Linking energy transitions, energy consumption, and environmental sustainability in OECD countries

Abstract

Environmental sustainability isthe responsibility to conserve natural resources and protect global ecosystems from supporting health and wellbeing, now and in the future. Thus, the connection between energy transitions, the environment and sustainable development is worth highlighting. We investigate the impact of energy transitions, energy consumption, natural resources, and urbanization on the ecological footprint and economic growth of the selected Organization for Economic Co-operation and Development (OECD) countries from 1990 to 2015. Through this study, we have developed a comprehensive empirical analysis, applied advanced econometric methodologies. Wasteland's panel cointegration suggests long-run relationships within the variables. Our long-run results indicate energy transitions, renewable energy consumption, and natural resources are negatively associated, while non-renewable energy consumption and urbanization are positively related to the ecological footprint and economic growth. Overall, the result implies that energy transitions, renewable energy consumption, and natural resources improve environmental quality and curse economic growth. However, urbanization and non-renewable energy consumption deteriorate environmental quality and stimulate economic growth in the selected OECD countries. Policymakers are encouraged to highlight the energy sector's sustainable structural changes, address carbon–neutral influential non-market barriers, promote green trade and technology activities, offer sustainable natural resources and urbanization to guarantee a sustainable future. Study limitations and directions for future research discussed.