Analyzing gas and oil efficiency's role in environmental management: Does political risk matter?

Abstract

This study investigates how eco-innovation, gas efficiency, and oil efficiency can mitigate the environmental impacts of the United Kingdom's reliance on fossil fuels and natural resource consumption, aligning with the sustainable development goals (SDGs). Focusing specifically on the United Kingdom, the study assesses the effects of eco-innovation, gas efficiency, oil efficiency, and political risk on environmental management using quarterly data from 1995 to 2020. To achieve these objectives, a range of quantitative methods are employed, including quantile-on-quantile regression, quantile regression, and causality-in-quantile analysis. The results indicate that political risk positively influences CO2 emissions in the lower quantiles but negatively affects the middle and higher quantiles. Moreover, all independent variables—gas efficiency, political risk, eco-innovation, and oil efficiency—significantly predict CO2 emissions across different quantiles. These findings are crucial for formulating comprehensive policies to effectively promote the objectives of SDGs 7, 9, and 13 in the United Kingdom.