Abstract
This study explores the effect of oil production (OP) on environmental sustainability in relation to the role of institutions in the Organisation of the Petroleum Exporting Countries (OPEC), using annual data from 1990 to 2022. Estimates from the dynamic common correlated effects and dynamic seemingly unrelated regression indicate that oil production heightens the ecological footprint, while this devastating impact is lessened by its interaction with institutional quality. Furthermore, there is evidence that ecological footprint and oil production are causally related to economic growth in both directions. To promote a sustainable environment, oil production activities in OPEC should be incorporated into a strong institutional structure that supports the environment. OPEC should also enhance the proportion of renewable energy in its energy mix through subsidies, tax holidays and carbon pricing.