Evaluating the Ecological Footprint of Biomass Energy: Parametric and Time-Varying Nonparametric Analyses

The growing discourse surrounding biomass energy’s environmental ramifications has ignited debate among policymakers. While biomass remains a primary and readily accessible energy source, various studies have extensively examined its implications for health and the economy. However, there is a lack of evidence regarding its role in mitigating climate change. This study delves into the ecological footprint implications of biomass energy consumption in the Organisation for Economic Co-operation and Development (OECD) countries, spanning from 1990 to 2017. While the existing literature predominantly relies on parametric methodologies, offering estimates of biomass energy’s average impact on ecological footprints, it fails to capture temporal variations in this relationship. Consequently, this study employs both parametric and nonparametric time-varying techniques to elucidate the evolving impact of biomass energy utilization on ecological footprints across the studied nations. Findings from both analytical approaches converge to suggest that biomass energy usage amplifies the ecological footprint of OECD nations. Notably, the nonparametric analysis underscores the dynamic nature of this relationship over time. Based on these insights, policy recommendations are given to mitigate the adverse environmental consequences of biomass energy usage while exploring cleaner alternative energy sources.