Effects of domestic material consumption, renewable energy, and financial development on environmental sustainability in the EU-28: Evidence from a GMM panel-VAR

Despite the high commitments of European Union (EU) member countries toward achieving sustainable development goals (SDGs), on average, region has reportedly under performed in area ensuring production and consumption. This paper uses Generalized Method Moments (GMM) estimation panel vector autoregressive (PVAR) with impulse response functions (IMFs) to assess effects domestic material consumption, renewable energy, financial development, greenhouse gas emissions environmental quality EU-28 based data for period 2000:Q1–2017:Q4. The empirical results reveal that shocks economic growth, affect drives towards a environment. Particularly, energy improve quality, while consumption emission deteriorate environment quality. shock growth improves up 4th horizon after which it begins Furthermore, causality indicate bidirectional between rest variables except is unidirectional. feedback effect unidirectional flows from These findings have implications