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18 pages, 1156 KB

Open AccessArticle

Uncovering the Effect of Financial Globalization and Technological Innovation on Renewable Energy Consumption in Nigeria: An ARDL and Frequency Domain Causality Approach

by Oluwatoyin Abidemi Somoye

Sustainability 2026, 18(5), 2536; https://doi.org/10.3390/su18052536 - 5 Mar 2026

Viewed by 449

Abstract

In recent times, countries have made it a point of duty to promote economic activities that will foster a sustainable environment following the Sustainable Development Goals (SDGs). One of the measures employed to achieve these goals, especially SDGs 7 and 13, is the [...] Read more.

In recent times, countries have made it a point of duty to promote economic activities that will foster a sustainable environment following the Sustainable Development Goals (SDGs). One of the measures employed to achieve these goals, especially SDGs 7 and 13, is the adoption of renewable energy consumption. As a result, this research investigates the effect of financial globalization (FGLO) and technological innovation (TECH) on renewable energy consumption (RENC) in Nigeria from 1990 to 2020 using the Autoregressive Distributed Lag (ARDL) model. In addition, this research contributes to the existing literature by employing the Frequency Domain Causality Approach to capture long- and short-run causal relationships. Also, control variables such as financial development (FIND) and economic growth (GDP) were employed. The ARDL result is as follows: (1) The bounds test confirms a long-run association between the variables. (2) In the long-run, TECH and FIND spur RENC, while GDP reduces RENC. In addition, FGLO has a positive long-run coefficient, but the evidence is not strong enough to claim a clear long-run effect. (3) In the short-run, FGLO and FIND increase RENC, while GDP reduces RENC. Furthermore, the Frequency Domain Causality results confirm that TECH Granger causes RENC in the medium and long term, FIND Granger causes RENC in the medium and long term, while GDP Granger causes RENC in the short, medium, and long term. Based on these results, policies are recommended. Full article

(This article belongs to the Special Issue Energy Economics: The Trade-Offs Between Economics, Energy, and Sustainability)

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15 pages, 475 KB

Open AccessArticle

Entrepreneurship Education as a Driver of Sustainable Development: How Shaping Entrepreneurial Competences Can Stimulate Interest in Renewable Energy Sources

by Anna Sobczak

Sustainability 2026, 18(3), 1471; https://doi.org/10.3390/su18031471 - 2 Feb 2026

Cited by 1 | Viewed by 733

Abstract

The study examines the relationship between entrepreneurial education and society’s approach to green energy. The findings highlight the crucial importance of this process for promoting an ecological and responsible economy. The starting point is the assumption that entrepreneurial competencies, particularly innovation and communication [...] Read more.

The study examines the relationship between entrepreneurial education and society’s approach to green energy. The findings highlight the crucial importance of this process for promoting an ecological and responsible economy. The starting point is the assumption that entrepreneurial competencies, particularly innovation and communication competencies and learning ability, can foster the perception of RES technologies as solutions that combine economic profitability with environmental benefits. Based on a literature review, a research gap was identified regarding the insufficient number of empirical analyses demonstrating the relationship between entrepreneurship education, key competencies, and attitudes toward renewable energy technologies. The study is quantitative in nature and is based on the analysis of survey data collected among high school and university students. The obtained results indicate that the effectiveness of entrepreneurship education is determined by the interaction of individual competencies and environmental conditions. Innovation and communication competencies and learning ability enhance educational outcomes, while technological barriers can significantly limit their positive impact. The analysis highlights the importance of a supportive institutional environment for the effective utilization of educational potential. On this basis, recommendations were formulated for the design of entrepreneurial education programs, emphasizing the need to integrate content related to renewable energy sources, the development of future competences and the reduction in technological barriers as elements supporting the transformation towards sustainable development. Full article

(This article belongs to the Special Issue Energy Economics: The Trade-Offs Between Economics, Energy, and Sustainability)

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15 pages, 622 KB

Open AccessArticle

Unveiling the Connection Between Outward Foreign Direct Investment and Environmental Quality in Turkey: A Frequency Domain Causality Analysis

by Abubaker Sadeg Abozriba and Wagdi M. S. Khalifa

Sustainability 2026, 18(3), 1189; https://doi.org/10.3390/su18031189 - 24 Jan 2026

Cited by 1 | Viewed by 529

Abstract

Debates relating to the sustainability of the environment have emerged as a major goal of the global agenda in recent years. As a result, this research examines the impact of outward foreign direct investment (OFDI) on carbon dioxide emissions (CO₂) in [...] Read more.

