Renewable Adoption, Energy Reliance, and CO2 Emissions: A Comparison of Developed and Developing Economies

Abstract

Emerging economies and ecosystems rely heavily on fossil fuels, and a country’s energy dependence is a strong indicator of its reliance on foreign suppliers. This study investigates the impact of energy dependence on energy intensity, CO2 emission intensity, and the exploitation of renewable resources in 35 developing and 20 developed nations. It also explores the correlation between renewable energy, GDP growth, and CO2 emissions. This study utilizes the Generalized Linear Model (GLM) and the Robust Least Squares (RLS) method to investigate the negative correlation between renewable energy and policymakers in established and emerging economies. It also employs distinctive linear panel estimation techniques spanning from 1970 to 2022. This study examines the impact of renewable energy on economic growth, energy consumption, and CO2 emissions across four continents. Developing countries see an increase in per capita CO2 emissions when their utilization of renewable energy exceeds their capacity. Even with the introduction of several proxies for renewable energy use using changed techniques, this discovery remains valid. Moreover, this is particularly crucial for industrialized nations with well-established institutions. Energy dependency has increased the energy and carbon intensity needed for expansion across all components, which is surprising. The regional study discovered a spillover impact in most regions, indicating that the consequences of energy reliance are similar in neighboring countries. Regional energy exchange unions play a vital role in reducing the adverse environmental and economic impacts of energy dependence, which is essential for the growth of the renewable energy sector and the decrease in greenhouse gas emissions. Undeveloped countries need to enhance their investment in research and development to advance technologically.