Effect Of Renewable Energy Consumption Research Articles

Policy and Institutions for Environmental Sustainability and Green Growth: The Moderating Effect of Renewable Energy and CO2 Emissions

Reducing environmental degradation due to the waste of natural resources and increasing global warming have been the main sustainable development goals for preserving biodiversity and ensuring sustainable growth established by the United Nations since 2015. Elucidating these goals requires effective and efficient environmental policies, substantial financial resources, and technological innovation to ensure an energy transition and reduce fossil fuel divestment and polluting technologies. In this context, this paper aims to examine the impact of environmental sustainability policy and institutions on green economic growth. Using a CS-ARDL panel model for a sample of 69 low-income countries in Africa, Asia, Europe, and North America over the period 2005-2020, we find that the effect of environmental sustainability policy and institutions on green GDP per capita is positive and statistically significant. The intensity of this effect is moderated by increases in renewable energy consumption and decreases in CO2 emissions. Furthermore, the subsample analysis indicates that the relationships between environmental sustainability policy and institutions and green growth remain positive for the four continents. In the long run, the intensity of this effect is stronger in Europe and Asia than in America and Africa. Moreover, these impacts are more effective as renewable energy increases and CO2 emissions decrease. It seems to be more important in Europe and Asia than in America and Africa. Overall, low-income countries should pay particular attention to policy and institutional index for environmental sustainability to promote green growth, taking into account the moderating effect of renewable energy consumption and CO2 emissions reduction.

Does Renewable Energy Consumption Have an Effect on Health Expenditures? Example of EU Countries

Due to the harmful effects of traditional energy sources on the environment and health, the consumption of renewable energy sources has recently come to the fore on the world agenda. In order for national economies to maintain their existence, individuals must ensure their health and welfare. In this context, the priority duty of countries should be to protect public health and ensure its sustainability. There are many factors that determine a country's level of healthcare expenditures; environmental conditions are also one of them. The increase in greenhouse gas emissions resulting from the consumption of non-renewable energy sources can pose a great danger to human welfare and the environment. Environmental problems caused by greenhouse gas emissions negatively affect human health in many ways, such as affecting the nervous system, lungs, and causing respiratory diseases. In addition, environmental pollution resulting from greenhouse gas emissions increases health expenditures and causes a decrease in labor productivity. Considering these negative effects, increasing the use of wind, solar, geothermal, and other environmentally friendly energy sources, which are renewable energy sources, will contribute to environmental improvement by meeting the energy needs of countries. Recently, the increase in the resources allocated to health expenditures from the national income of countries has made the discussion of sustainability in the relevant field a current issue. In this respect, researching the factors affecting health expenditures will provide important information to policy makers. This study examines the health expenditures of renewable energy consumption in 13 EU countries (Belgium, Czech Republic, Denmark, Germany, Austria, Spain, Sweden, Italy, Portugal, Greece, Finland, France, and the Netherlands) selected considering data availability between 2000 and 2020 investigating in which direction it affects. In the study, countries with the highest consumption of renewable energy were selected. Since the sustainability of the recently increasing health expenditures is important, the variables of renewable energy consumption and economic growth were analyzed and the subject was limited. In this context, it is believed that the findings will provide important information to policy makers. The main motivation of the study is that there are limited studies on the relevant subject in the literature and panel cointegration and panel cointegration coefficient estimator tests are not used. Obtaining renewable energy consumption and health expenditure data from 2000 to 2020 constitutes the main limitation of the study. As analysis methods, Lagrange multiplier (LM) cointegration and Common Corelated Effect (CCE) cointegration estimator tests were used. Before the application of these tests, cross-sectional dependence and homogeneity were determined. Fourier LM unit root test was used in examining the unit root process. Then, cointegration test and cointegration coefficient estimators, which is the last stage of the application, were determined. According to the panel cointegration coefficient estimation results, in the general analysis conducted for 13 EU countries, the effect of renewable energy consumption on health expenditures is statistically significant at the 10% level. Accordingly, a 1% increase in renewable energy consumption decreases health expenditures by 0.197%. In country-specific studies, the effect of renewable energy consumption on health expenditures was statistically significant and negative in Denmark, Spain, Sweden, and Greece, reducing health expenditures by 0.132%, 0.111%, 1.288%, and 0.782%, respectively. The effect of GDP on health expenditures appears to be statistically significant at the 1% level. Accordingly, a 1% increase in income increases health expenses by 1.071%. In country-based analyses, the coefficients are statistically significant and positive in Germany, Austria, Belgium, Czech Republic, France, Spain, Sweden, Italy, Portugal, and Greece. These findings indicate that the increase in environmentally friendly, reusable energy consumption will have a positive impact on the environment, reduce health expenditures and contribute positively to the sustainability of health financing. In addition, it emphasizes that increases in GDP are reflected in health expenditures, thus increasing the quality of health.

