Renewable energy and CO2 emissions in G7 countries: does the level of expenditure on green energy technologies matter?

The impact of green innovation and renewable energy on CO2 emissions in G7 nations

This study aims to explore the effect of eco-innovation and renewable energy on carbon dioxide emissions (CDE) for G7 countries. Using regression models, the results reveal that eco-innovation and renewable energy lead to reducing CDE in the presence of governance variables. Additional analysis is conducted to examine whether Hofstede national culture dimensions moderate the nexus of "eco-innovation- carbon emission" and "renewable energy-carbon emission". The results show that individualism, long-term orientation, and indulgence dimensions moderate positively the eco-innovation-carbon emission relationship. Moreover, power distance and uncertainty avoidance dimensions moderate the relationship between renewable energy and CDE and help reduce carbon emissions. The outcomes of this study provide new insights and directives for policymakers and regulators. In fact, increased investment in eco-innovation and renewable energy will support the environmental agenda of G7 countries. National cultural dimensions should be taken into consideration to improve awareness of environmental quality. Moreover, the combination of governance indicators plays a key role in environmental sustainability.

Role of energy transition in easing energy security risk and decreasing CO2 emissions: Disaggregated level evidence from the USA by quantile-based models

Consistent with the increasing environmental interest, the clean energy transition is highly critical to achieving decarbonization targets. Also, energy security has become an important topic under the shadow of the energy crisis,. Accordingly, countries have been trying to stimulate clean energy use to preserve the environment and ensure energy security. So, considering the leading role of economic size and volume of energy use, the study examines the USA to define whether energy transition helps decrease energy security risk (ESR) and curb CO2 emissions. So, the study applies a disaggregated level analysis by performing quantile-based models for the period from 2001/Q1 through 2022/Q4. The results demonstrate that (i) the energy transition index decreases environmental ESR at higher quantiles and reliability ESR at lower and middle quantiles, whereas it is not beneficial in declining economic and geopolitical ESR; (ii) energy transition curbs CO2 emissions in building and transport sectors at lower quantiles, whereas it does not help decrease CO2 emissions in industrial and power sectors; (iii) energy transition is mostly ineffective on ESR, whereas it is highly effective in curbing CO2 emissions in all sectors except for transport across various quantiles as time passes; (iv) the results differ according to the aggregated and disaggregated levels; (v) the results are consistent across main and alternative models. Hence, the study highlights the dominant effect of energy transition in curbing sectoral CO2 emissions rather than easing ESR. Accordingly, the study discusses various policy implications for the USA.

Energy security-related risks and the quest to attain USA's net-zero emissions targets by 2050: a dynamic ARDL simulations modeling approach

The Russia-Ukraine war and other similar conflicts across the globe have heightened risks to the United States of America's (USA's) energy security. However, little is known about the severity of the effect of energy security risks on the USA's quest to attain net-zero emissions targets by 2050. To this end, we examine the effect of energy security risks on the load capacity factor (LCF) in the USA. Employing a time series dataset spinning from 1970 to 2018, the results of the Dynamic Autoregressive Distributed Lag (ARDL) simulations model suggest that energy security-related risk hampers the long-term net-zero emissions targets with its effect decreasing over time until it varnishes in about 5 years time. The results also show that foreign direct investment (FDI) inflows, renewable energy consumption, and green technology have long- and short-run positive effects on the LCF. Conversely, economic expansion and urbanization impede environmental quality by lowering the LCF both in the long run and short run. These findings are upheld by the outcomes of the multivariate quantile-on-quantile regression. Therefore, the study advocates for the consumption of renewable energy, investment in green technologies, and FDI inflows to mitigate energy security-related risks and attain the net-zero emissions targets by 2050 in the USA.

The mediating role of renewable energy, sectoral output and economic growth on greenhouse gas emissions: African regional perspective

Global greenhouse gas emissions are increasing when they should be progressively reducing, given worldwide concerted emissions mitigation efforts and protocols. To effectively tackle emissions to foster a sustainable climate, the situation's complexity needs a sector- and region-specific approach, not a one-stop analysis. We must first understand where the emissions originate-which sectors contribute the most to them. This study employs a panel multiregional framework with advanced econometric techniques accounting for cross-sectional dependence and heterogeneous slope coefficients to analyse GHG emissions (CO2 and CH4), sectoral output, economic growth and renewable energy dynamics across African regions from 2010 to 2019. The empirical findings are as follows: First, regional impacts of the economic sectors vary substantially, reflecting technological and socioeconomic differences leading to heterogeneous environmental patterns in the short and long term. Second, the estimated EKC turning points are uniformly lower, indicating slower environmental impact growth with sectoral development in African regions. Third, trade and urbanization are critical drivers of emissions in most regions and economic sectors, with a more pervasive impact on CO2 emissions than CH4 emissions. Finally, sectoral output imposes differential indirect CO2 and CH4 emissions effects via renewable energy, with East African manufacturing exhibiting the most significant emissions-reduction impact. Disaggregated, regional, and sectoral-specific strategies are recommended for designing green development pathways policies.

