Does Japan's energy consumption impact its environmental degradation? Evidence from ARDL technique

Damak, Obadiah Ibrahim and Nimvyap, Nanfa and Danboyi, Emmanuel Elisha and Makwin, Deborah Joshua and Daniel, Ajang Janet (2025) Does Japan's energy consumption impact its environmental degradation? Evidence from ARDL technique. World Journal of Advanced Research and Reviews, 26 (2). pp. 234-253. ISSN 2581-9615

Using annual data from 1990 through 2021, this study looked into the roles of economic growth, energy use, globalization, and regulatory quality in Japan. In our analysis, we make use of the ARDL techniques. Using the ARDL, according to empirical data, GDP and fossil fuel have a positive and significant connection with CO2, meaning any increase in GDP and fossil fuel will lead to increase in environmental degradation in the long-run. On the other hand, renewable energy has a negative and significant relationship with CO2 in the long-run, meaning that, any increase in the consumption of renewable energy will reduce environmental degradation in Japan. While globalization and regulatory quality have negative and insignificant association with CO2 in the lung-run. In the short-term, GDP, renewable energy, fossil fuel and globalization are all statistically significantly linked negatively to CO2 emissions. Our study also uses FMOLS, DOLS and CRR analysis which also support the ARDL model. According to our findings with FMOLS, DOLS and CRR outputs, shows long run relationship between CO2 and economic growth, renewable energy usage, use of fossil fuels, globalization, and trade openness in Japan. In addition, Pearson correlation was employed to test the connections between the variables. Our findings therefore give the Japanese government and the rest of the world additional information to help them think about renewable energy usage as the most reliable strategy to cut back on CO2 emissions.