Investment In Energy Infrastructure Research Articles

Unveiling Key Factors Shaping Energy Storage Strategies for Sustainable Energy Communities

This research delves into a case study of a photovoltaic (PV) energy community, leveraging empirical data to explore the integration of renewable energy sources and storage solutions. By evaluating energy generation and consumption patterns within real-world energy communities (a nominal generation capacity of 33 kWn) in Gipuzkoa, Spain, from May 2022 to May 2023, this study comprehensively examines operational dynamics and performance metrics. This study highlights the critical role of energy consumption patterns in facilitating the integration of renewable energy sources and underscores the importance of proactive strategies to manage demand fluctuations effectively. Against the backdrop of rising energy costs and environmental concerns, renewable energies and storage solutions emerge as compelling alternatives, offering financial feasibility and environmental benefits within energy communities. This study emphasizes the necessity of research and development efforts to develop efficient energy storage technologies and the importance of economic incentives and collaborative initiatives to drive investments in renewable energy infrastructure. The analyzed results provide valuable insights into operational dynamics and performance metrics, further advancing our understanding of their transformative potential in achieving a sustainable energy future. Specifically, our study suggests that storage capacity should ideally support an average annual capacity of 23%, with fluctuations observed where this capacity may double or reduce to a minimum in certain months. Given the current market conditions, our findings indicate the necessity of significant public subsidies, amounting to no less than 67%, to facilitate the installation of storage infrastructure, especially in cases where initial investments are not covered by the energy community.

CO2 emissions–economic growth nexus: Validity of EKC in oil‐exporting and oil‐importing countries

AbstractThe purpose of this study is to examine and compare the validity of the environmental Kuznets curve and the relationship between carbon dioxide emissions, per capita GDP, fossil fuel consumption, oil prices and foreign direct investment in advanced oil‐importing and oil‐exporting countries from 1970 to 2020. The researchers consider these nations for their dependency on oil resources and their different economic characteristics. The Westerlund (Oxford Bulletin of Economics and Statistics, 2007, 69, 709) co‐integration test shows that the studied variables are co‐integrated in the long run in both panels of the countries. The pooled mean group‐autoregressive distributed lag (PMG‐ARDL) model established by Pesaran et al. (Journal of the American Statistical Association, 1999, 94, 621), which assesses the short‐ and long‐run nexus between the variables of interest, detects statistically significant associations, providing evidence to support the hypothesis of EKC in both groups. Furthermore, foreign direct investment and fossil fuel consumption have long‐term positive effects on CO2 emissions. The main difference between both groups of countries is that oil price has a positive effect on CO2 emissions in oil‐exporting countries, while it has a negative effect on environmental degradation in oil‐importing countries. The study suggests increasing investment in renewable energy infrastructure by encouraging research and development, providing subsidies and tax incentives for renewable energy companies and promoting large‐scale renewable energy projects as they contribute to environmental quality.

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.

Toward a physical Dodge City high voltage direct current (HVDC) electricity hub

A physical Dodge City high voltage direct current (HVDC) electricity commodity hub would foster the kind of risk transfer that would invite the full participation of the financial industry in an interstate transmission system essential to the speedy development of renewable electricity and complementary storage technologies. Obstacles lie in the way of such a vision, however. Chief among them, paradoxically, is the administrative system that has evolved since the late 1990 s to promote regional electricity markets. That system abstracts from investment risk and the nation’s uneven geography of renewable resources. It lodges a kind of monopoly planning and scheduling power in a small group of bureaucratic centralized system operators that mimics a command economy in their own distinct regions, not the kind of market economy that has traditionally driven investment in US interstate energy infrastructure. And yet, in dealing with the vexing transmission constraints faced by the renewable generating sector (the “queue”), the Federal Energy Regulatory Commission (FERC) continues to pursue ever greater authority for those regional transmission organizations (RTOs). Such FERC action regarding its RTOs in 2022–23 represents a highly evident case of path dependency—a problem—that state or federal policy makers wishing to speed the entry of large-scale renewable generation, and complementary storage technologies, will have find a way either to confront directly or to work around.

