What drives environmental sustainability? The role of renewable energy, green innovation, and political stability in OECD economies

Puspanjali Behera, Biswanath Behera, Narayan Sethi, Rossanto Dwi Handoyo

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)

Abstract

One possible way to achieve environmental sustainability is by addressing the issue of rising CO2 emissions, which significantly cause climate change by intensifying the greenhouse gas effect. The Organization for Economic Cooperation and Development (OECD), which substantially contributes to global CO2 emissions, necessitates a paradigm shift towards using clean energy sources and promoting green innovations to ensure environmental sustainability. Thus, this study aims to inspect the role of renewable energy use, green technology innovation, political stability, and fiscal decentralization in attaining environmental sustainability by limiting CO2 emissions for seven OECD economies from 2000 to 2019. This study has employed the ‘Cross-Sectional Augmented Autoregressive Distributed Lag and Augmented Mean Group Estimator’ for robust empirical analysis. The results indicate that renewable energy use, political stability, and fiscal decentralization can mitigate CO2 emissions and ensure environmental sustainability in OECD economies. In contrast, green technology innovation exhibits an insignificant effect on CO2 emissions. Furthermore, the moderation effects of fiscal decentralization and political stability exhibit a negative relationship with CO2 emissions. Notably, this study advises OECD nations to encourage regional cooperation to ensure political stability and devolution of fiscal powers to promote green innovation and renewable energy use to achieve sustainable goals.

Original languageEnglish
JournalInternational Journal of Sustainable Development and World Ecology
DOIs
Publication statusAccepted/In press - 2024

Keywords

  • environmental sustainability
  • fiscal decentralization
  • green innovation
  • political stability
  • Renewable energy

Fingerprint

Dive into the research topics of 'What drives environmental sustainability? The role of renewable energy, green innovation, and political stability in OECD economies'. Together they form a unique fingerprint.

Cite this