Modeling the environmental impact of energy poverty in South Korea: Do environment-related technologies matter?

Abstract

This study investigates the impact of the energy poverty index (EPI) on the ecological footprint (ECF) as an inclusive environmental quality index in South Korea from 1990 to 2019, considering environmental-related technologies (ERT), real GDP per capita (RGDPpc), and financial development (FD) in the environmental function. The principal component analysis is used to create the EPI based on accessibility, availability, and affordability. The dynamic ARDL model results reveal that EPI and FD drive the ecological deficit in the short and long runs. In the long run, however, ERT act as a moderator. Lastly, the Breitung-Candelon Spectral Granger Causality Test demonstrates that the ecological deficit is related to EPI, FD, and RGDPpc in the short to long term. On the other hand, environmental technologies have a medium-to-long-term relationship with their ecological footprint. The research findings include government policy recommendations to accomplish COP 26 neutrality and sustainable development goals. The results show how important it is to improve residents’ access to clean energy and reduce energy poverty by putting the right economic, environmental, and energy policies into place.