The Relationship between Green Innovation, CO2 Emissions, Gross Domestic Product, and Renewable Energy Supply: A Panel Data Analysis for BRICS Countries and Turkey

Bekir Oğuztürk,Ferhat Özbay

doi:10.26650/ibr.2021.51.969130

Abstract

This study aims to determine the impact of carbon dioxide (CO2) emissions, Gross Domestic Product (GDP), and green innovation on the renewable energy (RE) supply (RES) by taking panel heterogeneity and cross-section dependence into account. The dataset of this study covers a panel of BRICS countries (fragile five) and Turkey from 2000 to 2017. Based on the heterogeneity and cross-section dependency, the tests we have applied are the CIPS unit root test, Gengenbach, Urbain and Westerlund’s (2016) panel cointegration, Mean Group estimator (MG) and fully modified ordinary least squares (FMOLS), and Panel Dumitrescu and Hurlin’s (2012) causality techniques. We have found in this study that the variables are cointegrated in the long term. The results show that the CO2 emission for the whole sample has a negative impact on RES. On a country basis, it shows that green innovation has a positive and robust relationship with RES in Brazil and Turkey. The impact of green innovation on RES does not have a statistically significant relationship in Russia, China, India, or South Africa. CO2 emission indicates a negative impact on RES in whole countries. While economic growth reduces RES in India, Turkey and South Africa, this effect is the opposite in Brazil and China. This study provides practical policy implications for policymakers and researchers studying in this field.

Highlights

For a sustainable world, one of the fundamental values targeted globally is a sustainable environment, since all communities are increasingly concerned about the loss of natural resources and environmental pollution (Asadi et al, 2020; Song et al, 2019)
This study investigated the impact of CO2 emissions, Gross Domestic Product (GDP), and green innovation on RES by considering panel heterogeneity and cross-section dependence
Some studies have investigated the effects of variables such as CO2, per capita GDP and oil prices on renewable energy (RE) (Apergis & Payne, 2014; Sadorsky, 2009)

Summary

Introduction

One of the fundamental values targeted globally is a sustainable environment, since all communities are increasingly concerned about the loss of natural resources and environmental pollution (Asadi et al, 2020; Song et al, 2019). The raise in energy demands and CO2 emissions constitute an obstacle to a sustainable environment. According to Global Footprint Network data, world energy capacity is insufficient to meet this demand. The Relationship between Green Innovation, 〖CO〗_2 Emissions, Gross Domestic Product, and Renewable Energy Supply: A Panel Data Analysis for BRICS Countries and Turkey.

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Methods

Results

Conclusion