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Over the last decades, the need for sustainable energy production and consumption has been heavily discussed. However, there has been no consensus in the extant literature. Thus, to this end, this study aims to explore the long-run and causality connection among disaggregated energy consumption, environmental tax and economic growth in a carbon-function framework for Turkey.

This study uses annual frequency data for econometrics analysis. To this end, our analysis utilizes the autoregressive distributive lag (ARDL) technique for cointegration and long-run analysis, while the Granger causality was used for causality direction.

Economic growth drives Turkey’s Load Capacity Factor (LCF), indicating energy efficiency is linked to economic performance. Renewable energy boosts LCF, while nonrenewable energy hinders it. Population growth positively affects energy efficiency, but environmental taxes have minimal impact, suggesting policy reform is needed. These outcomes have far-reaching implications for macroeconomic policies and environmental sustainability in Turkish economy energy mix amidst its growth path.

The findings suggest the need for policy reforms prioritizing renewable energy investments to enhance Turkey’s energy efficiency and sustainability. Additionally, the current environmental tax structure requires reevaluation to support sustainable energy practices better. These policy changes are crucial for balancing Turkey’s economic growth with environmental goals, ensuring a more sustainable energy future.

This study explores the role of government policy in form of environmental tax in environmental performance in Turkey.

This study aims to assess financial development and debt status impact on energy efficiency in Nigeria as a developing economy.

This study combined the autoregressive distributed lag (ARDL), fully modified ordinary least squares and canonical cointegration regression analytical methods to estimate the parameters for energy efficiency policy recommendations. Secondary data between 1990 and 2020 were used for the analysis.

The result confirms the long-run nexus between energy efficiency, financial development and total debt stock. Furthermore, the ARDL estimates for this study’s key variables show that financial development promotes energy efficiency in the short run but hinders long-run energy efficiency. Total debt stock limits energy efficiency in Nigeria in short- and long-run periods.

The limitation of this study is that the scope is limited to Nigeria as a developing economy. The need to support energy efficiency projects is a global call requiring cross-country analysis. Despite this study’s focus on Nigeria, it provides useful insights that can guide energy efficiency policy through the financial sector and debt management.

The financial sector must ensure the availability of long-term credit facilities to clean energy investors. The government must maintain a sustainable debt profile to pave the way for capital expenditure on clean energy projects that promote energy efficiency.

The environmental consequences of energy intensity are being felt globally, with the developing countries most vulnerable. The cheapest way to curb these consequences is to promote energy efficiency to reduce the disastrous effect. Driving energy efficiency requires investment in energy-efficient technology but the challenge for developing economies, i.e. Nigeria’s funding, remains challenging amid a blotted debt profile. This becomes crucial to investigate how financial sector development and debt management can accelerate energy-efficient investments in Nigeria.