Impact of green and energy efficiency policies on environmental sustainability: Evidence from dynamic panel threshold model

Lanouar Charfeddine and Abdul Rahman

Energy Policy, 2025, vol. 202, issue C

Abstract: This paper investigates the effectiveness of green and energy efficiency policies in improving environmental quality across a group of 63 countries during the period 2006–2019. To achieve this, the study first develops a set of new green and energy efficiency policy indices (including a global index and sub-indices based on financial, regulatory, and strategic energy efficiency policies) using Sarma's (2008) technique and by utilizing data from the International Energy Agency's Policies database. Second, the study examines the impact of these green and energy efficiency policies on environmental quality, analyzing different types of policies and environmental degradation indicators for lower- and upper-middle-income countries as well as higher-income countries.

Keywords: Green policies; Energy efficiency policies; Financial, regulation, and strategic energy efficiency policies; Lower and upper-middle-income countries; Higher-income countries; Environmental sustainability; Dynamic panel threshold model (search for similar items in EconPapers)
JEL-codes: C24 O13 P18 P28 Q40 Q48 Q58 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:202:y:2025:i:c:s0301421525000965

DOI: 10.1016/j.enpol.2025.114589

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