Revisiting the Nexus between Renewable Energy Consumption and Economic Growth in Nigeria: The VECM Approach

The research investigates the effect of renewable energy consumption on economic growth as well as analyzing the dynamic relationship between both variables from 1990 to 2022. Annual secondary data covering the period between 1990 and 2022 were used in the study. Data on real gross domestic product, renewable energy consumption (% of total final energy consumption), gross capital formation (% of GDP), labor force, total and trade (% of GDP) were sourced from World Development Indicator. The study applies Johansen co-integration test and Vector Error Correction Model (VECM) to examine the effect of renewable energy consumption on economic growth and other explanatory variables as well as using pairwise granger causality test to examine the causal relationship between both variables. The empirical evidence revealed long-term relationship between renewable energy consumption and economic growth. Evidence shows that there is no causality either unidirectional or bi-directional between both variables. In short run, renewable energy consumption revealed a significant positive impact on economic growth. This shows that renewable energy may stimulate economic growth, particularly as it has a greater short-term impact on economic growth than capital formation. The key policy implication drawn from the results indicate the need for investment in renewable energy technologies and infrastructure, which can help to increase the availability and affordability of renewable energy, improve workforce development in Nigeria renewable energy sector.

Are Natural Resource Rents and Renewable Energy Consumption Solutions for Environmental Degradation? Fresh Insights from a Modified Ecological Footprint Model

A comprehensive approach addressing the key factors exacerbating pressure on the environment is required to minimize the damages caused by global warming and environmental destruction. For this purpose, the present study investigates the effects of renewable energy consumption (REC) and natural resource rents (NRRs) on environmental degradation within the scope of the environmental Kuznets curve (EKC) hypothesis for ASEAN-5 countries. Differing from most previous studies, this research represents environmental degradation by using the ecological footprint pressure index, which considers both the supply and demand aspects of the environment. The present study covers the period between 1990 and 2018. This study employs the Method of Moments Quantile Regression (MMQR), an advanced panel technique that yields reliable results on the outlier issue, endogeneity, and non-normal distribution. The MMQR results confirm the EKC hypothesis, assuming the presence of an inverted U-shaped relationship between economic growth and environmental degradation. Moreover, the results reveal that REC and NRRs reduce environmental degradation in all quantiles. Given these results, policymakers in the ASEAN-5 countries are recommended to utilize productivity gains from natural resource rents for investment in clean energy and to shift their energy consumption policies towards renewable energy technologies and research.

How does economic growth impact environmental quality in Ethiopia? A non‐linear approach

AbstractFueled by economic growth, among other factors, environmental degradation is one of the most serious challenges facing humanity in the twenty‐first century. Although extensive research has been conducted on the relationship between economic growth and environmental quality, the findings are inconclusive. This study investigated the relationship between economic growth and environmental quality in Ethiopia from 1981 to 2016 using non‐linear autoregressive distributive lag and two‐step least squares models. First, the study finds that the relationship between economic growth and environmental quality is asymmetric. Second, economic growth negatively affects environmental quality. Third, the positive environmental effect of a negative shock on economic growth is stronger than that of a positive shock. Fourth, energy consumption and population growth negatively affect environmental quality, whereas the effects of renewable energy consumption, natural resources, trade openness and human capital are positive. Fifth, an inverted N‐shaped relationship exists between economic growth and environmental quality, where GDP per capita greater than $686.770 contributes to environmental quality. Therefore, high and sustainable economic growth, renewable energy consumption, population control, resource conservation, trade openness and human capital accumulation are required to improve the environmental quality of Ethiopia. The limitation of this study is that it examines the direct impact of economic growth on environmental quality. It would be better to examine the potential indirect impact of economic growth via variables, such as institutional quality and human capital.

