Does renewable energy reduce per capita carbon emissions and per capita ecological footprint? New evidence from 130 countries

Abstract

This study explores whether increasing renewable energy consumption can alleviate environmental pressures (per capita carbon emissions and per capita ecological footprint) and the heterogeneity of the effects of increasing renewable energy consumption on the environmental pressures of countries in different income groups. We analyze 130 countries and three income groups from 1992 to 2019 based on a panel threshold regression estimation approach. The results show that (i) There is a negative relationship between renewable energy consumption and per capita ecological footprint and per capita carbon emissions, indicating that renewable energy consumption alleviates environmental pressure. (ii) When renewable energy consumption increases, the negative effects of renewable energy on per capita ecological footprint and per capita carbon emissions become more significant. This means that the more renewable energy is developed, the more it helps to alleviate environmental pressure. (iii) The inhibitory effect of renewable energy consumption on per capita ecological footprint is more significant in low-income countries than in middle-income countries. This indicates that renewable energy is more effective in reducing environmental pressures in poor countries than in rich countries.