IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i11p4067-d180966.html
   My bibliography  Save this article

The Impacts of Non-Fossil Energy, Economic Growth, Energy Consumption, and Oil Price on Carbon Intensity: Evidence from a Panel Quantile Regression Analysis of EU 28

Author

Listed:
  • Cheng Cheng

    (School of Management Science and Engineering, Shanxi University of Finance and Economics, 696 Wucheng Road, Taiyuan 030006, China)

  • Xiaohang Ren

    (School of Mathematical Sciences, University of Southampton, Southampton SO17 1BJ, UK)

  • Zhen Wang

    (Academy of Chinese Energy Strategy, China University of Petroleum-Beijing, 18 Fuxue Road, Changping, Beijing 102249, China)

  • Yukun Shi

    (Adam Smith Business School, University of Glasgow, West Quadrangle, Gilbert Scott Building, Glasgow G12 8QQ, UK)

Abstract

This study investigates some determinants of carbon intensity in 28 countries in the European Union (EU), including non-fossil energy, economic growth, energy consumption, and oil price. A panel quantile regression method, which considers both individual heterogeneity and distributional heterogeneity, is applied in this paper. The empirical results imply that the influences of these determinants on carbon intensity are heterogeneous and asymmetric across different quantiles. Specifically, non-fossil energy can significantly decrease carbon intensity, but shows a U-shaped relationship. Economic growth has a negative impact on carbon intensity, especially for medium-emission and high-emission countries. The effects of heating degree days on carbon intensity are positive, although the coefficients are not significant at low quantiles, they become significant from medium quantiles. Besides, we find an inverse U-shaped relationship between crude oil price and carbon intensity. Finally, several relevant policy recommendations are proposed based on the empirical results.

