Politická ekonomie 2024, Volume 72(2), Special Issue: 228-254 | DOI: 10.18267/j.polek.1420

Sustainable Growth through Green Electricity Transition and Environmental Regulations: Do Risks Associated with Corruption and Bureaucracy Matter?

Runguo Xu ORCID..., Ugur Korkut Pata ORCID..., Jiapeng Dai ORCID...
Runguo Xu: School of International Relations Yonsei University, Seoul, South Korea
Ugur Korkut Pata: Faculty of Economics and Administrative Sciences, Department of Economics, Osmaniye Korkut Ata University, Osmaniye, Turkey; Adnan Kassar School of Business, Lebanese American University, Beirut, Lebanon
Jiapeng Dai (corresponding author): School of Business, UOW Malaysia University College, Shah Alam, Malaysia

Electricity production strategies of countries rely on fossil fuel-based electricity generation. Environmental regulations (ER) are needed to shift to green electricity for achieving energy transition, but corruption and bureaucracy can influence ER, energy transition and ecological quality. Hence, this research considers two important constituents of country risks including corruption and bureaucracy in the model while understanding the connections between green electricity, ER and the load capacity factor (LCF) in BRICS from 1992 to 2018. The research chooses a recent proxy of ecological quality (i.e., LCF), which effectively measures the ecological quality and indicates the possibility of sustainable growth by using biocapacity and ecological footprint figures. The results of the research disclose that green electricity Granger-causes and enhances the LCF, whereas controlling corruption and enhancing bureaucracy quality improves ecological quality. ER improves environmental quality and the load capacity curve (LCC) hypothesis also exists. Lastly, policy directions are discussed.

Keywords: Corruption control, green electricity, environmental regulations, energy transition, bureaucracy quality
JEL classification: O13, P18, Q2, Q5

Received: August 26, 2023; Revised: October 19, 2023; Accepted: October 30, 2023; Prepublished online: December 11, 2023; Published: May 1, 2024  Show citation

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Xu, R., Pata, U.K., & Dai, J. (2024). Sustainable Growth through Green Electricity Transition and Environmental Regulations: Do Risks Associated with Corruption and Bureaucracy Matter? Politická ekonomie, 72(Spec.issue), 228-254. doi: 10.18267/j.polek.1420
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