Debates relating to the sustainability of the environment have emerged as a major goal of the global agenda in recent years. As a result, this research examines the impact of outward foreign direct investment (OFDI) on carbon dioxide emissions (CO₂) in Turkey from 1985 to 2022, using the autoregressive distributed lag model (ARDL) and frequency domain causality analysis (FDCA). In addition, economic growth (GDP) and trade in services (TROP) were used as control variables because they capture two big ways the economy interacts with environment. The empirical results are as follows: (i) The bounds test confirms a long-run association among the variables. (ii) The ARDL result confirms that in the long and short run, OFDI and GDP increase CO₂ in Turkey, while TROP contributes to the quality of the environment. (iii) The FDCA demonstrates that OFDI Granger causes CO₂ in the short and medium term, while TROP Granger causes CO₂ in the short, medium, and long-term. Based on these results, policies are recommended for implementation. Full article

(This article belongs to the Special Issue Energy Economics: The Trade-Offs Between Economics, Energy, and Sustainability)

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17 pages, 297 KB

Open AccessArticle

Sustainable Energy and Financial Stability in European OECD Countries: An Analysis Based on GMM Dynamic Panel Estimation

by Achmakou Lahoucine, Roubyou Said and Ouakil Hicham

Sustainability 2025, 17(22), 10032; https://doi.org/10.3390/su172210032 - 10 Nov 2025

Cited by 1 | Viewed by 1041

Abstract

This study explores the effect of the energy transition on financial stability in the context of 13 OECD countries during the period from 2009 to 2019. In this sense, the soundness of the financial system is expressed through two dimensions: the Zscore and [...] Read more.

This study explores the effect of the energy transition on financial stability in the context of 13 OECD countries during the period from 2009 to 2019. In this sense, the soundness of the financial system is expressed through two dimensions: the Zscore and the volume of non-performing loans (NPLs). Using a dynamic panel estimation with the Generalized Method of Moments (GMM), the results highlight the complex effects of the energy transition on financial stability. Switching from fossil to clean energy improves the Zscore and reduces NPLs. In addition, the study reveals heterogeneous impacts depending on the renewable energy source involved. In fact, wind energy makes a positive contribution to both dimensions of financial stability. By linking the dynamics of the energy transition with the resilience of the banking sector, this study provides new insights into how sustainable energy policies can foster long-term financial sustainability. The effects of solar power and hydroelectricity, while positive overall, are not without nuances. Specifically, the former reduces the NPLs but also the Zscore, while the latter has the opposite effect on both aspects of financial stability. At this point, it is crucial to take into account the varying effects of different renewable energy sources when assessing the financial repercussions of the energy transition. Full article

(This article belongs to the Special Issue Energy Economics: The Trade-Offs Between Economics, Energy, and Sustainability)

18 pages, 1728 KB

Open AccessArticle

Achieving Environmental Sustainability in Turkey: The Role of Green Production Processes, Trade Globalization, Renewable Energy Consumption and Economic Growth

by Mohammed Ayad Afreefir and Wagdi M. S. Khalifa

Sustainability 2025, 17(21), 9823; https://doi.org/10.3390/su17219823 - 4 Nov 2025

Cited by 1 | Viewed by 1461

Abstract

The entire ecology is obviously being significantly impacted by climate change. Its causes must be found and addressed before it can be prevented. Therefore, this research investigates the impact of Green Production Processes (GRPP), Technological Globalization (TGLO), Renewable Energy Consumption (RECN) and Gross [...] Read more.

