IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v72y2017icp1067-1075.html
   My bibliography  Save this article

CO2 emissions, renewable energy and the Environmental Kuznets Curve, a panel cointegration approach

Author

Listed:
  • Zoundi, Zakaria

Abstract

This study combines a panel cointegration analysis with a set of robustness tests to assess the short and long-run impacts of renewable energy on CO2 emissions, as well as the Kuznets Environmental Curve hypothesis for 25 selected african countries, over the period 1980-2012. The results provide no evidence of a total validation of EKC predictions. However, CO2 emissions are found to increase with income per capita. The overall estimations strongly reveal that renewable energy, with a negative effect on CO2 emissions, coupled with an increasing long-run effect, remains an efficient substitute for the conventional fossil-fuelled energy. Nonetheless, the impact of renewable energy is outweighed by primary energy consumption in both the short and long run, entailing more global synergy for outpacing the environmental challenges.

Suggested Citation

  • Zoundi, Zakaria, 2017. "CO2 emissions, renewable energy and the Environmental Kuznets Curve, a panel cointegration approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 1067-1075.
    • Handle: RePEc:eee:rensus:v:72:y:2017:i:c:p:1067-1075
    DOI: 10.1016/j.rser.2016.10.018
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032116306682
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2016.10.018?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Shi, Anqing, 2003. "The impact of population pressure on global carbon dioxide emissions, 1975-1996: evidence from pooled cross-country data," Ecological Economics, Elsevier, vol. 44(1), pages 29-42, February.
    2. Salim, Ruhul A. & Shafiei, Sahar, 2014. "Urbanization and renewable and non-renewable energy consumption in OECD countries: An empirical analysis," Economic Modelling, Elsevier, vol. 38(C), pages 581-591.
    3. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
    4. Apergis, Nicholas & Payne, James E., 2009. "CO2 emissions, energy usage, and output in Central America," Energy Policy, Elsevier, vol. 37(8), pages 3282-3286, August.
    5. Choi, In, 2001. "Unit root tests for panel data," Journal of International Money and Finance, Elsevier, vol. 20(2), pages 249-272, April.
    6. Mehdi Ben Jebli & Slim Ben Youssef & Ilhan Ozturk, 2015. "The Role of Renewable Energy Consumption and Trade: Environmental Kuznets Curve Analysis for Sub-Saharan Africa Countries," African Development Review, African Development Bank, vol. 27(3), pages 288-300, September.
    7. Hiroki Iwata & Keisuke Okada & Sovannroeun Samreth, 2012. "Empirical study on the determinants of CO 2 emissions: evidence from OECD countries," Applied Economics, Taylor & Francis Journals, vol. 44(27), pages 3513-3519, September.
    8. Muhammad Shahbaz & Smile Dube & Ilhan Ozturk & Abdul Jalil, 2015. "Testing the Environmental Kuznets Curve Hypothesis in Portugal," International Journal of Energy Economics and Policy, Econjournals, vol. 5(2), pages 475-481.
    9. Bradford David F. & Fender Rebecca A & Shore Stephen H. & Wagner Martin, 2005. "The Environmental Kuznets Curve: Exploring a Fresh Specification," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-28, June.
    10. Kaddour Hadri, 2000. "Testing for stationarity in heterogeneous panel data," Econometrics Journal, Royal Economic Society, vol. 3(2), pages 148-161.
    11. Robalino-López, Andrés & Mena-Nieto, Ángel & García-Ramos, José-Enrique & Golpe, Antonio A., 2015. "Studying the relationship between economic growth, CO2 emissions, and the environmental Kuznets curve in Venezuela (1980–2025)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 602-614.
    12. Joakim Westerlund, 2007. "Testing for Error Correction in Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 709-748, December.
    13. Munasinghe, Mohan, 1999. "Is environmental degradation an inevitable consequence of economic growth: tunneling through the environmental Kuznets curve," Ecological Economics, Elsevier, vol. 29(1), pages 89-109, April.
    14. Nasir, Muhammad & Ur Rehman, Faiz, 2011. "Environmental Kuznets Curve for carbon emissions in Pakistan: An empirical investigation," Energy Policy, Elsevier, vol. 39(3), pages 1857-1864, March.
    15. Wesseh, Presley K. & Lin, Boqiang, 2016. "Can African countries efficiently build their economies on renewable energy?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 161-173.
