The Nexus between sustainable energy and ecological footprint: evidence from Algeria

Abstract

Despite the considerable attention that has been spent studying the connections between energy and sustainable development, the most salient issues have only became conspicuous in the last few decades. Interest in these issues is now unavoidable with significant effort being devoted to achieving sustainable development goals. The present study attempts to highlight the role of sustainable energy in protecting the environment using the ecological footprint (EF) in Algeria. We use the unit root test, co-integration, Granger causality, and dynamic ordinary least squares (DOLS) and the results reveal a long-term equilibrium relationship between renewable energy consumption (REC), carbon-dioxide (CO2) emissions (CE), primary energy intensity (PEI), and the ecological footprint. The regression relationship reveals a positive and significant relationship from REC, CE, and PEI to EF. It also demonstrates the existence of bidirectional causality between REC and EF at 1% level and four unidirectional causal relationships where two relationships start from CE to EF at 1% and two start from PEI to REC, CE at 1% (i.e., PEI affects both REC and CE). These results indicate that decision makers should enhance investment in renewable energy as well as control the exploitation of fossil energy, which leads to reducing emissions and preserving the environment.