Solar energy, governance and CO2 emissions

Abstract

This study aims to analyze the effect of solar energy and governance on CO2 emissions. Data from 35 countries in different income groups for the period 2005–2018 were used. The estimates made considering the cross-section dependence and slope homogeneity show that solar energy reduces the CO2 level. In case of solar energy increase according to the long-term coefficients, the CO2 level of the countries is negatively affected. Governance is another variable that harms CO2. The multiplication of solar energy and governance affects CO2 negatively. Therefore, it is recommended that countries wishing to reduce CO2 levels should pay attention to solar energy, which has a vast energy generation potential as an energy source. The governance level of the countries is also essential for solar energy investments and long-term planning. As a result, it is suggested that countries deal with solar energy and governance together to reduce CO2 emissions.