Defining a ‘Just Energy Investment’ for the ASEAN Just Transition

Governments across the world have been updating their energy and climate policies since the 2015 Paris Agreement. One common feature is the advent of long-term plans for a net-zero economy for 2050 and also in some cases to 2060. To meet these long-term net-zero targets therefore, significant investment in new and clean energy infrastructure is needed. This research focuses on how to ensure that this required energy investment happens in a ‘just’ way, i.e., it contributes to fairness, equity, equality and inclusiveness. Recently, countries such as the United States, South Africa and Colombia have incorporated justice principles into their energy and climate policies. This research builds on this and is the first to assess justice in consideration of these time horizons along with its focus on the 10 South-East Asian nations, known as ASEAN countries. The data analysed here provides insight into how energy investments are developing in these countries, whether justice policies are aligned and therefore how to avoid energy policy failure. Further, as well as the conceptual advances, this research provides a model for a Just Energy Investment (JEI) Index based on the five energy justice principles. The analysis here focuses on countries of the Global South where there exists limited research that looks at the performance over time of the combined issue of energy investments and justice; this demonstrates this research as a significant contribution to the literature. This research marks a first step in delivering justice in new energy development as these economies build towards their 2050 and 2060 energy and climate targets.

A comprehensive review of Liquefied Natural Gas (LNG) market dynamics: Analyzing the current trends, challenges, and opportunities in the global LNG market

This scholarly paper comprehensively analyses the global Liquefied Natural Gas (LNG) market, delving into its multifaceted dynamics and future prospects. The study's background establishes the increasing global importance of LNG, driven by its role in the contemporary energy mix and the evolving landscape of energy production and consumption. The paper aims to dissect current trends, challenges, and opportunities in the LNG market, focusing on its historical evolution, technological advancements, environmental sustainability, economic factors, and geopolitical influences. The paper synthesizes peer-reviewed literature through a meticulous methodology to ensure a broad and in-depth coverage of the subject. The scope encompasses a detailed exploration of the historical milestones of the LNG industry, its role in the energy mix, the impact of technological innovations, and the interplay of environmental, economic, and regulatory factors. The study also scrutinizes the influence of geopolitical dynamics on the global LNG trade. The main findings reveal that technological advancements have significantly reshaped LNG production and distribution, enhancing efficiency and sustainability. Environmental considerations emerge as pivotal in the industry's evolution, with a clear need to balance economic growth with ecological preservation. The economic analysis underscores market volatility influenced by global trade dynamics and geopolitical shifts, highlighting the sector's sensitivity to international events. The paper recommends a strategic focus on innovation, sustainability, and geopolitical engagement to foster the LNG industry's growth. It emphasizes the necessity for adaptive regulatory frameworks and investment in renewable energy infrastructure to support LNG's expanding role in the global energy landscape.

Infrastructure fund as an alternative driver in the implementation of green energy policy in European countries

The growing demand for electricity increases investments in green energy infrastructure worldwide, posing a challenge to the budgets of less wealthy countries. So far, the search for a solution has not included infrastructure funds (IFs) as alternative drivers for financing energy infrastructure. The study aims to characterize investment in energy infrastructure in Europe made by IFs. The paper's novelty is to begin the discussion and research on IF's investments in energy infrastructure. So far, there is little or no literature nor analysis available worldwide. The research examines existing data (desk research). Data from the Preqin database on all 549 IFs investing in energy infrastructure in Europe was analyzed. Thus, the research sample covered the entire population, and so the study's conclusions can be generalized to the entire population. The findings show that IFs effectively implement the green energy policy, hedge various investment risk areas, and relieve the government budget. Moreover, the characteristics of IFs that invest in energy infrastructure indicate a transition toward investments in renewable energy projects. IFs investments in renewable energy infrastructure are made in developed countries with stable economies. Thus, there are fewer IFs energy investments in Eastern Europe. However, the profitability of IFs focused on green energy infrastructure in Eastern Europe is higher than in Western and Central Europe, indicating a significant potential development in this region. It is because Eastern European countries are less politically and economically mature; their laws, regulations, and rules are often revised, which creates unpredictable conditions that might discourage potential investors. At the same time, IFs' risk mitigation strategy (hedging geographical, political, and legal risks) pushes their investments away from Eastern Europe. In conclusion, the paper may increase decision-makers' awareness of employing IFs to implement the green energy policy and encourage legislators to create appropriate and stable conditions for enabling energy investments by vehicles such as IFs in less affluent Eastern European countries.

