Contribution of energy based circularity for better environmental quality: an evidence from Bias-corrected linear dynamic approach

Abstract

Environmental behavior needs a keen intervention to avoid the upcoming worse outcomes of the energy utilization. Global warming is transitioning towards the global boiling stage and the reason behind the faster growth of renewable energy resources exploration. The present study empirically investigates the circularity impact of the renewable energy on the environment. Two different models of the environment were estimated by applying biased corrected method on 28 low income countries from 1990 to 2019. In this study, we develop a circularity index on the basis of renewable energy sources and found that in low income economies circularity brings a positive impact on the environment in both models. The study also concludes that digitization has also positive implication in terms of environmental quality. In the sample study trade shows negative as well as positive association with environment while economic growth, financial development and energy use have positive impact on the environment. The study suggested policies based on the circular practices for energy generation to achieve the sustainable development goals.