Sustainable Growth, Political Risk and Carbon Footprint: Do Energy Transition and Financial Expansion Matter?
Sustainable Growth, Political Risk and Carbon Footprint: Do Energy Transition and Financial Expansion Matter?
Author(s): Shuqing Yu, Yi Zhou, Qasim Raza Syed, Dervis KirikkaleliSubject(s): Economy, Energy and Environmental Studies, Political Sciences, Environmental and Energy policy, Economic development, Socio-Economic Research, Geopolitics
Published by: Vysoká škola ekonomická v Praze
Keywords: Energy transition; sustainable development; political risk; carbon footprint; top emitters
Summary/Abstract: Unclean energy consumption stimulates carbon footprint (CF) leading to increased environmentalpollution. Renewable energy transition (ETN) can curb the CF; however, political risk can obstructthis process. Hence, this study analyses the connections between economic growth, ETN and CFby considering political risk and financial expansion in a panel of top 10 emitters from 1992to 2020 using the method of moment quantile regressions (MM-QR). The results elucidate thatETN significantly reduces the CF in the top emitters. Thus, expanding the ETN is beneficial forreducing the CF and promoting sustainable development. Improving the political environment byreducing the political risk (POLR) helps curb the CF. The inverted U-shaped connection betweenCF and economic growth shows that increased growth can reduce CF if top emitters can continueto promote energy transition and political stability. The positive impact of financial expansionon CF becomes insignificant at higher quantiles. Finally, policy suggestions are discussed.
Journal: Politická ekonomie
- Issue Year: 72/2024
- Issue No: 2
- Page Range: 203-227
- Page Count: 24
- Language: English
