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Economic growth, renewable energy consumption, and ecological footprint: Exploring the role of environmental regulations and democracy in sustainable development

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  • Zahoor Ahmed
  • Mahmood Ahmad
  • Husam Rjoub
  • Olga A. Kalugina
  • Nazim Hussain

Abstract

Countries enact environmental regulations to achieve sustainable development and ecological sustainability. However, environmental regulations do not guarantee environmental sustainability unless implemented efficiently. Furthermore, political institutions play a key role in the formulation and management of environmental regulations. This research examines the relationship between democracy, environmental regulations, economic growth, and ecological footprint (EF) in the panel of G7 nations from 1985 to 2017. Second generation econometric techniques are used to analyze the data. The empirical evidence indicates that economic growth enhances EF while democracy and environmental regulations positively contribute to ecological sustainability by reducing EF. The causal outcomes reveal that democracy Granger causes EF and renewable energy indicating that democracy curbs environmental degradation and stimulates the share of renewables. Further, democracy and environmental regulations Granger cause each other. Lastly, the implication of these findings for sustainable development and ecological sustainability are discussed.

Suggested Citation

  • Zahoor Ahmed & Mahmood Ahmad & Husam Rjoub & Olga A. Kalugina & Nazim Hussain, 2022. "Economic growth, renewable energy consumption, and ecological footprint: Exploring the role of environmental regulations and democracy in sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(4), pages 595-605, August.
    • Handle: RePEc:wly:sustdv:v:30:y:2022:i:4:p:595-605
    DOI: 10.1002/sd.2251
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    3. Zhao, Xin & Shang, Yuping & Magazzino, Cosimo & Madaleno, Mara & Mallek, Sabrine, 2023. "Multi-step impacts of environmental regulations on green economic growth: Evidence in the lens of natural resource dependence," Resources Policy, Elsevier, vol. 85(PB).
    4. Dai, Jiapeng & Ahmed, Zahoor & Sinha, Avik & Pata, Ugur Korkut & Alvarado, Rafael, 2023. "Sustainable green electricity, technological innovation, and ecological footprint: Does democratic accountability moderate the nexus?," Utilities Policy, Elsevier, vol. 82(C).
    5. Zhang, Shaohui & Chen, Kenjie, 2023. "Green finance and ecological footprints: Natural resources perspective of China’s growing economy," Resources Policy, Elsevier, vol. 85(PB).
    6. Abdul Haseeb & Enjun Xia & Shah Saud & Muhammad Usman & Muhammad Umer Quddoos, 2023. "Unveiling the liaison between human capital, trade openness, and environmental sustainability for BRICS economies: Robust panel‐data estimation," Natural Resources Forum, Blackwell Publishing, vol. 47(2), pages 229-256, May.

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