The impact of public-private partnerships Investment in Energy on carbon emissions: evidence from nonparametric causality-in-quantiles.

Abstract

The current investigation examines causal relation between PPP investment in energy sector and CO2 emissions in selected developing countries by using non-parametric causality in quantiles and linear granger causality techniques. Range of the data is from January 1998 to December 2016. Although results obtained by linear granger causality test does not report any causal relation between PPP investment in energy and CO2 emissions, but findings from non-parametric test show that non-linear relationship exhibit between variables. The non-parametric outcomes indicate that PPP investment in non-renewable energy in the selected countries contribute to carbon emissions and thus degrade environment. And therefore, the need is to divert PPP investment to renewable energy where it is more effective. This investigation provides valuable information to policy-makers in developing countries to think out of box and address pressing environmental issues.