IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i10p4321-d1652671.html
   My bibliography  Save this article

Energy Transition and Institutional Quality in E-7 Economies: Unveiling Paths to Sustainable Development with CS-ARDL Analysis

Author

Listed:
  • Muhammad Waseem

    (Department of Economics, Comsats University Islamabad, Islamabad 45550, Pakistan)

  • Nabila Khurshid

    (Department of Economics, Comsats University Islamabad, Islamabad 45550, Pakistan)

  • Chinyere Emmanuel Egbe

    (Economics and Finance Medgar Evers College, City University of New York, New York, NY 10017, USA)

  • Mudassar Rashid

    (Department of Economics, Comsats University Islamabad, Islamabad 45550, Pakistan)

Abstract

The impact of energy consumption on sustainable development remains a critical global concern that is deeply influenced by the progress and effectiveness of the ongoing energy transition. The primary objective of this study is to examine the impact of the energy transition (ET) an institutional quality index (IQI) on sustainable development (SD), along with other control variables, including globalization (GLOB), trade openness (TO), gross domestic product per capita (GDP), and economic structure (EcoStru), in E-7 economies from 1990 to 2022. To fulfill this objective, we employ the cross-sectional autoregressive distributive lags (CS-ARDL) technique to tackle issues such as heteroscedasticity, cross-sectional dependence, and interaction across sections caused by variations in slope. Similarly, for the robustness analysis and based on the results of cointegration tests, we employed the Fully Modified Ordinary Least Square (FMOLS) and Canonical Cointegrating Regression (CCR) cointegration models. The empirical findings reveal that the ET, TO, and IQI significantly influence improving sustainable development in the E-7 countries. Meanwhile, GLOB and GDP have been shown to have a detrimental environmental impact. To move toward truly sustainable development, E-7 countries should emphasize the transition to renewable energy and reinforce institutional governance to lessen their dependence on fossil fuels.

Suggested Citation

  • Muhammad Waseem & Nabila Khurshid & Chinyere Emmanuel Egbe & Mudassar Rashid, 2025. "Energy Transition and Institutional Quality in E-7 Economies: Unveiling Paths to Sustainable Development with CS-ARDL Analysis," Sustainability, MDPI, vol. 17(10), pages 1-22, May.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:10:p:4321-:d:1652671
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/10/4321/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/10/4321/
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:10:p:4321-:d:1652671. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.