Renewable and Non-Renewable Energy Consumption, Carbon Dioxide Emissions, and Economic Growth: Empirical Evidence from Central Asian Countries

This study investigates the impacts of income, (renewable and non-renewable) energy consumption, trade, and financial development on carbon dioxide emissions in Turkey for the 1965-2015 period by employing thenon-linear autoregressive distributed lag method. Results show that non-renewable and renewable energy consumption, and trade openness have asymmetric impacts on pollution in long-run, while only renewable energy consumption has asymmetric impact on emissions in short-run. Results further reveal that the Environmental Kuznets Curve hypothesis is not valid in Turkey. Moreover, both financial development and trade positively affect emissions. Additionally, in long-run, positive shocks in renewable and non-renewable energy consumption increase emissions, but the impact of renewable energy consumption is infinitesimally small compared to the impact of non-renewable energy consumption. However, negative shocks in renewable energy consumption increase emissions, whereas negative developments in non-renewable energy consumption decrease emissions. Further, in short-run, positive developments in renewable energy consumptiondecrease emissions, and negative developments in non-renewable energy consumption have the same influence on emissions. In accordance with the findings, some policy suggestions are proposed.

PurposeThe purpose of this paper is to examine the nexus among economic growth, nonrenewable energy consumption and renewable energy consumption in India over the period 1971-2017.Design/methodology/approachThis study uses nonlinear autoregressive distributed lags model and asymmetric causality test to explore nonlinearities in the dynamic interaction among the variables.FindingsThe findings indicate that the impact of nonrenewable energy consumption and renewable energy consumption on the economic growth is asymmetric in both long run and short run. In long run, a positive shock in nonrenewable energy consumption and renewable energy consumption exerts a positive impact on growth. However, the negative shocks in nonrenewable energy consumption produce larger negative effects on the growth. The results of nonlinear causality test indicate a unidirectional causality from nonrenewable energy consumption and renewable energy consumption to economic growth and thus support “growth hypothesis” in context of India.Practical implicationsThe findings imply that policy measures to discourage nonrenewable energy consumption may produce deflationary effects on economic growth in India. Further, the findings demonstrate the potential role of renewable energy consumption in promoting economic growth.Originality/valueTo the best of the authors’ knowledge, this study is the first attempt to explore nonlinearities in the relationship between economic growth and the components of energy consumption in terms of renewable and nonrenewable energy consumption.

Macroeconomic determinants of non-renewable and renewable energy consumption in India: The roles of international trade, innovative technologies, financial globalization, carbon emissions, financial development, and urbanization

This study investigates the time-frequency nexus of carbon dioxide (CO2) emissions with economic growth, nonrenewable (i.e., coal, natural gas, and oil), and renewable (i.e., hydro and geothermal) energy consumption. In this context, BRICS countries (namely, Brazil, Russian Federation, India, China, and South Africa), which are leading emerging countries, are included, and quarterly data from 1990/Q1 to 2019/Q4 is used. The study employs the wavelet coherence (WC) approach to explore the co-movement between the variables at different frequencies. The empirical results show that (i) there is a strong and positive co-movement between CO2 emission and economic growth; however, it is weak for Russia and South Africa in the medium and long-term; (ii) coal energy consumption is strongly and positively co-moved with CO2 emission for all BRICS countries; (iii) natural gas energy consumption is strongly and positively co-moved with CO2 emissions in Brazil, India, and China; however, it is weakly and positively co-moved in Russia and South Africa; (iv) oil energy consumption is strongly and positively co-moved with CO2 emissions in Brazil, India, and China; however, it changes a bit for Russia and South Africa; (v) hydro energy consumption is weakly and positively co-moved with CO2 emissions in general, whereas country-based results vary; (vi) geothermal energy consumption is also similar to hydro energy consumption. Thus, the WC results highlight the strong co-movement of economic growth and nonrenewable energy consumption with CO2 emissions, whereas renewable energy consumption has a relatively lower co-movement. Based on the results, policy implications are also discussed for BRICS countries.

