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Intervening long-run fundamentals of fossil energy demand—an effort towards responsible and clean energy consumption

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Abstract

Energy is crucial for growth, but over-reliance on fossil energy undermines sustainability. COP27 has emphasized over transition towards clean energy. Empirical studies have pointed out that energy transition requires infrastructure development which is costly in the short run. Global and national efforts to transition to renewable energy require investigating what matters in global fossil energy demand. While empirical studies have focused on motivating renewable energy, this study explores the determinants of fossil energy in anticipation of reducing its reliance and moving towards sustainable development goals. A non-linear panel quantile ARDL regression was deployed using data from 137 countries and showed that increased forest and natural resource rents and health expenditures are already playing their role. The quadratic models highlighted the importance of optimizing resource rents to nudge the renewable resource decision. Now, policymakers need to intervene in terms of income, education, and fossil energy rents to help households and firms prefer renewable energy sources and move towards sustainability.

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Data availability

The data sources of variables are mentioned in the “Methodology” section.

Notes

  1. Mean is higher than standard deviation of the variable

  2. Mean is smaller than standard deviation of the variable

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Acknowledgements

The author thanks all the supervisors and respective affiliations for their kind support.

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  1. Department of Economics, Division of Management and Administrative Science, University of Education, Lahore, Pakistan

    Noman Arshed

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  1. Noman Arshed
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Appendix

Table 6 List of countries
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Arshed, N. Intervening long-run fundamentals of fossil energy demand—an effort towards responsible and clean energy consumption. Environ Sci Pollut Res 30, 114873–114885 (2023). https://doi.org/10.1007/s11356-023-30495-8

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