Politická ekonomie 2026, 74(2) | DOI: 10.18267/j.polek.1489
Democracies Prioritize Sustainability as Energy Use Declines
- Aribah Aslam (corresponding author), Department of Economics, The University of Lahore, Lahore, Pakistan
- Ghulam Ghouse, Department of Economics, Beaconhouse National University of Lahore, Lahore, Pakistan
- Ishaq Bhatti, La Trobe University, Melbourne, Australia & UBD SBE, Universiti Brunei Darussalam, Brunei Darussalam
We develop a theoretical framework to characterize the relationship between democracy and energy use on a global scale. We utilize the generalized method of moments (GMM) model to control for endogeneity on a balanced, global panel dataset encompassing 61 countries across six geographic regions. Contrary to conventional understanding that democracies may have a positive association with energy use, our findings reveal that democracy has a significant negative association with energy use. We conclude that democracies prioritize sustainability globally as energy use declines. These novel results are justified because democracies can often foster a culture of environmental awareness through active civil societies and open public discourse. This can lead to public pressure on governments to enact stricter environmental regulations and prioritize energy conservation. Our results highlight previously under-explored connections between democracy, social capital and energy consumption, paving the way for future research and policy development.
Keywords: Population, natural environment, democracy level, social capital, energy use
JEL classification: C33, O13, P16, Q43
Received: April 29, 2024; Revised: December 25, 2024; Accepted: January 14, 2025; Prepublished online: November 7, 2025; Published: April 28, 2026 Show citation
References
- Adams, S., Acheampong, A. O. (2019). Reducing carbon emissions: the role of renewable energy and democracy. Journal of Cleaner Production, 240, 118245. https://doi.org/10.1016/j.jclepro.2019.118245
Go to original source... - Ahmed, S., Javaid, N., Yousaf, S., et al. (2015). Co-LAEEBA: Cooperative link aware and energy efficient protocol for wireless body area networks. Computers in Human Behavior, 51(B), 1205-1215. https://doi.org/10.1016/j.chb.2014.12.051
Go to original source... - Alahakoon, S., Silva, H., Kulatunga, U. (2022). Factors affecting energy consumption of commercial buildings in Sri Lanka. In: FARU Proceedings - 2022. FARU 2022 - 15th International Research Conference: December 02-03, 2010, Katubedda, Sri Lanka. Katubedda: FARU, pp. 248-258. https://doi.org/10.31705/FARU.2022.28
Go to original source... - Alper, A., Oguz, O. (2016). The role of renewable energy consumption in economic growth: Evidence from asymmetric causality. Renewable and Sustainable Energy Reviews, 60, 953-959. https://doi.org/10.1016/j.rser.2016.01.123
Go to original source... - Andrew, A. A., Adebayo, T. S., Lasisi, T. T., et al. (2024). Moderating roles of technological innovation and economic complexity in financial development-environmental quality nexus of the BRICS economies. Technology in Society, 78, 102581. https://doi.org/10.1016/j.techsoc.2024.102581
Go to original source... - Apergis, N., Danuletiu, D. C. (2014). Renewable energy and economic growth: Evidence from the sign of panel long-run causality. International Journal of Energy Economics and Policy, 4(4), 578-587.
- Armony, A. (2004). The dubious link: Civic engagement and democratization. Redwood City: Stanford University Press. ISBN 9780804767286.
Go to original source... - Asif, M., Muneer, T. (2007). Energy supply, its demand and security issues for developed and emerging economies. Renewable and Sustainable Energy Reviews, 11(7), 1388-1413. https://doi.org/10.1016/j.rser.2005.12.004
Go to original source... - Aslam, A. (2020). The hotly debate of human capital and economic growth: Why institutions may matter? Quality & Quantity, 54(4), 1351-1362. https://doi.org/10.1007/s11135-020-00989-5
Go to original source... - Aslam, A., Naveed, A., Shabbir, G. (2021). Is it an institution, digital or social inclusion that matters for inclusive growth? A panel data analysis. Quality & Quantity, 55, 333-355. https://doi.org/10.1007/s11135-020-01008-3
Go to original source... - Aslam, A., Shabbir, G. (2019). Socio-digital inclusion for inclusive growth: Evidences from world level data. Pakistan Journal of Social Sciences, 39(2), 567-581.