The entire ecology is obviously being significantly impacted by climate change. Its causes must be found and addressed before it can be prevented. Therefore, this research investigates the impact of Green Production Processes (GRPP), Technological Globalization (TGLO), Renewable Energy Consumption (RECN) and Gross Domestic Product (GDP) on ECOF (Ecological Footprint) in Turkey from 1990 to 2022 using the Autoregressive Distributed Lag (ARDL) and Frequency Domain Causality methods. The E-Views 12 statistical software was used for the ARDL analysis, while the STATA 17 software was used for the Frequency Domain Causality. The ARDL outcome in the long run showed that GRPP and GDP contribute to ECOF significantly, while TGLO and RECN reduce ECOF insignificantly. The implication of this is that GRPP and GDP lead to ecological degradation, while TGLO and RECN contribute to ecological quality negligibly. In the short run, TGLO reduces ECOF, while GDP increases ECOF. This means that TGLO drives ecological quality, while GDP reduces it. Furthermore, the outcome of the Frequency Domain Causality confirms that GRPP and TGLO Granger-cause ECOF in the short, medium and long term. RECN, on the other hand, only Granger-causes ECOF in the long run, while there is no causal relationship between GDP and ECOF. This study recommends stringent environmental policies and investments in clean energy technologies, such as renewable energy. Full article

(This article belongs to the Special Issue Energy Economics: The Trade-Offs Between Economics, Energy, and Sustainability)

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18 pages, 3388 KB

Open AccessArticle

Quantifying Policy-Induced Cropland Dynamics: A Probabilistic and Spatial Analysis of RFS-Driven Expansion and Abandonment on Marginal Lands in the U.S. Corn Belt

by Shuai Li and Xuzhen He

Sustainability 2025, 17(21), 9568; https://doi.org/10.3390/su17219568 - 28 Oct 2025

Cited by 1 | Viewed by 783

Abstract

Rapid biofuel expansion has significantly reshaped agricultural land use in the United States, raising concerns about the conversion and long-term sustainability of marginal croplands. Understanding how policy incentives influence these land-use changes remains a key challenge in sustainable land management. This study aims [...] Read more.

Rapid biofuel expansion has significantly reshaped agricultural land use in the United States, raising concerns about the conversion and long-term sustainability of marginal croplands. Understanding how policy incentives influence these land-use changes remains a key challenge in sustainable land management. This study aims to quantify the effects of the Renewable Fuel Standard on cropland expansion and subsequent abandonment in the U.S. Midwest using a probabilistic and spatially explicit framework. The analysis integrates geospatial datasets from USDA, USGS, gridMET, and the U.S. Energy Information Administration, combining indicators of soil productivity, slope, precipitation, temperature, and market accessibility. Bayesian logistic regression models were developed to estimate pre-policy baseline probabilities of corn cultivation and to generate counterfactual scenarios—hypothetical conditions representing land-use patterns in the absence of policy incentives. Results show that over one-quarter of marginal land cultivated in 2016 would likely not have been planted without biopower policy-related incentives, indicating that policy-driven expansion extended into less suitable areas. A second-stage analysis identified regions where such lands were later abandoned, revealing the role of climatic and economic constraints in shaping long-term sustainability. These findings demonstrate the effectiveness of integrating probabilistic modelling with high-resolution spatial data to evaluate causal policy effects and quantify counterfactual impacts—that is, the measurable differences between observed and simulated land-use outcomes. Full article

(This article belongs to the Special Issue Energy Economics: The Trade-Offs Between Economics, Energy, and Sustainability)

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18 pages, 997 KB

Open AccessArticle

Nexus of Economic Growth, Economic Structure, and Environmental Pollution: Using a Novel Machine Learning Approach

by Vahid Mohamad Taghvaee, Soheila Farokhi, Mohammad Reza Faraji, Davud Rostam-Afschar and Moosa Tatar

Sustainability 2025, 17(16), 7302; https://doi.org/10.3390/su17167302 - 13 Aug 2025

Cited by 3 | Viewed by 2227

Abstract

The economy and environment still show complicated relationships, which have generated various and conflicting hypotheses. This study aims to propose a new perspective on the connection between economy and environment across 164 countries using an innovative clustering method, including Principal Components Analysis (PCA) [...] Read more.

