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Assessing the dynamics among oil consumption, ecological footprint, and renewable energy: Role of institutional quality in major oil-consuming countries

2024; Elsevier BV; Volume: 90; Linguagem: Inglês

10.1016/j.resourpol.2024.104843

1873-7641

Mohammad Maruf Hasan, Su Nan, Umra Waris,

Market Dynamics and Volatility

Comprehending the intricate dynamics between oil consumption and environmental factors is imperative for developing effective and sustainable resource management policies. This study utilizes panel data from 1996 to 2022 and sophisticated analytical techniques, including the Method of Moments Quantile Regression (MMQR) and Canay (2011b) quantile regression. Two models have been employed; the first incorporates carbon emissions, while the second integrates ecological footprint considerations. The results indicate a positive association between oil consumption and economic growth concerning carbon emissions and ecological footprint. Conversely, an adverse effect is observed for renewable energy, showing a mitigating impact on both carbon emissions and ecological footprint. Additionally, the study reveals a positive correlation between institutional quality and carbon emissions, with a contrasting negative effect of institutional quality on the ecological footprint at lower quantiles. A positive correlation is found between institutional quality and ecological footprint at the upper quantiles. This study advocates for an integrated resources policy that strategically incorporates renewable energy to mitigate carbon emissions and ecological footprint. Recognizing the significant influence of institutional quality on environmental outcomes, the findings underscore the importance of aligning economic development with environmental stewardship. This approach ensures a sustainable and resilient energy future, contributing to a harmonized and responsible utilization of resources. Highlighting the role of oil consumption and renewables, this study emphasizes the critical integration of institutional quality into resource policies. The alignment of these policies with Sustainable Development Goals is advocated for a sustainable and resilient energy future.