Incentives for Sustainability: Relationship Between Renewable Energy Use and Carbon Emissions for Germany and Finland

Abstract

Green energy, a hot topic of recent energy studies, is any type of energy created using renewable resources, such as sunlight, wind, or water. Despite several variations between it and renewable energy, green energy typically comes from renewable energy sources. The use of these energy sources should not damage the environment by means like emitting greenhouse gases into the atmosphere. Producing power with minimal carbon footprint is a huge step toward a future that is more environmentally friendly. The global energy system has been moving away from fossil fuels towards carbon-free energy sources. The International Renewable Energy Agency (IRENA) estimates that energy efficiency and renewable energy policies have the potential to reduce carbon emissions by 90 percent. Our research focuses on the usage of renewable energy, and assesses how it affects carbon emissions in Germany and Finland. The recent panel causality test of Yilanci and Kilci was performed to examine the relationships between variables in 1990-2020. This study offers important insights into how using renewable energy affects carbon emissions for the two countries.