The economy and environment still show complicated relationships, which have generated various and conflicting hypotheses. This study aims to propose a new perspective on the connection between economy and environment across 164 countries using an innovative clustering method, including Principal Components Analysis (PCA) and a machine learning approach. The outcome introduces three clusters of countries with similar economic and environmental characteristics. Cluster 1 constitutes countries with the highest levels of economic development and environmental quality. They include Luxembourg, Switzerland, Ireland, Norway, Singapore, the US, and Australia. Cluster 2 involves countries with less than the highest levels of economic development and environmental quality, covering the right side of the Environmental Kuznets Hypothesis (EKH) and the Pollution Halo Hypothesis (PHH-Halo). These include Qatar, Denmark, Iceland, The Netherlands, Austria, the UK, Germany, UAE, New Zealand, and Israel. Finally, the lowest development levels of economic and environmental development are apparent in the countries in Cluster 3, indicating the left side of the EKH and the Pollution Haven Hypothesis (PHH-Haven). This finding gathers the three hypotheses of EKH, PHH-Halo, and Haven in one unique framework of the economy–environment nexus. Full article

(This article belongs to the Special Issue Energy Economics: The Trade-Offs Between Economics, Energy, and Sustainability)

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28 pages, 4311 KB

Open AccessArticle

Sustainable Integration of Prosumers’ Battery Energy Storage Systems’ Optimal Operation with Reduction in Grid Losses

by Tomislav Markotić, Damir Šljivac, Predrag Marić and Matej Žnidarec

Sustainability 2025, 17(15), 7165; https://doi.org/10.3390/su17157165 - 7 Aug 2025

Cited by 6 | Viewed by 2131

Abstract

Driven by the need for sustainable and efficient energy systems, the optimal management of distributed generation, including photovoltaic systems and battery energy storage systems within prosumer households, is of crucial importance. This requires a comprehensive cost–benefit analysis to assess their viability. In this [...] Read more.

Driven by the need for sustainable and efficient energy systems, the optimal management of distributed generation, including photovoltaic systems and battery energy storage systems within prosumer households, is of crucial importance. This requires a comprehensive cost–benefit analysis to assess their viability. In this study, an optimization model formulated as a mixed-integer linear programming problem is proposed to evaluate the integration of battery storage systems for 10 prosumers on the radial feeder in Croatia and to quantify the benefits both from the prosumers’ perspective and that of the reduction in grid losses. The results show significant annual cost reductions for prosumers, totaling EUR 1798.78 for the observed feeder, with some achieving a net profit. Grid losses are significantly reduced by 1172.52 kWh, resulting in an annual saving of EUR 216.25 for the distribution system operator. However, under the current Croatian market conditions, the integration of battery storage systems is not profitable over the entire lifetime due to the high initial investment costs of EUR 720/kWh. The break-even analysis reveals that investment cost needs to decrease by 52.78%, or an inflation rate of 4.87% is required, to reach prosumer profitability. This highlights the current financial barriers to the widespread adoption of battery storage systems and emphasizes the need for significant cost reductions or targeted incentives. Full article

(This article belongs to the Special Issue Energy Economics: The Trade-Offs Between Economics, Energy, and Sustainability)

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24 pages, 733 KB

Open AccessArticle

The Role of Human Capital and Energy Transition in Driving Economic Growth in Sub-Saharan Africa

by Fatma Türüç-Seraj and Süheyla Üçışık-Erbilen

Sustainability 2025, 17(11), 4889; https://doi.org/10.3390/su17114889 - 26 May 2025

Cited by 1 | Viewed by 1837

Abstract

This research investigates the role of fossil fuel energy, renewable energy, and education in terms of years of schooling and mean years of schooling on the economic growth of 19 selected Sub-Saharan African countries. The primary objective is to assess whether renewable energy [...] Read more.

