Impact Of Renewable Energy Consumption Research Articles

The impact of the proportion of renewable energy consumption on geopolitical risks in the United States and the United Kingdom

Renewable energy serves as an effective alternative to traditional fossil fuels, reducing reliance on energy imports from specific countries, thereby alleviating geopolitical risks and ensuring national energy security. The development and utilization of renewable energy have profound implications for the global energy consumption structure and geopolitical landscape. This paper utilizes time-series and panel data from 1990 to 2020 to examine the causal relationship between renewable energy consumption and geopolitical risks. Focusing primarily on the United States and the United Kingdom, a multivariate regression model was developed for empirical analysis, with a comparative analysis conducted against other Group of Seven (G7) member countries. Subsequent robustness checks were performed to further validate the model's robustness. Additionally, this study explores the role of military strength as a moderating variable in the relationship between renewable energy and geopolitics. Lastly, a vector autoregression model was constructed to analyze the dynamic relationships between renewable energy and related variables. The findings reveal that (1) consumption of clean renewable energies, such as solar, wind, and tidal energy, significantly reduces geopolitical risks in the United States and the United Kingdom, with differing empirical results for France, Canada, and Japan, interpreted according to their developmental contexts and (2) increased defense expenditure in the US and the UK significantly enhances the positive impact of renewable energy consumption on mitigating geopolitical risks. Utilizing renewable energy not only diversifies national energy options but also reduces reliance on fossil fuels and fosters international cooperation, thereby easing geopolitical tensions. This research enriches the literature on the relationship between renewable energy consumption and national energy security in key global nations and offers theoretical insights for the formulation and implementation of national energy development strategies in the new world development paradigm.

Impact of renewable energy consumption on sustainable development in Central Asia

AbstractThe energy transition in Central Asia faces multiple risks while lacking empirical assessment of renewable energy use from a sustainability perspective. This paper examined the relationship of renewable energy consumption with energy intensity and carbon intensity in Central Asia during 1993—2019, using the seemingly unrelated regression (SUR). Weighing the heterogeneity of countries in the region, the results showed that downstream countries build an inverted U‐shaped relationship between renewable energy consumption and carbon intensity, while the whole region indicates an inverted U‐shaped relationship between renewable energy consumption and energy intensity. Compared with hydrocarbon, nonfossil energy is expected to serve as a greater driving force for economic growth in the future, alleviating socio‐economic dependence on fossil fuels in downstream countries and generating additional revenues to ensure energy security in upstream countries. The findings suggest policymakers to considerably mitigate the risks of decarbonization across the region.

The Impact of Renewable Energy Consumption on Economic Growth in BRIC-T Countries: Panel Data Analysis

The aim of this study is to examine the impact of renewable energy consumption on economic growth in BRIC-T countries (Brazil, Russia, India, China and Turkiye). In doing that, we consider gross fixed capital formation, trade openess, and foreignd direct investment as control variables. The Driscoll & Kraay estimator is used in the study in which both panel-wide and country-based analysis is performed using data for the period 1990-2020. According to the panel results, renewable energy consumption, trade openness and FDI variables are statistically insignificant. When countries are analyzed separately, the impact of renewable energy consumption on economic growth varies. Accordingly, it has a negative effect in China, India, Russia and a positive effect in Brazil and Turkiye. However, it is statistically significant only in India and Turkiye. In all countries, the increase in gross fixed capital formation has a positive effect on growth and is statistically significant. The effect of trade openness on growth is statistically significant in Brazil (positive), China (positive) and India (negative). FDI is statistically significant only in China and Turkiye. FDI affects growth negatively in China and positively in Turkiye.

The Dynamic Impact of Renewable Energy Consumption on Economic Growth in Zimbabwe: An ARDL Approach

Motivated by the study country’s active involvement in the reduction of global greenhouse gas emissions and the positive strides it has made domestically in increasing renewable energy in its energy mix, on the one hand, and the need to find out whether renewable energy consumption can also assist in reviving the economy, on the other hand, this study empirically examines the dynamic impact of renewable energy consumption on economic growth in Zimbabwe. Using annual time-series data from 1990 to 2019, and the autoregressive distributed lag approach, the results of the study show that in Zimbabwe, renewable energy consumption has apositive impact on economic growth, both in the short and long run. Increasing the usage of renewable energy increases the growth of the economy in the country of study. These results imply that Zimbabwe can achieve two goals using one strategy – increasing renewable energy consumption to decrease the negative impact climate change and greenhouse gas emission have on the environment and the economy, and increasing economic growth. Policy makers in Zimbabwe are, therefore, recommended to supportincreased use of renewable energy over alternative energy sources, as this would have positive implications on the economy, both in the short and long term.

