Toward a greener energy transition: examining the effects of circular economy and carbon footprint for sustainable development

This study investigates the dynamic impacts of urbanization (UR), energy transition (REC), economic growth (ECOG), and energy transition (INT) on carbon footprint (CFP). Employing a robust panel dataset, we observed intricate relationships between these variables and CFP. Different quantiles showed different, nonlinear effects of UR on CFP, according to our quantile study. It is interesting to note that from the 50th quantile on, there was a negative influence, and from the 10th quantile on, there was a positive effect. A strong causal relationship between REC and carbon footprint (CFP) was shown using panel causality analysis. These results provide important light on the complex interactions between financial, environmental, and economic issues and how they affect carbon footprint. These discoveries may play a significant role in developing policies that support sustainable urbanization and increase economic resilience during recessions. The analysis outlines how the major stakeholders' policies would be affected.