Assessing Progress Toward SDG 7
A Threshold Analysis of Environmental Policy Stringency and Institutional Quality on Renewable Energy Consumption
Bibliographic Data
| ID | 12307662 |
|---|---|
| Authors | Jamiu Olamilekan Badmus (0000-0002-4456-0160, Department of Economics & Finance University of Bari Aldo Moro Bari Italy), Sodiq Olaide Bisiriyu (0000-0002-0259-3415, Department of Economics, Easwari School of Liberal Arts SRM University$‐$AP Amaravati India, corresponding author) |
| Year | 2025 |
| Volume | 33 |
| Issue | 6 |
| Pages | 7915-7933 |
| Publication date | 2025-07-14 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Sustainable Development (JOURNAL) |
| Journal identifiers | ISSN: 0968-0802 • E-ISSN: 1099-1719 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1002/sd.70044 |
| OpenAlex | W4412414019 |
| Language | EN |
| Citations received | 2 |
| References cited | 29 |
As we approach 2030, assessing the progress of sustainable development goals (SDGs) has become more imperative than ever. This study focuses on assessing the progress of SDG 7, which aims to ensure access to affordable, reliable, sustainable, and modern energy for all. Achieving SDG 7 requires a dual strategy by strengthening environmental policy design and enhancing institutional frameworks to ensure credible, consistent, and enforceable implementation. We empirically test this proposition by investigating the nonlinear impact of environmental policy stringency and institutional quality on renewable energy consumption for OECD and non‐OECD countries from 2015 to 2020. Using dynamic panel data threshold regression, we find that environmental policy stringency and institutional quality have threshold effects on renewable energy consumption. Specifically, surpassing the thresholds of 1.50 for aggregate and 0.50 for market‐based environmental policy stringency leads to increases in renewable energy consumption by 8.6% and 12.2%, respectively. Moreover, aggregate environmental policy stringency increases renewable energy consumption from 7.5% to 15.1% at high thresholds of institutional quality. Disaggregated analysis further reveals that market‐based instruments exert stronger effects, ranging from 8.6% to 23.4%, compared to nonmarket‐based instruments, which show more moderate effects of about 6.2%–9.8%, at upper thresholds of institutional quality. These findings suggest that while progress toward SDG 7 is underway, it remains conditional on surpassing critical policy and institutional thresholds. To accelerate the energy transition, policymakers must prioritize the adoption of market‐based environmental instruments and invest in strengthening institutional quality to ensure the effective design and enforcement of clean energy policies
Consumption (sociology · Economics · Energy consumption · Environmental economics · Environmental quality · Natural resource economics · Physics · Political science · Public economics · Quality (philosophy · Renewable energy · Social science · Sociology · Climate Change Policy and Economics · Energy, Environment, and Transportation Policies · Energy, Environment, Economic Growth · Engineering
Essay
Sample Splitting and Threshold Estimation
Instrumental Variable Estimation of a Threshold Model
Inflation and growth
Threshold effects in non-dynamic panels
Investigating the role of environmental taxes and regulations for renewable energy consumption
The impact of environmental policy on renewable energy innovation
Environmental innovation practices and green product innovation performance
Theoretical Framework for the Carbon Emissions Effects of Technological Progress and Renewable Energy Consumption
An assessment of the environmental sustainability corridor
Toward a New Conception of the Environment-Competitiveness Relationship
| Citations per year | 2 |
|---|---|
| Citation span | 2026 - 2026 (1) |
| Highly cited | No |