The dynamic nexus between agricultural productivity and renewable energy consumption in BRICS: the role of financial inclusion and foreign direct investment

Purpose This study aims to examine the impact of renewable energy consumption on agricultural productivity while accounting for the effect of financial inclusion and foreign direct investment in Brazil, Russia, India, China and South Africa (BRICS) countries during 2000–2020. Design/methodology/approach The study has used the latest data from World Bank and International Monetary Fund databases. The dependent variable in the study is agricultural productivity. Renewable energy consumption, carbon emissions, financial inclusion and foreign direct investment are independent variables. Autoregressive distributed lag (ARDL) approach was used to examine the short-run and long-run impact of renewable energy consumption, carbon emissions, foreign direct investment and financial inclusion on agricultural productivity. Findings The findings imply that consumption of renewable energy, carbon emissions and foreign direct investment have a positive impact on agricultural productivity while financial inclusion in terms of access does not seem to have any significant impact on agricultural productivity. Providing farmers, access to financial services can be beneficial, but its usage holds more importance in impacting rural outcomes. The problem lies in the fact that there is still a gap between access and usage of financial services. Research limitations/implications Policymakers should encourage the increase in the usage of renewable energy and become less reliant on non-renewable energy sources which will eventually help in tackling the problems associated with climate change as well as enhance agricultural productivity. Originality/value Most of the earlier studies were based on tabular analysis without any empirical base to establish the causal relationship between determinants of agricultural productivity and renewable energy consumption. These studies were also limited to a few regions. The study is one of its kind in exploring the severity of various factors that determine agricultural productivity in the context of emerging economies like BRICS while accounting for the effect of financial inclusion and foreign direct investment.

Do renewable energy and human capital facilitate the improvement of environmental quality in the United States? A new perspective on environmental issues with the load capacity factor

Recently, countries have been making intensive efforts to alleviate the burden on the environment and to make environmental conditions sustainable. In this context, our study aims to investigate the long-term impact of renewable energy consumption (REC) and human capital (HC) by considering the load capacity factor (LCF). We also investigate the long-term impact of economic growth (Y) and non-renewable energy consumption (NREC) on the LCF. In this context, we analyze annual data for the U.S. for the period 1965–2018 using the newly developed augmented ARDL (AARDL) approach. The long-term empirical results show the following. i) Increases in Y negatively affect LCF and deteriorate environmental quality. ii) Increases in NREC negatively affect LCF and accelerate the deterioration of environmental quality. iii) REC has no significant impact on environmental quality. iv) Increases in HC support the improvement of environmental quality. The empirical results show that contrary to expectations, renewable energy consumption does not have a significant impact on environmental quality in the U.S., whereas human capital is an important factor in improving environmental quality. In this context, US policymakers should pave the way for more investment in eco-friendly renewable energy investments and human capital to establish sustainable environmental quality. Policymakers should also take steps to reduce the use of fossil fuels.

Revolutionizing Environmental Sustainability: The Role of Renewable Energy Consumption and Environmental Technologies in OECD Countries

This study examines the relationship between economic factors and environmental sustainability in OECD (Organisation for Economic Co-operation and Development) countries from 1990 to 2022, with a particular focus on the impact of renewable energy consumption and environmental technologies on CO2 emissions. The research utilizes empirical data to establish a clear negative correlation between the adoption of renewable energy sources and the level of CO2 emissions, highlighting the effectiveness of renewable energy in reducing the environmental impact of economic activities. This finding supports the theoretical perspective that transitioning to cleaner energy sources is vital for achieving environmental sustainability and aligns with the objectives of the OECD’s environmental sustainability program. Further analysis reveals a significant negative impact of environmental technologies on CO2 emissions, underscoring the importance of technological innovation in environmental conservation efforts. The study also explores the dual influence of GDP growth, urbanization, industrialization, and trade on CO2 emissions, revealing both positive and negative effects across different stages of economic development. Initially, these factors contribute to increased emissions, but as economies mature and integrate more efficient and cleaner technologies, their impact on emissions becomes negative. These findings demonstrate the complex interplay between economic development and environmental sustainability and emphasize the need for policies that encourage renewable energy adoption, support environmental technological innovations, and guide economies towards sustainable practices. The study provides valuable insights for policymakers and stakeholders, advocating for an integrated approach to ensure long-term environmental sustainability in OECD countries.

