The impact of extended energy balances on environmental policy stringency in climate modeling: Role of energy intensity in sustainable development

Shuang Wang and Guixian Tian

Energy, 2025, vol. 320, issue C

Abstract: The world faces climate change as a central global issue needing immediate measures to defend both environmental systems and human communities. Strict environmental policy measures represent an important strategy for managing this challenge. This study aims to investigate the impact of extended energy balances on environmental policy stringency in the Organization of American States (OAS) countries from 1990 to 2023, focusing on the role of energy intensity in sustainable development. Empirical estimates are based on cross-sectional dependence, slope heterogeneity, Westerlund ECM panel cointegration, and Arellano–Bond dynamic panel-data estimation. The data analysis shows a negative association between environmental policy stringency index and extended energy balances, energy intensity, urbanization, and natural resources. This association suggests that higher levels of environmental policy stringency are associated with improved energy balances, reduced energy intensity, slower urbanization rates, and better management of natural resources. Understanding the associations between these variables and the environmental policy stringency index is essential for policymakers in designing and implementing effective environmental policies. By recognizing these relationships, policymakers can make informed decisions that balance economic development and environmental sustainability.

Keywords: Environmental policy stringency index; Extended energy balances; Energy intensity; Urbanization; Natural resources (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:320:y:2025:i:c:s0360544225008503

DOI: 10.1016/j.energy.2025.135208

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