Uncertainty related to energy and natural resource management in developed countries: a new perspective from the ecological footprint index

Abstract

The article examines the impact of energy-related uncertainty shocks on the ecological footprint of 27 countries from various territories worldwide. The panel data is collected from the World Development Index and the Economic Policy Uncertainty Index from 1997 to 2021. Unlike previous articles that often utilize time series data and regression models such as ARDL, VAR, and VECM due to data limitations, this article uses panel data and POLS, FEM, REM regression models. These models are specifically designed for panel data regression to analyze the linear relationship between energy instability issues and the environmental management capabilities of countries worldwide. The experimental results indicate a significant reduction in the use of natural resources in countries experiencing any energy shock. Additionally, we apply our model to a typical developing country case, Vietnam, which shows that these countries will exhibit a higher sensitivity to energy issues compared to the overall level of developed countries in the region. Therefore, stable energy policies and effective control measures are crucial, alongside the establishment of monitoring mechanisms to ensure policy effectiveness and prevent potential risks.