The roles of nuclear energy, renewable energy, and economic growth in the abatement of carbon dioxide emissions in the G7 countries

This paper evaluates the link between economic growth, renewable energy, tourism arrivals, trade openness, and carbon dioxide emissions in the European Union (EU-28). As an econometric strategy, the research uses panel data. In the first step, we apply the unit root test, and the results demonstrated that the variables used in this study are integrated I (1) in the first difference. In the second step, we apply the Pedroni cointegration test, and Kao Residual cointegration test, and we observe that the variables are cointegrated in the long run. The panel fully modified least squares (FMOLS), panel dynamic least squares (DOLS), and generalized moments system (GMM-System) estimator are considered in this research. The econometric results proved that trade openness and renewable energy decreased climate change and environmental degradation. The empirical study also found a positive effect of economic growth on carbon dioxide emissions. Moreover, tourism arrivals are negatively correlated with carbon dioxide emissions, showing sustainability practices of the tourism sector on the environment. Furthermore, carbon dioxide emissions in the long run present a positive impact, indicating that climate change increases. In this study, we also consider the recent methodology of Dumitrescu–Hurlin to observe the causality and the relationship between renewable energy, trade openness, economic growth, tourism arrivals, and carbon dioxide emissions.

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The Causal Relationship between Renewable Energy Consumption, Economic Growth and Carbon Dioxide Emissions: Evidence from Middle East and North Africa

International Conference on Eurasian Economies 2015 ◽

10.36880/c06.01284 ◽

2015 ◽

Author(s):

Ebru Çağlayan Akay ◽

Raziya Abdiyeva ◽

Zamira Oskonbaeva

Keyword(s):

Economic Growth ◽

Carbon Dioxide ◽

Renewable Energy ◽

Energy Consumption ◽

Middle East ◽

Causal Relationship ◽

North Africa ◽

Carbon Dioxide Emissions ◽

Renewable Energy Consumption ◽

Panel Vector Autoregression

Renewable energy plays a crucial role in increasing economic growth while reducing carbon dioxide emissions. The aim of this study is to examine the interaction between renewable energy consumption, economic growth and carbon dioxide emissions for selected Middle East and North Africa countries. For this aim, panel vector autoregression approach are used in the study. The annual data used in this study cover the period from 1988 to 2010 for Middle East and North Africa countries. Firstly, second generation unit root test are used to investigate stationarity properties of the variables and second generation panel cointegration test is applied to the data under consideration because of the cross-sectional dependence. Then a panel causality approach is proposed to examine the causal relationship between the variables. Finally, panel vector autoregression model, impulse-response and variance decomposition analysis are applied using generalized moment methods. The finding of this study shows that there is a bi-directional causality between growth and renewable energy consumption, which is consistent with the feedback hypothesis in terms of the energy consumption-growth nexus. It is found the evidence of unidirectional causality from carbon dioxide emissions to renewable energy consumption and from growth to carbon dioxide emissions. It is also found that the responses of growth to a shock of energy consumption are positive and the impact of renewable energy consumption on carbon dioxide emissions is negative.

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The Paradoxical Relationship between Renewable Energy and Economic Growth: A Cross-National Panel Study, 1990-2013

Journal of World-Systems Research ◽

10.5195/jwsr.2017.711 ◽

2017 ◽

Vol 23 (2) ◽

pp. 540-564 ◽

Cited By ~ 12

Author(s):

Ryan P Thombs

Keyword(s):

Economic Growth ◽

Carbon Dioxide ◽

Renewable Energy ◽

Energy Consumption ◽

Carbon Emissions ◽

Carbon Dioxide Emissions ◽

Total Carbon ◽

Renewable Energy Consumption ◽

Negative Effect ◽

Cross National

This cross-national study employs a time-series cross-sectional Prais-Winsten regression model with panel-corrected standard errors to examine the relationship between renewable energy consumption and economic growth, and its impact on total carbon dioxide emissions and carbon dioxide emissions per unit of GDP. Findings indicate that renewable energy consumption has its largest negative effect on total carbon emissions and carbon emissions per unit of GDP in low-income countries. Contrary to conventional wisdom, renewable energy has little influence on total carbon dioxide emissions or carbon dioxide emissions per unit of GDP at high levels of GDP per capita. The findings of this study indicate the presence of a “renewable energy paradox,” where economic growth becomes increasingly coupled with carbon emissions at high levels of renewable energy, and the negative effect of economic growth on carbon emissions per unit of GDP lessens as renewable energy increases. These findings suggest that public policy should be directed at deploying renewable energy in developing countries, while focusing on non-or-de-growth strategies accompanied with renewable energy in developed nations.

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