Analysis of the Effect of Renewable Energy Consumption and Industrial Production on CO2 Emissions in Turkic Republics by Panel Data Analysis Method

This study aims to analyze the impact of energy consumption and industrial production on CO2 emissions in the Turkic Republics using the Panel Data method for the period 2000-2020. However, Turkmenistan was excluded from the analysis because the relevant data could not be accessed. Data from Kazakhstan, Azerbaijan, Kyrgyzstan, and Uzbekistan were analyzed. CO2 emission creates problems in terms of environment and sustainability and is a parameter that all countries and international organizations carefully monitor and try to reduce. Using panel data regression, this study examined whether renewable energy and industrial production and countries impact CO2 emissions. The findings revealed that as renewable energy consumption increases, CO2 emissions decrease. However, the effect of industrial production on CO2 emissions was not statistically significant. These results demonstrate that the industrial development of selected countries does not pose a CO2 emission problem. A comparison of countries showed that the high CO2 emission value for Kazakhstan was also reflected in the panel data regression findings, and among the four countries, the country effect was positive only for Kazakhstan. This study is noteworthy in revealing the effect of renewable energy consumption on CO2 emissions. To reduce CO2 emissions and gain a better understanding of the impact of renewable energy consumption on CO2 emissions, future studies should include both developing countries and OECD countries, and compare the results obtained from them.

Renewable Energy Consumption, ESG Reporting, and Fixed Asset Turnover: Does it Work in Asia?

The purpose of this study is to provide empirical evidence on the effect of renewable energy use and ESG reporting on fixed asset turnover of companies in the energy industry and basic materials industry in the Asian region. No one has tried to see the effect of renewable energy consumption and ESG on the company's efficiency performance through fixed asset optimization, especially in the Asian region which is a strategic region for sustainability goals. The finding is renewable energy does not affect the fixed assets turnover of companies in the energy industry sector and the basic materials industry in Asia. However, ESG reporting represented by ESG score has a significant positive influence on the company's fixed asset turnover. The company's overall internal readiness aspect is an important thing that must be considered first so that the implementation of business practices that prioritize natural resource management in achieving operational activity efficiency advantages can achieve its benefits. A higher ESG score is a representation of controlled activity performance management in generating sustainable corporate efficiency through a higher fixed asset turnover ratio, and vice versa.

Climate warming, renewable energy consumption and rare earth market: Evidence from the United States

This study investigates the time-varying interactions among climate warming, renewable energy consumption (REC) and rare earth market using TVP-VAR-SV model. We focus on the stock performance in the rare earth financial market. Our empirical results show that the effects of climate warming and REC on rare earth market changes over time and increases significantly during the COVID-19 pandemic. The REC has short-term positive impact on rare earth market, and the positive impact of climate warming on the rare earth market has a time lag effect. In the long term, climate warming has a significant promotion effect on REC, especially during major events. The short-term positive impact of REC on the rare earth market is prominent after the signing of the Paris Agreement (PA), while its impact shows counter-cyclical fluctuations during the COVID-19 pandemic. The effect of disaggregated REC on rare earth market is obviously heterogeneous. Solar and wind energy consumption are the most important reasons for changes in rare earth market.

Examining the Impact of Energy Policies on CO2 Emissions with Information and Communication Technologies and Renewable Energy

Abstract The world today presents significant environmental concerns for humans, such as smog and warmer temperatures, but we also need to think about how to accomplish economic growth that is sustainable. Therefore, this exploration researches the asymmetric effect of renewable energy consumption, economic growth and financial development on carbon emanation in the emerging economies. For this reason, this investigation uses Panel ARDL and PMG estimator. The consequences of PMG estimator demonstrate that information and communication technologies reduce the carbon emanations in the sample region. Additionally, renewable energy consumption also impedes the carbon emanations. The results also suggest that financial development additionally builds the carbon emissions but the impact is very minor. Finally, economic growth and population are also contributing toward carbon emissions. The power effective recommendation is vital to present the ICT assistance to confine the utilization of obsolete machinery for power generation.

Effect of renewable energy consumption on environmental quality in sub-Saharan African countries: evidence from defactored instrumental variables method

PurposeSub-Saharan Africa is a region that is highly vulnerable to the effects of climate change. Renewable energy consumption could play a major role in mitigating the effects of climate change by improving environmental quality in the region. The purpose of this paper is to examine the effect of renewable energy consumption on environmental quality in sub-Saharan African countries.Design/methodology/approachThe empirical investigation is based on the estimation of an augmented Green Solow model through the defactored instrumental variables approach on a sample of 34 countries over the period 1996 to 2018.FindingsThe results of two-stage defactored instrumental variables estimator show that renewable energy consumption improves environmental quality. Indeed, renewable energies have a significant negative influence on CO2 emissions. This result is robust when using the ecological footprint as an indicator of environmental quality.Practical implicationsIn terms of implications, governments in Sub-Saharan Africa need to pursue policies to encourage investment in the renewable energy sector. This will promote renewable energy consumption, change the structure of the energy mix in favour of renewable energy, improve environmental quality and effectively combat climate change.Originality/valueThe originality of this research in relation to the existing literature lies at several levels. Firstly, the analysis is carried out using a unified framework combining the environmental Kuznets curve and the environmental convergence hypotheses. Secondly, this research uses a very recent econometric method. Finally, environmental quality is measured using two indicators.

