This study examines the relationship between institutional efficiency and energy outcomes in the MINT economies (Mexico, Indonesia, Nigeria, and Turkey) over the period 1996–2021. Energy outcomes are measured using various indicators, including energy intensity, total energy consumption, renewable energy consumption, and fossil fuel consumption. The dynamic ordinary least squares (DOLS) technique is utilized to analyze the data. The findings reveal a mixed impact of institutional efficiency on energy outcomes. Higher institutional efficiency is associated with a reduction in energy intensity. Likewise, stronger institutions are linked to a decrease in the share of renewable energy, suggesting challenges in promoting renewable energy adoption in the MINT economies. Furthermore, institutional efficiency is positively related to total energy consumption and the use of fossil fuels, indicating a reliance on traditional energy sources. The study finds no significant effect of industrialization on energy outcomes, while trade openness exhibits a positive and significant impact.
TopIntroduction
Energy is universally acknowledged as a fundamental catalyst for enhancing the production of goods and services, thereby contributing to human well-being within any economy (Apergis & Sorros, 2014). Considering the significant impact that energy holds in achieving economic development, it becomes imperative to emphasize global collaboration in addressing the world's energy needs while ensuring equitable access to clean, reliable, and affordable energy sources. This becomes a shared responsibility and a common objective for all nations (Emodi & Boo, 2015). In contrast, it is critical to recognize that energy consumption is inextricably linked to the main cause of CO2 and greenhouse gas emissions, exerting a considerable effect on climate change and the growing phenomena of global warming (Ritchie & Roser, 2020).
The increasing accumulation of greenhouse gases in the Earth's atmosphere causes a plethora of environmental problems, including rising sea levels, increased occurrences of extreme weather events, and ecological disruptions (Burke et al., 2018). Climate change's negative impacts not only jeopardize nature's fragile equilibrium but also have far-reaching consequences for human society. Vulnerable communities, particularly in poor nations, confront the brunt of these impacts, facing challenges to food security, relocation as a result of natural catastrophes, and increased health risks (Atanga & Tankpa, 2021).
In light of the detrimental impact of climate change, and in pursuant to the United Nations' Sustainable Development Goal 7 (SDG 7), which is aimed at ensuring access to affordable, reliable, sustainable, and modern energy for all by 2030, the global community is increasingly recognizing the pressing need to transition to cleaner and more sustainable energy sources. Renewable energy, which includes solar, wind, hydro, and geothermal power, presents realistic options that not only drastically cut or eliminate greenhouse gas emissions during generation but also contribute to the achievement of SDG 7.
In recent years, there has been a surge in research on strategies for achieving Sustainable Development Goal 7 (SDG 7). Several studies have been conducted to investigate the drivers of renewable energy usage in different contexts, with varying results (see Ergun et al. 2019; Akintande et al., 2020; Li et al., 2020; Chen et al., 2021; Bekun & Alola, 2022; Mehmood et al., 2022; Lawal, 2023; Wang et., 2023; Sachan et al., 2023). However, it is crucial to note that the assessment of SDG 7 achievement goes beyond renewable energy consumption, incorporating other key criteria that are often disregarded.
In the pursuit of accomplishing SDG 7, this study aims to examine the impact of institutional efficiency on energy outcomes in the MINT economies (Mexico, Indonesia, Nigeria, and Turkey). These economies are poised to become major global players in the upcoming decades as they strive toward achieving fully industrialized status (Yakubu et al., 2022). The realization of these ambitious goals necessitates a strong infrastructure foundation and an efficient energy system that minimizes adverse environmental consequences. Given that institutional efficiency can facilitate the effective implementation of policies, regulations, and initiatives pertaining to clean and sustainable energy, strengthening institutional frameworks in the MINT economies can advance their progress towards SDG 7, resulting in sustainable and environmentally friendly energy systems.
This study makes several valuable contributions to the existing literature. Firstly, to the best of the researchers' knowledge, this study is one of the first of its kind to investigate the impact of institutional efficiency on the achievement of Sustainable Development Goals (SDGs), specifically focusing on multiple factors related to the implementation of SDG 7 within the MINT economies. By filling this research gap, the study provides new insights into the role of institutional efficiency in driving progress toward SDG 7 targets.