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

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  • Zhou, Yuanxiang
  • Adebayo, Tomiwa Sunday
  • Yin, Weichuan
  • Abbas, Shujaat

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.

Suggested Citation

  • Zhou, Yuanxiang & Adebayo, Tomiwa Sunday & Yin, Weichuan & Abbas, Shujaat, 2023. "The co-movements among renewable energy, total environmental tax, and ecological footprint in the United Kingdom: Evidence from wavelet local multiple correlation analysis," Energy Economics, Elsevier, vol. 126(C).
    • Handle: RePEc:eee:eneeco:v:126:y:2023:i:c:s0140988323003985
    DOI: 10.1016/j.eneco.2023.106900
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    5. Uche, Emmanuel & Das, Narasingha & Ngepah, Nicholas, 2024. "Green environments reimagined through the lens of green finance, green innovations, green taxation, and green energies. Wavelet quantile correlation and rolling window-based quantile causality perspective," Renewable Energy, Elsevier, vol. 228(C).
    6. Shujaat Abbas & Sudeshna Ghosh & Sanhita Sucharita & Buhari Dogan & Osman Değer & Oleg Mariev, 2025. "Going green: understanding the impacts of economic complexity, clean energy and natural resources on ecological footprint in complex economies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(3), pages 6539-6565, March.
    7. Kinyar, Ali & Bothongo, Keith, 2025. "Public spending for environmental protection in the UK: The environmental impact of environmental taxes, renewable energy, and nuclear energy," Energy, Elsevier, vol. 314(C).
    8. Elsayed, Ahmed H. & Khalfaoui, Rabeh & Zhang, Dongna & Urquhart, Andrew, 2025. "AI and carbon pricing in turbulent times: Navigating market dynamics for a sustainable future," International Review of Financial Analysis, Elsevier, vol. 107(C).
    9. Jianguo Du & Yasir Rasool & Umair Kashif, 2025. "Asymmetric Impacts of Environmental Policy, Financial, and Trade Globalization on Ecological Footprints: Insights from G9 Industrial Nations," Sustainability, MDPI, vol. 17(4), pages 1-21, February.
    10. Soto, Gonzalo H. & Balsalobre-Lorente, Daniel & Martinez-Cobas, Xavier, 2025. "Environmental legislative shaping or green competitive advantages? The role of FDI among environmental regulations," Energy Economics, Elsevier, vol. 145(C).
    11. Zeng, Hongjun & Abedin, Mohammad Zoynul & Zhou, Xiangjing & Lu, Ran, 2024. "Measuring the extreme linkages and time-frequency co-movements among artificial intelligence and clean energy indices," International Review of Financial Analysis, Elsevier, vol. 92(C).
    12. Raihan, Asif & Rahman, Syed Masiur & Ridwan, Mohammad & Sarker, Tapan & Ben-Salha, Ousama & Rahman, Md Masudur & Zimon, Grzegorz & Sahoo, Malayaranjan & Dhar, Bablu Kumar & Roshid, Md Mustaqim & Elhaj, 2025. "Dynamic influences of different energy sources, energy efficiency, technological innovation, population, and economic growth toward achieving net zero emissions in the United Kingdom," Innovation and Green Development, Elsevier, vol. 4(4).

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