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Renewable energy, nonrenewable energy, and environmental quality nexus: An investigation of the N-shaped Environmental Kuznets Curve based on six environmental indicators

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  • Fakher, Hossein Ali
  • Ahmed, Zahoor
  • Acheampong, Alex O.
  • Nathaniel, Solomon Prince

Abstract

The current research evaluated the role of non-renewable and renewable energy consumption in environmental sustainability following the N-shaped Environmental Kuznets Curve framework controlling financial development, population density, and composite trade share. Unlike previous studies, this research used six indices to depict environmental deterioration and environmental quality. More precisely, pressures on nature, ecological footprints, environmental vulnerability, and adjusted net saving are employed to represent environmental deterioration, while environmental performances and environmental sustainability are adopted to proxy environmental quality. The Dynamic Seemingly Unrelated Regression Equations were used on panel data from 1994 to 2019 in the selected Organization of the Petroleum Exporting Countries. The findings revealed the N-shaped linkage between per capita income and environmental deterioration indicators, such as ecological footprints, adjusted net saving, pressures on nature, and environmental vulnerability. Regarding the linkage between environmental quality indicators, including environmental performances and environmental sustainability, and per capita income, an inverted N-shaped Environmental Kuznets Curve is verified. Considering all six environmental indicators, non-renewable energy tends to deteriorate the environment, while the use of renewable energy promotes environmental quality. Moreover, population density, financial development, and composite trade share raise environmental deterioration. The results are vital for achieving a green economy with better environmental quality.

Suggested Citation

  • Fakher, Hossein Ali & Ahmed, Zahoor & Acheampong, Alex O. & Nathaniel, Solomon Prince, 2023. "Renewable energy, nonrenewable energy, and environmental quality nexus: An investigation of the N-shaped Environmental Kuznets Curve based on six environmental indicators," Energy, Elsevier, vol. 263(PA).
    • Handle: RePEc:eee:energy:v:263:y:2023:i:pa:s0360544222025464
    DOI: 10.1016/j.energy.2022.125660
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