This research investigates the role of fossil fuel energy, renewable energy, and education in terms of years of schooling and mean years of schooling on the economic growth of 19 selected Sub-Saharan African countries. The primary objective is to assess whether renewable energy and educational attainment serve as viable long-term drivers of economic development in a region still heavily reliant on fossil fuels. We employed the newly developed and robust econometric estimators, including “Residual Augmented Least Squares (RALS) co-integration”, to estimate long-term links among the facets of study. Moreover, “Pooled Mean Group–Autoregressive Distributed Lag model (PMG-ARDL) and Quantile Autoregressive Distributed Lag (QARDL)” econometric estimator was employed to estimate the long and short coefficients of the antecedents of study. The estimations obtained from the PMG-ARDL and QARDL estimators provide evidence that the coefficients of fossil fuel energy and renewable energy on economic growth are positive. But surprisingly, the magnitude of renewable energy is greater than fossil fuel energy in Sub-Saharan countries that still depend on fossil fuels. Moreover, human capital and capital stock boost economic growth in the countries studied. The outcomes reveal that not only quality but also quantity of education play a vital role in boosting economic development. To deepen the understanding of the observed effects, the study also explores the transmission channels through which renewable energy and education foster economic growth. Renewable energy contributes by lowering the marginal cost of electricity, encouraging green industrial transformation, and serving as a catalyst for technological innovation. Concurrently, improvements in education—measured by both expected and mean years of schooling—elevate labor productivity and facilitate the absorption and diffusion of new technologies across sectors, thereby stimulating sustained economic performance. The empirical results provide valuable insights for government officials and policymakers in specific Sub-Saharan African countries. Full article

(This article belongs to the Special Issue Energy Economics: The Trade-Offs Between Economics, Energy, and Sustainability)

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22 pages, 1047 KB

Open AccessArticle

Seasonal Hydropower Storage Dams: Are They Cost-Effective in Providing Reliability for Solar PV?

by Joy N. A. Ashitey, Mehrshad Radmehr, Glenn P. Jenkins and Mikhail Miklyaev

Sustainability 2025, 17(9), 4076; https://doi.org/10.3390/su17094076 - 30 Apr 2025

Viewed by 1874

Abstract

For a country to be able to sustain a policy of increasing the use of renewable energy sources to supply electricity, it must be able to continue to provide a reliable electricity supply service to its customers. Typically, electricity reliability is maintained by [...] Read more.

For a country to be able to sustain a policy of increasing the use of renewable energy sources to supply electricity, it must be able to continue to provide a reliable electricity supply service to its customers. Typically, electricity reliability is maintained by thermal electricity generation. To substitute solar PV for thermal electricity generation to a significant degree, it is imperative to determine the least-cost complementary technologies that will provide system reliability. In many parts of Africa and Asia, potential sites for seasonal storage dams are available or have been built. In the case studied here, maintaining service reliability by expanding the capacity of the generation plant of a seasonal storage dam in all scenarios is less costly than providing service reliability by a thermal alternative. However, maintaining service reliability while expanding generation by solar PV is in all cases costly. The levelized financial cost of the incremental energy supplied when a reliable service is maintained is between 30% and 89% greater than the levelized cost of a standalone solar PV plant. For the same set of scenarios, the range of the economic levelized cost is 28% to 85% greater with reliability than the standalone solar PV field without reliability. Given the circumstances of the electricity market, the least-cost technology to maintain a reliable service may be specific to the market. The analysis also shows that when the economic opportunity cost of funds increases from 2% to 11.5%, the levelized cost of renewable electricity generation systems doubles. Hence, if the developed countries of the world want low-income countries to maintain policies to reduce the use of fossil fuels to generate electricity, capital subsidies to low-income countries that are facing high economic opportunity costs of funds are likely to be necessary. Full article

(This article belongs to the Special Issue Energy Economics: The Trade-Offs Between Economics, Energy, and Sustainability)

