Akademik Məlumat İdarəetmə Sistemi
Clean Technologies and Environmental Policy, vol.27, no.6, pp.2547-2563, 2025 (SCI-Expanded, Scopus)
While aiming for economic growth, environmental pollution is often ignored. Obtaining energy demand, one of the most critical factors for economic growth, from clean energy sources supports green growth. Policymakers attach importance to environmental policies to achieve green growth. On the one hand, high taxes are applied to polluting resources; on the other hand, subsidies are given to clean energy resources, and tax exemptions are applied. This study examines the effects of economic growth, environmental policy stringency, and renewable energy consumption on environmental sustainability in eight high-income countries from 1990 to 2020. In this study, a robust econometric methodology was applied. The study utilized the cointegration tests of Westerlund (Westerlund, Oxford Bull Econ Stat 69:709–748, 2007) and Westerlund and Edgerton (Westerlund and Edgerton, Oxford Bull Econ Stat 70:665–704, 2008). Long-term parameter estimates were obtained using the AMG and CCE estimators. Finally, the causality analysis was performed using the Emirmahmutoglu and Kose (Emirmahmutoglu and Kose, Econ Model 28:870–876, 2011) test. According to the study results, economic growth reduces environmental quality in all other countries and panel except Sweden. While renewable energy consumption increases environmental quality in the UK, it reduces it in China. In Denmark and South Korea, environmental policy stringency improves environmental quality. According to the causality results, there is a unidirectional causality from economic growth to environmental quality in China, Japan, South Africa, Sweden, and the UK, and from renewable energy to environmental quality in Japan and South Africa. Policy interventions to decouple economic growth from environmental degradation are imperative. In this context, encouraging renewable energy investments through subsidies and tax incentives may be effective.