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July 14, 2026Discover SustainabilityOpen Access

Understanding environmental impacts of institutional quality, renewable energy and financial development across countries within the environmental Kuznets curve framework

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The study investigates the relationship between institutional quality, renewable energy, and financial development in environmental performance across countries.
Examined data from 2010 to 2020 across selected countries
Employed two-step system generalized method of moments (GMM) for empirical analysis
Classified countries by income levels and regional groupings for nuanced assessment.
Renewable energy consumption and financial development significantly reduce ecological footprints in all panels.
Trade openness is associated with an increase in the ecological footprint.
In upper-middle-income economies and specific regions, institutional quality improves environmental outcomes.

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Randomized trial examines environmental impacts in select countries, suggesting tailored policy frameworks are essential for sustainability.

Padhan et al. (2026) studied this question.

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Randomized trial examines environmental impacts in select countries, suggesting tailored policy frameworks are essential for sustainability.