- Aslam, A., Zulfiqar, K. (2016). Policy framework for inclusive growth: A case study of selected Asian countries. Forman Journal of Economic Studies, 12, 21-40.
Go to original source... - Avtar, R., Tripathi, S., Aggarwal, A. K., et al. (2019). Population-urbanization-energy nexus: a review. Resources, 8(3), 136. https://doi.org/10.3390/resources8030136
Go to original source... - Bending, R. C., Cattell, R. K., Eden, R. (1987). Energy and structural change in the United Kingdom and Western Europe. Annual Review of Energy, 12(1), 185-222.
Go to original source... - Bhandari, H., Yasunobu, K. (2009). What is social capital? A comprehensive review of the concept. Asian Journal of Social Science, 37(3), 480-510. https://doi.org/10.1163/156853109X436847
Go to original source... - Breuskin, I. (2012). Social Capital and Governmental Institutions. Living Reviews in Democracy, 3.
- Bridger, J. C., Luloff, A. E. (2001). Building the sustainable community: Is social capital the answer? Sociological Inquiry, 71(4), 458-472. https://doi.org/10.1111/j.1475-682X.2001.tb01127.x
Go to original source... - Burke, M. J., Stephens, J. C. (2018). Political power and renewable energy futures: A critical review. Energy Research & Social Science, 35, 78-93. https://doi.org/10.1016/j.erss.2017.10.018
Go to original source... - Catton, W. R. (1982). Overshoot: The ecological basis of revolutionary change. Champaign: University of Illinois Press.
- Comisión Económica para América Latina y el Caribe (CEPAL) (2008). Resolución 637(XXXII): Seguimiento del Plan de Acción sobre la Sociedad de la Información de América Latina y el Caribe.
- Chen, C., Pinar, M., Stengos, T. (2021). Determinants of renewable energy consumption: Importance of democratic institutions. Renewable Energy, 179, 75-83. https://doi.org/10.1016/j.renene.2021.07.030
Go to original source... - Colletta, N. J., Cullen, M. L. (2000). Violent conflict and the transformation of social capital: Lessons from Cambodia, Rwanda, Guatemala, and Somalia. Washington, D.C.: World Bank. ISBN 0-8213-4412-9.
Go to original source... - Cvijović, J., Obradović, T., Knežević, S. (2020). A literature survey on relationship between renewable energy consumption and economic growth. Ekonomika poljoprivrede, 67(3), 991-1010.
Go to original source... - Dagar, V., Khan, M. K., Alvarado, R., et al. (2022). Impact of renewable energy consumption, financial development and natural resources on environmental degradation in OECD countries with dynamic panel data. Environmental Science and Pollution Research, 29(12), 18202-18212. https://doi.org/10.1007/s11356-021-16861-4
Go to original source... - Deiss, K. J. (2004). Innovation and strategy: Risk and choice in shaping user-centered libraries. Library Trends, 53(1), 17-32.
- Dincer, I. (2000). Renewable energy and sustainable development: a crucial review. Renewable and Sustainable Energy Reviews, 4(2), 157-175. https://doi.org/10.1016/S1364-0321(99)00011-8
Go to original source... - Droubi, S., Heffron, R. J., McCauley, D. (2022). A critical review of energy democracy: A failure to deliver justice? Energy Research & Social Science, 86, 102444. https://doi.org/10.1016/j.erss.2021.102444
Go to original source... - Esping-Andersen, G., Gatnar, L., Večerník, J. (1991). Tři politické ekonomie sociálního státu. Sociologický časopis, 27(5), 545-567.
