Examining the Nexus of Energy Prices, Fossil Use, Efficiency, Technology export, and Environmental Quality: A Novel Analysis of the Top 10 Economies with the Highest Annual Increase in Energy Prices (1990-2021)

Abstract

This study investigates environmental quality for the top 10 economies with the highest average annual increase in energy prices over the period 1990-2021. For this purpose, the interdependence between energy prices, energy efficiency, fossil fuel consumption, medium-high technology exports, and CO2 emissions is investigated with annual data in the period 1990-2021. Slope heterogeneity and cross-section dependence were taken into account in the empirical analysis. Durbin-Hausman cointegration test and CCEMG estimator were used as methods. The findings showed that for the top 10 economies, higher energy prices and fossil fuel consumption increased environmental damage. Energy efficiency and more technology exports increase environmental quality. The study findings are new as this specific combination of variables for these top 10 countries has not been studied before.