The role of international tourism, trade openness and renewable energy in the financial development of selected African countries

It is well established that financial development is pivotal to the proper functioning of the real economy and there is a vast body of literature investigating into its determinants. In this study, we shift attention to tourism and renewable energy consumption that are rarely discussed in the financial development debate along with trade openness. Even though, tourism and renewable energy consumption may be less conventional to issues of financial intermediation, they could, along with trade openness, nonetheless contribute to some aspects of financial development in ways consistent with the finance-growth hypothesis. Consequently, this study, while controlling for economic growth, development assistance and government expenditure examines the effects of renewable energy consumption, tourism development and trade openness on financial development in selected African countries. The study relies on data from the World Bank (2023) World Development Indicators for seven African countries (Egypt, Tunisia, Kenya, South Africa, Zimbabwe, Ivory Coast and Morocco) over the periods 1995–2021. Fully Modified Ordinary Least Square (FMOLS) regression estimations reveal that, in the long run, trade openness, international tourism, and renewable energy stimulate financial development. The quantile regression which rendered additional support to this evidence further reveals that, the financial sector gains associated with trade openness, international tourism and renewable energy are greater for countries with lower financial sector development. Thus, a country can still optimize the gains associated with increased trade openness, international tourism, and renewable energy consumption with a relatively less developed financial market. Hence, polices that improve tourism development, promote renewable energy consumption and intensify economic openness may be important catalysts for stimulating further financial development in Africa.

On the nexus between real income, renewable energy consumption, and environmental sustainability on life expectancy for BRICS‐T countries: Accessing evidence from quantile regression

AbstractThis study is aimed at establishing the impact of real income, renewable energy consumption, and carbon dioxide (CO2) emission on life expectancy for annual frequency data from 1990 to 2019 for BRICS‐T (Brazil, Russia, India, China, South Africa, and Turkiye) economies. In addition, the effects of real income, renewable energy consumption, and life expectancy on CO2 emissions are given by establishing a second model. To this end, different econometric approaches such as fixed effects model, random effects model, panel quantile regression, and the Dumitrescu and Hurlin panel causality test were used. We found in our empirical evidence that renewable energy consumption and real income positively affect life expectancy. At the same time, it was seen that real income has a positive effect on CO2 emissions, but renewable energy consumption has a negative effect. According to the panel quantile regression analysis results, while the effect of income on life expectancy is similar to other estimation results, that of renewable energy consumption is different. However, the effect of renewable energy consumption and real income on CO2 emissions is similar to other estimation results. The findings of the study show that policy makers need to promote renewable energy in order to extend life expectancy which is an important determinant of economic growth.

YENİLENEBİLİR ENERJİ TÜKETİMİNİN EKONOMİK BÜYÜME ÜZERİNE ETKİSİ VE ÇEVRESEL KUZNETS EĞRİSİ HİPOTEZİ: OECD ÜLKELERİ ÜZERİNE BİR PANEL VERİ ANALİZİ

