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This study examines the symmetric (linear) and asymmetric (nonlinear) impact of economic growth (EG), capital formation (CF), renewable and non-renewable energy (NRE) consumption on CO 2 emissions and ecological footprint (EF) of seventeen OECD countries spanning data from 1970 to 2016. The autoregressive distributed lag (ARDL) model is used to examine the symmetric impact and the nonlinear autoregressive distributed lag (NARDL) model is employed to explore the asymmetric impact of the variables on the environment. The results indicate that economic growth and gross capital formation dampens environmental quality in the OECD region over the sampled period. Our estimation using the ARDL model shows that a 1% increase in renewable energy (RE) is projected to reduce CO 2 emission by 0.2% and a 1% increase in NRE is estimated to increase CO 2 emission by 1.08%. Similarly, a 1% rise in EG and NRE is expected to increase ecological footprint (EF) by 0.10% and 0.53%, respectively. Estimation using NARDL decomposed EG with positive (negative) shocks shows that a 1% increase (decrease) in EG is expected to reduce CO 2 emissions by 0.4% (0.16%). Similarly, 1% positive (negative) shock in RE is expected to decrease CO 2 emission by 0.5%. The findings indicate that conventional energy obtained from fossil fuels is observed to worsen the environment. Interestingly, renewable energy consumption enhances environmental quality for both fitted models with CO 2 emission and ecological footprint. This is insightful for stakeholders and government administrators in the region. This demonstrates the importance of a paradigm shift towards renewable energy consumption in the OECD countries to improve economic growth and productive capital stock. This finding also aligns with the non-linear investigation of the pivotal role of renewable energy consumption for a cleaner environment. • This study examines the symmetric (linear) and asymmetric (nonlinear) impact of Economic Growth, Capital Formation, Renewable and Non-Renewable Energy consumption on the CO 2 emissions and Ecological footprint of seventeen OECD countries spanning the data from 1970 to 2016. • The estimation of the study using the ARDL model shows that 1% increase in renewable energy (RE) is projected to reduce CO2 emission by 0.2%: and 1% increase in NRE is estimated to increase CO2 emission by 1.08%. Similarly, 1% rise in EG and NRE is expected to increase ecological footprint (EF) by 0.10% and 0.53%, respectively. • Estimation using NARDL decomposed EG with positive (negative) shocks shows that 1% increase (decrease) in EG is expected to reduce CO2 emissions by 0.4% (0.16%). Similarly, 1% positive (negative) shocks in RE is expected to decrease CO 2 emission by 0.5%. • The results show that economic growth and gross capital formation dampens environmental quality in the OECD region over the sampled period. • This study suggests the need for a paradigm shift to renewable energy consumption in the OECD for a better economic growth trajectory and productive capital stock. [ABSTRACT FROM AUTHOR]

The role of low-carbon energy and trade on the environment has drawn several studies that have looked at issues from different perspectives, thus yielding differing conclusions. Considering the current emphasis on the COP25 conference and the commitment to cut down carbon emissions level, this study also draws strength from the United Nations Sustainable development Goals (UNSDGs) that comprises of positive strides for access to clean and responsible energy consumption (SDGs 7, 12) and climate change mitigation issues (SDG-13). To this end, this study is a timely outlook that underpins the case of the European Union (EU) countries as well as the root cause of anthropogenic activities on clean trajectory of global environment. Hence, we investigate the connection between alternative and sustainable energy source, trade, income and emissions in 27 selected European Union economies by utilizing data covering the period 1990–2017 on an annual frequency. We used second-generation panel model estimators to analyze the relationship between the variables in the long-run. Specifically, the long run results from the MG (Mean Group), AMG (Augmented Mean Group), and CCEMG (Common Correlated Effects Mean Group) estimators reveal that sustainable and alternative energy sources have a negative significant impact on pollutant emissions while trade and income have a positive impact on carbon emissions except that the impact of trade is insignificant. Although the positive impact of openness in trade on carbon emission is insignificant, the positive impact suggests that the free-trade policy that is currently in place in the EU should further incorporate sustainable development goals (SDGs) to avoid the outsourcing of carbon emissions among the member countries. Causality tests reveal a feedback hypothesis between renewable energy, income, trade, and carbon emanations. The investigation proposes expanded utilization of sustainable power source to mitigate carbon emissions in the European Union. • Outlook of EU-27 alternative energy and regional trade. • The panel techniques of common correlated effect is employed. • Alternative energy utilization in the regional bloc aids. • Regional trade policy in the EU could posit environmental hardship. • Real income growth in the region hampers environmental sustainability. [ABSTRACT FROM AUTHOR]

The increase in consumption and the increase in the use of resources linked to increasing human activity puts both energy security and sustainability at risk, which has led to a global restructuring of the policy agenda to ensure and integrate environmental well-being through channels such as energy efficiency (EE). Bearing this in mind, the objective of this research is to analyze the relationship between energy efficiency, renewable energy and financial development? For this reason, an analysis is conducted, which includes energy intensity measured by the Gross Domestic Product (GDP) per unit of energy use as a measure of efficiency for 43 European countries (period 1990–2019). The objective is to observewhether the use of renewable energy and the investments being made are driving economies towards higher EE and sustainable economic growth. The present study leverages on spatial econometrics models, which allow for the analysis of spillovers between economies. The results obtained allow us to observe the existence of spatial autocorrelation of EE between countries in Europe. Secondly, it is observed that the use of renewable energies promotes EE in neighbouring economies, as well as in the return effect. On the other hand, financial development shows that only the institutional component favours EE by generating a return effect on the economy itself, while the stock market component deteriorates the EE of neighbouring economies and on the same economy. Therefore, the analyzed data shows that the use of renewable energies promotes the improvement of EE and that being close to countries that replace the use of traditional energies with alternative sources has a positive effect on national EE. These mechanisms would allow policy makers to develop mechanisms for greener and more sustainable development, while encouraging efficient energy use. • The indirect effects of the nexus of renewable energy and financial development on energy efficiency for the EU bloc are explored. • The present study explores the use of robust Spatial Durbin Model (SDM). • Renewable energies promote energy efficiency in neighbouring economies. • Financial development shows that only the institutional component favours energy efficiency. • Green growth policies should be pursued in EU bloc energy mix. [ABSTRACT FROM AUTHOR]