- Farooq, A., Hamid, K., Aslam, A., et al. (2019). Triangular nexus between institutional quality, trade liberalization, and agricultural growth in Pakistan. Paradigms, 2(1), 17-26. https://doi.org/10.47067/ramss.v2i1.11
Go to original source... - Ghouse, G., Aslam, A., Bhatti, M. I. (2022). The Impact of the Environment, Digital-Social Inclusion, and Institutions on Inclusive Growth: A Conceptual and Empirical Analysis. Energies, 15(19), 7098. https://doi.org/10.3390/en15197098
Go to original source... - Gibbs, D. (2000). Ecological modernisation, regional economic development and regional development agencies. Geoforum, 31(1), 9-19. https://doi.org/10.1016/S0016-7185(99)00040-8
Go to original source... - Glass, L.-M., Newig, J. (2019). Governance for achieving the Sustainable Development Goals: How important are participation, policy coherence, reflexivity, adaptation and democratic institutions? Earth System Governance, 2, 100031. https://doi.org/10.1016/j.esg.2019.100031
Go to original source... - Grabara, J., Tleppayev, A., Dabylova, et al. (2021). Empirical research on the relationship amongst renewable energy consumption, economic growth and foreign direct investment in Kazakhstan and Uzbekistan. Energies, 14(2), 332. https://doi.org/10.3390/en14020332
Go to original source... - Hansen, L. P. (1982). Large sample properties of generalized method of moments estimators. Econometrica: Journal of the Econometric Society, 1029-1054. https://doi.org/10.2307/1912775
Go to original source... - Healy, N., Barry, J. (2017). Politicizing energy justice and energy system transitions: Fossil fuel divestment and a "just transition". Energy Policy, 108, 451-459. https://doi.org/10.1016/j.enpol.2017.06.014
Go to original source... - Huang, A., Dai, L., Ali, S., et al. (2024). From funds to footprints: Unravelling the asymmetric association between nuclear energy technology and environmental quality. Energy, 309, 133006. https://doi.org/10.1016/j.energy.2024.133006
Go to original source... - Jacob, N. R., Thomas, N. M., Agarwal, S., et al. (2023a). What facilitates and impedes the adoption of sustainability in global value chains? A Grey-DEMATEL analysis. Environmental Development and Sustainability, 27, 21275-21303. https://doi.org/10.1007/s10668-023-04158-0
Go to original source... - Jacob, N. R., Aggarwal, S., Saini, N., et al. (2023b). Sustainability in the global value chain-a scientometric analysis. Environmental Science and Pollution Research International, 30(45), 100301-100324. https://doi.org/10.1007/s11356-023-29381-0
Go to original source... - Kalkbrenner, B. J., Roosen, J. (2016). Citizens' willingness to participate in local renewable energy projects: The role of community and trust in Germany. Energy Research & Social Science, 13, 60-70. https://doi.org/10.1016/j.erss.2015.12.006
Go to original source... - Katircioğlu, S. T. (2014). Estimating higher education induced energy consumption: The case of Northern Cyprus. Energy, 66, 831-838. https://doi.org/10.1016/j.energy.2013.12.040
Go to original source... - Kaur, S., Aggarwal, S., Arora, V. (2024). Co-movement of stock market of BRICS with G7 stock market. Asia-Pacific Financial Markets, 32, 327-356. https://doi.org/10.1007/s10690-024-09455-w
Go to original source... - Kaur, S., Aggarwal, S., Garg, V. (2023). A study of macroeconomic effects on the growth of BRICS: A systematic review. International Journal of Economics, Policy, and Environmental Economics, 18(1), 57-81. https://doi.org/10.1504/IJEPEE.2023.134805
Go to original source... - Kazim, A. M. (2007). Assessments of primary energy consumption and its environmental consequences in the United Arab Emirates. Renewable and Sustainable Energy Reviews, 11(3), 426-446. https://doi.org/10.1016/j.rser.2005.01.008
Go to original source... - Khan, A. (2016). 100 years of the Middle East. Lahore: Maktaba Islamia Publications. ISBN 9781539354130.
- Khan, I., Hou, F., Irfan, M., et al. (2021). Does energy trilemma a driver of economic growth? The roles of energy use, population growth, and financial development. Renewable and Sustainable Energy Reviews, 146, 111157. https://doi.org/10.1016/j.rser.2021.111157
Go to original source... - Kharb, R., Suneja, V., Aggarwal, S., et al. (2024). The relationship between investment determinants and environmental sustainability: Evidence through meta-analysis. The Quarterly Review of Economics and Finance, 94, 267-280. https://doi.org/10.1016/j.qref.2024.02.001
Go to original source... - Kouton, J. (2019). The asymmetric linkage between energy use and economic growth in selected African countries: Evidence from a nonlinear panel autoregressive distributed lag model. Energy Economics, 83, 475-490.
