4.7 Article

The impact of fiscal decentralization, green energy, and economic policy uncertainty on sustainable environment: a new perspective from ecological footprint in five OECD countries

Journal

ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH
Volume 29, Issue 36, Pages 54698-54717

Publisher

SPRINGER HEIDELBERG
DOI: 10.1007/s11356-022-19669-y

Keywords

Fiscal decentralization; Green energy; Economic policy uncertainty; OECD; Environmental sustainability; Asymmetric

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The study found that fiscal decentralization, green energy, and economic policy uncertainty have asymmetric impacts on environmental sustainability in different countries; green energy plays a significant role in reducing ecological footprint, but the response varies significantly across countries.
The paper explores the short-run and long-run asymmetric impact of fiscal decentralization, green energy, and economic policy uncertainty on environmental sustainability proxied by ecological footprint. Using the Nonlinear Autoregressive Distributed lag (NARDL) approach in selected five OECD countries, we find that ecological footprint responds to positive and negative fiscal decentralization asymmetrically in the long run and short run. However, the nature of the response varies significantly across countries. The result also suggests that green energy is a major factor in reducing the ecological footprint in all countries except Canada. Finally, economic policy uncertainty plays a negative and significant role in the ecological footprint in the UK, USA, and Germany while insignificant in Australia and Canada. Implications for effective environmental policies are discussed.

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