive environment for private investment to thrive, thereby sustaining the nation's growth potential. Additionally, the government should wisely utilise revenue from oil to revitalise non-booming productive sectors in the economy, thus diversifying revenue sources.
This paper brings to light the factors that played major role in explaining the trend of the economic growth of a number of oil-exporting countries during the pandemic period, specifically, during the years 2020-2021 and 2022. The results show that the institutional factors, adaptive restrictions as well as the degree of trade openness and the size of government fiscal intervention were major determinants of the trend of the GDP of the countries in question. Based on the findings, the paper recommends some policy measures and highlights important future challenges that test efforts of globalization.
The study investigated the potential non-linear impacts of fluctuations in oil prices on domestic prices in Nigeria. Utilising the non-linear autoregressive distributed lag (NARDL) model, the study revealed the presence of asymmetry in the behaviour of domestic prices. Both forms of oil price shocks were observed to have a negative influence on domestic prices in the short term, with only positive oil price shocks demonstrating statistical significance. However, in the long run, a distinct pattern emerged where a decrease in oil prices significantly affected domestic prices. Additionally, analysis of VAR impulse response showed a consistently negative reaction of domestic prices to oil price shocks, falling below the steady-state equilibrium. The study concluded that changes in oil prices, in conjunction with other macroeconomic variables, affected the prices of domestic goods in Nigeria, whether in the short or long term. This underscored the complexity of Nigeria's economic landscape. Consequently, it is advisable to prudently invest excess revenue generated from rising oil prices to mitigate the adverse impacts of negative oil shocks on the economy.
The article explores the non-linear relationship between oil prices, inflation, and GDP in eight African countries that import oil from other nations. The study uses various econometric techniques, including symmetric and asymmetric dynamic panel ARDL models, mean group, and pooled mean group approaches, to examine quarterly data from 1983 Q2 to 2020 Q4. The analysis looks at both short-term and long-term variations to measure the positive and negative effects of oil prices and inflation on GDP. The findings reveal that the variables are related, but there are significant non-linearities in the long run. While both rising oil prices and inflation have a positive impact on GDP in most instances, lower oil prices and inflation might have a neutral or negative impact.
Migration of both skilled labour force can alter economic conditions and environmental sustainability of both host and home countries. Therefore, this study aims to explore the effect of skilled labour force migration on economic growth, energy demand and environmental sustainability of home and host countries. This objective is realised by constructing a multiregional computable general equilibrium model for developed and developing countries. Furthermore, developing countries are subcategorized into four groups such as high income, upper middle-income, lower middle-income and low-income countries. The results of policy simulations indicate that skilled labour migration can reduce the gross domestic product, welfare, energy consumption and carbon emissions in home countries, and the reverse is true for the host countries. Whereas the inflow of remittances to home counties can enhance their economic growth, energy consumption, and CO2 emissions, while reverse trend of remittances outflow is observed in host countries. Similarly, reverse migration can increase economic increase in developing countries along with increasing energy demand and carbon emissions. The study urges for developed countries for utilise skilled immigrants in environment friendly manufacturing industries.
