Ecological footprint in the OECD countries: do energy efficiency and renewable energy matter?

Ecological footprint in the OECD countries: do energy efficiency and renewable energy matter?

31 January 2024 | Thomas Abuobeleye Akpanke, Abraham Deka, Huseyin Ozdeser, Mehdi Seraj
This study investigates the impact of renewable energy (RE) and energy efficiency on the ecological footprint (EFP) index and carbon emissions (CE) in OECD countries from 1990 to 2020. The research employs panel data and advanced econometric techniques, including CS-ARDL, DCCEMG, and AMG, to address issues of heterogeneity, dynamics, and cross-sectional dependence. The findings indicate that RE significantly reduces both EFP and CE, while economic growth exacerbates them. Energy efficiency reduces CE but has no significant effect on EFP. Non-renewable energy and research & development (R&D) increase CE, with an insignificant positive effect on EFP. The study highlights the importance of understanding how each dimension of EFP is influenced to effectively reduce environmental degradation. The results suggest that promoting RE and improving energy efficiency are crucial for achieving environmental sustainability.This study investigates the impact of renewable energy (RE) and energy efficiency on the ecological footprint (EFP) index and carbon emissions (CE) in OECD countries from 1990 to 2020. The research employs panel data and advanced econometric techniques, including CS-ARDL, DCCEMG, and AMG, to address issues of heterogeneity, dynamics, and cross-sectional dependence. The findings indicate that RE significantly reduces both EFP and CE, while economic growth exacerbates them. Energy efficiency reduces CE but has no significant effect on EFP. Non-renewable energy and research & development (R&D) increase CE, with an insignificant positive effect on EFP. The study highlights the importance of understanding how each dimension of EFP is influenced to effectively reduce environmental degradation. The results suggest that promoting RE and improving energy efficiency are crucial for achieving environmental sustainability.
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