Clean energy transition and climate vulnerabilities: A comparative analysis of European and non-European developed countries.

Currently, the world faces an existential threat of climate change, and every government across the globe is trying to come up with strategies to tackle the severity of climate change in every way possible. To this end, the use of clean energy rather than fossil fuel energy sources is critical, as it can reduce greenhouse gas emissions and pave the way for carbon neutrality. This study examines the impact of the energy cleanability gap on four different climate vulnerabilities, such as ecosystem, food, health, and housing vulnerabilities, considering 47 European and non-European high-income countries. The study considers samples from 2002 to 2019. This study precedes the empirical analysis in the context of a quadratic relationship between the energy cleanability gap and climate vulnerability. The study uses system-generalized methods of the moment as the main technique, while panel quantile regression is a robustness analysis. Fixed effect and random effect models have also been incorporated. The study finds that the energy cleanability gap and all four climate vulnerabilities demonstrate a U-shaped relationship in both European and non-European countries, implying that when the energy cleanability gap increases, climate vulnerability decreases, but after reaching a certain threshold, it starts to increase. Development expenditure is found to be negatively affecting food and health vulnerabilities in European nations, while it increases food vulnerability and decreases health vulnerability in non-European nations. Regarding industrialization's impact on climate vulnerabilities, the study finds opposite effects for the European and non-European economies. On the other hand, for both groups, trade openness decreases climate vulnerabilities. Based on these results, the study recommends speeding up the energy transition process from fossil fuel energy resources towards clean energy resources to obtain carbon neutrality in both European and non-European groups.

Assessing the environmental sustainability gap in G20 economies: The roles of economic growth, energy mix, foreign direct investment, and population.

There is serious debate among researchers regarding the sustainability implications of economic prosperity and energy dependence. Energy consumption has a critical linkage with economic growth, but it also degrades environmental quality. Therefore, it is important to investigate the relationship between economic growth, the energy mix, and environmental sustainability. However, empirical literature utilizes narrow variables to capture environmental sustainability. Because of this, this research introduces a new environmental sustainability variable using entropy weighting and combining deforestation, household carbon emissions, and life expectancy. This study examines the relationship between environmental sustainability, economic growth, and other selected variables using data from 2002 to 2019 for the G20 and its high-, upper-, and low-middle-income member countries. Since shocks in one G20 country can affect another, this study uses the Augmented Mean Group (AMG) technique for empirical analysis. The results of this study indicate that Gross Domestic Product (EG) and its square term did not support the Environmental Kuznets Curve (EKC) theory. The energy mix has a positive impact on the environmental sustainability gap across all the samples except for the upper-middle-income group. Foreign direct investment positively affects this gap, while population growth has no significant impact. These findings demonstrate that policymakers should support environmentally friendly and clean energy sources to foster long-term economic growth and sustainability.