Renewable energy transition, resource richness, economic growth, and environmental quality: Assessing the role of financial globalization

Mahmood Ahmad, Jiapeng Dai, Usman Mehmood and Mohamad Abou Houran

Renewable Energy, 2023, vol. 216, issue C

Abstract: This study investigates the impact of renewable energy transition, abundance of natural resources, financial globalization, and economic growth on the ecological footprint (EF) in G-11 countries under the Environmental Kuznets Curve (EKC) framework. In addition, this study further analyzes the moderating role of financial globalization in the nexus between renewable energy transition and EF. To do this, the study used the cross-sectional autoregressive distributed lags (CS-ARDL) for the short-run and long-run estimations, which allow heterogeneity in the slope parameters and dependency across countries. The results indicate that renewable transition and financial globalization are significantly and negatively related to ecological footprint, while natural resource rent positively impacts EF. Moreover, the findings further reveal that financial globalization impedes EF through the channel of renewable energy transition, and the robustness test also validates these findings. Our results confirm the presence of the EKC hypothesis for G-11 countries. In light of these findings, the study suggests that G-11 countries should adopt policies that enhance financial globalization along with renewable energy transition and redesign policies for sustainable utilization of natural resources in order to attain sustainable development goals.

Keywords: Renewable energy transition; Resource richness; Financial globalization; Environmental quality (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0960148123009060
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:216:y:2023:i:c:s0960148123009060

DOI: 10.1016/j.renene.2023.119000

Access Statistics for this article

Renewable Energy is currently edited by Soteris A. Kalogirou and Paul Christodoulides

More articles in Renewable Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().