Sürdürülebilir bir ekonomik büyüme ve kalkınma için enerji önemli bir unsur olduğu kadar ekonomik büyüme ile çevresel kalite arasındaki ilişki de yıllardır tartışılan bir konudur. Çevresel Kuznets Eğrisi Hipotezine göre kısa vadede ekonomik büyüme ve çevresel kirlilik arasında doğru yönlü ilişki olmasına karşın uzun vadede bu ilişki ters yönlü bir şekil almaktadır. Bu durum, hem sürdürülebilir ekonomik büyümeyi sağlamak ve hem de çevre kirliliğini önlemek için ülkelerin yenilenebilir enerji kaynaklarına yönelmesini önemli kılmaktadır. Bu çalışmadaki temel sorunsal, yenilenebilir enerji kullanımındaki artışların, uzun dönemde ekonomik büyüme üzerine ne gibi bir etkisinin olacağıdır. Bu sorunsal karşısında, çalışmada 2021 yılında toplam enerji tüketimi içerisindeki yenilenebilir enerji tüketimi payının, dünya ortalamasının üzerinde olan ülkelerden seçilmiş 28 OECD ülkesinin 1995-2020 dönemi yenilenebilir enerji tüketimleri ile ekonomik büyüme arasındaki ilişkinin tespiti için panel veri analizi uygulanmıştır. Analiz sonuçlarına göre yenilenebilir enerji tüketimindeki %1‘lik artış, GSYİH’yı %0.19 oranında artırmaktadır. Bu sonuç Çevresel Kuznets Eğrisi Hipotezinin ortaya koyduğu gelir değişimi ve çevre kalitesi arasındaki ilişkiyi de dolaylı olarak doğrulamaktadır. Ayrıca yine çalışma ile elde edilen sonuçlara göre yenilenebilir enerji tüketimi ve ekonomik büyüme arasında çift yönlü bir nedensellik ilişki söz konusudur.

How does renewable energy consumption affect carbon emission intensity? Temporal-spatial impact analysis in China

Whether renewable energy consumption is beneficial to reducing CO2 emission intensity and carbon emissions in the context of the goal of “carbon peak and carbon neutrality” in China. To prove this conjecture, considering the spatial spillover effect of carbon dioxide, this paper adopts the spatial Dubin model for empirical analysis based on the panel data of China's 30 provinces over the period 2002–2019. This study explores the CO2 intensity mitigation effect of China's renewable energy consumption and further investigates the mediation role of technological innovation, industrial structure upgrading and optimization, and energy efficiency in the nexus between renewable energy consumption and carbon intensity. The main findings present that: (1) China's carbon emission intensity is characterized by significant spatial correlation; (2) Renewable energy consumption can significantly reduce carbon intensity and per capita carbon emissions; (3) The mediation effect of renewable energy consumption in reducing carbon emission intensity is to promote technological innovation and industrial structure upgrading, as well as improve energy efficiency. Based on the conclusions, this paper offers several policy implications for governments to reduce CO2 emission intensity.

What is the global causality among renewable energy consumption, financial development, and public health? New perspective of mineral energy substitution

Under the background of global warming and economic globalization, energy structure transformation and financial liberalization have become hot issues of global concern. Additionally, the replacement of renewable energy sources for mineral energy is placed great expectations to reduce environmental pollution and promote public health. Although the effects of renewable energy consumption (REC) and financial development (FD) on public health (PH) have been verified by researchers, the long-term causality among the three has not been explored, especially from global evidence. To verify the long-term relationship and causality among REC, FD, and PH at the global level, using annual panel data for 136 nations from 2000 to 2018, this paper employs the Cross-sectional dependence test, CADF unit root test, the second generation cointegration test, Pooled Mean Group estimation, and the Granger causality test. This paper finds some interesting results. First, the long-term co-integration relationship and the two-way causal relationship are among REC, FD, and PH. Second, REC and FD have a long-term promoting effect on PH, but have no significant effect in the short term. This conclusion holds up after a series of robustness tests. Third, there is heterogeneity in the long-term impact of REC and FD on PH. The long-term PH benefits of REC are more vital in low-polluting countries, trade-open countries, poor-institution countries, and non-emerging market countries, while FD has a long-term negative impact on PH in high-polluting and trade-tight countries. Based on the above results, we believe that it is necessary to formulate appropriate energy policies and financial policies according to local conditions. In summary, our results provide essential policy recommendations for energy transformation and public health improvement in countries around the world in the process of financial liberalization.

Effect of Renewable Energy Consumption on Environmental Degradation in ASEAN Countries

This study focused on estimating the long-run and short-run relationship of dross domestic savings, development of the industrial sector, and renewable energy consumption towards the environmental degradation in Association of Southeast Asian (ASEAN) countries. We conducted the Pooled Mean Group (PMG) estimation techniques developed by Pesaran et al.(1999). The results highlighted that all the variables present significant environmental degradation while using renewable energy has abolished environmental pollution in ASEAN countries. Therefore, policymakers must take action to design sustainable economic development mechanisms and convert industrial investments to environmentally friendly projects to improve green technology.

