4.7 Article

Economic growth, renewable energy consumption, and ecological footprint: Exploring the role of environmental regulations and democracy in sustainable development

Journal

SUSTAINABLE DEVELOPMENT
Volume 30, Issue 4, Pages 595-605

Publisher

WILEY
DOI: 10.1002/sd.2251

Keywords

democracy; economic growth; environmental policy; environmental regulations; environmental sustainability; G7 countries; renewable energy; sustainable development

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Environmental regulations are crucial for achieving ecological sustainability, and democracy helps to reduce ecological footprints and promote the use of renewable energy. While economic growth may increase ecological footprints to some extent, the implementation of democracy and environmental regulations can mitigate this trend.
Countries enact environmental regulations to achieve sustainable development and ecological sustainability. However, environmental regulations do not guarantee environmental sustainability unless implemented efficiently. Furthermore, political institutions play a key role in the formulation and management of environmental regulations. This research examines the relationship between democracy, environmental regulations, economic growth, and ecological footprint (EF) in the panel of G7 nations from 1985 to 2017. Second generation econometric techniques are used to analyze the data. The empirical evidence indicates that economic growth enhances EF while democracy and environmental regulations positively contribute to ecological sustainability by reducing EF. The causal outcomes reveal that democracy Granger causes EF and renewable energy indicating that democracy curbs environmental degradation and stimulates the share of renewables. Further, democracy and environmental regulations Granger cause each other. Lastly, the implication of these findings for sustainable development and ecological sustainability are discussed.

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