The co-movements among renewable energy, total environmental tax, and ecological footprint in the United Kingdom: Evidence from wavelet local multiple correlation analysis

Abstract

This study evaluates the efficacy of total environmental tax, economic growth and renewable energy in curbing ecological footprint in the United Kingdom for the period 1995Q1–2018Q4. As the first study to dynamically investigate the connection between these factors in the short and long term at various frequencies in a multivariate setting, we add to the literature by painting a clearer picture of the dynamics influencing ecological footprint. For this reason, we employ an innovative technique, namely the newly developed wavelet local multiple correlation (WLMC) approach, which can identify the connections between indicators at various periods and frequencies. The results from the WLMC disclose that total environmental tax, economic growth, and renewable energy curb ecological footprint. Furthermore, a significant positive connection is found between environmental tax, economic growth, and renewable energy in the short and long term. According to the findings, environmental taxes, renewable energy, and economic expansion are useful tools for increasing environmental quality in the United Kingdom. The research's findings offer important recommendations for developing policies to aid the United Kingdom in achieving SDGs 7, 8, 12, and 13 while also preserving ecological sustainability.