Governance, Financial Efficiency, and Energy Transitions in Environmental Sustainability: Evidence From Bangladesh Using an
ARDL
Approach
Mohammad Ridwan, Iasmin Akter, Jeremy Ko, Afsana Akhter, Md. Mustaqim Roshid ABSTRACT
Environmental pressure in Bangladesh is intensifying as rapid economic growth and rising energy demand place mounting strain on natural resources. Achieving the sustainable development goals (SDGs) related to clean energy, climate action, and sustainable economic progress requires a clear understanding of how economic, institutional, and structural factors influence environmental outcomes. This study examines the long‐ and short‐term effects of economic growth, governance quality, financial market development, energy consumption, and population on Bangladesh's ecological footprint from 1990 to 2021. Using the ARDL bounds testing approach together with fully modified, dynamic, and canonical regression techniques, the analysis explores both short‐ and long‐run relationships and validates them through robustness and causality tests. The findings indicate that economic expansion, population growth, and fossil fuel dependence heighten ecological pressure, while effective governance and financial market efficiency help mitigate it. The study underscores the need for integrated strategies promoting clean energy (SDG 7), green finance (SDG 8), and strong institutions (SDGs 13 and 15) to sustain Bangladesh's development within its environmental limits.