Dynamic Linkages between Energy Efficiency, Renewable Energy Along with Economic Growth and Carbon Emission. A Case of MINT Countries an Asymmetric Analysis

Abstract

This study aims to examine the influence of energy efficiency (EE), along with renewable energy (RE), and certain other factors, on the carbon emissions experienced in Mexico, Indonesia, Nigeria, and Turkey; in combination known as MINT countries. The time period taken into consideration spans from 1990 to 2014. MINT primarily represents a group of emerging economies, but it is relatively overlooked in the empirical environment literature. Thus, this study considers EE and RE as the main factors that affect the carbon emissions in MINT economies, and also unfolds their asymmetric links. The empirical results suggest that the variables' effects are asymmetric in nature, and the factors pertaining to the EE and RE reduce the carbon emissions in the MINT countries. In the case of EE, a 1% fluctuation, in its positive-sum lowers the carbon emissions by 0.259% over the longer term, whereas a 1% fluctuation in its negative-sum mitigates the CO2 pollutants by 1.82%, in the short term. For RE, a 1% fluctuation in its positive component lowers carbon emissions by 1.153%. Furthermore, findings from the granger causality test suggest that any reductions in EE would have a positive impact on the extant of carbon emissions. On the other hand, the permanent positive shocks pertaining to EE show a negative association with the level of carbon emissions. Based on these empirical findings, the present study suggests that policy managers need to consider the aspect of asymmetry between variables, particularily while setting their environmental, growth, and energy policies for MINT economies.