Investigating the Dynamic Impact of CO2 Emissions and Economic Growth on Renewable Energy Production: Evidence from FMOLS and DOLS Tests

Abstract

Understanding the dynamic nexus between CO2 emissions and economic growth in the sustainable environment helps the economies in developing resources and formulating apposite energy policies. In the recent past, various studies have explored the nexus between CO2 emissions and economic growth. This study, however, investigates the nexus between renewable energy production, CO2 emissions, and economic growth over the period from 1995 to 2016 for seven Association of Southeast Asian Nations (ASEAN) countries. Fully Modified Ordinary Least Square (FMOLS) and Dynamic Ordinary Least Square (DOLS) methodologies were used to estimate the long- and short-run relationships. The panel results revealed that renewable energy production has a significant long term effect on CO2 emissions for Vietnam (t = −2.990), Thailand (t = −2.505), and Indonesia (t = −2.515), and economic growth impact for Malaysia (t = 2.050), Thailand (t = −2.001), and the Philippines (t = −2.710). It is, therefore, vital that the ASEAN countries implement policies and strategies that ensure energy saving and continuous economic growth without forsaking the environment. This study, as such, recommends that ASEAN countries should take measures to decrease the reliance on fossil fuels for achieving these objectives. Future research should consider the principles of circular economy and clean energy development mechanisms integrated with renewable energy technologies.

The Role of Renewables in a Low-Carbon Society: Evidence from a Multivariate Panel Data Analysis at the EU Level

“…The negative coefficient of variable X1 reveals that the renewable energy variable has a negative and significant effect on CO 2 emission, and a one-unit increase in the rate of renewable energy in total energy consumed will lead to a decrease in CO 2 emission rates by 0.654, which is congruent with the findings achieved by [41]. Also, the negative coefficient of X2 means that biofuel production has a negative and strong impact on CO 2 emissions, and a one-unit increase in biofuel production will lead to a decrease in CO 2 by 0.983, which is in line with [42].…”

Incorporating Environmental Pollution and Human Development in the Energy-Growth Nexus: A Novel Long Run Investigation for Pakistan

“…Modern technology can help to remove the harmful substances from Thar coal and also serve as a tool for energy efficiency both in production and consumption of technology is employed in the initial stages of renewable energy development in a country. The economy might face the pressure of increase installation costs, but, in the long run, positive coefficient value ensures that renewable energy would increase the economic growth along with the improved environment in the long term [76,78].…”

Investigating Dynamic Effect of Energy Consumption, Foreign Direct Investments and Economic Growth on Co2 Emissions Between Oman and United Arab Emirates: Evidence From Co Integration and Causality Tests

“…Many recent and past studies (Bilgili et al, 2016;Dogan and Turkekul, 2016;Dong et al, 2018;Pata, 2018) investigating energygrowth relationships have confirmed this postulate; however, many studies (Charfeddine, 2017;Dogan and Turkekul, 2016;Khan et al, 2019) have doubted this relationship too. The EKC hypothesis implies that in the initial stage of growth, environmental pollution increases, and then at the later stages it starts declining (Alam et al, 2016).…”

“…This indicates that there is an inverted U-shape relation between growth and environmental deterioration supporting the EKC hypothesis. Although there have been several research investigations performed on the energy consumption-CO 2 emissions-economic growth-FDI nexus (Ahmad et al, 2019;Akadiri et al, 2019;Khan et al, 2019;Salahuddin et al, 2018), to the best of the author's knowledge no study have been undertaken in the context of Oman and UAE, which is very crucial for such investigation. This study will attempt to fill this gap.…”

“…Panigrahi (2017) heteroskedasticity issue arises when the changes in the error terms differentiate from the observations. Dynamic GMM model helps to solve the issue of heteroskedasticity and serial correlation (Khan et al, 2019). Jacob and Osang (2020) explained that the GMM model is more suitable for the panel invariant constructs.…”