CO2 emissions, renewable and non-renewable energy consumption, and economic growth: Evidence from panel data for developing countries

This study extends previous environmental sustainability literature by investigating the joint impact of economic growth and renewable energy on reducing CO2 emissions in Saudi Arabia over the period 1990–2016. Using the fully modified ordinary least-square (FMOLS) and dynamic ordinary least-square DOLS estimators, we find that economic growth increases CO2 emissions in all estimated models. Moreover, the validity of the environmental Kuznets curve (EKC) hypothesis is only supported for CO2 emissions from liquid fuel consumption. The invalidity of the EKC hypothesis in the most commonly used models implies that economic growth alone is not sufficient to enhance environmental quality. Renewable energy is found to have a weak influence on reducing the indicators of environmental degradation. We also find that the joint impact of renewable energy consumption and economic growth on the indicators of CO2 emissions is negative and insignificant for all the estimated models, meaning that the level of renewable energy consumption in Saudi Arabia is not sufficient to moderate the negative effect of economic growth on environmental quality. Implications for policy are also discussed.

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On the causal dynamics between renewable and non-renewable energy consumption and economic growth in developed and developing countries

Energy Systems ◽

10.1007/s12667-011-0037-6 ◽

2011 ◽

Vol 2 (3-4) ◽

pp. 299-312 ◽

Cited By ~ 42

Author(s):

Nicholas Apergis ◽

James E. Payne

Keyword(s):

Economic Growth ◽

Developing Countries ◽

Renewable Energy ◽

Energy Consumption ◽

Renewable Energy Consumption

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The Effect of Population, Public Investments, and Economic Growth on Regional Renewable Energy Consumption in Turkey

Advances in Business Information Systems and Analytics - Handbook of Research on Applied Data Science and Artificial Intelligence in Business and Industry ◽

10.4018/978-1-7998-6985-6.ch023 ◽

2021 ◽

pp. 491-504

Author(s):

Özlem Karadağ Albayrak

Keyword(s):

Economic Growth ◽

Renewable Energy ◽

Energy Consumption ◽

Panel Data ◽

Renewable Energy Sources ◽

Regional Scale ◽

Dynamic Panel Data ◽

Energy Sources ◽

Renewable Energy Consumption ◽

Public Investments

Making the use of renewable energy sources widespread is of paramount importance for Turkey as for all countries. In this regard, the determiners of renewable energy consumption have been investigated. The effect of determining or factors affecting the use of renewable energy sources on a regional scale to Turkey were examined with different qualitative and quantitative research techniques. In this study, the factors of economic growth, public investments, and population are analyzed by considering regional differences on the consumption of renewable energy resources. The effect of regional economic growth, regional public investments, and regional population on the amount of regional renewable energy consumption were investigated by using panel data of 26 statistical regions of Level-2 classification in the period between 2010-2018 in Turkey. The results obtained by the dynamic panel data analysis concluded that economic growth and public investments at the regional level increased renewable energy consumption while the population growth decreased.

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CO2 Emissions, Energy Consumption, and Economic Growth: New Evidence in the ASEAN Countries

Journal of Risk and Financial Management ◽

10.3390/jrfm12030145 ◽

2019 ◽

Vol 12 (3) ◽

pp. 145 ◽

Cited By ~ 6

Author(s):

Vo ◽

Le

Keyword(s):

Economic Growth ◽

Renewable Energy ◽

Energy Consumption ◽

Granger Causality ◽

Co2 Emissions ◽

Causal Effect ◽

The Philippines ◽

Policy Implications ◽

Renewable Energy Consumption ◽

Long Run

The members of the Association of Southeast Asian Nations (ASEAN) have made several attempts to adopt renewable energy targets given the economic, energy-related, environmental challenges faced by the governments, policy makers, and stakeholders. However, previous studies have focused limited attention on the role of renewable energy when testing the dynamic link between CO2 emissions, energy consumption and renewable energy consumption. As such, this study is conducted to test a common hypothesis regarding a long-run environmental Kuznets curve (EKC). The paper also investigates the causal link between carbon dioxide (CO2) emissions, energy consumption, renewable energy, population growth, and economic growth for countries in the region. Using various time-series econometrics approaches, our analysis covers five ASEAN members (including Indonesia, Myanmar, Malaysia, the Philippines, and Thailand) for the 1971–2014 period where required data are available. Our results reveal no long-run relationship among the variables of interest in the Philippines and Thailand, but a relationship does exist in Indonesia, Myanmar, and Malaysia. The EKC hypothesis is observed in Myanmar but not in Indonesia and Malaysia. Also, Granger causality among these important variables varies considerably across the selected countries. No Granger causality among carbon emissions, energy consumption, and renewable energy consumption is reported in Malaysia, the Philippines, and Thailand. Indonesia experiences a unidirectional causal effect from economic growth to renewable energy consumption in both short and long run and from economic growth to CO2 emissions and energy consumption. Interestingly, only Myanmar has a unidirectional effect from GDP growth, energy consumption, and population to the adoption of renewable energy. Policy implications have emerged based on the findings achieved from this study for each country in the ASEAN region.

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Linking between Renewable Energy, CO2 Emissions, and Economic Growth: Challenges for Candidates and Potential Candidates for the EU Membership

Sustainability ◽

10.3390/su11061528 ◽

2019 ◽

Vol 11 (6) ◽

pp. 1528 ◽

Cited By ~ 32

Author(s):

Yuriy Bilan ◽

Dalia Streimikiene ◽

Tetyana Vasylieva ◽

Oleksii Lyulyov ◽

Tetyana Pimonenko ◽

...

Keyword(s):

Economic Growth ◽

Renewable Energy ◽

Energy Consumption ◽

Co2 Emissions ◽

Panel Cointegration ◽

Potential Candidate ◽

Total Energy Consumption ◽

Renewable Energy Consumption ◽

Eu Membership ◽

The Eu

This paper investigates the impact of renewable energy sources (RESs), CO2 emissions, macroeconomics, and the political stability in a country on the Gross Domestic Product (GDP). The authors analyse the dynamics of RESs use, CO2 emissions, and GDP development and also test the following hypotheses: (1) The country’s economic growth is related to the energy consumption, in terms of both human resources and capital; (2) the share of the renewable energy consumption of the total energy consumption has a positive impact on the economic growth; and (3) the share of the renewable energy consumption of the total energy consumption is unrelated to the economic growth. To test the above hypotheses, the authors use the modified Cobb-Douglas production function, which also considers RES production volumes, CO2 emissions, and economic growth. The study employs data between 1995 to 2015 from the candidate and potential candidate countries for the EU membership. The data are drawn from the World Bank and Eurostat. The analyses entail panel unit root tests, Pedroni panel cointegration tests, fully modified OLS (FMOLS), dynamic OLS (DOLS) panel cointegration techniques, and the Vector Error Correction model (VECM). The findings confirm the relationship between RESs, CO2 emissions, and the GDP. For the EU countries, RESs as human resources and capital have an impact on the GDP. Moreover, the results reveal a correction retraction when the economic growth leads to an increase in renewable energy consumption. The investigation also finds that candidate and potential candidate countries for the EU membership should foster renewable energy development. The authors conclude that developing affordable and effective instruments and mechanisms to boost the RES implementation is necessary to decrease the anthropogenic impact on the environment (in particular, decreasing CO2 emissions) without any attendant reduction in the economic growth.

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