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?

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) and carbon emissions (CE) in OECD countries from 1990 to 2020. The research compares the effects of environmental degradation determinants on EFP and CE using advanced econometric techniques, including CS-ARDL, DCCEMG, and AMG, to account for dynamics, heterogeneity, and cross-sectional dependence. The findings reveal that RE significantly reduces both EFP and CE, while economic growth exacerbates them. Energy efficiency reduces CE but has a negligible effect on EFP. Non-renewable energy and R&D increase CE, while their effects on EFP are insignificant. The study highlights that factors influencing CE may not always affect EFP, emphasizing the need to understand how each dimension of EFP is impacted. RE is crucial for reducing environmental degradation, as it lowers both EFP and CE. Energy efficiency improves economic growth but has a minimal effect on EFP. The research also shows that economic growth and NRE use worsen CE and EFP, while R&D has a positive but insignificant effect on EFP. Overall, the study underscores the importance of adopting RE and energy efficiency to achieve environmental sustainability and align with the UN Sustainable Development Goals (SDGs) 11 and 13. The results suggest that improving RE use and energy efficiency is essential for reducing environmental degradation in OECD countries.This study investigates the impact of renewable energy (RE) and energy efficiency on the ecological footprint (EFP) and carbon emissions (CE) in OECD countries from 1990 to 2020. The research compares the effects of environmental degradation determinants on EFP and CE using advanced econometric techniques, including CS-ARDL, DCCEMG, and AMG, to account for dynamics, heterogeneity, and cross-sectional dependence. The findings reveal that RE significantly reduces both EFP and CE, while economic growth exacerbates them. Energy efficiency reduces CE but has a negligible effect on EFP. Non-renewable energy and R&D increase CE, while their effects on EFP are insignificant. The study highlights that factors influencing CE may not always affect EFP, emphasizing the need to understand how each dimension of EFP is impacted. RE is crucial for reducing environmental degradation, as it lowers both EFP and CE. Energy efficiency improves economic growth but has a minimal effect on EFP. The research also shows that economic growth and NRE use worsen CE and EFP, while R&D has a positive but insignificant effect on EFP. Overall, the study underscores the importance of adopting RE and energy efficiency to achieve environmental sustainability and align with the UN Sustainable Development Goals (SDGs) 11 and 13. The results suggest that improving RE use and energy efficiency is essential for reducing environmental degradation in OECD countries.
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