Analyzing transport demand and environmental degradation: the case of G-7 countries

Sinan Erdogan, Samuel Asumadu Sarkodie (), Festus Fatai Adedoyin (), Festus Bekun and Phebe Asantewaa Owusu ()
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Samuel Asumadu Sarkodie: Nord University Business School (HHN)
Festus Fatai Adedoyin: Bournemouth University
Phebe Asantewaa Owusu: Nord University Business School (HHN)

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2024, vol. 26, issue 1, No 29, 734 pages

Abstract: Abstract The debate for green development has been ongoing in the energy and environment literature—especially initiatives to mitigate climate change. On this note, we explore the effects of the air and railway transport demand, fossil-fuel energy consumption, demographic policies, economic growth, and alternative energy consumption on environmental degradation in Group of Seven (G7) economies. Using robust panel estimation techniques that account for cross-sectional dependence, empirical results affirm the presence of long-run relationships among variables. Besides, the results give credence to the environmental Kuznets curve hypothesis (EKC) in G7 countries over the sampled period. We observe that demand for air transport, energy from fossil fuel sources, and economic development dampen environmental quality by 0.12%, 0.33%, and 46.54%, respectively. Interestingly, renewable energy and rail transportation demand improve environmental quality. This outcome resonates with the need for alternative and clean energy production and consumption (Sustainable Development Goals 11 and 12) while enhancing the fight against climate change—especially the adoption of clean energy technologies in the air transport sector for sustainable growth.

Keywords: Ecological footprint; Heterogeneous effects; Air transport; Railway transport; EKC hypothesis; Panel data modeling (search for similar items in EconPapers)
JEL-codes: Q56 R4 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10668-022-02729-1

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