Suggested Citation

  • Cheng Cheng & Xiaohang Ren & Zhen Wang & Yukun Shi, 2018. "The Impacts of Non-Fossil Energy, Economic Growth, Energy Consumption, and Oil Price on Carbon Intensity: Evidence from a Panel Quantile Regression Analysis of EU 28," Sustainability, MDPI, vol. 10(11), pages 1-20, November.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:11:p:4067-:d:180966
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/11/4067/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/10/11/4067/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zhao, Xueting & Burnett, J. Wesley & Fletcher, Jerald J., 2013. "Spatial Analysis of China Provincial-Level CO2 Emission Intensity," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149006, Agricultural and Applied Economics Association.
    2. Piaggio, Matías & Padilla, Emilio & Román, Carolina, 2017. "The long-term relationship between CO2 emissions and economic activity in a small open economy: Uruguay 1882–2010," Energy Economics, Elsevier, vol. 65(C), pages 271-282.
    3. Azlina, A.A. & Law, Siong Hook & Nik Mustapha, Nik Hashim, 2014. "Dynamic linkages among transport energy consumption, income and CO2 emission in Malaysia," Energy Policy, Elsevier, vol. 73(C), pages 598-606.
    4. Hu, Hui & Xie, Nan & Fang, Debin & Zhang, Xiaoling, 2018. "The role of renewable energy consumption and commercial services trade in carbon dioxide reduction: Evidence from 25 developing countries," Applied Energy, Elsevier, vol. 211(C), pages 1229-1244.
    5. Koenker, Roger & Bassett, Gilbert, Jr, 1982. "Tests of Linear Hypotheses and l[subscript]1 Estimation," Econometrica, Econometric Society, vol. 50(6), pages 1577-1583, November.
    6. Choi, In, 2001. "Unit root tests for panel data," Journal of International Money and Finance, Elsevier, vol. 20(2), pages 249-272, April.
    7. Keith Kuester & Stefan Mittnik & Marc S. Paolella, 2006. "Value-at-Risk Prediction: A Comparison of Alternative Strategies," Journal of Financial Econometrics, Oxford University Press, vol. 4(1), pages 53-89.
    8. Kaddour Hadri, 2000. "Testing for stationarity in heterogeneous panel data," Econometrics Journal, Royal Economic Society, vol. 3(2), pages 148-161.
    9. Valentín Molina-Moreno & Pedro Núñez-Cacho Utrilla & Francisco J. Cortés-García & Antonio Peña-García, 2018. "The Use of Led Technology and Biomass to Power Public Lighting in a Local Context: The Case of Baeza (Spain)," Energies, MDPI, vol. 11(7), pages 1-12, July.
    10. Bölük, Gülden & Mert, Mehmet, 2014. "Fossil & renewable energy consumption, GHGs (greenhouse gases) and economic growth: Evidence from a panel of EU (European Union) countries," Energy, Elsevier, vol. 74(C), pages 439-446.
    11. Sinha, Avik & Shahbaz, Muhammad, 2018. "Estimation of Environmental Kuznets Curve for CO2 emission: Role of renewable energy generation in India," Renewable Energy, Elsevier, vol. 119(C), pages 703-711.
    12. Bera Anil K. & Galvao Antonio F. & Montes-Rojas Gabriel V. & Park Sung Y., 2016. "Asymmetric Laplace Regression: Maximum Likelihood, Maximum Entropy and Quantile Regression," Journal of Econometric Methods, De Gruyter, vol. 5(1), pages 79-101, January.
    13. Koenker, Roger, 2004. "Quantile regression for longitudinal data," Journal of Multivariate Analysis, Elsevier, vol. 91(1), pages 74-89, October.
    14. Liu, Xuyi & Zhang, Shun & Bae, Junghan, 2017. "The nexus of renewable energy-agriculture-environment in BRICS," Applied Energy, Elsevier, vol. 204(C), pages 489-496.
    15. Dogan, Eyup & Inglesi-Lotz, Roula, 2017. "Analyzing the effects of real income and biomass energy consumption on carbon dioxide (CO2) emissions: Empirical evidence from the panel of biomass-consuming countries," Energy, Elsevier, vol. 138(C), pages 721-727.
    16. Esteve, Vicente & Tamarit, Cecilio, 2012. "Is there an environmental Kuznets curve for Spain? Fresh evidence from old data," Economic Modelling, Elsevier, vol. 29(6), pages 2696-2703.
