Expectations of reversing the path of the climate change: How industrialization, green growth and renewable energy protect environmental sustainability in the era of globalization?

Abstract

This research delineates the dynamic interactions among industrialization, green growth initiatives, the uptake of renewable energy, and the processes of globalization within the context of newly industrialized countries (NICs), with a particular focus on their collective and individual impacts on the ecological footprint. Employing an extensive dataset for spanning the period from 1993 to 2020, the study deliberately applies advanced econometric methodologies, particularly estimation techniques such as CS-ARDL and AMG. The primary findings of this study reveal that there is a two-sided impact: green growth initiatives and the use of renewable energy mitigate the ecological footprint, while industrialization and globalization elevate it. Furthermore, the study suggests that combining renewable energy usage with industrialization or globalization reduces their environmental impacts, specifically over time. In light of these findings, the study recommends that industries that use renewable energy and environmentally friendly technology should be given monetary incentives or other forms of encouragement. Accompanying the recommendation is the idea that public funds should be heavily allocated to R&D projects that target improving the deployment of renewable energy while stimulating green growth within the framework of NICs.