Studying the Role of Quality of Governance, Renewable Energy and External Monetary Assistance and Their Repercussions on the Ecological Footprint in the Context of Djibouti : Evidence from ARDL, Impulse Response and Variance Decomposition

Kadir Aden

doi:10.54201/iajas.v3i2.59

Authors

Kadir Aden University of Djibouti https://orcid.org/0000-0002-1350-7252

DOI:

https://doi.org/10.54201/iajas.v3i2.59

Keywords:

governance quality, ecological footprint, environmental management, ODA, renewable energy, Djibouti

Abstract

In accord with the aim of achieving global sustainable development, the current article provides empirical evidence on the role of quality of governance, renewable energy consumption and official development assistance (ODA) in providing a successful outcome on ecological footprints. According to the ARDL model, renewable energy decreases the ecological footprint, and among the variables selected to represent quality of governance, only controlling corruption mitigates the ecological footprint, whereas regulatory quality, rule of law and ODA increase the ecological footprint. This is likely, as the current Djiboutian environmental legislation fails to accommodate the ecological issue, and because other underdeveloped sectors absorb the cumulative ODA, thus leaving for small sums to be allocated to environmental activities. Furthermore, the finding of the impulse response and the variance decomposition project was that all the variables have a collective ad-hoc shock on the ecological footprint by restraining the level of the human imprint on ecology; however, it takes significant time to transpire.

Author Biography

Kadir Aden, University of Djibouti

University of Djibouti, Faculty of Law, Economics, and Management, Department of Law and Politics, Djibouti City, Djibouti

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