The Impact of Renewable Electricity Output on Sustainability in the Context of Circular Economy: A Global Perspective

Abstract

In this article, we investigate the impact of “Renewable Electricity Output” on the green economy in the context of the circular economy for 193 countries in the period 2011–2020. We use data from the World Bank ESG framework. We perform Panel Data with Fixed Effects, Panel Data with Random Effects, Weighted Last Squares-WLS, and Pooled Ordinary Least Squares-OLS. Our results show that Renewable Electricity Output is positively associated, among others, with “Adjusted Savings-Net Forest Depletion” and “Renewable Energy Consumption” and negatively associated, among others, with “CO2 Emission” and “Cooling Degree Days”. Furthermore, we perform a cluster analysis implementing the k-Means algorithm optimized with the Elbow Method and we find the presence of four clusters. In adjunct, we confront seven different machine learning algorithms to predict the future level of “Renewable Electricity Output”. Our results show that Linear Regression is the best algorithm and that the future value of renewable electricity output is predicted to growth on average at a rate of 0.83% for the selected countries. Furthermore, we improve the machine learning analysis with a Deep Learning approach using Convolutional Neural Network-CNN but the algorithm is not appropriate for the analyzed dataset. Less complex machine learning algorithms show better statistical results.

Navigating interconnected and electrified industries in the landscape of uncertainty : Exploring outcomes and values within circular solutions, and Swedish electricity supply and utilisation dynamics

“…The existing research thus predominantly addresses business models in relation to waste management, with energy utilisation being a secondary focus (Kristia & Rabbi, 2023). The bulk of the investigations are geared towards the study of material flow and waste.…”

“…In discussions surrounding the circular economy and renewable energy, several key topics emerge. These include end-of-life management for photovoltaic systems, the adoption of alternative fuels, waste-to-energy technologies, and the role of bioenergy and biogas production (Kristia & Rabbi, 2023).…”

The Role of Political Stability in the Context of ESG Models at World Level

“…The question of respect for the ethical, social, and environmental dimensions of capitalism has become internal to companies and part of the managerial sciences. That is, the issues of ethical, social, and environmental sustainability [2] have gone from the dimension of policy to managerial sciences. In the current cultural approach, therefore, it is believed that politicians must not solve the problems of the ethical, environmental, and social impact of companies, but rather that this competence must be delegated to mangers, who must do it not for higher purposes, but to maximize the value of your company, the reputation, and the ability to acquire new investors, workforce, and consumers.…”

The Impact of Government Expenditure on Education in the ESG Models at World Level

“…It is the managerial training that tends to determine the ability of companies to perform well or badly based on certain criteria, for example in their choice between profit maximization or stakeholder maximization [1], [2], [3], [4]. The investigation of the role of education in necessary for a better comprehension of the impacts of ESG models at world level [5], [6], [7], [8], [9], [10], [11], [12], [13], [14], [15], [16]. However, it is necessary to distinguish between developing and industrialized countries.…”