The issue of energy has been debated among policymakers and economists. Energy plays an important role in generating economic activities. On the other hand, it can have deleterious impacts on the environment as more carbon dioxide (CO2) emissions will be released. Most previous studies focused on total energy rather than types of energy such as oil and gas in investigating the effects of energy consumption on CO2 emissions. Therefore, this study investigates the effects of oil and gas consumption rather than total energy consumption on CO2 emissions in 20 Organization of Islamic Cooperation (OIC) countries. The dynamic heterogeneous panel (panel autoregressive distributed lag model – panel ARDL) approach namely pooled mean group (PMG), mean group (MG), and dynamic fixed effect (DFE) were employed. The main results reveal that in the long run, overall national output contributes to higher environmental degradation. However, in the short run, overall national output does not affect CO2 emissions. The results also suggest that the population can reduce CO2 emissions in the short run but leaves no effect in the long run. Besides, gas consumption and oil consumption can have deleterious effects on the environment. The effect of oil consumption is greater than the effect of gas consumption on the environment. Therefore, it is important to consume more renewable energy such as solar, biodiesel, and hydro to replace non-renewable energy, particularly oil, in a bid to conserve the environment.
Most countries consume more non-renewable energy to generate economic activities. Hence, economic growth plays a vital role in contributing to higher CO 2 emissions. Therefore, this type of energy has reduced and replaced by renewable energy. Renewable energy is said not to be detrimental to the environment. Consequently, it is imperative to examine the effects of renewable energy consumption and economic growth on CO 2 emissions in selected countries by per capita income. Using a sample of high-income, upper-middle-income, and lower middle -income, and low-income countries for the period of 1990-2017, and the estimation method of the panel ARDL, the main results show that in the long run, overall renewable energy consumption can reduce CO 2 emissions. However, economic growth and population growth can result in higher CO 2 emissions in the long term. In the short run, the results show that higher overall economic growth can contribute to higher CO 2 emissions. Contrarily, higher population growth, and renewable energy consumption can help reduce CO 2 emissions in the short run.
Natural gas consumption contributes the least to CO2 emissions than other non-renewable energy such as oil and coal. Thus, it is important to replace oil in generating economic activities and leading the country towards low carbon state. Despite the environmentally friendly energy, most previous studies did not study gas consumption. Therefore, this study investigates the effects of gas consumption and other selected macroeconomic determinants such as labour, capital, foreign direct investment, trade openness, and financial development on Malaysia's economic growth from 1980 to 2019. The Augmented Distributed Lag (ARDL) approach is employed, and the results show that gas consumption plays a vital role in boosting economic growth in the short and long run. Based on these findings, all economic sectors should consume more natural gas instead of oil, including industries and transportation. This move can conserve the environment and support clean energy for sustainable development. The remaining variables also increased economic growth except for financial development. Based on these outcomes, the country's policymakers can construct a suitable policy that can improve all the potential macroeconomic determinants besides the use of natural gas consumption in accelerating growth in Malaysia.
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