Insights from Poland on the long-run effect of energy productivity on environmental degradation: a Fourier ARDL-based approach

The globally increasing trend of fossil fuel consumption has culminated in a historical degradation of the environment and the rising threat of global warming. Researchers and policymakers aim at examining critical relationships between energy productivity and environmental degradation to make recommendations for global policy action. This paper aims to capture the effect of energy productivity on environmental degradation in Poland from 1990Q1 to 2019Q4, using novel Fourier-bases ADF unit root and Fourier-based ARDL approaches. First, outcomes of the Fourier ARDL bounds test indicate that variables are integrated; second, outcomes of the Fourier ARDL long-run estimates indicate that (i) energy productivity has long-run negative effects on CO(2) emissions; and (ii) economic growth, globalization, and primary energy consumption have positive effects on CO(2) emissions. Among the options available to Polish policymakers are (i) liberalizing domestic energy markets to offer an opportunity for electricity consumers to switch companies and (ii) continuing to pursue a policy of decarbonizing energy supply by investing heavily in renewable energy, nuclear power, e-mobility, and energy productivity. SUPPLEMENTARY INFORMATION: The online version contains supplementary material available at 10.1007/s11356-023-26595-0.