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The Impact of Renewable Energy Consumption and Economic Growth on CO2 Emissions: New Evidence using Panel ARDL Study of Selected Countries

Author

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  • Mohd Shahidan Shaari

    (School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis, Pengkalan Jaya, Jln Alor Setar-Kangar, 01000 Kangar, Perlis, Malaysia,)

  • Noorazeela Zainol Abidin

    (School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis, Pengkalan Jaya, Jln Alor Setar-Kangar, 01000 Kangar, Perlis, Malaysia)

  • Zulkefly Abdul Karim

    (Center for Sustainable and Inclusive Development Studies (SID), Faculty of Economics and Management, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia.)

Abstract

Most countries consume more non-renewable energy to generate economic activities. Hence, economic growth plays a vital role in contributing to higher CO2 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 CO2 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 CO2 emissions. However, economic growth and population growth can result in higher CO2 emissions in the long term. In the short run, the results show that higher overall economic growth can contribute to higher CO2 emissions. Contrarily, higher population growth, and renewable energy consumption can help reduce CO2 emissions in the short run.

Suggested Citation

  • Mohd Shahidan Shaari & Noorazeela Zainol Abidin & Zulkefly Abdul Karim, 2020. "The Impact of Renewable Energy Consumption and Economic Growth on CO2 Emissions: New Evidence using Panel ARDL Study of Selected Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 617-623.
    • Handle: RePEc:eco:journ2:2020-06-80
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    References listed on IDEAS

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    2. Engy Raouf, 2023. "Green Hydrogen Production and Public Health Expenditure in Hydrogen-Exporting Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 36-44, November.
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    4. Li, Zhiyuan & Patel, Nikunj & Liu, Jiayang & Kautish, Pradeep, 2023. "Natural resources-environmental sustainability-socio-economic drivers nexus: Insights from panel quantile regression analysis," Resources Policy, Elsevier, vol. 86(PB).
    5. Nuno Carlos Leitão & Matheus Koengkan & José Alberto Fuinhas, 2022. "The Role of Intra-Industry Trade, Foreign Direct Investment, and Renewable Energy on Portuguese Carbon Dioxide Emissions," Sustainability, MDPI, vol. 14(22), pages 1-21, November.
    6. Haider Mahmood & Shafiqul Hassan & Muhammad Tanveer & Abdul-Rahim Ahmad, 2022. "The Effects of Rule of Law, Regulatory Quality, and Renewable Energy on CO2 Emissions in South Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 16-21, November.
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    More about this item

    Keywords

    Panel ARDL; CO2 emissions; economic growth; renewable energy;
    All these keywords.

    JEL classification:

    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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