Quantifying the impact of multi-scale climate variability on electricity prices in a renewable-dominated power grid

The variability and intermittency of renewable energy sources pose several challenges for power systems operations, including energy curtailment and price volatility. In power systems with considerable renewable sources, co-variability in renewable energy supply and electricity load can intensify these outcomes. In this study, we examine the impacts of interplay between renewable resource and load co-variability and power system constraints across multiple spatial and temporal scales. We use the New York State power system as our case study, which is undergoing a major transition toward increased renewable generation. We characterize the spatiotemporal co-variability of renewable energy-generating resources and electricity load and investigate the impact of climatic variability on electricity price volatility. We use an accurate, reduced-form representation of the New York power system, which integrates additional wind and solar power resources to meet the state’s energy targets through 2030. Our study shows while diversifying renewables mitigates power variability, short-term fluctuations can still lead to inefficient energy use and substantial curtailment. Annual electricity prices varied by 9%, with price spikes fluctuating by up to 56%, while reflecting a state-wide heterogeneity. Hydropower primarily influences yearly prices, whereas solar and wind mainly affect short-term volatility. Our results underscore the importance of considering both spatiotemporal dynamics and system constraints when planning investments in renewable energy infrastructure.

Тенденции влияния «Группы семи/восьми» на глобальное климатическое управление

This article reviews the changing priorities and commitments of the Group of 7 (G7) and Group of 8 (G8) on climate change and energy security and highlights the trends of their influence on the global climate agenda. The main research method is content analysis of the groups’ documents adopted from 2005 to 2023. The study reveals that, at all stages of cooperation, the G7 endeavoured to secure commitments from emerging market and developing countries to increase their contributions to emissions reduction and accelerate the transition to a low carbon economy. As early as 2009, the advanced countries sought to prevent carbon leakages, regarding a comprehensive climate agreement in Copenhagen as a possible solution. The main principles, priorities, and tasks for attaining global energy security were defined in the 2006 leaders’ statement on global energy security and the St Petersburg action plan. The G7’s Rome and Hamburg initiatives on energy security, adopted after the G8’s suspension, in essence continued the course toward building competitive, diversified, sustainable, and low carbon energy systems, but without Russia. The new paradigm determined a different hierarchy of priorities: promotion of flexible gas markets, including more integrated liquified natural gas (LNG) markets, regulatory and public funding support of investment in energy infrastructure that cannot be built according to market rules, development of oil and natural gas resources from unconventional sources, and enhanced cooperation on critical infrastructure, transit routes, supply chains, and transport. This course was consolidated in subsequent years and entered a new stage in 2022. Since 2021, the G7 has been increasing efforts to renew the global rules and to shape new mechanisms and institutes of global climate governance. The establishment of the climate club, Just Energy Transition Partnerships (JETPs), the Partnership for Global Infrastructure Investment (PGII), adoption of the principles of high integrity carbon markets, and the setting up of new engagement and containment platforms increase the risk of a fragmentation of the established climate governance system and its gradual substitution by a new order functioning in the interests of the G7 and its allies. In view of these risks it is necessary to deepen cooperation with the BRICS+ group led by Brazil, Russia, India, China and South Africa and other emerging market and developing countries to coordinate and promote within the key multilateral institutions, including the United Nations (UN), the Group of 20 (G20), and the World Trade Organization (WTO), a concerted position on the inadmissibility of eroding the existing global climate governance system with the United Nations Framework Convention on Climate Change (UNFCCC) at its centre or the use of climate goals and regulation as protectionist and discriminative instruments, and to advance practical implementation of the principle of common but differential responsibility.

