Environmental degradation, renewable energy, and economic growth nexus: Assessing the role of financial and political risks?

Wang Z., Y C., Zhang B., Ahmed Z., Ahmad M.

Journal of Environmental Management, vol.325, 2023 (SCI-Expanded, Scopus) identifier identifier

  • Nəşrin Növü: Article / Article
  • Cild: 325
  • Nəşr tarixi: 2023
  • Doi nömrəsi: 10.1016/j.jenvman.2022.116678
  • jurnalın adı: Journal of Environmental Management
  • Jurnalın baxıldığı indekslər: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Academic Search Premier, International Bibliography of Social Sciences, PASCAL, Aerospace Database, Agricultural & Environmental Science Database, Aqualine, Aquatic Science & Fisheries Abstracts (ASFA), BIOSIS, CAB Abstracts, Communication Abstracts, Environment Index, Geobase, Greenfile, Index Islamicus, Metadex, Pollution Abstracts, Public Affairs Index, Veterinary Science Database, Civil Engineering Abstracts
  • Açar sözlər: Ecological footprint, Environmental sustainability, Financial risk, Political risk, Renewable energy
  • Açıq Arxiv Kolleksiyası: Məqalə
  • Adres: Yox

Qısa məlumat

Sustainable development goal (SDG), which focuses on affordable and sustainable energy, provides a practical solution to realize sustainable growth. In addition, this target can encourage the realization of SDG 13 (climate action). However, factors like political and financial risk can impact climate actions and renewable energy. Therefore, this research extends the debate on the ecological footprint (EF) mitigation and achievement of SDGs by evaluating the renewable energy, political risk, financial risk, and EF nexus in an Environment Kuznets Curve (EKC) framework from 1986 to 2018. Panel data for the Association of Southeast Asian Nations (ASEAN) is estimated using second-generation approaches. The CuP-FM test results indicated that the EKC is present in ASEAN in the context of renewable energy, financial risk, and political risk. Furthermore, the findings revealed that controlling political and financial risks is a useful mitigation strategy because EF decreases as these risks are reduced. Notably, a decrease in EF has been linked to the use of renewable energy. These results are verified by using CO2 emissions as an alternative proxy for environmental degradation. Moreover, both financial and political risk Granger cause renewable energy and economic growth indicating that controlling financial and political risk is necessary for sustainable development.