From Fossil Energy to Renewable Energy: Why is Circular Economy Needed in the Energy Transition?

Abstract

For decades, renewable energy consumption has been presented as the ultimate solution to reduce pollutant gas emissions. However, their production, marketing, and, above all, consumption are not entirely climate neutral, so society needs new practices, such as circular energy, to achieve a more efficient energy transition (Khan et al., 2021a; Khan et al., 2021d). This study aims at exploring the effects of energy intensity, renewable energy consumption and forestation on CO2 emissions for developed and developing countries. Owing to cross-country income disparity, the data were categorized into four distinct groups: lower, lower-middle, upper-middle, and high-income over the period of 1980–2018. The Pedroni and Fisher-Johnson estimators of pooled data are employed for determining the plausible presence of a long-run co-integrating relationship between model variables. For all four country groups, Pedroni cointegration testing results reveal a significant long-run association between CO2 emission and its determinants. However, the Fisher-Johansen estimator yield mixed results, with low- and lower-middle income country groups outperforming the other two groups. However, the magnitude of this long-run association is less substantial, particularly in case of renewable energy consumption and forestation. For all country groups, energy intensity turns out to be the most influential long-run determinant of CO2 emissions, holding a positive coefficient value ranging from 0.30 to 1.31. Renewable energy consumption is the second most important long-run determinant of CO2 emissions. In case of forestation, the series imparts (statistically) significant long-run effects only for lower-middle-income countries. The overall results back the idea of curtailing the existing levels of energy intensity and encouraging the exploration and the use of renewable energy sources as a policy tool against controlling the prevalent situation of carbon-based emissions in our subject group of countries.

Past, Present, and Future of Critical Issues in Energy: Poverty, Transition and Security—A Systematic Review

“…The geopolitical situation has proven the importance of renewable energy but also the fragility of the renewable energy process because the problems related to improving the profitability of these sources have not yet been resolved. Reconsidering coal and nuclear energy was the solution found [87][88][89][90][91][92][93][94][95].…”

Navigating through the Storm—The Challenges of the Energy Transition in the European Union

“…The increased focus of both scientists and public institutions on the energy transition in these countries is generated by their high level of economic development and the existence of abundant financial resources. The screening of the international scientific literature demonstrates the existence of numerous papers focused on single-country case studies or comparative approaches by using quantitative and qualitative tools [61][62][63][64][65]. Lately, an increasing interest in Global South countries spurred a new wave of research from these regions [66][67][68][69].…”

Technical Implications of the Use of Biofuels in Agricultural and Industrial Compression-Ignition Engines with a Special Focus on the Interactions with (Bio)lubricants

“…The most significant category of alternative fuels is biofuels, which are particularly aligned with the principles of a circular economy. This economic model emphasizes the importance of reusing and recycling materials, designing out waste, and extending the lifecycle of resources [2]. Currently, there is a great deal of potential because of new biofuel manufacturing techniques that adhere to these principles.…”