Investigating the Impact of Environmental Policy Stringency on Renewable Energy Consumption
DOI:
https://doi.org/10.62843/jrsr/2026.5a182Keywords:
Environmental Policy Stringency, Renewable Energy Adoption, Sustainable Energy SourcesAbstract
This study investigates the impact of stringent environmental regulations on the adoption and expansion of renewable energy across twelve Asian countries over the period 2012 to 2021. The primary objective is to assess whether stronger regulatory frameworks contribute to a transition toward cleaner and more sustainable energy sources. The empirical findings reveal a significant and positive relationship between environmental laws and renewable energy utilization, indicating that stricter regulations encourage investments in green technologies and reduce reliance on fossil fuels. These results suggest that well-designed environmental policies can serve as effective instruments for promoting sustainable energy transitions in developing and emerging Asian economies. Furthermore, the findings are consistent with prior empirical and theoretical research, reinforcing the argument that regulatory pressure plays a crucial role in accelerating renewable energy adoption. Overall, the study highlights the importance of policy-driven approaches in achieving long-term environmental sustainability and energy security in the Asian region.
References
Afshan, S., Ozturk, I., & Yaqoob, T. (2022). Facilitating renewable energy transition, ecological innovations and stringent environmental policies to improve ecological sustainability: Evidence from MM-QR method. Renewable Energy, 196, 151–160. https://doi.org/10.1016/j.renene.2022.06.125
Alalmaee, H. (2025). Sustainability through policy stringency: Analysing the impact on financial development. Sustainability, 17(4), 1374. https://doi.org/10.3390/su17041374
Alatrash, M. A., Bein, M. A., & Samour, A. (2025). The impact of World Uncertainty, Environmental Policy Stringency, and Technological Innovation on environmental sustainability: Evidence from high-income countries. Sustainability, 17(3), 1134. https://doi.org/10.3390/su17031134
Albulescu, C. T., Boatca-Barabas, M.-E., & Diaconescu, A. (2022). The asymmetric effect of environmental policy stringency on CO2 emissions in OECD countries. Environmental Science and Pollution Research International, 29(18), 27311–27327. https://doi.org/10.1007/s11356-021-18267-8
Azam, A. (2024). How environmental policy stringency, foreign direct investment, and Eco-innovation supplement the energy transition: New evidence from NICs. Sustainability, 16(7), 3033. https://doi.org/10.3390/su16073033
Baz, K., & Zhu, Z. (2025). Life cycle analysis of green technologies: Assessing the impact of environmental policies on carbon emissions and energy efficiency. Geoscience Frontiers, 16(2), 102004. https://doi.org/10.1016/j.gsf.2025.102004
Botta, E., & Koźluk, T. (2014). Measuring environmental policy stringency in OECD countries: A composite index approach. Organisation for Economic Co-Operation and Development (OECD).
Chen, Z., He, M., Ibrahim, R. L., Alomair, A., & Al Naim, A. S. (2025). Driving toward climate neutrality in BRICS: Can environmental policy stringency, technological innovation, renewable energy, and digitalization make or mar the targets? Environmental Progress & Sustainable Energy, 44(3). https://doi.org/10.1002/ep.14567
Corrocher, N., & Mancusi, M. L. (2021). International collaborations in green energy technologies: What is the role of distance in environmental policy stringency? Energy Policy, 156(112470), 112470. https://doi.org/10.1016/j.enpol.2021.112470
Dale, V. H., Kline, K. L., Buford, M. A., Volk, T. A., Tattersall Smith, C., & Stupak, I. (2016). Incorporating bioenergy into sustainable landscape designs. Renewable and Sustainable Energy Reviews, 56, 1158–1171. https://doi.org/10.1016/j.rser.2015.12.038
Degirmenci, T., Sofuoglu, E., Aydin, M., & Adebayo, T. S. (2025). The role of energy intensity, green energy transition, and environmental policy stringency on environmental sustainability in G7 countries. Clean Technologies and Environmental Policy, 27(7), 2981–2993. https://doi.org/10.1007/s10098-024-02968-y
Dowrick, S. (2004). Trade openness and growth: Who benefits? Oxford Review of Economic Policy, 20(1), 38–56. https://doi.org/10.1093/oxrep/grh003
Duce, M., & España, B. D. (2003). Definitions of Foreign Direct Investment (FDI): a methodological note. Banco de Espana, 6(2), 43–49.