Go to original source... - Lehtonen, M. (2004). The environmental-social interface of sustainable development: capabilities, social capital, institutions. Ecological Economics, 49(2), 199-214. https://doi.org/10.1016/j.ecolecon.2004.03.019
Go to original source... - Li, C., Umair, M. (2023). Does green finance development goals affects renewable energy in China. Renewable Energy, 203, 898-905. https://doi.org/10.1016/j.renene.2022.12.066
Go to original source... - Malinowski, M. (2021). "Green Energy" and the Standard of Living of the EU Residents. Energies, 14(8), 2186. https://doi.org/10.3390/en14082186
Go to original source... - Mankoff, J., Fussell, S., Dillahunt, T., et al. (2010). StepGreen.org: Increasing energy saving behaviors via social networks. In: Proceedings of the Fourth International AAAI Conference on Web and Social Media: May 23-26, 2010, Washington, D.C., USA. Washington, D.C.: ICWSM, pp. 106-113. https://doi.org/10.1609/icwsm.v4i1.14011
Go to original source... - McMichael, M. (2007). A social capital approach to household energy consumption. [Retrieved 2024-04-29] Available at: https://pdfs.semanticscholar.org/8c8a/f291255e09b3dba1e7db7beba8ed50e3dd5d.pdf
- Meo, M. S., Adebayo, T. S. (2024). Role of financial regulations and climate policy uncertainty in reducing CO2 emissions - an application of bootstrap subsample rolling-window Granger causality. Clean Technologies and Environmental Policy, 27, 2377-2393. https://doi.org/10.1007/s10098-024-02991-z
Go to original source... - Mitchell, J. V., Mitchell, B., Marcel, V. (2015). Oil and gas mismatches: finance, investment and climate policy. Chatham House The Royal Institute of International Affairs Research Paper.
- Mohsin, M., Abbas, Q., Zhang, J., et al. (2019). Integrated effect of energy consumption, economic development, and population growth on CO2 based environmental degradation: a case of transport sector. Environmental Science and Pollution Research, 26, 32824-32835. https://doi.org/10.1007/s11356-019-06372-8
Go to original source... - Nag, R. M., Linn, J. F., Kohli, H. S. (2017). Central Asia 2050: Unleashing the Region's Potential. Gurugram: SAGE Publishing India. ISBN 978-93-515-0827-4.
- Nasir, M., Rehman, F. U. (2011). Environmental Kuznets curve for carbon emissions in Pakistan: an empirical investigation. Energy Policy, 39(3), 1857-1864. https://doi.org/10.1016/j.enpol.2011.01.025
Go to original source... - Niamir, L., Ivanova, O., Filatova, T., et al. (2020). Demand-side solutions for climate mitigation: Bottom-up drivers of household energy behavior change in the Netherlands and Spain. Energy Research & Social Science, 62, 101356. https://doi.org/10.1016/j.erss.2019.101356
Go to original source... - Nouri, A., Khadem, S., Mutule, A., et al. (2022). Identification of gaps and barriers in regulations, standards, and network codes to energy citizen participation in the energy transition. Energies, 15(3), 856. https://doi.org/10.3390/en15030856
Go to original source... - Özkan, O., Adebayo, T. S. (2024). Unraveling the time-varying asymmetric impact of fossil fuel price volatility on high cleantech investments. Environment, Development and Sustainability, 1-24. https://doi.org/10.1007/s10668-024-05432-5
Go to original source... - Özokcu, S., Özdemir, Ö. (2017). Economic growth, energy, and environmental Kuznets curve. Renewable and Sustainable Energy Reviews, 72, 639-647. https://doi.org/10.1016/j.rser.2017.01.059
Go to original source... - Pao, H.-T., Tsai, C.-M. (2011). Modeling and forecasting the CO2 emissions, energy consumption, and economic growth in Brazil. Energy, 36(5), 2450-2458. https://doi.org/10.1016/j.energy.2011.01.032
Go to original source... - Pavlinek, P. (2002). Teoretické interpretace transformace ve střední a východní Evropě. Politická ekonomie, 50(5), 717. https://doi.org/10.18267/j.polek.384
Go to original source... - Perannagari, K. T., Gupta, S. (2022). Mapping the intellectual structure of artificial neural network research in the business domain: A retrospective overview using bibliometric review. In: Rana, S., Sakshi, S., Singh, J. Exploring the latest trends in management literature, pp. 35-59. Leeds: Emerald Publishing Limited. https://doi.org/10.1108/S2754-586520220000001003.
