Carbon Neutrality Challenge: Analyse the Role of Energy Productivity, Renewable Energy, and Collaboration in Climate Mitigation Technology in OECD Economies

Abstract

Carbon neutrality has been widely acknowledged as a challenge to environmental mitigation and global climate change policy. The current study examines the association between collaboration in climate change mitigation technologies (CMTs), energy productivity (EP), natural resources rent (NRR), renewable energy consumption (REC), and environmentally related tax (ET) on CO2 emissions for a panel dataset of 30 OECD economies from 1990 to 2020. This paper employs panel data econometric techniques such as AMG, CCEMG, and CS-ARDL. The empirical outcomes show that CMTs, EP, REC, and ET have a negative effect on CO2 emissions, indicating that their increase will bring about the reduction of carbon emissions, whereas NRR has a positive impact on CO2 emissions, suggesting that its increase will raise CO2 emissions. Most interestingly, REC and EP play a leading role in all selected variables by decarbonizing and effectively converting conventional energy into clean, green energy in the process of energy production and utilization. Finally, the OECD countries are anticipated to transition their energy from conventional resources to renewable sources, which will be validated by the increase in energy productivity and the adoption of clean and green technology in the short term.