    17. Elena Villar Rubio & Quesada Rubio & José Manuel & Valentín Molina Moreno, 2015. "Convergence Analysis of Environmental Fiscal Pressure across EU-15 Countries," Energy & Environment, , vol. 26(5), pages 789-802, September.
    18. Koenker, Roger & Zhao, Quanshui, 1996. "Conditional Quantile Estimation and Inference for Arch Models," Econometric Theory, Cambridge University Press, vol. 12(5), pages 793-813, December.
    19. Zhu, Huiming & Duan, Lijun & Guo, Yawei & Yu, Keming, 2016. "The effects of FDI, economic growth and energy consumption on carbon emissions in ASEAN-5: Evidence from panel quantile regression," Economic Modelling, Elsevier, vol. 58(C), pages 237-248.
    20. Wang, Ping & Wu, Wanshui & Zhu, Bangzhu & Wei, Yiming, 2013. "Examining the impact factors of energy-related CO2 emissions using the STIRPAT model in Guangdong Province, China," Applied Energy, Elsevier, vol. 106(C), pages 65-71.
    21. Roinioti, Argiro & Koroneos, Christopher, 2017. "The decomposition of CO2 emissions from energy use in Greece before and during the economic crisis and their decoupling from economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 448-459.
    22. Antonakakis, Nikolaos & Chatziantoniou, Ioannis & Filis, George, 2017. "Energy consumption, CO2 emissions, and economic growth: An ethical dilemma," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 808-824.
    23. Ozturk, Ilhan & Acaravci, Ali, 2013. "The long-run and causal analysis of energy, growth, openness and financial development on carbon emissions in Turkey," Energy Economics, Elsevier, vol. 36(C), pages 262-267.
    24. Pedro Nuñez-Cacho & Jaroslaw Górecki & Valentín Molina-Moreno & Francisco A. Corpas-Iglesias, 2018. "What Gets Measured, Gets Done: Development of a Circular Economy Measurement Scale for Building Industry," Sustainability, MDPI, vol. 10(7), pages 1-22, July.
    25. Liddle, Brantley & Sadorsky, Perry, 2017. "How much does increasing non-fossil fuels in electricity generation reduce carbon dioxide emissions?," Applied Energy, Elsevier, vol. 197(C), pages 212-221.
    26. G. S. Maddala & Shaowen Wu, 1999. "A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(S1), pages 631-652, November.
    27. 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.
    28. 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.
    29. 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.
    30. repec:bla:obuest:v:61:y:1999:i:0:p:631-52 is not listed on IDEAS
    31. Binder, Martin & Coad, Alex, 2011. "From Average Joe's happiness to Miserable Jane and Cheerful John: using quantile regressions to analyze the full subjective well-being distribution," Journal of Economic Behavior & Organization, Elsevier, vol. 79(3), pages 275-290, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abbasi, Kashif Raza & Hussain, Khadim & Redulescu, Magdalena & Ozturk, Ilhan, 2021. "Does natural resources depletion and economic growth achieve the carbon neutrality target of the UK? A way forward towards sustainable development," Resources Policy, Elsevier, vol. 74(C).
    2. Fernanda Bento Rosa Gomes & Cecilia de Mattos Canella & Otávio Eurico de Aquino Branco & Mariana C. Coelho Silva Castro & Samuel Rodrigues Castro, 2020. "Deforestation in Legal Amazon: A Panel Data Analysis of Potential Interferers," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 10(2), pages 1-97, December.
    3. Alexandra Horobet & Oana Cristina Popovici & Emanuela Zlatea & Lucian Belascu & Dan Gabriel Dumitrescu & Stefania Cristina Curea, 2021. "Long-Run Dynamics of Gas Emissions, Economic Growth, and Low-Carbon Energy in the European Union: The Fostering Effect of FDI and Trade," Energies, MDPI, vol. 14(10), pages 1-30, May.
    4. Wei, Yu & Wang, Yizhi & Vigne, Samuel A. & Ma, Zhenyu, 2023. "Alarming contagion effects: The dangerous ripple effect of extreme price spillovers across crude oil, carbon emission allowance, and agriculture futures markets," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 88(C).
