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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]