Solar Energy and CO2 Emissions: CCEMG Estimations for 26 Countries

Causality Test ◽

Cross Sectional ◽

Common Correlated Effects ◽

Abstract Although research establishes that the impact of renewable energy on environmental sustainability is critical in the era of globalization, the individual impact of renewable energy on the environment is often ignored. Therefore, this article examines the long-term relationships and direction of these relationships between solar energy consumption, coal energy consumption, financial globalization, economic growth, and environmental pollution for the period from 2000 to 2019 for 26 countries. The study used a range of econometric techniques that account for the cross-sectional dependence and slope homogeneity observed in the panel. The results of the common correlated effects mean group (CCEMG) estimator showed that solar energy consumption has a negative and significant effect on the level of carbon emissions. In addition, economic growth and coal energy increase carbon emissions. Finally, the results of the panel causality test confirmed the existence of various causal relationships among the variables.

Solar Energy and CO2 Emissions: CCEMG Estimations for 26 Countries

10.21203/rs.3.rs-688369/v2 ◽

2021 ◽

Author(s):

Taner Güney ◽

Duygu Ince

Keyword(s):

Energy Consumption ◽

Solar Energy ◽

Cross Section ◽

Causality Test ◽

Fossil Energy ◽

Long Run ◽

Common Correlated Effects ◽

The Common ◽

Abstract The impact of renewable energy on environmental sustainability has become much more critical in the era of globalization. Therefore, this study examines the long-run relationships between solar energy consumption, coal energy consumption, financial globalization, economic growth, and CO2 emissions for 26 countries from 2000-2019. We preferred the common correlated effects mean group (CCEMG) method, which considers the cross-section dependence and slope homogeneity observed in the panel. According to CCEMG estimates, solar energy consumption has a negative and significant effect on the level of carbon emissions. Accordingly, a 1% increase in solar energy causes a 0.0106671% reduction in CO2 emissions. On the other hand, a 1% increase in fossil energy consumption causes a rise of 0.2403829% in CO2 emissions. Furthermore, the empirical results of the causality test showed a bidirectional causality between solar energy consumption and CO2 emissions. As a result, this study reveals the importance of solar energy in reducing CO2 emissions.

Does Globalization Moderate the Effect of Economic Complexity on CO2 Emissions? Evidence From the Top 10 Energy Transition Economies

Frontiers in Environmental Science ◽

10.3389/fenvs.2021.778088 ◽

2021 ◽

Vol 9 ◽

Author(s):

Kai He ◽

Muhammad Ramzan ◽

Abraham Ayobamiji Awosusi ◽

Zahoor Ahmed ◽

Mahmood Ahmad ◽

...

Keyword(s):

Economic Growth ◽

Renewable Energy ◽

Transition Economies ◽

Carbon Emissions ◽

Energy Transition ◽

Cross Sectional ◽

Economic Complexity ◽

Long Run ◽

The Government

The association between economic complexity (sophisticated economic structure) and carbon emissions has major implications for environmental sustainability. In addition, globalization can be an important tool for attaining environmental sustainability and it may also moderate the association between economic complexity and carbon emissions. Thus, this research examines the effects of economic complexity, economic growth, renewable energy, and globalization on CO2 emissions in the top 10 energy transition economies where renewable energy and globalization have greatly increased over the last 3 decades. Furthermore, this study also evaluates the joint effect of globalization and economic complexity on carbon emissions. Keeping in view the presence of slope heterogeneity and cross-sectional dependence in the data, this research utilized second-generation unit root tests (CIPS and CADF), Westerlund cointegration approach, and CS-ARDL and CCEMG long-run estimators over the period of 1990–2018. The results affirmed the presence of cointegration among the considered variable. Long-run findings revealed that globalization, renewable energy, and economic complexity decrease carbon emissions. Conversely, economic growth increases carbon emissions. Moreover, the joint impact of economic complexity and globalization stimulates environmental sustainability. Based on these findings, the government of these groups of economies should continue to expand the usage of renewable energy. They should also promote interaction with the rest of the world by adopting the policy of opening up.

