Circular economy, energy transition and environmental degradation: Implications for sustainable development goals

Abstract

With implications for sustainable development goals and improving environmental quality, this research aims to explore the impact of circular economy, industrialization, energy transition, environmental policy stringency and supply chain pressure on the CO2 emissions growth in OECD countries during the period from 2000 to 2020. By applying the Panel QARDL and PMG methods, along with panel unit-root testing and co-integration, the study found that circular economy, energy transition and industrialization are causing environmental pollution. Meanwhile, environmental policy stringency and supply chain pressure help towards sustainable environmental quality by minimizing carbon emissions growth. The current study's empirical findings offer insights for policymakers in developed and developing nations alike regarding how to balance the needs of the circular economy, industrialization, energy transition, climate policy stringency, and supply chain pressure to reduce CO2 emissions without impeding growth and sustainable development.