The energy sector has become the largest contributor to greenhouse gas (GHG) emissions. Among these GHG emissions, most threatening is CO2 emission which comes from the consumption of fossil fuels. This empirical work analyzes the roles of renewable energy consumption and non-renewable energy consumption in CO2 emissions in Pakistan. The empirical evidence is based on an auto-regressive distributive lag (ARDL) model of data from 1970 to 2016. The disaggregate analysis reveals that renewable energy consumption has an insignificant impact on CO2 emission in Pakistan and that, in the non-renewable energy model, natural gas and coal are the main contributors to the level of pollution in Pakistan. Economic growth positively contributes to CO2 emission in the renewable energy model but not in the non-renewable energy model. Policies that emphasize the contribution of renewable energy to economic growth and that add more clean energy into the energy mix are suggested.

Renewable and non-renewable energy consumption in Bangladesh: The relative influencing profiles of economic factors, urbanization, physical infrastructure and institutional quality

Symmetric and asymmetric impact of economic growth, capital formation, renewable and non-renewable energy consumption on environment in OECD countries

To date, a sufficient number of studies have dealt with the effect of financial development on energy consumption. Yet, most of these studies have neglected diversification between renewable and non-renewable energy consumption. In fact, financial development may affect renewable energy consumption differently than non-renewable energy consumption. This is because renewable energy production necessitates high-cost investments. Therefore, the main objective of this study is to estimate the impact of financial development on renewable and non-renewable energy consumption in 37 OECD countries by employing the one-step system generalized method of moments (GMM) for the period 2002–2015. The findings statistically proved that financial development is positively linked with renewable energy consumption, but it is not related to non-renewable energy consumption. This paper also confirmed the existence of a negative correlation between the openness index and renewable energy consumption with non-renewable energy consumption. Intuitively, it was expected that renewable energy production engages in high-cost investments compared to non-renewable energy production. Thus, renewable energy consumption is more responsive to a solid and well-structured financial market than non-renewable energy consumption.

Exploring the nexus between non-renewable and renewable energy consumptions and economic development: Evidence from panel estimations

Increasing industrial activities trigger the intense use of fossil fuels and increase the number of carbon emissions in the atmosphere. Countries with a high share in current carbon emissions need to expand their use of renewable energy sources. Canada is an important energy producer and consumer globally. In this regard, its decisions are important for the future development of global emissions. This study examines the asymmetric effects of economic growth, renewable energy, and non-renewable energy consumption on carbon emissions in Canada from 1965 to 2017. In the first stage of the analysis, unit root testing was performed for the variables. For this, Lee-Strazicich (2003), ADF and PP unit root tests were used. The nonlinear ARDL method was used to analyze the relationship between variables. and Measures: In order to analyze the relationship between the variables in the established model, renewable energy consumption (%), non-renewable energy consumption (%), and carbon emissions (per capita-Mt). In addition, the economic growth (constant price 2010- US$) parameter was added to the model as a control variable. The findings support that energy consumption, economic growth, and renewable energy have an asymmetric effect on carbon emissions in the long run. The positive shock in renewable energy reduces carbon emissions, and a unit increase in renewable energy reduces carbon emissions by 1.29%. Besides, the negative shock in economic growth greatly deteriorates the quality of the environment; that is, a 1% reduction in economic growth causes emissions to increase by 0.74% in the long run. On the other hand, positive shocks in energy consumption have a positive and significant effect on carbon emissions. A 1% increase in energy consumption causes 1.69% carbon emissions. There are important policy implications for Canada to eliminate carbon emissions, increase the share of renewable energy sources and achieve its economic growth targets. In addition, Canada needs to reduce its consumption of non-renewable energy (such as gasoline coal, diesel, and natural gas).

