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Impact of green and energy efficiency policies on environmental sustainability: Evidence from dynamic panel threshold model

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  • Charfeddine, Lanouar
  • Rahman, Abdul

Abstract

This paper investigates the effectiveness of green and energy efficiency policies in improving environmental quality across a group of 63 countries during the period 2006–2019. To achieve this, the study first develops a set of new green and energy efficiency policy indices (including a global index and sub-indices based on financial, regulatory, and strategic energy efficiency policies) using Sarma's (2008) technique and by utilizing data from the International Energy Agency's Policies database. Second, the study examines the impact of these green and energy efficiency policies on environmental quality, analyzing different types of policies and environmental degradation indicators for lower- and upper-middle-income countries as well as higher-income countries.

Suggested Citation

  • Charfeddine, Lanouar & Rahman, Abdul, 2025. "Impact of green and energy efficiency policies on environmental sustainability: Evidence from dynamic panel threshold model," Energy Policy, Elsevier, vol. 202(C).
    • Handle: RePEc:eee:enepol:v:202:y:2025:i:c:s0301421525000965
    DOI: 10.1016/j.enpol.2025.114589
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    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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