The nonparametric causal effect of sustainable governance structure on energy efficiency and ecological footprint

Energy efficiency and ecological footprint is an emerging debate among policy analysts due to the increasing issues of ecological degradation and energy demand. The substantial role of sustainable governance structure cannot be ignored because all Sustainable Development Goals are dependent on effective governance for attaining sustainable development. Therefore, the present research examines the causal effect of sustainable governance structure on energy efficiency and ecological footprint in BRICS “Brazil, Russia, India, China, South Africa” by using the yearly data from 1996 to 2017. The global indicators of governance have been used as a proxy of sustainable governance structure to attain a broader aspect. The data has been analyzed by applying the advanced econometric technique, i.e., the “nonparametric causality-in-quantiles approach”. The outcomes confess that control of corruption and government effectiveness significantly affect ecological footprint of all countries excluding India and China. Similarly, with respect to energy efficiency, all countries depict significant influence except India. In the case of political stability, all economies portray that political stability fosters energy efficiency and reduces ecological footprint, nevertheless, China exhibits insignificant influence in the political stability-ecological footprint nexus. Also, regulatory quality helps in improving energy efficiency in all countries. However, the association of regulatory quality with ecological footprint reveals that regulatory quality does not granger cause ecological footprint in China; but the effect is significant in other countries. Hence, corruption in the energy industry should be tackled by intensifying anti-corruption activities. To improve energy efficiency and reduce ecological footprint, governments should provide political stability, promote accountability, and invest in green, clean, and sustainable technology.