    16. Menyah, Kojo & Wolde-Rufael, Yemane, 2010. "CO2 emissions, nuclear energy, renewable energy and economic growth in the US," Energy Policy, Elsevier, vol. 38(6), pages 2911-2915, June.
    17. Menz, Tobias & Welsch, Heinz, 2012. "Population aging and carbon emissions in OECD countries: Accounting for life-cycle and cohort effects," Energy Economics, Elsevier, vol. 34(3), pages 842-849.
    18. Özbuğday, Fatih Cemil & Erbas, Bahar Celikkol, 2015. "How effective are energy efficiency and renewable energy in curbing CO2 emissions in the long run? A heterogeneous panel data analysis," Energy, Elsevier, vol. 82(C), pages 734-745.
    19. Peter Pedroni, 1999. "Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(S1), pages 653-670, November.
    20. Cemal Atici, 2009. "Carbon emissions in Central and Eastern Europe: environmental Kuznets curve and implications for sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 17(3), pages 155-160.
    21. Lantz, V. & Feng, Q., 2006. "Assessing income, population, and technology impacts on CO2 emissions in Canada: Where's the EKC?," Ecological Economics, Elsevier, vol. 57(2), pages 229-238, May.
    22. Kao, Chihwa, 1999. "Spurious regression and residual-based tests for cointegration in panel data," Journal of Econometrics, Elsevier, vol. 90(1), pages 1-44, May.
    23. Ibrahim, Mansor H. & Law, Siong Hook, 2014. "Social capital and CO2 emission—output relations: A panel analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 528-534.
    24. Peter Pedroni, 2000. "Fully Modified OLS for Heterogeneous Cointegrated Panels," Department of Economics Working Papers 2000-03, Department of Economics, Williams College.
    25. Baek, Jungho & Kim, Hyun Seok, 2011. "Trade Liberalization, Economic Growth, Energy Consumption and the Environment: Time Series Evidence from G-20 Economies," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 15(1), pages 3-32, March.
    26. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    27. Peter Pedroni, 2001. "Purchasing Power Parity Tests In Cointegrated Panels," The Review of Economics and Statistics, MIT Press, vol. 83(4), pages 727-731, November.
    28. Soytas, Ugur & Sari, Ramazan & Ewing, Bradley T., 2007. "Energy consumption, income, and carbon emissions in the United States," Ecological Economics, Elsevier, vol. 62(3-4), pages 482-489, May.
    29. Shafiei, Sahar & Salim, Ruhul A., 2014. "Non-renewable and renewable energy consumption and CO2 emissions in OECD countries: A comparative analysis," Energy Policy, Elsevier, vol. 66(C), pages 547-556.
    30. repec:bla:obuest:v:61:y:1999:i:0:p:653-70 is not listed on IDEAS
    31. Begum, Rawshan Ara & Sohag, Kazi & Abdullah, Sharifah Mastura Syed & Jaafar, Mokhtar, 2015. "CO2 emissions, energy consumption, economic and population growth in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 594-601.
    32. Bilgili, Faik & Koçak, Emrah & Bulut, Ümit, 2016. "The dynamic impact of renewable energy consumption on CO2 emissions: A revisited Environmental Kuznets Curve approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 838-845.
    33. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    34. Dong, Baomin & Wang, Fei & Guo, Yibei, 2016. "The global EKCs," International Review of Economics & Finance, Elsevier, vol. 43(C), pages 210-221.
    35. Baek, Jungho & Pride, Dominique, 2014. "On the income–nuclear energy–CO2 emissions nexus revisited," Energy Economics, Elsevier, vol. 43(C), pages 6-10.
    36. Apergis, Nicholas & Payne, James E. & Menyah, Kojo & Wolde-Rufael, Yemane, 2010. "On the causal dynamics between emissions, nuclear energy, renewable energy, and economic growth," Ecological Economics, Elsevier, vol. 69(11), pages 2255-2260, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lau, Lin-Sea & Choong, Chee-Keong & Ng, Cheong-Fatt & Liew, Feng-Mei & Ching, Suet-Ling, 2019. "Is nuclear energy clean? Revisit of Environmental Kuznets Curve hypothesis in OECD countries," Economic Modelling, Elsevier, vol. 77(C), pages 12-20.
    2. Dogan, Eyup & Seker, Fahri, 2016. "Determinants of CO2 emissions in the European Union: The role of renewable and non-renewable energy," Renewable Energy, Elsevier, vol. 94(C), pages 429-439.
    3. Vural, Gulfer, 2020. "How do output, trade, renewable energy and non-renewable energy impact carbon emissions in selected Sub-Saharan African Countries?," Resources Policy, Elsevier, vol. 69(C).