Go to original source... - Pietro, S. D. (2021). Implementing Energy-as a Common approach in the revitalization of shrinking cities. Belgian Journal of Geography, 22(1). https://doi.org/10.4000/belgeo.49525
Go to original source... - Qamar, A., Chaudhary, A., Aslam, A., et al. (2020). The informal economy of Pakistan: An institutional and fiscal policy perspective. Al-Qalam, 12-31.
- Rasli, A. M., Qureshi, M. I., Isah-Chikaji, A., et al. (2018). New toxics, race to the bottom and revised environmental Kuznets curve: The case of local and global pollutants. Renewable and Sustainable Energy Reviews, 81(2), 3120-3130. https://doi.org/10.1016/j.rser.2017.08.092
Go to original source... - Raza, S., Aslam, A. (2020). The corruption challenge for accelerating national savings in Pakistan: A fiscal policy perspective. European Online Journal of Natural and Social Sciences, 9(3), 529-544.
- Roženský, V. (2012). Mandatorní výdaje a flexibilita fiskální politiky v ČR. Politická ekonomie, 60(1), 40-57. https://doi.org/10.18267/j.polek.831
Go to original source... - Shahbaz, M., Mutascu, M., Azim, P. (2013a). Environmental Kuznets curve in Romania and the role of energy consumption. Renewable and Sustainable Energy Reviews, 18, 165-173. https://doi.org/10.1016/j.rser.2012.10.012
Go to original source... - Shahbaz, M., Ozturk, I., Afza, T., et al. (2013b). Revisiting the environmental Kuznets curve in a global economy. Renewable and sustainable energy reviews, 25, 494-502. https://doi.org/10.1016/j.rser.2013.05.021
Go to original source... - Szabó, J. (2022). Politická ekonomie neliberálního kapitalismu v Maďarsku a Polsku. Politická ekonomie, 70(5), 617-637. https://doi.org/10.18267/j.polek.1364
Go to original source... - Szulecki, K. (2018). Conceptualizing energy democracy. Environmental Politics, 27(1), 21-41. https://doi.org/10.1080/09644016.2017.1387294
Go to original source... - Szulecki, K., Overland, I. (2020). Energy democracy as a process, an outcome and a goal: A conceptual review. Energy Research & Social Science, 69, 101768. https://doi.org/10.1016/j.erss.2020.101768
Go to original source... - Thombs, R. P. (2019). When democracy meets energy transitions: A typology of social power and energy system scale. Energy Research & Social Science, 52, 159-168. https://doi.org/10.1016/j.erss.2019.02.020
Go to original source... - Tudor, C., Sova, R.. (2021). On the Impact of GDP per Capita, Carbon Intensity and Innovation for Renewable Energy Consumption: Worldwide Evidence. Energies, 14(19), 6254. https://doi.org/10.3390/en14196254
Go to original source... - Wachira, S. W., Wambui, S. (2013). An evaluation of potential sustainable land management practices to enhance watershed ecosystem services in Upper Tana catchment: A case study of Kirurumwe River, Ena Basin in Embu County, Kenya. Master's thesis. Nairobi: University of Nairobi.
- Welton, S. (2018). Grasping for energy democracy. Michigan Law Review, 116(4), 581-644. https://doi.org/10.36644/mlr.116.4.grasping
Go to original source... - Yan, Y., Zhou, J., Zhou, S., et al. (2022). Investigating the Role of Education, Foreign Investment, and Economic Development for Sustainable Environment in BRI Countries: Application of Method of Movements Quantile Regression. Frontiers in Environmental Science, 10, 874275. https://doi.org/10.3389/fenvs.2022.874275
Go to original source... - Zaman, S., Wang, Z., Zaman, Q. U. (2021). Exploring the relationship between remittances received, education expenditures, energy use, income, poverty, and economic growth: fresh empirical evidence in the context of selected remittances receiving countries. Environmental Science and Pollution Research, 28, 17865-17877. https://doi.org/10.1007/s11356-020-11943-1
Go to original source... - Zulfiqar, K., Chaudhary, M. A., Aslam, A. (2016). Financial inclusion and its implications for inclusive growth in Pakistan. Pakistan Economic and Social Review, 54(2), 297-325.
This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.

ORCID...