Green economy transition in Asia Pacific: A holistic assessment of renewable energy production

This study explores the factors affecting renewable energy production (REP) in the Asia Pacific region, specifically focusing on China, Japan, and India from 2006 to 2022. This research shows impact of renewable energy, government policy and incentives, forest area, green technological innovations, and renewable energy investment on ecological footprints in the Asia Pacific, with a specific focus on how various aspects of the shift towards a sustainable economy. The elasticity coefficient of environmental performance and public support was negative, a 1% increase in the EPI caused 0.166% drop in the ecological footprint. The ecological footprint shrinks by 0.019% for 1% rise in investment in renewable energy infrastructure. The ecological footprint shrinks by 0.795% for 1% rise in government policy and incentives. The ecological footprint shrinks by 0.518% for 1% increase in green technological innovation. The ecological footprint shrinks by 0.734% for 1% rise in renewable energy use. An increase in forest area of 1% is linked to a decrease in the ecological footprint of 0.016%. It is suggested to adopt a comprehensive and coordinated approach that involves multiple actors and factors at different levels to improve environmental sustainability. Policy should monitor and evaluate the impacts and outcomes of the interventions to improve environmental sustainability. These countries must first carry out substantial structural reforms in an environmentally responsible manner, need to implement measures aimed at decreasing emissions into their plans for economic growth to ensure the long-term sustainability of the environment and the economy. Furthermore, and most they must drastically move away from its main reliance on non-renewable energy sources and raise the percentage in its place of renewable energy. As a result, the nation must greatly boost its energy sector investments, especially in the expansion of the renewable energy. The government should instead reallocate funds to the construction of renewable energy-powered power facilities. These nations must offer financial rewards to encourage the development of new technology. So, this study highlights the importance of fostering environmental awareness, enhancing government policies and incentives, and investing in energy storage capacity to accelerate the transition to a green economy in the region. This research also recommended some future work related to renewable energy technologies.

Na putu ka održivosti u GCC zemljama - spremnost za energetsku tranziciju

Whilst stakeholders and policymakers in industry and academia increasingly use circular and sustainable, the terms are not clearly understood. Furthermore, the need for a switch from a current economic model (linear) to a circular one has been recognized globally by the major decision-makers. The shift from one mechanism to another experiences challenges in grasping the Circular Economy (CE) and Sustainability (S) principles: defining them, understanding the similarities and differences, and successfully applying them using the Triple Bottom Line (TBL) approach. Employing a systematic literature review, the paper aims to clarify the ambiguities and add to clarity by exploring the concepts and the relationship of CE and S by applying the TBL framework - social, environmental and economic variables. The gaps regarding relations to people and profit contribution are identified in the literature, and future research priorities and new frameworks are recommended. Finally, the objective is to ascertain whether a strategic approach to sustainability and measures are in place in the Gulf Cooperation Council (GCC), such as increased investment in renewable energy infrastructure that could positively affect energy transition readiness, evidenced by energy efficiency indicators (reduced carbon emissions). Hence, three GCC countries were selected, their goals, and challenges were explored, and further research was recommended.

Fintech, human development and energy poverty in sub-Saharan Africa

Studies have highlighted the important role of financial technology (fintech) in enhancing socio-economic conditions of nations. However, despite the efforts of governments to improve the latter, the rating of African countries still remains manifestly inadequate. Given that access to electricity is imperative for fintech, and fundamental to improving socioeconomic conditions, we provide novel evidence by investigating the degree to which the prevailing energy poverty in Africa mediates the relationship between the duo. Our baseline results confirm that fintech has a significant positive impact on socioeconomic conditions, proxied by human development, and the impact becomes increasingly significant in the face of constant energy supply. However, when we split our sample based on regions and income classification proposed by the World Bank, our results show that the impact of fintech on human development, in the absence of access to electricity, is notably limited to some African regions. Considering the current state of human development in Africa, our study advocates for more investment in energy infrastructure for the rapid realization of the gains of fintech.

LISTRIK DAN PENGARUHNYA TERHADAP PERTUMBUHAN EKONOMI DI PROVINSI MALUKU

Electricity has a very important role in influencing a country's economic growth. High electricity consumption is often an important indicator of the level of industrialization and technological progress in an economy. In this research, we will examine theoretically the influence of electricity consumption and labor variables on economic growth. To analyze the relationship between variables in the research model, we use a regression equation model using annual data. The research results show that the electricity consumption variable significantly influences economic growth, while labor does not significantly influence economic growth and has a unidirectional relationship. Increased productivity supported by a reliable electricity supply can increase efficiency in the production of goods and services, trigger growth in the industrial sector, and create jobs. Strong electricity consumption also encourages investment in energy infrastructure that can stimulate economic growth.