The asymmetric impact of renewable energy consumption on the economic growth of emerging South and East Asian countries: A NARDL approach

The question of economic development is so essential that specialists, international leaders, and every government are continually working on how to tackle this problem. Renewable energy is a means to save planet’s ecology and foster long-term economic viability. This study explores the asymmetric effect of renewable energy consumption (RE) on emerging South and East Asian countries’ economic growth by the non-linear autoregressive distributed lag (NARDL) approach. Also, it employs the generalized least square (GLS) method and panel causality test to grasp this impact. The GLS assessment exposes that positive and negative (P&S) mechanisms of RE positively influencing GDP while urbanization has an adverse influence. The PMG approach also delivers equivalent outcomes and authenticates the robustness of GLS results. The causality results provide relations between GDP and other variables. There is a conservation mechanism between the negative shock of RE consumption and GDP, while the positive shock of RE to GDP is observed from the feedback mechanism. We observed different interactions of CO2, P&S shocks of RE, and non-renewable consumption on GDP. These findings support policymakers of South and East Asian countries in formulating effective rules for their financial institutions regarding energy guidelines. In addition, considering P&S shocks from RE specifies that effective outcomes can be attained in economic growth while formulating energy guidelines.

Greenhouse Gas Emissions and the Rising Effects of Renewable Energy Consumption and Climate Risk Development Finance: Evidence from BRICS Countries

In recent decades, the surge in greenhouse gas emissions has given rise to an increase in climate risk-related development finance. This research delves into the effect of renewable energy and climate risk-related development finance on greenhouse gas emissions in the BRICS region. Panel regression estimates were employed to uncover several noteworthy findings. Firstly, a slight yet significant surge in greenhouse gas emissions resulted from increased climate risk-related development finance. Secondly, augmented climate risk-related mitigation finance corresponded with a noteworthy upsurge in renewable energy usage. Thirdly, greater renewable energy consumption resulted in a considerable reduction in greenhouse gas emissions. Lastly, amplified renewable energy consumption alleviated the impact of climate risk-related mitigation finance on greenhouse gas emissions. These findings emphasize the necessity of efficiently utilizing climate finance in generating renewable energies like wind, biomass, geothermal, hydroelectric and solar energies. Additionally, it is recommended that benefactor nations and officials ensure a regular and uninterrupted flow of climate risk-related development mitigation finance to emerging nations.

Could trade protectionism reshape the nexus of energy-economy-environment? Insight from different income groups

The Russian-Ukrainian conflict and the COVID-19 pandemic have triggered trade protectionism, which further accelerates the US isolationism and European populism. This study examines the impacts of trade protection on renewable energy, economic growth, and carbon emissions. Compared to previous studies, the role of trade openness is innovatively examined and heterogeneity is analyzed for different income groups. ssioThis study analyzes the impact of trade openness on the energy-economy-environment (3E) system of 123 countries through threshold effects using a panel threshold regression (PTR) model. The results show that there is a trade openness threshold for the impact of renewable energy consumption and economic growth, and then there is an inverse effect. That is, a U-shaped relationship exists between renewable energy and economic growth with the threshold effect of trade openness. While for the nexus of renewable energy and carbon emissions, there are two structural breakpoints. The inhibiting effect of renewable energy consumption on carbon emissions decreases as trade openness crosses the breakpoint. However, the effects of structural breakpoints in trade openness vary across income economies. Specifically, as trade openness has passed the structural breakpoint, renewable energy's role in promoting the economy in the middle- and high-income groups has gradually increased, while that in the low-income groups has fallen. The study recommends effective trade measures to minimize environmental damage and promote sustainable growth through the use of clean energy.

Does renewable energy reduce per capita carbon emissions and per capita ecological footprint? New evidence from 130 countries

This study explores whether increasing renewable energy consumption can alleviate environmental pressures (per capita carbon emissions and per capita ecological footprint) and the heterogeneity of the effects of increasing renewable energy consumption on the environmental pressures of countries in different income groups. We analyze 130 countries and three income groups from 1992 to 2019 based on a panel threshold regression estimation approach. The results show that (i) There is a negative relationship between renewable energy consumption and per capita ecological footprint and per capita carbon emissions, indicating that renewable energy consumption alleviates environmental pressure. (ii) When renewable energy consumption increases, the negative effects of renewable energy on per capita ecological footprint and per capita carbon emissions become more significant. This means that the more renewable energy is developed, the more it helps to alleviate environmental pressure. (iii) The inhibitory effect of renewable energy consumption on per capita ecological footprint is more significant in low-income countries than in middle-income countries. This indicates that renewable energy is more effective in reducing environmental pressures in poor countries than in rich countries.