    5. Adrian Neacsa & Jianu Daniel Muresan & Marian Catalin Voica & Otilia Manta & Mihail Vincentiu Ivan, 2023. "Oil Price—A Sensor for the Performance of Romanian Oil Manufacturing Companies," Energies, MDPI, vol. 16(5), pages 1-18, February.
    6. Dong, Kangyin & Dong, Xiucheng & Ren, Xiaohang, 2020. "Can expanding natural gas infrastructure mitigate CO2 emissions? Analysis of heterogeneous and mediation effects for China," Energy Economics, Elsevier, vol. 90(C).
    7. Dong, Kangyin & Dong, Xiucheng & Jiang, Qingzhe & Zhao, Jun, 2021. "Assessing energy resilience and its greenhouse effect: A global perspective," Energy Economics, Elsevier, vol. 104(C).
    8. Chai, Jian & Wei, Zhaohao & Hu, Yi & Su, Siping & Zhang, Zhe George, 2019. "Is China's natural gas market globally connected?," Energy Policy, Elsevier, vol. 132(C), pages 940-949.
    9. Sami Fethi & Elif Senyucel, 2021. "The role of tourism development on CO2 emission reduction in an extended version of the environmental Kuznets curve: evidence from top 50 tourist destination countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(2), pages 1499-1524, February.
    10. Alexandra Horobet & Irina Mnohoghitnei & Dan Gabriel Dumitrescu & Stefania Cristina Curea & Lucian Belascu, 2022. "An Empirical Assessment of the Financial Development – Environmental Quality Nexus in the European Union," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(61), pages 613-613, August.
    11. Özge Demiral & Mehmet Demiral & Emine Dilara Aktekin‐Gök, 2022. "Extra‐regional trade and consumption‐based carbon dioxide emissions in the European countries: Is there a carbon leakage?," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1987-2001, December.
    12. jiemin, Huang & chen, Wen, 2022. "The impact of private sector energy investment, innovation and energy consumption on China's carbon emissions," Renewable Energy, Elsevier, vol. 195(C), pages 1291-1299.
    13. Yan, Dan & Ren, Xiaohang & Kong, Ying & Ye, Bin & Liao, Zangyi, 2020. "The heterogeneous effects of socioeconomic determinants on PM2.5 concentrations using a two-step panel quantile regression," Applied Energy, Elsevier, vol. 272(C).
    14. Daniel Balsalobre-Lorente & Nuno Carlos Leitão & Festus Victor Bekun, 2021. "Fresh Validation of the Low Carbon Development Hypothesis under the EKC Scheme in Portugal, Italy, Greece and Spain," Energies, MDPI, vol. 14(1), pages 1-17, January.
    15. Ana-Maria Bercu & Gigel Paraschiv & Dan Lupu, 2019. "Investigating the Energy–Economic Growth–Governance Nexus: Evidence from Central and Eastern European Countries," Sustainability, MDPI, vol. 11(12), pages 1-21, June.
    16. Tarek Tawfik Yousef Alkhateeb & Haider Mahmood, 2020. "Oil Price and Energy Depletion Nexus in GCC Countries: Asymmetry Analyses," Energies, MDPI, vol. 13(12), pages 1-13, June.
    17. Nooshin Karimi Alavijeh & Nasrin Salehnia & Narges Salehnia & Matheus Koengkan, 2023. "The effects of agricultural development on CO2 emissions: empirical evidence from the most populous developing countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 12011-12031, October.
    18. Zohra Dradra & Chokri Abdennadher, 2024. "Modeling the Contribution of Energy Consumption to Climate Change: A Panel Cointegration Analysis for Mediterranean Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 1142-1158, March.
    19. Xiaohang Ren & Cheng Cheng & Zhen Wang & Cheng Yan, 2021. "Spillover and dynamic effects of energy transition and economic growth on carbon dioxide emissions for the European Union: A dynamic spatial panel model," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 228-242, January.
    20. Aamir Javed & Agnese Rapposelli & Mohsin Shah & Asif Javed, 2023. "Nexus between Energy Consumption, Foreign Direct Investment, Oil Prices, Economic Growth, and Carbon Emissions in Italy: Fresh Evidence from Autoregressive Distributed Lag and Wavelet Coherence Approa," Energies, MDPI, vol. 16(16), pages 1-23, August.

