Achieving Environmental Sustainability through Economic Fitness and Energy Efficiency in OECD Countries

Document Type : Original Research Paper

Authors

1 School of International Trade & Economics, University of International Business and Economics, Beijing 100029, China

2 Department of Economics, University of Sargodha, Sargodha 40100, Pakistan

3 International University of Tourism and Entrepreneurship of Tajikistan, Dushanbe 734055, Tajikistan

4 Academic Research and Development Wing, Dubai, United Arab Emirates., United Arab Emirates

5 Institute of International Economics and Collaborative Innovation Center for China Economy, Nankai University Tianjin 300071, China

10.22059/poll.2025.397757.3006

Abstract

As global economic and human activities, as well as energy consumption, which have increased by 44% between 1971 and 2014, continue to rise, the concentration of greenhouse gas emissions (GHG) will continue to exacerbate global warming and environmental degradation. CO2 emissions (CO2E) are leading source of global warming, accounting for about 80% of all GHG. Rising sea levels are a consequence of increased CO2E. Despite the fact that OECD countries have achieved notable successes, particularly in sustainable development, through regulations and other initiatives for more than six decades, they continue to face significant environmental challenges. In addition, the economies of the OECD member States and a number of developing nations are still responsible for three-quarters of total emissions. This study analyses the influence of economic fitness (EF), energy efficiency (EE), economic growth (EG), and international trade (INT) on CO2E. It employs the CS-ARDL, two-way fixed-effect estimation techniques, and the second-generation methods of cointegration and granger causality for the analysis. The results indicate that EF, EE, and INT are important factors in curbing CO2E, while EG is responsible for the rising CO2E in the short-run and the long-run. These findings imply that improving economic fitness and energy efficiency maybe a crucial component of CO2E mitigation. 

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