Formulating energy security strategies for a sustainable environment: Evidence from the newly industrialized economies

Abstract

This study investigates the role of energy security on environmental assessment using empirical dataset from the Newly Industrialized Countries. Along with energy security, several important non-climatic indicators such as quality of governance, financial development and uncertainty index are incorporated into the carbon emissions function. This study uses efficient panel data techniques such as Dynamic Common Correlated Effects Estimator-Mean Group and Common Correlated Effects Mean-Group estimation approaches. These techniques take into account the problems of cross-section related dependence and slope-heterogeneity. The findings from current study demonstrate that energy insecurity drives emissions while technological innovations, natural resources and financial development negatively affect environmental quality. Moreover, having uncertainty in the economy also drives emissions. Emerging economies must implement environmental plans that amalgamate economic decisions and environmental concerns. Another thrust of emphasis is on the need to encourage the pricing of environmental resources to influence environmental sustainability. To promote energy security and environmental welfare, there is an urgent need to discuss the roles of energy savings and abolishing subsidies on fossil fuels.