RETRACTED: G-20 economies and their environmental commitments: Fresh analysis based on energy consumption and economic growth

Abstract

The impact of economic growth and energy use is still controversial regarding sustainability, and researchers have limited consensus in this regard. Electricity is considered more environmentally friendly compared with direct fossil fuel consumption. However, many developed economies still depend on fossil fuel sources for electricity generation. Therefore, this study attempted to verify the relationship between electricity consumption and carbon emissions in developed economies in the Group of Twenty (G20). Economic growth and foreign direct investment are other important variables for analyzing this relationship. For this purpose, a dataset from 1995–2018 was generated. The study used econometric methods including cross-sectional dependence, cointegration, Fully Modified Ordinary Least Square Dynamic Ordinary Least Square estimators, and the Pair-wise panel Granger causality test to view the latest picture of the relationship between dependent and independent factors. Surprisingly, the outcome of electricity consumption showed a positive relationship with the growth of CO2. This indicates that electricity production is still dependent on sources that help increase CO2 emissions in G20 countries. Furthermore, the outcomes of gross domestic product and its square term confirm the notion of the Environmental Kuznets Curve for these economies. These results suggest that policymakers promote green and clean electricity sources for sustainable economic growth.

The Long-Run Relationship Between Renewable Energy Consumption, Non-Renewable Energy Consumption, Population, and Economic Growth in G20 Countries

“…The analysis revealed a positive correlation between economic growth and energy consumption in several countries, leading to increased CO2 emissions. Li et al [29] conducted research in the G20 countries, employing several econometric techniques such as cross-sectional dependence, cointegration, FMOLS, DOLS, and the pair-wise panel Granger causality test. This analysis reveals a long-term elasticity that demonstrates a notable positive impact of both renewable and non-renewable energy consumption on economic activity within various sectors and overall economic output.…”

Evaluating the Current Energy-Cleanability Position and its Impact on the Economic Sustainability

“…The energy cleanability gap, however, substantially impacts several unstudied socioeconomic aspects. Moreover, existing literature covers mainly developed countries' sustainability perspective, i.e., Akhtar, M. J., Ashraf, W., Rehman, H. (2020); Li et al, (2022); Akhter, M. J., Rehman, H., & Abass, Q. (2022).…”

“…However, the 10th to 40th quantiles, where DEX has a substantial impact, contradict former GMM results. In this regard, P Li et al (2022). concluded that development spending is a big booster for economic sustainability.…”

Renewable and Non-renewable Energy Consumption in Indonesia: Does it Matter for Economic Growth?

“…dangerous for the environment which is considered to increase CO 2 emissions and damage the environment (Nawaz et al, 2020;Hubacek et al, 2021;Li et al, 2022). One of the main methods to deal with environmental damage is to use renewable energy consumption, which comes from solar, wind, hydropower, and biomass energy.…”