The key to sustainability: In-depth investigation of environmental quality in G20 countries through the lens of renewable energy, economic complexity and geopolitical risk resilience

The world is currently facing urgent climate and environmental issues, such as global warming, ecosystem collapse, and energy shortages. In this context, this study selected data from 2000 to 2021 and employed the Method of Moment Quantile Regression (MMQR) to thoroughly investigate the impact of renewable energy consumption, economic complexity, and geopolitical risks on the ecological footprint of the Group of Twenty (G20) countries. The results indicate that in countries with lower quantiles, renewable energy consumption significantly reduces the ecological footprint, whereas its effect is not prominent in countries with higher quantiles. Economic complexity has a negative impact on the ecological footprint, and this impact becomes stronger as the quantile of the ecological footprint rises. Additionally, economic complexity moderates the effect of renewable energy on the ecological footprint. Geopolitical risks facilitate the growth of the ecological footprint. Likewise, robustness tests such as DOLS, FMOLS, and quantile regression confirm these estimates in the same framework. This study has conducted a profound analysis of global environmental issues, offering innovative perspectives and recommendations for achieving goals related to sustainable energy utilization, mitigating climate change, and improving the ecological environment. The findings of this research will guide policymakers in G20 countries to adopt more effective environmental protection measures, thereby contributing to the construction of a sustainable future.

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.

The Role of Renewable Energy Consumption in Targeting Debt Sustainability in African and MENA Region Countries

The primary aim of this study was to explore the impact of renewable energy consumption on debt sustainability in African and Middle East and North African (MENA) countries. Other objectives were to be investigated including foreign direct investment net inflows’ effects on those countries’ public debt, besides the relationship between carbon dioxide emissions and their public debt. The Fixed Effects Regression Model for Panel data analysis was employed through the utilization of different variables data of 21 countries in Africa and MENA regions, covering the period from 1999 to 2021. The conducted regression analysis incorporated central government debt as a dependent variable, and carbon dioxide emissions, FDI net inflows, the government effectiveness index, credit to the private sector, and renewable energy consumption as explanatory variables. The results revealed the existence of direct significant relationship between renewable energy consumption and central government debt, suggesting that reducing public debt leads to lower utilization of renewable energy. This could imply that going for the objective of debt sustainability requires the prevention of the wide utilization of renewable and clean energy. However, this impact could be overcome or lessened or even mitigated if it is aligned with the presence of highly effective governments and stimulated by FDINI oriented towards climate change mitigation since Green foreign direct investment inflows promotes the sustainable development and debt sustainability specifically with the presence of inverse relationship between the latest variables and central government debt. One recommendation from this research is that attracting FDI that promotes sustainable development within the context of effective governments can reduce government debt and should be explored for attaining the main objective without harming the ecological system or causing environmental degradation.

Renewable energy consumption, carbon dioxide emission and financial stability: does institutional quality matter?

ABSTRACT In the context that countries around the world are making efforts to reduce carbon emissions and promote the use of renewable energy, the impact of these issues on the economy is becoming more and more concerned. Our study investigates the impact of renewable energy consumption and carbon dioxide emissions on financial stability and the role of institutional quality in mitigating these effects. Using panel data from 147 countries, including both developed and developing countries, and applying the quantile regression method, this study found that both renewable energy consumption and carbon dioxide emissions reduce financial stability. Moreover, the negative effects of carbon dioxide emissions on financial stability intensify in countries with higher financial stability. Additionally, institutional quality was found to play an important role in mitigating the negative impacts of renewable energy consumption and carbon dioxide emissions on financial stability, especially in countries with high levels of financial stability; the impact was insignificant in developing countries with low levels of financial stability. Our results can be useful for regulators in both developed and developing countries to control the negative impacts of carbon emission reduction and renewable energy policies on financial stability.