The energy-growth nexus in Canada: new empirical insights.

Over the past two decades, numerous developed and developing nations have witnessed a remarkable shift from manufacturing-based economies to those that center around the service sector. This development has led to a staggering growth in the consumption of energy-intensive goods, and Canada has not been immune to this trend. Despite being home to abundant energy reserves, the country's economic expansion has manifestly relied on prodigious energy consumption. Within this context of symbiotic energy-economic growth, this study investigates the empirical relationship between energy consumption and economic growth using Canadian time-series data from 1980 to 2020. In doing so, this paper offers a vital contribution to the development of theoretical frameworks within the sphere of endogenous growth. Besides, to arrive at empirical findings, a model known as the autoregressive distributed lag (ARDL) model, renowned for its ability to discern both short- and long-term coefficients, is employed. The results reveal that economic growth has a significant positive long-run effect on energy consumption and other explanatory variables. All variables other than trade openness demonstrate a positive relationship with economic growth in the short run. From Toda-Yamamoto causality test, it is evident that there exist bidirectional causal links between economic growth and energy consumption and between economic growth and financial development. Several unidirectional causalities were also observed for other variables. Based on these findings, it is recommended that Canada boosts its investment in energy infrastructure, especially in rural and backward regions, to deliver necessary energy services. An optimal trade-off between Canada's vast energy resources and economic growth can perhaps be achieved by minimizing the disparity in access to energy services across all parts of the country. Other policy implications are discussed.

Disamenity or premium: Do electricity transmission lines affect farmland values and housing prices differently?

A substantial increase in electricity demand has triggered a rising investment in energy infrastructure in the US over the last decade. This paper examines the capitalization effects of electricity transmission lines (TMLs) on nearby farmland values and housing prices in the Midwest from 2015 to 2019, based on 16,026 parcel-level farmland sales data from FarmlandFinder and 1,905,280 housing transaction data from the Zillow Transaction and Assessment Dataset database. Our estimation results reaffirm the disamenity effects of TMLs on housing property values and find that the disamenity effects are larger on houses in urban areas than in rural areas. Nearby TMLs generate premiums for surrounding farmland, which contrasts with the disamenity evidence due to aesthetics (either visual or audible) in the literature. We further show that farmland parcels within 0–2 km of TMLs in high-wind areas are approximately 3.10% more expensive than comparable parcels in low-wind areas. Our paper provides novel and contrarian evidence on the effects of TMLs on property values amid rising investment in energy infrastructure.

Could Private Investment in Energy Infrastructure soften the environmental impacts of Foreign Direct Investment? An assessment of developing countries

When developed countries invest in developing countries there is often a trade-off between economic growth and environmental quality, but is this inevitable? Previous studies have concluded that one consequence of Foreign Direct Investment (FDI) is the transfer of polluting industries. However, there has been insufficient analysis of the pollutant consequence of this investment, as this may arise from the lack of renewable energy infrastructure to satisfy peaked energy demand. Using data from 17 developing countries from 2000–2020, this study undertakes an in-depth analysis of the effects of FDI and Private Participation in Energy Infrastructure (PPEI) investment on economic growth, pollution, and energy transition using a Seemingly Unrelated Regression model. The results reveal that FDI increases pollution and non-renewable energy consumption but, conversely, PPEI promotes energy transition, potentially mitigating the polluting impact of FDI. Developing countries can pursue long-term environmentally-sustainable economic growth by attracting private investment in their energy infrastructure.

An investigation into the primary causes of carbon dioxide releases in Kenya: Does renewable energy matter to reduce carbon emission?

