Nexus between carbon emissions, energy consumption, and economic growth: Evidence from global economies

Abstract

Renewable energy holds a remarkable role in clean energy adaptation due to the much lower carbon footprint it releases compared to other fossil fuels. It also has a positive impact by slowing down the rate of climate change. The study has examined the links between renewable and non-renewable energy use, CO2 emissions and economic growth in developed, developing, and LDCs and Economies in Transition between 1990 and 2019 in 152 countries. Granger-causality has been used as the methodology to investigate the link between the variables. The findings of the existing studies on the relationship between the consumption of renewable and non-renewable energy sources and economic growth are inconsistent, indicating that there may or may not be a relationship between the two factors. Apart from having a few empirical studies so far have examined the link between the above-mentioned variables, analysis has yet to encompass all the regions in the four sub-groups discussed above. The results indicated that no Granger-causal relationship exists between GDP and REC outside of Economies in Transition. Additionally, the GDP and CO2 of all countries have a one-way relationship. Nevertheless, research indicates that GDP and CO2 have a bi-directional link in Economies in Transition, a uni-directional relationship in developing countries, and no meaningful association in developed and LDCs. Therefore, it is essential to emphasise actions to lower CO2 emissions and develop renewable energy while also stimulating the economy. Ultimately, more nations should choose renewable energy sources to build a more sustainable future.

The role of ICT investment, digital financial inclusion, and environmental tax in promoting sustainable energy development in the MENA region: Evidences with Dynamic Common Correlated Effects (DCE) and instrumental variable-adjusted DCE

“…Based on the analysis findings, it can be inferred that carbon emissions hurt the utilization of clean energy. More specifically, as carbon emissions increase, the adoption of clean energy decreases [ 147 ]. The inverse relationship between environmental sustainability and carbon emissions underscores the intricate dynamics.…”

“…The importance of developing laws and initiatives to reduce carbon emissions and accelerate the shift to renewable energy sources is emphasized. Efforts to reduce carbon emissions from industrial and transportation sectors can involve encouraging the advancement and implementation of clean energy technology, investing in infrastructure for renewable energy sources, and implementing regulatory measures [ 119 , 147 ].…”

Assessing the long-term asymmetric relationship between energy consumption and CO2 emissions: Evidence from the Visegrad Group countries

“…Most research indicated a negative, mostly U-shaped relationship between renewable energy consumption and CO 2 reduction, whether for Asian countries (Muhammad & Khan, 2019)energy use, CO 2 emissions and capital role in the economic growth. This study applies generalized method of moments (GMM, African (Inglesi-Lotz & Dogan, 2018), OECD (Bilgili et al, 2016), the European Union (Muço et al, 2021), United States (Ali et al, 2020), 150 countries of the world (Cialani, 2017), or all economies (Dissanayake et al, 2023).…”

Digital Economy, Clean Energy Consumption, and High-Quality Economic Development: The Case of China

“…At the Fifth Plenary Session of the 19th CPC Central Committee, the CPC Central Committee proposed to build a new development pattern with the domestic macro-cycle as the main body and the domestic and international double-cycle promoting each other, which is an opportunity for our country to follow the trend and realize the sustainable development of energy with high quality. China's demand for energy will undoubtedly continue to grow in the context of high-quality economic development, and the stimulation of the economy needs to be accompanied by a focus on actions to reduce carbon dioxide emissions and the development of renewable energy sources [34]. Empirical studies from China have proven that optimizing energy structure [35,36] and energy resource allocation [37] has a positive effect on promoting the high-quality development of China's economy.…”