The Impact of Renewable Energy Consumption and Economic Growth on Co2 Emissions: New Evidence Using Panel Ardl Study of Selected Countries

Abstract

Most countries consume more non-renewable energy to generate economic activities. Hence, economic growth plays a vital role in contributing to higher CO 2 emissions. Therefore, this type of energy has reduced and replaced by renewable energy. Renewable energy is said not to be detrimental to the environment. Consequently, it is imperative to examine the effects of renewable energy consumption and economic growth on CO 2 emissions in selected countries by per capita income. Using a sample of high-income, upper-middle-income, and lower middle -income, and low-income countries for the period of 1990-2017, and the estimation method of the panel ARDL, the main results show that in the long run, overall renewable energy consumption can reduce CO 2 emissions. However, economic growth and population growth can result in higher CO 2 emissions in the long term. In the short run, the results show that higher overall economic growth can contribute to higher CO 2 emissions. Contrarily, higher population growth, and renewable energy consumption can help reduce CO 2 emissions in the short run.

International Environmental Agreements and CO2 Emissions: Fresh Evidence from 11 Polluting Countries

“…Furthermore, Zeb investigates the causal effects among CO 2 emissions, economic growth, and nuclear energy in 25 countries and finds a short-run causality between the CO 2 and economic growth (Zeb et al 2014). Similarly, Shaari, Abidin, and Karim support that in the short run higher economic growth results in higher CO 2 emissions in the case of 20 selected countries (Shaari et al 2020). The authors use the ARDL-PMG approach, while they divide their sample into four distinct sub-groups based on income characteristics (high-income, upper-middle-income, lower-middle-income, and lower-income countries).…”

“…Moreover, to assess both the long-run and the short-run dynamics of our ARDL model, we proceed to PMG, MG, and DFE estimations and the appropriate Hausman tests, dealing with issues of heterogeneity across the group of countries, as proposed by Pesaran, Shin, and Smith (Pesaran and Smith 1995;Pesaran et al 1999). The PMG method permits the existence of "short run relationships containing the coefficients, the speed of adjustment and the error variances to be heterogenous, while PMG assumes that the long-run coefficients are the same, i.e., identical and homogenous for all the countries in the panel" (Shaari et al 2020). Under the MG technique, heterogeneity is as-sumed both in the short and long run, while the results are consistent even if the regressors are I(1) (Pesaran et al 1999).…”

“…In the context of ARDL-PMG and DFE, our reference model, Equation (1), will take the following form in the long run, as in Shaari, Abidin, and Karim (Shaari et al 2020):…”

“…Taking into account both the environmental policies and the United Nations Sustainable Development Goals (SDGs) as described in Adebayo et al 2021 in the case of South Korea. To the best of our knowledge, the studies focusing on the biggest economies are limited (Behera and Mishra 2019;Shaari et al 2020). In addition, the study strives to explore the potential relationship of GDP, energy use, and renewable energy consumption from the perspective of CO 2 emissions.…”

Investigating the impact of RE consumption on CO2 emissions: evidence from the SAARC countries

“…In recent time periods, massive changes in climate around the world have been observed because of the vast usage of energy sources (such as fossil fuels) causing dangerous eff ects not only on the environment but also on human well-being [1]. In recent periods, most countries over the world, mainly developed and developing, have been using an enormous volume of energy for ensuring their economic development.…”