Fatima, N., Xuhua, H., Alnafisah, H., Zeast, S., & Akhtar, M. R. (2024). Enhancing climate action in OECD countries: the role of environmental policy stringency for energy transitioning to a sustainable environment. Environmental Sciences Europe, 36(1). https://doi.org/10.1186/s12302-024-00978-7
Godawska, J., & Wyrobek, J. (2021). The impact of environmental policy stringency on renewable energy production in the visegrad group countries. Energies, 14(19), 6225. https://doi.org/10.3390/en14196225
Gollin, D., Jedwab, R., & Vollrath, D. (2016). Urbanization with and without industrialization. Journal of Economic Growth, 21(1), 35–70. https://doi.org/10.1007/s10887-015-9121-4
Kartal, M. T., Sharif, A., Magazzino, C., Mukhtarov, S., & Kirikkaleli, D. (2025). The effects of energy transition and environmental policy stringency subtypes on ecological footprint: Evidence from BRICS countries via a KRLS approach. Engineering (Beijing, China). https://doi.org/10.1016/j.eng.2025.02.007
Kasana, S. (2020). Urbanization and its Impact on Human Population Dispersion: A Global Analysis. International Journal of Rural Development, 4(3), 113–118.
Khan, M. A., Shahbaz, P., Minh, U. P. T., Nguyen, N. H., & Mai, T. H. (n.d.). Driving the Green Shift: How Energy Transition and Environmental Policy Stringency Shape Environmental Quality. Polish Journal of Environmental Studies.
Li, R., Yang, Z., & Wang, Q. (2025). Does renewable energy reduce energy intensity? A matter of income inequality. Humanities & Social Sciences Communications, 12(1). https://doi.org/10.1057/s41599-025-04439-1
Li, Z., Kuo, Y.-K., Mahmud, A. R., Nassani, A. A., Haffar, M., & Muda, I. (2022). Integration of renewable energy, environmental policy stringency, and climate technologies in realizing environmental sustainability: Evidence from OECD countries. Renewable Energy, 196, 1376–1384. https://doi.org/10.1016/j.renene.2022.07.084
Maghyereh, A., Boulanouar, Z., & Essid, L. (2025). The dynamics of green innovation and environmental policy stringency in energy transition investments. Journal of Cleaner Production, 487(144649), 144649. https://doi.org/10.1016/j.jclepro.2024.144649
Mahalik, M. K., Pal, S., Le, T.-H., & Mishra, S. (2024). Does environmental policy stringency improve nature’s health in BRICS economies? Implications for sustainable development. Environmental Science and Pollution Research International, 31(1), 509–528. https://doi.org/10.1007/s11356-023-31134-y
Rehman, M. A., Hasan, M., Pata, U. K., Chen, X. H., & Kontoleon, A. (2024). Exploring the Nexus of technology, environmental policy stringency, and political globalization: Pathways to achieving sustainability. Energy Economics, 107979, 107979. https://doi.org/10.1016/j.eneco.2024.107979
Sohag, K., Husain, S., & Soytas, U. (2024). Environmental policy stringency and ecological footprint linkage: Mitigation measures of renewable energy and innovation. Energy Economics, 136(107721), 107721. https://doi.org/10.1016/j.eneco.2024.107721
Tiwari, S., Mentel, G., Mohammed, K. S., Rehman, M. Z., & Lewandowska, A. (2024). Unveiling the role of natural resources, energy transition and environmental policy stringency for sustainable environmental development: Evidence from BRIC+ 1. Resources Policy.
Tiwari, Sunil, Si Mohammed, K., Mentel, G., Majewski, S., & Shahzadi, I. (2023). Role of circular economy, energy transition, environmental policy stringency, and supply chain pressure on CO2 emissions in emerging economies. Geoscience Frontiers, 101682, 101682. https://doi.org/10.1016/j.gsf.2023.101682
Wang, Z., Yen-Ku, K., Li, Z., An, N. B., & Abdul-Samad, Z. (2022). The transition of renewable energy and ecological sustainability through environmental policy stringency: Estimations from advance panel estimators. Renewable Energy, 188, 70–80. https://doi.org/10.1016/j.renene.2022.01.075
Xia, C., Balsalobre-Lorente, D., & Raza Syed, Q. (2025). Electricity generation from renewable and non-renewable energy sources in China: The role of environmental policy stringency, FDI, and economic growth. Energy (Oxford, England), 318(134695), 134695. https://doi.org/10.1016/j.energy.2025.134695
Yıldırım, M., Destek, M. A., & Manga, M. (2024). Foreign investments and load capacity factor in BRICS: the moderating role of environmental policy stringency. Environmental Science and Pollution Research International, 31(7), 11228–11242. https://doi.org/10.1007/s11356-023-31814-9
Zhang, D., Zheng, M., Feng, G.-F., & Chang, C.-P. (2022). Does an environmental policy bring to green innovation in renewable energy? Renewable Energy, 195, 1113–1124. https://doi.org/10.1016/j.renene.2022.06.074
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
