The effects of renewable energy, spatial spillover of CO2 emissions and economic freedom on CO2 emissions in the EU

Renewable Energy and CO2 Emissions: Empirical Evidence from Major Energy-Consuming Countries

“…In a more recent study, Shahnazi and Dehghan Shabani [29] used a spatial dynamic panel data model to assess the factors affecting CO 2 emissions in the EU countries during 2000-2017. According to the affirmed results, the renewable energy consumption had a negative influence on CO 2 emissions, and a U-shaped relationship was found between economic freedom and CO 2 emissions.…”

The Impact of Quality of Governance, Renewable Energy and Foreign Direct Investment on Sustainable Development in Cee Countries

“…However, the effect of renewable energy on pollution is mixed, because biomass burning can negatively impact the environment. Empirical findings have confirmed the positive effects of renewable energy consumption on pollution (Destek and Aslan, 2020;Assi et al, 2021;Shahnazi and Shabani, 2021). Sharif et al (2020) also analyze the relationship between renewable energy utilization and environmental degradation on a dataset comprising the top 10-polluted countries and found a bidirectional causal link between renewable energy consumption and environmental degradation in most countries, except India, Indonesia, and China, where the relationship is inconclusive.…”

“…The cross-sectional dependence is explained by the fact that the level of pollution in one country might depend on the pollution of another country in the sample. This correlation was empirically proven by Shahnazi and Shabani (2021) for EU countries in the period 2000-2017 using a spatial dynamic panel data model. The authors show that the CO2 level in a country depends on the CO2 emissions in neighboring countries.…”

“…The use of REC in promoting sustainability through reductions in pollution was proven in this study, as supported by other studies. For example, Shahnazi and Shabani (2021) showed that renewable energy consumption reduced the level of pollution in EU countries in the period 2000-2017 reducing environmental degradation. Environmental sustainability improved in ASEAN +3 countries due to renewable energy consumption in the period 1998-2018 (Assi et al, 2021).…”

“…In general, economic freedom is positively associated with the quality of the environment, when economic freedom is operationalized by the trade freedom index, business freedom index, and financial freedom index (Adesina and Mwamba, 2019), government subsidies on carbon pollutants (von Moltke, 2012), environmental policies such as financial and tax policies (Li et al, 2016), when using the economic freedom index (Lazăr et al, 2019), etc. Despite the abundant body of papers indicating the positive relationship between economic freedom and the quality of the environment, there have also been reported few inconclusive (Joshi and Beck (2018) and negative results (Saint Akadırı et al, 2019), and some have reported a U-shaped relationship (Shahnazi and Shabani, 2021).…”