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21 pages, 1621 KB

Open AccessArticle

The Impact of Sustainable Financial Development and Green Energy Transition on Climate Change in the World’s Highest Carbon-Emitting Countries

by Mehdi Seraj and Fatma Turuc Seraj

Sustainability 2025, 17(9), 3781; https://doi.org/10.3390/su17093781 - 22 Apr 2025

Cited by 8 | Viewed by 2657

Abstract

The increasing risks posed by climate change have turned CO₂ emissions into a pressing global issue, prompting the widespread adoption of sustainable development policies. This study investigates the empirical drivers of CO₂ emissions across 15 of the world’s highest carbon-emitting countries [...] Read more.

The increasing risks posed by climate change have turned CO₂ emissions into a pressing global issue, prompting the widespread adoption of sustainable development policies. This study investigates the empirical drivers of CO₂ emissions across 15 of the world’s highest carbon-emitting countries from 2000 to 2021, using a range of advanced panel data techniques. The core explanatory variables include green energy transition (GET), fossil fuel consumption (FFC), financial development (FD), mineral resource consumption (MRC), energy intensity (EI), and information and communication technology (ICT). By employing cross-sectional dependence tests, CIPS and CADF unit root tests, cointegration techniques (Westerlund and Dickey-Fuller), and Driscoll-Kraay standard error (DKSE) estimators, the study ensures robust and reliable inference. The findings reveal that a 1% increase in GET and FD leads to a 1.59% and 4.51% decrease in CO₂ emissions, respectively, while higher energy efficiency (EI) also significantly reduces emissions. In contrast, greater use of fossil fuels, mineral resources, and ICT expansion contributes positively to emissions. These results demonstrate the critical role of financial systems, clean energy investments, and energy efficiency in mitigating environmental degradation. The study offers targeted policy insights for countries aiming to balance economic growth with climate goals and highlights the need for enhanced technology transfer and financing mechanisms in low- and middle-income countries. Full article

(This article belongs to the Special Issue Energy Economics: The Trade-Offs Between Economics, Energy, and Sustainability)

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26 pages, 903 KB

Open AccessEssay

Do Low-Carbon City Pilots Promote Corporate Environmental Investment? Evidence from China

by Xiaohuan Shi, Yurou Zhang, Yizhen Wu, Zhongxian Ding, Sanying Zhao, Baochang Xu and Meng Qin

Sustainability 2026, 18(1), 540; https://doi.org/10.3390/su18010540 - 5 Jan 2026

Cited by 1 | Viewed by 691

Abstract

As a pivotal instrument for fostering sustainable development and climate goals, low-carbon city pilot policies (LCCPs) motivate firms to increase environmental investments, thereby harmonizing economic growth with emission reduction. This study employs a difference-in-differences (DID) design to empirically investigate the effects and underlying [...] Read more.

As a pivotal instrument for fostering sustainable development and climate goals, low-carbon city pilot policies (LCCPs) motivate firms to increase environmental investments, thereby harmonizing economic growth with emission reduction. This study employs a difference-in-differences (DID) design to empirically investigate the effects and underlying mechanisms of LCCPs on firms’ environmental investment in China. The results demonstrate that LCCPs lead to a significant increase in corporate environmental investment of approximately 36.5% (with a core coefficient of 0.365, significant at the 1% level) when compared to non-pilot cities. This impact primarily occurs through five channels: technology transformation, environmental regulation compliance, financial support, talent attraction, and policy alignment. Heterogeneity tests further reveal that the effect is stronger for enterprises in the eastern and western regions, non-entrepreneurial boards and non-financial entities, larger firms, and those facing financing constraints and operating in low-industry competitive environments. This study offers evidence for the importance of LCCPs in driving corporate environmental investments, providing valuable policy implications for enhancing regulatory frameworks and fostering green innovation to support carbon neutrality and sustainable economic transitions. Full article

(This article belongs to the Special Issue Energy Economics: The Trade-Offs Between Economics, Energy, and Sustainability)

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