Economic growth, renewable and nonrenewable energy consumption nexus in India

International Journal of Energy Sector Management ◽

10.1108/ijesm-06-2019-0016 ◽

2020 ◽

Vol 14 (4) ◽

pp. 777-792 ◽

Cited By ~ 1

Author(s):

Shruti Shastri ◽

Geetilaxmi Mohapatra ◽

A.K. Giri

Keyword(s):

Economic Growth ◽

Renewable Energy ◽

Energy Consumption ◽

Causality Test ◽

Content Type ◽

Long Run ◽

The Impact ◽

Asymmetric Causality ◽

Nonrenewable Energy

Purpose The purpose of this paper is to examine the nexus among economic growth, nonrenewable energy consumption and renewable energy consumption in India over the period 1971-2017. Design/methodology/approach This study uses nonlinear autoregressive distributed lags model and asymmetric causality test to explore nonlinearities in the dynamic interaction among the variables. Findings The findings indicate that the impact of nonrenewable energy consumption and renewable energy consumption on the economic growth is asymmetric in both long run and short run. In long run, a positive shock in nonrenewable energy consumption and renewable energy consumption exerts a positive impact on growth. However, the negative shocks in nonrenewable energy consumption produce larger negative effects on the growth. The results of nonlinear causality test indicate a unidirectional causality from nonrenewable energy consumption and renewable energy consumption to economic growth and thus support “growth hypothesis” in context of India. Practical implications The findings imply that policy measures to discourage nonrenewable energy consumption may produce deflationary effects on economic growth in India. Further, the findings demonstrate the potential role of renewable energy consumption in promoting economic growth. Originality/value To the best of the authors’ knowledge, this study is the first attempt to explore nonlinearities in the relationship between economic growth and the components of energy consumption in terms of renewable and nonrenewable energy consumption.

Renewable and non-renewable energy consumption, economic growth and carbon emission in BRICS

International Journal of Energy Sector Management ◽

10.1108/ijesm-02-2019-0007 ◽

2020 ◽

Vol 14 (1) ◽

pp. 248-260 ◽

Cited By ~ 5

Author(s):

Umer Jeelanie Banday ◽

Ranjan Aneja

Keyword(s):

Economic Growth ◽

South Africa ◽

Renewable Energy ◽

Energy Consumption ◽

Gdp Growth ◽

Causality Test ◽

Cross Sectional ◽

Content Type ◽

Growth Hypothesis

Purpose The purpose of this study is to find the causal relationship among energy consumption (renewable energy and non-renewable energy), gross domestic product (GDP) growth and carbon dioxide (CO2) emission for Brazil, Russia, India, China and South Africa for the period of 1990-2017. Design/methodology/approach The study uses bootstrap Dumitrescu and Hurlin panel causality test, which accepts heterogeneity and dependency in cross-sectional units across emerging countries. Findings The results find unidirectional causality from GDP to CO2 for India, China, Brazil, South Africa and no causality for Russia. The causality results from renewable energy consumption to GDP show that there is evidence of feedback hypothesis for China and Brazil, growth hypothesis for Russia, conservation hypothesis for South Africa and neutrality hypothesis for India. However, the results accept growth hypothesis for India, China, Russia, Brazil and neutrality hypothesis for South Africa. In the case of renewable energy and non-renewable energy consumption to CO2 emission, the results find convergence in India, Russia and South Africa and divergence in China and Brazil. Originality/value It is the first study that investigates the part of balanced economic growth, instead of simply financial development in those economies. Numerous studies have used diverse factors such as economic development, renewable energy, non-renewable energy and CO2 emission; however, the examination has used total GDP growth rate, energy consumption and CO2 emissions.

The impact of renewable energy consumption and environmental sustainability on economic growth in Africa

Energy Reports ◽

10.1016/j.egyr.2021.05.083 ◽

2021 ◽

Vol 7 ◽

pp. 3877-3886

Author(s):

Hassan Qudrat-Ullah ◽

Chinedu Miracle Nevo

Keyword(s):

Economic Growth ◽

Renewable Energy ◽

Energy Consumption ◽

The Effect of Energy Consumption and Economic Growth on Environmental Sustainability in the GCC Countries: Does Financial Development Matter?

Energies ◽

10.3390/en14185897 ◽

2021 ◽

Vol 14 (18) ◽

pp. 5897

Author(s):

