Renewable Energy Consumption, CO2 Emissions, and Economic Growth Nexus: A Simultaneity Spatial Modeling Analysis of EU Countries

Radmehr, Riza; Henneberry, Shida Rastegari; Shayanmehr, Samira

doi:10.1016/j.strueco.2021.01.006

Cited by 286 publications

(156 citation statements)

References 101 publications

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“…Their economic growth is fast-paced and overall yield is higher as compared to the developed economies. This is also taking into account that the overall country-specific risk in these countries is higher than that in developed countries-the return outweighs the risk factor [14]. One of the main challenges in research related to measuring the contribution of renewable energy towards economic growth is the use of a singular model or techniques that may not be appropriate for the generalization of the results.…”

Section: Introductionmentioning

confidence: 99%

Impact of Renewable Energy on Economic Growth and CO2 Emissions—Evidence from BRICS Countries

Otero

Sial

et al. 2021

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The global focus on the use of renewable energy resources was mainly reignited by the signing of the Kyoto Protocol Agreement in 1997. Since then, the world has seen a great deal of progress in terms of the production and consumption of renewable energy. This in turn is rapidly powering economic growth and social development around the globe. Contrary to popular belief, the use of renewable energy is not limited to developed countries only. The developing countries are also rapidly endorsing renewable energy as a vital engine of economic growth and societal development. In this regard, even though renewable energy production and consumption are in their infancy in BRICS, these countries are taking concrete steps towards the development of renewable energy resources. The results of previous studies have indicated that with an increase in the GDP of a country its carbon footprint also tends to increase; the Brazil, Russia, India, China, and South Africa (BRICS) countries are no exception in this regard. One of the main challenges in research related to measuring the contribution of renewable energy towards economic growth is the use of a singular model or techniques that may not be appropriate for the generalization of the results. This study intends to overcome this challenge by application of multiple econometric-based models which include the “Cross Dependency” test, the unit root test, and “CIPS” (cross-sectional augmented IPS). Besides these the second generation, stochastic models based upon econometrics, such as the DOLS test (dynamic ordinary least square) and the FMOLS (fully modified ordinary least square) are also applied for verification of the contribution of renewable energy towards the economic growth of the BRICS countries. The novelty of the study mainly stems from fact that these models are seldom applied in tandem and especially in the BRICS countries. The results of the study indicate that the existence of the bi-directional relationship between the use of renewable energy and economic growth is mainly indicated by the increase in GDP, thus lending support to the feedback hypothesis. Moreover, the conservation hypothesis was proven by the existence of a unidirectional causality relationship between the use of renewable energy and CO2 emissions. Alongside these, the study also included sensitivity analysis to gauge the impact of the growth of GDP on the CO2 emissions of BRICS countries, and regression analysis was performed to create an EKC curve which was used to gauge not only the sensitivity but also to help in highlighting the impact of using renewable energy in controlling and reducing CO2 emissions, thus proving the EKC theory. Thus, it can be deduced that increase in CO2 emissions is of major concern for the BRICS countries, which has led them to increase the production of renewable energy. Based upon the findings of the present study it is recommended that policymakers should encourage the use of renewable energy by offering incentives in financial terms, such as interest-free or low-interest loans, subsidies and feed-in tariffs.

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Section: Introductionmentioning

confidence: 99%

Impact of Renewable Energy on Economic Growth and CO2 Emissions—Evidence from BRICS Countries

Otero

Sial

et al. 2021

Processes

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“…The current studies use different estimate methods to study the relationship between carbon emissions and low-carbon innovations, such as GMM (Töbelmann and Wendler, 2020;Zhang et al, 2017), the non-radial global Malmquist carbon emissions performances index (NGMCPI) (Zhang et al, 2016), second-generation panel integration methodologies (Khan et al, 2020), VAR (Irandoust, 2016), and GS2SLS (Jin, 2019;Radmehr et al, 2021). Nevertheless, a spatial panel model is preferred in analysis when considering the spatial correlations among regions (You and Lv, 2018).…”

Section: Introductionmentioning

confidence: 99%

Low-carbon Innovation, Economic Growth and CO2 Emission: Evidence from a Dynamic Spatial Panel Approach in China

Cai-jiang

2021

Preprint

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Low-carbon technology innovation plays an essential role in carbon emission reduction worldwide. This study investigates how low-carbon innovation affects carbon emissions by the Dynamic Spatial Durbin Model based on the panel data of 30 Chinses provinces from 2007 to 2017. The empirical results show that: Firstly, low-carbon innovation decreases carbon emissions from local and neighbor, the decreasing effects are significant mainly in the short term. Secondly, the results of the heterogeneity test indicate that the weakening effect of low-carbon innovation in central regions is consistent with the national results. The weakening effects are shown in long-term indirect and short-term direct in eastern regions. Thirdly, there is an inverted-U curve between economic development and carbon emissions, confirming the environmental Kuznets curve (EKC) hypothesis. However, the inflection point is insurmountable under the current level of technology in China. Finally, The results also show the “Pollution Paradise” effect.

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“…Substituting fossil by clean, RE sources could reduce the worldwide mortality by 65%, and up to 84% in the U.S. [28]. Environmental pollution has direct and indirect destructive effects on aggregate output via disease and health spending, as well as reducing labour productivity, and other damaging externalities [29]. [30] confirms that excess mortality related to the COVID-19 epidemic is because of air pollution by particulate matter in Italy in the first quarter of 2020.…”

Section: Introductionmentioning

confidence: 88%

Infant mortality rates and nonrenewable energy consumption in Asia and the Pacific: The mediating role of carbon emissions

Adeleye¹,

Azam²,

Osabuohien³

et al. 2021

Preprint

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This study aligns with the 2030 United Nations Sustainable Development Goals- 3 which aim to “ensure healthy lives and promote well-being for all at all ages”. It contributes to the nascent literature stream on energy-health dynamics by introducing a holistic theoretical model to empirically examine the mediation effect of carbon emissions on the relationship between nonrenewable energy and infant mortality rates. Using an unbalanced panel data on 42 Asia and the Pacific countries from 2005 to 2015 and deploying the structural equation modeling approach, the empirical results are surmised as follows: (i) in regard to the full sample of countries, nonrenewable energy indirectly increases infant mortality rates through increasing carbon emissions. In other words, carbon emissions play a partial mediation role between nonrenewable energy and infant mortality rates; and (ii) for the different income groups, carbon emissions show varying mediation effects. For example, the mediation effects of carbon emissions in lower-middle and upper-middle income countries are found to be similar to those of the full sample of countries. Therefore, based on these findings, we conclude that nonrenewable energy is an essential determinant of infant mortality rates. Policy recommendations are put forward.

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Renewable Energy Consumption, CO2 Emissions, and Economic Growth Nexus: A Simultaneity Spatial Modeling Analysis of EU Countries

Cited by 286 publications

References 101 publications

Impact of Renewable Energy on Economic Growth and CO2 Emissions—Evidence from BRICS Countries

Impact of Renewable Energy on Economic Growth and CO2 Emissions—Evidence from BRICS Countries

Low-carbon Innovation, Economic Growth and CO2 Emission: Evidence from a Dynamic Spatial Panel Approach in China

Infant mortality rates and nonrenewable energy consumption in Asia and the Pacific: The mediating role of carbon emissions

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