The challenges of reducing greenhouse gas emissions and air pollution through energy sources: evidence from a panel of developed countries

Abstract

The objective of the study is to investigate the long-run relationship between climatic factors (i.e., greenhouse gas emissions, agricultural methane emissions, and industrial nitrous oxide emission), air pollution (i.e., carbon dioxide emissions), and energy sources (i.e., nuclear energy; oil, gas, and coal energy; and fossil fuel energy) in the panel of 35 developed countries (including EU-15, new EU member states, G-7, and other countries) over a period of 1975-2012. In order to achieve this objective, the present study uses sophisticated panel econometric techniques including panel cointegration, panel fully modified OLS (FMOLS), and dynamic OLS (DOLS). The results show that there is a long-run relationship between the variables. Nuclear energy reduces greenhouse gases and carbon emissions; however, the other emissions, i.e., agricultural methane emissions and industrial nitrous oxide, are still to increase during the study period. Electricity production from oil, gas, and coal sources increases the greenhouse gases and carbon emissions; however, the intensity to increase emissions is far less than the intensity to increase emissions through fossil fuel. Policies that reduce emissions of greenhouse gases can simultaneously alter emissions of conventional pollutants that have deleterious effects on human health and the environment.