Hala Baydoun ◽

Mehmet Aga

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Co2 Emissions ◽

Financial Development ◽

Unit Root ◽

Kuznets Curve ◽

Causality Test ◽

Cross Sectional ◽

Gcc Countries

Achieving environmental sustainability whilst minimizing the climate change effect has become a global endeavor. Hence, this study examined the effect of energy consumption, economic growth, financial development, and globalization on CO2 emissions in the Gulf Cooperation Council (GCC) countries. The research utilized a dataset stretching from 1995 to 2018. In a bid to investigate these associations, the study applied cross-sectional dependence (CSD), slope heterogeneity (SH), Pesaran unit root, Westerlund cointegration, cross-sectionally augmented autoregressive distributed lag (CS-ARDL), and Dumitrescu and Hurlin (DH) causality approaches. The outcomes of the CSD and SH tests indicated that using the first-generation techniques produces misleading results. The panel unit root analysis unveiled that the series are I (1). Furthermore, the outcomes of the cointegration test revealed a long-run association between CO2 emissions and the regressors, suggesting evidence of cointegration. The findings of the CS-ARDL showed that economic growth and energy consumption decrease environmental sustainability, while globalization improves it. The study also validated the environmental Kuznets curve (EKC) hypothesis for GCC economies. In addition, the results of the DH causality test demonstrated a feedback causality association between economic growth and CO2 emissions and between financial development and CO2 emissions. Moreover, there is a one-way causality from energy consumption and globalization to CO2 emissions in GCC economies. According to the findings, environmental pollution in GCC countries is output-driven, which means that it is determined by the amount of energy generated and consumed.

Do Public–Private Partnership Investment in Energy and Technological Innovation Matter for Environmental Sustainability in the East Asia and Pacific Region? An Application of a Frequency Domain Causality Test

Sustainability ◽

10.3390/su13063039 ◽

2021 ◽

Vol 13 (6) ◽

pp. 3039

Author(s):

Tomiwa Sunday Adebayo ◽

Sema Yılmaz Genç ◽

Rui Alexandre Castanho ◽

Dervis Kirikkaleli

Keyword(s):

Renewable Energy ◽

Energy Consumption ◽

Frequency Domain ◽

Co2 Emissions ◽

Technological Innovation ◽

Public Private Partnership ◽

Causality Test ◽

Private Partnership

Environmental sustainability is an important issue for current scholars and policymakers in the East Asian and Pacific region. The causal and long-run effects of technological innovation, public–private partnership investment in energy, and renewable energy consumption on environmental sustainability in the East Asian and Pacific regions have not been comprehensively explored while taking into account the role of economic growth using quarterly data for the period 1992–2015. Therefore, the present study aims to close this literature gap using econometric approaches, namely Bayer–Hanck cointegration, autoregressive distributed lag (ARDL), dynamic ordinary least square (DOLS), and fully modified ordinary least square (FMOLS) tests. Furthermore, the study utilizes the frequency domain causality test to capture the causal impact of public–private partnership investment in energy, renewable energy consumption, technological innovation, and economic growth on CO2 emissions. The advantage of the frequency domain causality test is that it can capture the causality between short-term, medium-term, and long-term variables. The outcomes of the ARDL, FMOLS and DOLS show that renewable energy consumption and technological innovation mitigate CO2 emissions, while public–private partnership investment in energy and economic growth increase CO2 emissions. Moreover, the frequency causality test outcomes reveal that technological innovation, public–private partnership investment in energy, and renewable energy consumption cause CO2 emissions, particularly in the long-term. Thus, as a policy recommendation, the present study recommends promoting renewable energy consumption by focusing more on technological innovation in the East Asia and Pacific regions.

Economic Development, CO2 Emissions and Energy Use Nexus-Evidence from the Danube Region Countries

Energies ◽

10.3390/en14113165 ◽

2021 ◽

Vol 14 (11) ◽

pp. 3165

Author(s):

Eva Litavcová ◽

Jana Chovancová

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Co2 Emissions ◽

Carbon Emissions ◽

Bounds Testing ◽

Mutual Cooperation ◽

Long Run ◽

Short Run ◽

Danube Region ◽

The aim of this study is to examine the empirical cointegration, long-run and short-run dynamics and causal relationships between carbon emissions, energy consumption and economic growth in 14 Danube region countries over the period of 1990–2019. The autoregressive distributed lag (ARDL) bounds testing methodology was applied for each of the examined variables as a dependent variable. Limited by the length of the time series, we excluded two countries from the analysis and obtained valid results for the others for 26 of 36 ARDL models. The ARDL bounds reliably confirmed long-run cointegration between carbon emissions, energy consumption and economic growth in Austria, Czechia, Slovakia, and Slovenia. Economic growth and energy consumption have a significant impact on carbon emissions in the long-run in all of these four countries; in the short-run, the impact of economic growth is significant in Austria. Likewise, when examining cointegration between energy consumption, carbon emissions, and economic growth in the short-run, a significant contribution of CO2 emissions on energy consumptions for seven countries was found as a result of nine valid models. The results contribute to the information base essential for making responsible and informed decisions by policymakers and other stakeholders in individual countries. Moreover, they can serve as a platform for mutual cooperation and cohesion among countries in this region.