Asymmetric impact of renewable energy consumption and technological innovation on environmental degradation: designing an SDG framework for developed economy
Abstract
Many European nations, including Spain, are having difficulties achieving their Sustainable Development Goals (SDGs) objectives. Resultantly, the current research discusses the development of an SDG framework for Spain, which can be utilized as a model for other EU nations. This research examines whether GDP growth, technological innovation, and energy sources (renewable and non-renewable) have any effect on CO2 emissions utilizing data from 1980 to 2018. The study applied the non-linear ARDL (NARDL) to investigate these interrelations. The outcomes from the NARDL revealed that positive (negative) shocks in renewable energy improve environmental quality in Spain. Furthermore, positive (negative) shocks in technological innovation lead to a decrease (increase) in CO2. Lastly, positive (negative) shocks in energy consumption lead to an increase (decrease) in CO2. The results reveal that Spain is on the right path towards decarburization. This research has important policy ramifications for the policymakers and government of Spain as well as neighbouring countries.