    4. Muhammad Shahbaz & Avik Sinha, 2019. "Environmental Kuznets curve for CO2emissions: a literature survey," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 46(1), pages 106-168, January.
    5. Shahbaz, Muhammad & Sinha, Avik, 2019. "Environmental Kuznets Curve for CO2 emission: A survey of empirical literature," MPRA Paper 100257, University Library of Munich, Germany, revised 2019.
    6. Charfeddine, Lanouar & Mrabet, Zouhair, 2017. "The impact of economic development and social-political factors on ecological footprint: A panel data analysis for 15 MENA countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 138-154.
    7. Baek, Jungho, 2015. "A panel cointegration analysis of CO2 emissions, nuclear energy and income in major nuclear generating countries," Applied Energy, Elsevier, vol. 145(C), pages 133-138.
    8. Amos, Sanday & Zoundi, Zakaria, 2019. "A Regime Switching Analysis of the Income-Pollution Path with time Varying- Elasticities in a Heterogeneous Panel of Countries," MPRA Paper 99577, University Library of Munich, Germany.
    9. Abdul Rauf & Xiaoxing Liu & Waqas Amin & Ilhan Ozturk & Obaid Ur Rehman & Suleman Sarwar, 2018. "Energy and Ecological Sustainability: Challenges and Panoramas in Belt and Road Initiative Countries," Sustainability, MDPI, vol. 10(8), pages 1-21, August.
    10. Dogan, Eyup & Seker, Fahri, 2016. "The influence of real output, renewable and non-renewable energy, trade and financial development on carbon emissions in the top renewable energy countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1074-1085.
    11. Inglesi-Lotz, Roula & Dogan, Eyup, 2018. "The role of renewable versus non-renewable energy to the level of CO2 emissions a panel analysis of sub- Saharan Africa’s Βig 10 electricity generators," Renewable Energy, Elsevier, vol. 123(C), pages 36-43.
    12. Chen, Yulong & Zhao, Jincai & Lai, Zhizhu & Wang, Zheng & Xia, Haibin, 2019. "Exploring the effects of economic growth, and renewable and non-renewable energy consumption on China’s CO2 emissions: Evidence from a regional panel analysis," Renewable Energy, Elsevier, vol. 140(C), pages 341-353.
    13. Usman, Muhammad & Makhdum, Muhammad Sohail Amjad, 2021. "What abates ecological footprint in BRICS-T region? Exploring the influence of renewable energy, non-renewable energy, agriculture, forest area and financial development," Renewable Energy, Elsevier, vol. 179(C), pages 12-28.
    14. Jin, Taeyoung & Kim, Jinsoo, 2018. "What is better for mitigating carbon emissions – Renewable energy or nuclear energy? A panel data analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 464-471.
    15. Kahia, Montassar & Ben Aïssa, Mohamed Safouane & Charfeddine, Lanouar, 2016. "Impact of renewable and non-renewable energy consumption on economic growth: New evidence from the MENA Net Oil Exporting Countries (NOECs)," Energy, Elsevier, vol. 116(P1), pages 102-115.
    16. Dogan, Eyup & Aslan, Alper, 2017. "Exploring the relationship among CO2 emissions, real GDP, energy consumption and tourism in the EU and candidate countries: Evidence from panel models robust to heterogeneity and cross-sectional depen," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 239-245.
    17. Xiaoxia Shi & Haiyun Liu & Joshua Sunday Riti, 2019. "The role of energy mix and financial development in greenhouse gas (GHG) emissions’ reduction: evidence from ten leading CO2 emitting countries," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(3), pages 695-729, October.
    18. Kahia, Montassar & Ben Aissa, Mohamed Safouane, 2014. "Renewable and non-renewable energy consumption and economic growth: Evidence from MENA Net Oil Exporting Countries," MPRA Paper 80776, University Library of Munich, Germany.
    19. Azam, Anam & Rafiq, Muhammad & Shafique, Muhammad & Zhang, Haonan & Yuan, Jiahai, 2021. "Analyzing the effect of natural gas, nuclear energy and renewable energy on GDP and carbon emissions: A multi-variate panel data analysis," Energy, Elsevier, vol. 219(C).
    20. Ben Jebli, Mehdi & Ben Youssef, Slim, 2015. "Output, renewable and non-renewable energy consumption and international trade: Evidence from a panel of 69 countries," Renewable Energy, Elsevier, vol. 83(C), pages 799-808.

    More about this item

    Keywords

    CO2 emissions; Renewable Energy; Panel cointegration;
    All these keywords.

    JEL classification:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:72:y:2017:i:c:p:1067-1075. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.