This study estimates the effects of gross domestic product (GDP), population, renewable energy consumption, fossil fuels, and foreign direct investment (FDI) on Kenya's carbon emissions by considering time series data from 1972 to 2021. This investigation makes use of the “Autoregressive Distributed Lag (ARDL)” method, which is grounded in the theoretical framework of the “Stochastic Impacts by Regression on Population, Affluence, and Technology” model known as the STIRPAT model. According to the empirical results, the variables have long-run cointegration. This study lends credence to earlier research by demonstrating that a rise in Kenya's GDP and population can increase the country's CO2 emissions. All estimation methods used in this study also demonstrated that GDP growth has a negative impact on CO2 emissions, while population growth has a positive effect in the long run. In the context of ARDL, the impact of fossil fuels on CO2 emissions is positive but not statistically significant. Achieving Kenya's sustainable development required significant investments in the country's renewable energy infrastructure because renewable energy reduces emissions. Based on these findings, policymakers can make informed decisions about the sustainable use of renewable energy.

Political Risks to China’s Energy Infrastructure Investment in Countries along the Belt and Road

Energy infrastructure connectivity is a key implementation area for the success of the Belt and Road Initiative. In the current complex international environment, China’s energy infrastructure investment in the countries along the Belt and Road is often restricted due to varying degrees of heated disputes with the host countries, thus facing the political risk of investment loss or even failure. This paper used the Heckman two-stage selection model to overcome the sample selection problem in traditional literature and systematically studied the political risks to China’s energy infrastructure investment in countries along the Belt and Road within a unified framework. The results showed that Chinese energy infrastructure investments exhibited market-seeking and energy resource-seeking features; while political risks had a significant impact on choosing the locations of energy infrastructure investments, socio-environmental factors were not given sufficient attention. At the national level, the implementation of the Belt and Road Initiative was beneficial to China’s foreign energy infrastructure investments under certain regulatory levels and environmental policy performance.

Analyzing The Effectiveness of Renewable Energy Policies in Poverty Reduction and Mitigating Climate Change Impacts in Africa

This study explores how renewable energy policies in Africa can help alleviate poverty and combat climate change. The research highlights the significant percentage of Africa's population living in poverty without access to electricity, leading to a cycle of poverty and limited education. By examining relevant literature from various sources, the study aims to deepen our understanding of how renewable energy policies can contribute to poverty reduction and climate change mitigation in Africa. The research emphasizes the untapped potential of renewable energy resources in Africa, including hydropower, geothermal, biomass, solar, and wind, which can significantly increase the region's renewable energy capacity. Renewable energy policies are seen as a powerful tool to alleviate poverty by providing affordable, clean, and reliable energy sources in developing countries. Additionally, these policies play a crucial role in mitigating climate change by reducing greenhouse gas emissions and promoting the transition to sustainable energy systems. Africa faces significant risks from climate change, such as rising temperatures, changing rainfall patterns, and extreme weather events, making the adoption of renewable energy even more important. The study recommends increasing investment in renewable energy infrastructure, developing effective policies, strengthening partnerships, promoting energy efficiency, integrating renewable energy into national development plans, enhancing climate change resilience, and raising awareness among communities. Embracing renewable energy has the potential to bring about positive change in Africa, improving lives, economies, and ecosystems, while addressing climate change

Environmental regulation, renewable electricity, industrialization, economic complexity, technological innovation, and sustainable environment: testing the N-shaped EKC hypothesis for the G-10 economies.

This study examines the validity of the environmental Kuznets curve (EKC) hypothesis and the role of environmental regulation, renewable electricity, industrialization, economic complexity, and technological innovation in sustainable environment for the G-10 economies, namely, Belgium, Canada, Germany, Italy, Japan, Netherlands, Sweden, Switzerland, the United Kingdom, and the USA, from 1994 to 2020. We employed CS-ARDL (cross-sectional augmented distributed lag (CS-ARDL), FMOLS (fully modified ordinary least squares), and DOLS (dynamic ordinary least squares) for the analysis of the data. The estimates confirm the N-shaped EKC hypothesis between the GDP and CO2 emission. Moreover, the long-run estimates exhibit that environmental tax, renewable electricity, economic complexity, and technological innovation have negative effect on CO2 emission, while GDP, industrialization and arable land have positive effect on CO2 emission. Based on these findings, we propose that governments must implement large-scale government plans and initiatives to encourage the development of environmentally friendly technologies and ideas based on renewable energy. Moreover, further growing renewable energy, environmental policies like a carbon tax, investments in green technologies, subsidies, and rewards for renewable energy infrastructure investment should be taken into account.