    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. Bakry, Walid & Mallik, Girijasankar & Nghiem, Xuan-Hoa & Sinha, Avik & Vo, Xuan Vinh, 2023. "Is green finance really “green”? Examining the long-run relationship between green finance, renewable energy and environmental performance in developing countries," Renewable Energy, Elsevier, vol. 208(C), pages 341-355.
    2. Chien, Fengsheng & Anwar, Ahsan & Hsu, Ching-Chi & Sharif, Arshian & Razzaq, Asif & Sinha, Avik, 2021. "The role of information and communication technology in encountering environmental degradation: Proposing an SDG framework for the BRICS countries," Technology in Society, Elsevier, vol. 65(C).
    3. Shabana Parveen & Saleem Khan & Muhammad Abdul Kamal & Muhammad Ali Abbas & Aamir Aijaz Syed & Simon Grima, 2023. "The Influence of Industrial Output, Financial Development, and Renewable and Non-Renewable Energy on Environmental Degradation in Newly Industrialized Countries," Sustainability, MDPI, vol. 15(6), pages 1-21, March.
    4. Škare, Marinko & Porada-Rochoń, Małgorzata, 2023. "Are we making progress on decarbonization? A panel heterogeneous study of the long-run relationship in selected economies," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    5. Alexandra Horobet & Oana Cristina Popovici & Emanuela Zlatea & Lucian Belascu & Dan Gabriel Dumitrescu & Stefania Cristina Curea, 2021. "Long-Run Dynamics of Gas Emissions, Economic Growth, and Low-Carbon Energy in the European Union: The Fostering Effect of FDI and Trade," Energies, MDPI, vol. 14(10), pages 1-30, May.
    6. Mihaela Sterpu & Georgeta Soava & Anca Mehedintu, 2018. "Impact of Economic Growth and Energy Consumption on Greenhouse Gas Emissions: Testing Environmental Curves Hypotheses on EU Countries," Sustainability, MDPI, vol. 10(9), pages 1-14, September.
    7. Xuejiao Ma & Qichuan Jiang, 2019. "How to Balance the Trade-off between Economic Development and Climate Change?," Sustainability, MDPI, vol. 11(6), pages 1-30, March.
    8. Pata, Ugur Korkut, 2018. "The influence of coal and noncarbohydrate energy consumption on CO2 emissions: Revisiting the environmental Kuznets curve hypothesis for Turkey," Energy, Elsevier, vol. 160(C), pages 1115-1123.
    9. Chao-Qun Ma & Jiang-Long Liu & Yi-Shuai Ren & Yong Jiang, 2019. "The Impact of Economic Growth, FDI and Energy Intensity on China’s Manufacturing Industry’s CO 2 Emissions: An Empirical Study Based on the Fixed-Effect Panel Quantile Regression Model," Energies, MDPI, vol. 12(24), pages 1-16, December.
    10. Sung, Bongsuk & Song, Woo-Yong & Park, Sang-Do, 2018. "How foreign direct investment affects CO2 emission levels in the Chinese manufacturing industry: Evidence from panel data," Economic Systems, Elsevier, vol. 42(2), pages 320-331.
    11. 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.
    12. 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).
    13. Nasre Esfahani, Mohammad & Rasoulinezhad, Ehsan, 2015. "Will be there New CO2 Emitters in the Future? Evidence of Long-run Panel Co-integration for N-11 Countries," MPRA Paper 72692, University Library of Munich, Germany.
    14. Sinha, Avik & Shahbaz, Muhammad & Balsalobre, Daniel, 2017. "Exploring the Relationship between Energy Usage Segregation and Environmental Degradation in N-11 Countries," MPRA Paper 81212, University Library of Munich, Germany, revised 07 Sep 2017.
    15. Zhang, Shun & Liu, Xuyi, 2019. "The roles of international tourism and renewable energy in environment: New evidence from Asian countries," Renewable Energy, Elsevier, vol. 139(C), pages 385-394.
    16. Husnain, Muhammad Iftikhar ul & Nasrullah, Nasrullah & Khan, Muhammad Aamir & Banerjee, Suvajit, 2021. "Scrutiny of income related drivers of energy poverty: A global perspective," Energy Policy, Elsevier, vol. 157(C).
    17. Dehghan Shabani, Zahra & Shahnazi, Rouhollah, 2019. "Energy consumption, carbon dioxide emissions, information and communications technology, and gross domestic product in Iranian economic sectors: A panel causality analysis," Energy, Elsevier, vol. 169(C), pages 1064-1078.
    18. Jannatul Ferdaus & Bismark Kusi Appiah & Shapan Chandra Majumder & Anouba Acha Arnaud Martial, 2020. "A Panel Dynamic Analysis on Energy Consumption, Energy Prices and Economic Growth in Next 11 Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 87-99.
    19. Zhao, Bingyu & Yang, Wanping, 2020. "Does financial development influence CO2 emissions? A Chinese province-level study," Energy, Elsevier, vol. 200(C).
    20. Azilah Hasnisah & A. A. Azlina & Che Mohd Imran Che Taib, 2019. "The Impact of Renewable Energy Consumption on Carbon Dioxide Emissions: Empirical Evidence from Developing Countries in Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 135-143.

    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:gam:jsusta:v:10:y:2018:i:11:p:4067-:d:180966. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.