FOURIER-BASED CONNECTION BETWEEN RENEWABLE ENERGY AND GREEN TECHNOLOGIES AND SUSTAINABLE ENVIRONMENT IN AUSTRALIA

Abstract

Carbon emissions and greenhouse gas emissions caused by fossil fuels are of deep concern due to their ecological destruction and global warming threats. Renewable energy undoubtedly acts as a catalyst in the global environmental struggle. Studies on the ecological impacts of renewable energy have become critical for environmental policies. The study was motivated by the fact that Australia ranks eighth in the world in terms of natural resource reserves and also has the highest ecological footprint. In this study, the ecological impacts of renewable energy and green technologies for Australia are tested with smooth transition Fourier transforms. While the unit root tests of the variables are performed with the FKPSS test, the long-run relationships are tested with the FADL cointegration test. Using annual data for the period 1990-2020, the study reveals the environmental impacts of economic growth and urbanization. The empirical findings show that renewable energy consumption and green technologies significantly reduce the ecological footprint and improve the environment in Australia. In addition, economic growth and urbanization increase the ecological footprint in the long run and cause environmental damage. In light of the findings, policymakers' increasing green technological investments can directly reduce the ecological footprint and indirectly improve the environment by supporting renewable energy consumption.