Economic Growth and Pollution Nexus in Mexico, Colombia, and Venezuela (G-3 Countries): The Role of Renewable Energy in Carbon Dioxide Emissions

Abstract

The primary aspiration of this paper is to learn about the effects of economic growth (GDPG) and energy consumption (ENRC) on environmental pollution (EP) in G-3 countries and to show the significance of renewable energy consumption (RENEW) on environmental pollution (EP). The data covers the period from 1970 to 2020 by applying the “Pooled Mean Group-Autoregressive Distributed Lag” (PMG-ARDL) model. The results indicate that GDPG is negatively co-integrated with CO2 emissions (pollution) in the short run (SR) but positively co-integrated in the long run (LR). Energy consumption has a positive impact in the long run, but there is no positive impact in the short run to accelerate pollution. In both the short and long run, renewable energy has a significant role in reducing environmental degradation. However, according to the Dumitrescu Hurlin panel, there was bidirectional causality (BC) involving energy consumption and pollution. Because of the large volume of energy emphasized in economic growth and development activities, energy use increases pollution. In addition, there was a BC involving energy consumption and economic growth. At the country level, a significant contribution implies sustainable development and the implication of environmental quality assurance policies.

The Nexus between Agriculture, Water, Energy and Environmental Degradation in Central Asia—Empirical Evidence Using Panel Data Models

“…ARDL Approach was applied [28] to find out positive correlation between economic growth and CO 2 emissions in Tunisia and Morocco. The Economic Growth and Pollution Nexus in Mexico, Colombia and Venezuela (G-3 Countries) are investigated [29], and the findings show that GDP and CO 2 emissions have a short-term negative co-integration but a long-term positive co-integration. In the case of Venezuela (1980-2025), the feasibility of stabilizing CO 2 emissions under a rapid increase in GDP was evaluated [30].…”

The Dynamic Impacts of Economic Growth, Financial Globalization, Fossil Fuel, Renewable Energy, and Urbanization on Load Capacity Factor in Mexico

“…Consequently, the UN Framework Convention on Climate Change emphasizes reinforcing the Paris Agreement via concerted state and collaborative efforts. Prominent nations like the UK, Brazil, France, Japan, Germany, and Mexico have pledged substantial CO 2 reduction commitments despite ongoing environmental degradation [7,8].…”

“…The country is among the top 17 for oil reserves and is the fourth-largest oil supplier in the Americas [27]. This fossil-fuel dependence has led to one of the region's most polluted power grids and the highest annual energy consumption in Latin America [8,16]. Mexico ranks fifteenth globally in energy consumption, with over 80% of its energy sourced from fossil fuels.…”

“…In addition, urban and city areas hosted approximately 80% of Mexico's total population, growing by around 1.5% each year during the same period [26]. Rapid urbanization negatively affects Mexico's economic and social progress by driving business and residential construction, contributing to ecological degradation [8]. Accelerated urbanization threatens sustainable development via increased energy consumption and greenhouse gas emissions [28].…”

The effect of energy prices, energy losses, and renewable energy use on CO2 emissions in energy-importing developing economies in the presence of an environmental Kuznets curve

“…Secondly, the introduction of renewable energy sources can help to reduce the cost of energy, making it more affordable for individuals and businesses in developing countries, which in turn reduces the amount of energy consumed and reduces related CO 2 emissions (Li et al 2023 ; Zhang et al 2023 ; Yan et al 2023a ; Razzaq et al 2023 ). Finally, the increased use of renewable energy sources can help to create jobs (Candra et al 2023 ; Hanna et al 2023 ; Wang et al 2023 ) and stimulate economic growth in developing countries, which can also help to reduce CO 2 emissions (Sadiq et al 2023 ; Nahrin et al 2023 ; Adebayo et al 2023 ; Mukhtarov et al 2023 ). Therefore, the use of renewable energy is important in combating CO 2 emissions in energy-importing emerging economies.…”