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Sustainable Growth through Green Electricity Transition and Environmental Regulations: Do Risks Associated with Corruption and Bureaucracy Matter?

Author

Listed:
  • Runguo Xu
  • Ugur Korkut Pata
  • Jiapeng Dai

Abstract

Electricity production strategies of countries rely on fossil fuel-based electricity generation. Environmental regulations (ER) are needed to shift to green electricity for achieving energy transition, but corruption and bureaucracy can influence ER, energy transition and ecological quality. Hence, this research considers two important constituents of country risks including corruption and bureaucracy in the model while understanding the connections between green electricity, ER and the load capacity factor (LCF) in BRICS from 1992 to 2018. The research chooses a recent proxy of ecological quality (i.e., LCF), which effectively measures the ecological quality and indicates the possibility of sustainable growth by using biocapacity and ecological footprint figures. The results of the research disclose that green electricity Granger-causes and enhances the LCF, whereas controlling corruption and enhancing bureaucracy quality improves ecological quality. ER improves environmental quality and the load capacity curve (LCC) hypothesis also exists. Lastly, policy directions are discussed.

Suggested Citation

  • Runguo Xu & Ugur Korkut Pata & Jiapeng Dai, . "Sustainable Growth through Green Electricity Transition and Environmental Regulations: Do Risks Associated with Corruption and Bureaucracy Matter?," Politická ekonomie, Prague University of Economics and Business, vol. 0.
    • Handle: RePEc:prg:jnlpol:v:preprint:id:1420
    DOI: 10.18267/j.polek.1420
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