Renewable Energy and Banking Sector Development Impact on Load Capacity Factor in Malaysia

BackgroundMost studies focusing on the environment predominantly utilize indicators such as CO2 and ecological footprint (EF), which solely examine the demand aspect of the environment, therefore overlooking the supply dimension. This limitation restricts the policy recommendations obtained from those studies. Load Capacity Factor (LCF) variable overcomes this deficiency in the literature by including both the supply and demand dimensions of the environment in the analysis and makes it possible to provide more comprehensive policy recommendations. This article discovers the impact of renewable energy consumption (REC), banking sector development (BSD), and economic growth (GDP) on the LCF in Malaysia between 1980 and 2018. Methodology: After investigating the stationarity of variables utilizing Lee and Strazicich's (2003) Unit Root (LSUR) test that considers structural breaks, the study tested the long-term (LT) relationship in the model through the ARDLB test approach. Subsequently, the short-term (ST) and LT coefficients of the GDP growth, BANK, and RE consumption variables are calculated. FindingsThe Load Capacity Curve (LCC) theory is valid in the ST and LT. In both the ST and LT, RE consumption has a detrimental effect on environmental sustainability (ES), while BSD has a positive impact. In conclusion, the study presents novel findings related to environmental policies for the policymakers of Malaysia.

Research topic identification and trend prediction of China's energy policy: A combined LDA-ARIMA approach

Identifying the research topics of China's energy transition policy and predicting future research trends are crucial for policymakers to make informed decisions and advance the energy transition. This study applied the Latent Dirichlet Allocation (LDA) to extract 26 major research topics from the 13,976 abstracts of Chinese policy research papers in web of science (WOS), conceptualized the five most popular topics and used the ARIMA model to predict trends over the next 36 months. The results show that except for Economic and Environmental Impact of Renewable Energy Consumption (Topic13), which will first experience unanticipated fluctuations and then show strong growth capacity, all other topics will continue to remain positive growth trend. Research and Development (Topic3) is driven by the urgency of China's energy transformation. Economic and Environmental Impact of Renewable Energy Consumption (Topic13) is driven by the potential for the development of renewable energy. Economic Impact of Climate Change (Topic26) is driven by the climate change debate. Economic Growth, Urbanization, and Energy Consumption (Topic7) is driven by a discussion of their relationship and the mechanisms influencing them. Regional Efficiency and Productivity Analysis (Topic19) is driven by regional differences in China's energy policies.

The Environmental Kuznets Curve Hypothesis in the United States: A Review

The economy of the United States (US) is highly developed. However, the US stands second in the World as per total CO2 emissions and this economy has environmental problems. The Environmental Kuznets Curve (EKC) has been probed extensively in the US economy. However, a review study is missing in the US case. The present research has reviewed 60 papers on the EKC in the US. 41 studies have authenticated the EKC in the US economy. But, 19 papers did not substantiate it. 11 out of 60 studies used disaggregated state-level data and most of these studies validated the EKC. 49 papers investigated the EKC for aggregated US data and the probability of the existence of the EKC is found lower in these papers in contrast to disaggregated studies. Moreover, the EKC is substantiated in the 24 papers confirming a negative impact of Renewable Energy Consumption (REC) on emissions. Moreover, logistic regression is utilized to test these findings. The results confirm that the possibility of EKC is 3.0885 times more if a study validates a negative impact of REC on emissions. The effect of disaggregated data is found statistically insignificant on the EKC validation.

Renewable Energy Consumption, Energy Efficiency, Trade, Economic Development and FDI on Climate Change in Vietnam

This study aimed to investigate the impact of green energy consumption, energy efficiency, foreign direct investment, economic growth, and trade (import and export) on greenhouse gas emissions( GHG) in Vietnam between 1990 and 2019. This study investigates the long-term cointegration relationship to find out the impact of renewable energy consumption, energy efficiency, trade, economic development, and foreign direct investment on climate change in Vietnam. The research results show a long-term relationship between the above variables and the reduction of greenhouse gas emissions. These findings highlight the profound importance of renewable energy consumption for ecologically sustainable development in Vietnam and serve as an important resource for other countries worldwide. world when it comes to ecological security. This study recommends the use of environmentally friendly and energy-saving technologies, the use of renewable energy to mitigate climate change and the implementation of the most recent government policies to neutralise greenhouse gas emissions to achieve sustainable development goals.

Does Renewable Energy Transition in the USA and China Overcome Environmental Degradation?

The use of fossil energy highly contributes to the CO2 emissions. Compared to other countries, China and the USA were responsible for approximately half of the global CO2 emissions in 2022. The SDG7 agenda, which aims to preserve the use of renewable energy, has made people aware of the need to switch from fossil-based to renewable energy sources by 2030. Thus, this paper aims to analyze the implications of fossil and renewable energy consumption on environmental degradation in the USA and China. This study uses the linear and nonlinear autoregressive distributed lag (ARDL) model to examine the cointegration of the fossil and renewable energy toward the CO2 emissions from 1985 to 2021. The estimation results for USA using linear ARDL shows that fossil energy lead to higher CO2 emissions, meanwhile renewable energy reduces the CO2 emissions. Similar finding in the nonlinear ARDL, most of the models for China and the USA found significant impact of renewable energy consumption, where higher renewable energy transition contributes in lowering environmental degradation. This provide justification for policymakers in both countries to continue their efforts in renewable energy transition to archive the SDG7 agenda in 2030.