The study examined the dynamic nexus between carbon footprints, nonrenewable energy and renewable energy consumption, financial development and economic growth, and combating climate change by using a dataset of selected 13 Asian emerging economies (Bangladesh, China, India, Indonesia, Iran, Malaysia, Nepal, Pakistan, Philippines, South Korea, Sri Lanka, Thailand, and Vietnam) from 1995 to 2020. This study empirical analysis uses the second generation of panel cointegration techniques to compensate for cross-sectional dependency and slope heterogeneity. The mean group, the common correlated effects mean group, and the augmented mean group are used to estimate the long-run equations. The findings suggest that economic growth and nonrenewable energy consumption exacerbate environmental degradation, but renewable energy consumption mitigates the total adverse effects on the environment over time. Additionally, economy-specific findings examine how the impact of nonrenewable energy and renewable energy consumption on the carbon footprint depends on energy consumption level. Furthermore, the Dumitrescu-Hurlin causality test reveals a statistically significant bidirectional correlation between financial development, carbon footprints, economic growth, and consumption of nonrenewable energy and renewable energy. Finally, the study says that Asian emerging economies should use more renewable energy and be more efficient in order to reduce their carbon footprints.

The role of energy consumption in production processes has received considerable attention from academic scholars in recent years because of the new assumptions in endogamous growth theory. Yet, the real effect of energy consumption on economic growth is still a controversial and inconclusive issue in the literature. Using a dynamic panel data technique, this study aimed to provide new insights into these issues by examining the effect of renewable and non-renewable energy consumption on economic growth in developing and developed countries for the period 2002 to 2014. The results suggest that the effect of energy consumption on economic growth varies according to the income levels of the economies concerned. While non-renewable energy consumption was positively correlated with growth in developing countries, non-renewable or renewable energy consumption was not found to have an effect on the economic performance of developed countries.

The relationship between economic growth (in terms of GDP) and renewable energy (RE) and nonrenewable energy (NRE) consumption was investigated in 20 countries featured on the Renewable Energy Country Attractiveness Index list, also known as the Paris Club. The effect of both RE and NRE consumption on economic growth is discussed in the growth model based on the neoclassical production function. Labor and capital, which are important dynamics of growth, are also considered in the model. Granger causality and panel vector autoregression analysis are performed for the period 1991–2016. The results show that neither RE nor NRE consumption has a positive effect on economic growth. In reality, a 1% increase in RE consumption will reduce the GDP growth by 0.14%. For the effect of GDP growth on energy types, if growth increases by 1%, NRE consumption increases by 5.54%. If economic growth increases by 1%, a reduction of 1.73% occurs in RE consumption. In contrast, a causal link between both types of energy to growth has not been determined. There is no statistically significant coefficient of NRE and capital factors on GDP. A mutually positive and statistically significant relationship was determined between labor and growth. According to the results of variance decomposition, the basic dynamic of growth is itself: over a ten-year period, growth was affected by itself by 98%.

Effective long-term planning becomes essential as Africa strives to expedite its shift to sustainable energy systems and comprehends how energy consumption and economic growth interact. This study examines the effects of total energy consumption, renewable energy consumption, and non-renewable energy consumption on economic growth in eight regional economic communities in Africa—AMU, CEN-SAD, COMESA, EAC, ECCAS, ECOWAS, IGAD, and SADC—between 1996 and 2022. Using panel data from the African regions, the Mean Group and Pooled Mean Group were utilised where applicable as indicated by the Hausman Test. The findings reveal that while both renewable and non-renewable energy consumption influence economic growth, their impacts vary across regions. Total energy consumption has a negative impact on economic growth in AMU, CEN-SAD, COMESA, ECCAS, and SADC blocs, but a positive impact on economic growth in ECOWAS and IGAD blocs, and an insignificant impact on the EAC bloc. While non-renewable energy consumption has a negative impact on economic growth in the AMU, COMESA, ECCAS, IGAD, and SADC blocs and a positive impact on economic growth in the EAC bloc, renewable energy consumption has a positive impact on economic growth in the AMU, COMESA, ECCAS, IGAD, and SADC blocs. These findings highlight the necessity of unique, region-specific energy planning approaches that give system resilience and investments in renewable energy top priority. Specifically, policymakers should expand energy access to underserved areas for the blocs experiencing positive impact of energy consumption, while those blocs experiencing negative impact should put in place policies to reduce energy waste and control energy prices to avoid volatility.

Toward a sustainable environment: Nexus between CO2 emissions, resource rent, renewable and nonrenewable energy in 16-EU countries