Race to environmental sustainability: Can structural change, economic expansion and natural resource consumption effect environmental sustainability? A novel dynamic ARDL simulations approach

This research examines the effects of the structural profile, consumption of clean energy sources, and revenue generation on environmental sustainability via the production of carbon dioxide emission levels. A few studies on the connections among the structural profile, economic prosperity, and ecological sustainability are available in the literaturewith regard the country used in this study. The ARDL (Autoregressive Distributed Lag) testing approach is used to investigate both the short-term and long-term variations in practical cointegration. The results of both the long- and short-run assessments suggested that while urbanization encourages a clean environment, the use of green energy and growth in the economy degrade the atmosphere. However, structural changes may have a negative effect on environmental sustainability over a short period. Additional CUSUM and CUSUM Square experiments have confirmed the model's constancy. Additionally, observations via Granger causality-oriented values or ARDL reveal directional accuracy. In particular, the study supports policymakers' efforts to reduce carbon emissions by emphasizing energy production from renewable sources. In the meantime, to levy taxing carbon on significant industries, via a special emphasis on the ecologic economy, the government must enact stringent laws and regulations, which are proven to be the most helpful to the environment and has an enormous impact on an economy's economic growth.

Automated summary

This research examines the effects of structural profile, consumption of clean energy sources, and revenue generation on environmental sustainability by measuring carbon dioxide emission levels. The results suggest that urbanization promotes a clean environment, while the use of green energy and economic growth degrade the atmosphere. Short-term structural changes may also have a negative impact on environmental sustainability. Therefore, policymakers should prioritize energy production from renewable sources and enforce strict laws and regulations to reduce carbon emissions.