Renewable energy consumption and carbon emissions in developing countries: the role of capital markets

ABSTRACT This study examines the impact of capital market on the relationship between energy consumption and carbon emissions. By employing a system Generalised Methods of Moments (GMM) for a sample of 138 developing countries over the period, 1990–2020, we find a U-shaped reverse relationship between renewable energy consumption and carbon emissions. The study reveals that beyond a threshold of 71.03, renewable energy consumption tends to increase carbon emissions. Similarly, the initial levels of carbon emissions reduce the use of renewable energy but beyond a 2.5 level of carbon emissions, renewable energy consumption begins to increase. We find that both the stock market and bond market reduce carbon emissions and enhance the levels of renewable energy consumption. We provide evidence to support that the capital market enhances the negative impact of renewable energy consumption on carbon emissions, while the corporate bond market magnifies the reductive effect of carbon emissions on renewable energy consumption.

Renewable Energy and Inclusive Economic Development: An African Case Study

Climate change constitutes a major challenge to economic growth and development across the globe as it negatively affects most sectors of the economy. Hence, there has been a global clamour for countries to invest in climate change mitigations. In developing regions like Africa, however, there are high resource limitations, and as such, there is a general opinion that funding climate change mitigation will have a huge opportunity cost of low investment in other development infrastructures, with the likelihood of decreasing economic development. On this premise, this study investigates the impact of renewable energy consumption and output on economic development in Africa. The study employed panel data analysis estimated using the System Generalised Method of Moments for a sample of 43 Sub-Saharan African countries. The results show that an increased share of renewable electricity in total electricity production increased significantly and contributed positively to economic development in Africa. Also, the ratio of renewable electricity to the total electricity consumed had a positive but insignificant effect on economic development. The study thus concludes that an increase in renewable electricity production and consumption does not only mitigate climate change but could also contribute marginally to the economic growth and development of African economies.

Impact of Renewable Energy Consumption and Public Capital Expenditure on Poverty Reduction in Nigeria

Poverty has been an important issue of discussion in underdeveloped countries and has been of crucial concern to many stakeholders across the globe. This article examines the extent to which renewable energy consumption and public capital expenditure impact the poverty rate in Nigeria over the period 2003 - 2019. We employed cointegration and Autoregressive Distributed Lag (ARDL) bounds model for our analysis. Our results revealed that renewable energy consumption significantly escalates poverty in the short run. Public capital expenditure, economic growth, and governance quality substantially reduce Nigeria's poverty. The long-run analysis reveals that renewable energy consumption significantly elevates Nigeria's poverty rate in the long run. Moreso, economic growth and quality of governance reduce the poverty rate substantially, whereas public capital expenditure does not significantly reduce the poverty rate in Nigeria in the long run. The Nigerian government was recommended to adopt modern renewable sources through a public-private partnership and promote good governance, especially in the efficient and appropriate implementation of public capital expenditures.

The Impact of Renewable Energy Consumption on Environmental Quality in Central European Countries: The Mediating Role of Digitalization and Financial Development

Green initiatives and digital transitions in Central European countries are catalyzing significant transformations within the region’s socio-economic landscape, embedding contemporary technologies into daily life and commercial activities. Consequently, this fosters improved environmental quality through sustainable practices. This research unravels the complex interplay between renewable energy consumption, digitalization, and financial development in various national contexts, providing key insights into their respective and collective impacts on environmental quality. This study investigates the relationship among environmental quality, digitalization, renewable energy consumption, financial development, and economic growth in Central European countries, analyzing data from 1995 to 2019. An analysis of the panel data reveals a statistically significant positive relationship between economic growth and carbon emissions, and a negative relationship among digitalization, renewable energy consumption, and carbon emissions. In Central European nations, including the Czech Republic, Hungary, Latvia, and Slovakia, digitalization serves a mediating role in the relationship between renewable energy consumption and environmental quality. However, the role of financial development as a mediator between renewable energy consumption and environmental quality manifests varied impacts across different countries. These findings hold the potential to guide policy recommendations for the countries under consideration.