The cruciality of environmental degradation, energy use and urbanization to policy framework for sustainable growth and development: evidence from Spain

Purpose Attaining a sustainable environment has become an international commitment. Therefore, mitigating climate change concerns is pertinent for a sustainable ecosystem. This study aims to focus on the Spanish economy, which has enjoyed some positive growth trends over the years. However, there remains an unaddressed puzzle as to whether the experienced growth path is green or dirty given the wake of global connectedness. These concerns are related to the objective of the sustainable development goals (SDGs) that comprises economic growth (SDGs-8), climate issues (SDGs-13) and responsible energy consumption and access to energy (SDGs-7, 12). Design/methodology/approach This research empirically explores the comovement and coherence between CO2 emissions and its driving factors – specifically renewable energy, fossil fuel consumption, urbanization and economic growth using the wavelet tools. Findings The result of the wavelet coherence shows that (i) renewable energy and CO2 emissions are out-phase; (ii) economic growth and CO2 are in-phase; urbanization and CO2 are in-phase; and (iv) fossil fuel and CO2 are in-phase. The result of the multiple wavelet coherence shows that CO2 in Spain were strongly linked to urbanization, economic growth and energy consumption. While coherence with renewable energy and urbanization weakened after 2000, fossil fuel reliance remained a key driver. Practical implications These results are not desirable for the case study (Spain). Therefore, there is a necessity for a gradual and more aggressive shift in the Spanish energy mix to renewables. The shift to renewables is required for inclusive growth and a green growth path in Spain. Originality/value In this study, the authors used wavelet tools, which help uncover hidden information across different time-frequency domains. The importance of the ramifications of this research will also go beyond a localized relevance to the Spanish economy alone, as there is relative applicability of some of the practical implications from the study to other similar European Union (EU) countries considering Spain’s stance in the EU in terms of geography, economics and politics.