Transitioning to a zero-emission energy system towards environmental sustainability

Abstract

Emissions reductions can improve business competitiveness and represent an extension of its inevitable drive towards increased efficiency. The productivity of labor and capital came first, followed by the productivity of raw materials - producing more with less. Therefore, zero emissions can be viewed as a new standard of efficiency. The issue is organizing industrial clusters based on the zero emissions principle. This context has led to the development of case studies and demonstration projects to demonstrate how the zero emissions approach differs from other pollution prevention strategies. We investigate the impact of net-zero emissions by 2050 on the environmental sustainability of the top three CO2-emitting countries, using natural resource rents, economic growth, and financial development as moderator variables from 1971 to 2019. To achieve this objective, we developed an advanced applied econometric methodology. Firstly, Westerlund’s panel co-integration suggests long-term relationships within the variables. Secondly, net-zero emissions by 2050 are negatively associated with environmental sustainability. Total natural resources rents, economic growth, and financial development are positively associated with the ecological footprint. Findings show that net-zero emissions by 2050 will improve environmental sustainability in the top three CO2-emitting countries. Moreover, natural resource depletion, economic growth, and financial development deteriorate the ecological sustainability of these economies. To maintain the environment’s equilibrium and conserve ecosystems, governments should put research, development, deployment, and demonstration at the center of climate and energy policy.