From Regulation to Results: Examining the Nexus of GDP, Energy Use, and Ozone-Depleting Substances Emissions Post-Montreal Protocol

After the Montreal Protocol was implemented in 1989, nations committed to reducing ozone-depleting substances (ODS) emissions to improve environmental conditions and mitigate UV radiation effects. These regulations significantly influenced industrial production practices and energy use patterns in various countries. This study investigates the interconnected relationships among GDP, energy use, and ODS emissions. Robust estimates from the Generalised Method of Moments (GMM) are employed to design and analyse a panel Vector Autoregression (VAR) model on data from Latin America and the Caribbean from 1998 to 2018. The main conclusions show that there is an EKC for ODS emissions, a unidirectional causal relationship between GDP and ODS emissions, and a bidirectional relationship between GDP and energy use. These results suggest that continued enforcement of environmental regulations and the promotion of more efficient energy sources are essential to sustaining economic growth while mitigating environmental impacts. Enhanced international cooperation and investment in green energy are crucial for achieving long term sustainability. The research also explores the topic of laws and practical campaigns that try to solve these problems.