Tilts in Energy and Trade Patterns in the Wake of Pandemic and Urbanization in Case of the United Kingdom.

Abstract

Environmental deterioration is considered as a burgeoning issue that humanity must tackle. In fact, it is recognized as one of the emerging issues of the 21st century globally. This investigation of the escalating issue which offers unique insights into the situation in the United Kingdom. In a time, series spanning the years 2001–2021, Carbon-dioxide (CO2) is the dependent variable, while urbanization, trade openness and renewable energy are the independent variables. The results of the NARDL model indicate both symmetrical as well as asymmetrical perspectives. There persists significant but negative association among urbanization and CO2 emissions because at reaching certain point more urbanization leads to a lesser affected levels created by CO2 emissions, and individuals thus turn to renewable energy to reduce their environmental impact. Moreover, a nonlinear result has been discovered between urbanization and CO2 emissions. Additionally, there exists a significant symmetric as well as asymmetric association between CO2 and renewable energy consumption in long-run. As far as trade openness is concerned, the dependent variable shows a positive and insignificant association with it. The energy consumption numbers throughout the time period also indicate a shift away from non-renewable fuels and toward renewable energy sources. Last but not least, the paper suggests to utilizing renewable energy and transitioning to efficient technologies as the means of addressing the destruction.