CO2 Emissions from Renewable and Non-Renewable Electricity Generation Sources in the G7 Countries: Static and Dynamic Panel Assessment

Abstract

The threat of global warming has increased due to industrialization, urbanization, population expansion, and changes in lifestyle among the Group of Seven(G7) Carbon dioxide emissions (CO2) directly affect how much electricity can be generated from various sources. This research aims to identify environmental hazards associated with various energy sources. Analyzing the impact of various energy sources on CO2 emissions from electricity and heat production using data from the G7. The data is analyzed using quantile regression (QR), generalized method of moments (GMM), random effects (RE), and fixed effects (FE). Our results indicate a substantial positive impact on CO2 emissions regardless of the technology used to generate coal and gas power. Coal-fired power plants have a larger impact on the environment than other sources of emissions. Also, all coal and gas coefficients are significant in FE, RE, GMM, and QR. Oil coefficients have a negative impact on environmental degradation and are significant for FE, RE, and D-GMM regressions. Hydroelectric and renewable energy production can reduce CO2 emissions in all regression models. Nuclear energy has a beneficial impact on the environment, but the coefficients are only significant for S-GMM and the last quantile. However, the most significant result of this study is the identification of a cause-and-effect relationship between CO2 emissions and energy production. Carbon dioxide (CO2) emissions can be lowered by shifting away from fossil fuels and toward renewable and hydroelectric sources. The research also suggests several renewable and alternative electricity production policies for sustainable energy.