Factors affecting carbon emissions in emerging economies in the context of a green recovery: Implications for sustainable development goals

Abstract

• Energy poverty should be reduced as a priority in developing countries in order to achieve the SDG7 and reduce CO 2 emissions. • The results show a deterioration of the environment due to the increase in energy poverty. • The increase in economic activity generates a reduction in CO 2 . • Renewable energy consumption should be further promoted. As governments, business leaders, and other stakeholders discuss green recovery, this research examines the combined effects of energy poverty, renewable energy consumption, gross domestic product, gross domestic product square, natural gas consumption and trade freedom on CO 2 emissions in developing countries during the period 2001–2019. A panel quantile regression is used to examine the heterogeneity of the distribution among various CO 2 quantiles. This research contributes to understanding to what extent energy poverty and the other driver variables determine the achievement of Sustainable Development Goal 7 (SDG7): affordable and clean energy. The results show that energy poverty should be reduced as a priority in developing countries in order to achieve SDG7 and reduce CO 2 emissions. Finally, the study reveals several implications for policymakers in the sample countries in order to achieve environmental sustainability by means of renewable energy, economic activity, and trade freedom.