The influences of renewable energy, globalization, technological innovations, and forests on emission reduction in Colombia

Abstract

The utilization of fossil fuels and deforestation are the primary causes of global warming and climate change. Innovation is therefore essential to achieve green energy and sustainable development. As part of the Paris Agreement, Colombia has pledged to cut 51% of its emissions by 2030 and achieve net zero emissions by 2050. Thus, the present study examined the emission reduction potential of economic growth, renewable energy utilization, globalization, technological innovations, and forests in Colombia by employing the Dynamic Ordinary Least Squares (DOLS) technique utilizing time series data from 1990 to 2020. The empirical results revealed that a rise in economic growth is connected with a boost in emissions, while a boost in the consumption of renewable energy, technical innovation, globalization, and forest cover might cut Colombia's carbon emissions in the long run. Furthermore, a credibility test was conducted by utilizing total greenhouse gas emissions as other measurements of emission reduction. The DOLS results are stable while applying the fully modified least squares (FMOLS) and canonical cointegrating regression (CCR) techniques. This article includes policy ideas aiming at a low-carbon economy, promotion of renewable energy, financing technical innovation, globalization, and sustainable forest management to meet Colombia's goal of emission reduction.