Environmental Impacts of Energy Intensity, Renewable Energy, and Globalization: Evidence from SAARC Countries

The aim of this article was to determine the impact of energy intensity, renewable energy consumption, and globalization on environmental degradation in SAARC countries. Utilizing both CO2 emissions and the ecological footprint (EF) as environmental indicators, the research provides a comprehensive evaluation of sustainability trends. The analysis employs the Method of Moments Quantile Regression (MMQR) technique to account for heterogeneity across different levels of environmental degradation. The study covered the period 2000–2021. The empirical results indicate that renewable energy usage significantly reduces both CO2 emissions and EF, emphasizing the necessity of expanding clean energy sources in SAARC nations. Conversely, energy intensity exacerbates environmental degradation, highlighting the urgent need for efficiency improvements. Globalization exerts mixed effects, with economic integration increasing CO2 emissions while reducing ecological footprint, suggesting a complex interplay between industrialization and sustainability. Additionally, economic growth consistently worsens environmental quality across all quantiles, reinforcing the challenge of balancing development with ecological preservation. The findings emphasize the necessity of policy interventions to promote renewable energy adoption, enhance energy efficiency, and leverage globalization for sustainable development. Future research should explore broader environmental indicators and adopt advanced econometric techniques to deepen insights into sustainable energy transitions in SAARC countries.