Balancing environmental sustainability: Socio-economic drivers and policy pathways in oil-importing nations

Abstract

This paper explores the intricate interplay of socio-economic drivers influencing environmental sustainability in oil-importing countries, examining CO₂ emissions and greenhouse gas concentrations over the period from 2000 to 2021. Employing the Feasible Generalized Least Squares (FGLS) and Prais-Winsten regression method (PCSE), data from fifteen major oil-importing nations are scrutinized. The study identifies pivotal socio-economic factors, including environmental innovations, green energy adoption, and energy prices, as key drivers in mitigating emissions. Environmental innovations, catalyzing cleaner technologies, emerge as effective tools in curbing hazardous emissions and promoting green energy sources. The study underscores the trade-off between energy use and prices, advocating a strategic shift towards green energy adoption. It also highlights the adverse association between industrial and agricultural production with emissions. Policy interventions are recommended, emphasizing the need for cleaner technologies and the adoption of renewable energy practices, thus achieving a harmonious balance between economic development and environmental quality. The research offers valuable insights into the socio-economic dimensions of environmental sustainability, emphasizing the importance of well-balanced policies that align environmental innovations, environmental conservation, and energy transition in oil-importing nations within the broader context of human-environment interactions.