Does Sweden's Environmental Effect Depend on Its Economic and Energy Performance? Evidence Obtained Using the ARDL Technique

This study explores the effect of economic growth, fossil fuel consumption, agricultural methane emissions, and renewable energy use on environmental degradation in Sweden from 1990 to 2021. Employing the ARDL bounds testing approach, the analysis confirms a stable, long-run relationship among these variables. The result show that economic expansion, the use of fossil fuels, and agricultural methane emissions all contribute considerably to CO2 emissions. In contrast, expanding clean energy consumption does not contribute to environmental degradation. The negative and statistically significant error correction term coefficient further validates this long-run cointegration. To support Sweden's goal of achieving net-zero greenhouse gas emissions by 2045, this research recommends that policymakers enhance renewable energy efficiency by promoting advanced technologies, encouraging energy conservation, and modernizing the national energy grid.