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Heterogenous Effects of Circular Economy, Green energy and Globalization on CO2 emissions: Policy based analysis for sustainable development

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  • Wang, Mengxia
  • Hossain, Mohammad Razib
  • Si Mohammed, Kamel
  • Cifuentes-Faura, Javier
  • Cai, Xiaotong

Abstract

The tragedy of the depletion of natural resources led by their overconsumption has posed severe deleterious effects on humanity and the environment. Post-consumption-led waste has worsened the situation, given that unregulated and unscientific waste treatment furthers the criticality of ecological dilapidation. To curb ecological overshoot and restore the full capacity of ecosystem services, we need to focus more on recycling the available resources at their maximum capacity. In other words, we must take a U-turn from the linear economic system to the circular one. The issue is that the number of real-world data-driven scientific studies is very scant in this sphere of literature. Against this milieu, this paper scrutinizes the effect of a circular economy on CO2 emissions intensity among a panel of the top seven CO2 emitters of the world. We have used data from 1990 to 2020 and applied the Augmented Mean Group (AMG) technique to reach our empirical conclusions. By controlling for globalization and renewable energy consumption, we unveil that municipal waste, a crucial component of the circular economy, is positively entangled with CO2 emissions among the designated nations. This observation further reiterates the theoretical underpinning and urges to harness municipal waste as a valuable raw material for a circular economy. Moreover, we disclose that economic growth and globalization boost CO2 emissions intensity among the designated nations. Contrarily, the consumption of renewables helps uplift environmental integrity. Our conclusions also hold after the robustness check. Further, the D-H causality test establishes a bidirectional causality between municipal waste and CO2 emissions. One-lane causality is also observed from a linear economy to a circular economy. More specifically, municipal waste is observed as a critical determinant of pollution and carbon emissions. In light of the findings, the authors provide novel policy recommendations apropos sustainable development goals.

Suggested Citation

  • Wang, Mengxia & Hossain, Mohammad Razib & Si Mohammed, Kamel & Cifuentes-Faura, Javier & Cai, Xiaotong, 2023. "Heterogenous Effects of Circular Economy, Green energy and Globalization on CO2 emissions: Policy based analysis for sustainable development," Renewable Energy, Elsevier, vol. 211(C), pages 789-801.
    • Handle: RePEc:eee:renene:v:211:y:2023:i:c:p:789-801
    DOI: 10.1016/j.renene.2023.05.033
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