Abstract
One of the main factors in environmental degradation and climate change is the consumption of fossil fuels. For this reason, cooperation between countries to overcome environmental challenges is seen more than ever. In this regard, regional economic treaties are a good platform for advancing common policies in the development of renewable energy, because this type of energy has fewer external effects on the environment. Accordingly, the purpose of this paper is to investigate the spatial effects of energy consumption and green production in Shanghai Cooperation Organization member states. For this purpose, the spatial panel data econometric approach has been used. Spatial effects refer to the effects of neighboring countries. According to CO2 emissions, the spatial effects of the positive or negative effects of these emissions and other determinants of neighboring countries are local. The results show that although both fossil fuels and renewable energy have a negative effect on green GDP, the impact of fossil fuels is almost four times greater. On the other hand, proximity and membership in the Shanghai Cooperation Organization have had a positive effect on green GDP in member countries, as countries have tried to coordinate their development policies in the field of renewable energy. Therefore, the development and strengthening of regional cooperation can play an effective role in controlling pollution caused by fossil fuel consumption and ultimately improve green production.
Highlights
The main purpose of this study was to investigate the impact of energy consumption on green GDP in the SCO member states based on spatial econometrics
By considering the problem that international organizations have become important actors in the world economy and have a direct and indirect impact on all global interactions and developments, regionalism and regional cooperation have provided a good platform for strengthening the power of the national economy
Different countries seek their comprehensive development through regional cooperation and know it is necessary to join regional unions, and in a way, the success of any country in playing an effective and constructive role in its surrounding areas can be considered as a prelude to the successful entry of that country into the global arena
Summary
Continuous use of fossil fuels leads to increased carbon levels in the atmosphere, global warming, and climate change [1]. The use of renewable energy as an alternative to current energy sources has received much attention in many developing countries [2]. The renewable energy industry has received more and much attention from governments, companies and scientists in the world because of concerns caused by health problems, economic damage, climate change, sustainability issues, and fossil energy consumption. The renewable energy industry, as an emerging green industry, has a new mode of economic growth that can partially resolve or curb the negative effects of fossil energy consumption and create sustainable development methods [3]. Renewable energies can protect regional economies against rising future prices of ordinary fuels by diversifying the energy basket
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