Moving towards the path of environmental sustainability in Developing-8 countries: investigating the role of country's reputation in mitigating environmental externalities

A country's reputation plays a crucial role in shaping public perceptions, attracting investment and promoting economic development. At the same time, good governance is essential for promoting environmental sustainability and addressing pressing environmental issues such as climate change, pollution and natural resource depletion. This study examines the impact of a country's reputation on environmental sustainability in Developing-8 countries using panel data obtained from the Worldwide Governance Indicators and World Development Indicators for the duration from 1996 to 2020. This panel study adopted the Method of Moment Quantile Regression with fixed effects and mean-based regressions. The results demonstrated that the impact of the country's reputation index on carbon dioxide (CO2) emissions is negative, yet significant. Also, all the country's reputation indicators negatively affect CO2 emissions, but the case of political stability is only significant in the mid-quantiles, while government effectiveness is albeit insignificant across quantiles. Furthermore, economic growth is observed to stimulate CO2 emissions, while renewable energy consumption decreases CO2 emissions. These results have an inherent heterogeneity, culminating in an asymmetric pattern of the distribution of CO2 emissions. The novelty of this study is, firstly, the construction of a country's composite reputation index for Developing-8 countries; and secondly, assessing the impact of this index in mitigating environmental externalities measured by CO2 emissions. Based on these findings, it is recommended, among other things, the need for the D-8 countries to improve their reputation policy to be able to attain the desired environmental sustainability.

Environmental quality outlook of the leading oil producers and urbanized African states

This study seeks to explore the links between energy consumption and environmental quality in the wake of rapid urbanization in Africa with empirical insights from the cases of Libya, Morocco, Nigeria, Algeria, Angola, Egypt, and South Africa. These countries aside from being among the largest economies; are also among the leading energy producers and the most urbanized economies that emit the most carbon dioxide on the continent. Based on the Pooled Mean Group (PMG) panel ARDL estimator, the dynamics nexus between the variables was estimated vis-à-vis the short-run and long-run coefficients using relevant sample data between 1990 and 2015. The study further examines the channels of causality between the variables while also testing for the validity of the popular Environmental Kuznets curve (EKC) hypothesis for the panel of countries. The results confirm that the rising level of energy use significantly exacerbates the level of carbon emission among the countries in the study while growing urbanization significantly creates a negative impact on carbon emission. In addition, an increase in per capita income improves the environmental quality but the doubling of income per capita triggers environmental degradation, thus invalidating the EKC hypothesis in the examined panel economies. In essence, these countries have not reached the supposed turning point at which income growth can yield desirable emission mitigation effects. Following the findings, essential recommendations are provided for policymakers in the main text.

Reconsidering the environmental Kuznets curve, pollution haven, and pollution halo hypotheses with carbon efficiency in China: A dynamic ARDL simulations approach

Given a new perspective on the environmental hypothesis, this paper systematically investigates the validity of the environmental Kuznets curve (EKC), pollution haven, and pollution halo hypotheses using carbon efficiency as the dependent variable. Applying the dynamic autoregressive distributed lag simulations based on the annual time series data over the period 1990-2019, the study found that real GDP per capita has negative effects on China's environmental quality both in the short and long run, whereas the square of real GDP per capita has positive impacts. This validates the EKC hypothesis for China. Furthermore, foreign direct investment has negative effects on environmental quality in China, implying that the case of China exemplifies the pollution haven hypothesis and not the pollution halo hypothesis. The empirical results also demonstrate that energy efficiency and trade openness improve China's environmental quality both in the short run and long run. These findings, therefore, provide insights into achieving the ambitious climate goals in China by 2050.

Asymmetric effect of environmental cost of forest rents in the Guinean forest-savanna mosaic: The Nigerian experience

Several studies have identified deforestation as a major cause of environmental degradation, but little is known about the asymmetric effect of the environmental cost of forest rents. To fill this gap, our study uses the nonlinear autoregressive distributed lag (NARDL) model and asymmetric causality test to examine the environmental implication of forest rents in the Guinean Forest-Savanna Mosaic of Nigeria over the period 1990:Q1 to 2016:Q4. The empirical results show that forest rents increase CO₂ emissions when the shock to forest rents is positive and decreases CO₂ emissions when the shock to forest rents is negative. The results further show evidence of asymmetric effects of crop production, fossil fuel energy consumption, and economic growth on CO₂ emissions. Moreover, the effects of both positive and negative shocks in economic growth are elastic, suggesting that CO₂ emissions respond in a larger magnitude to a 1% positive or negative shock in economic growth. While the positive shock to crop production and economic growth stimulates CO₂ emissions, their negative shocks dampen CO₂ emissions. In addition, the positive (negative) shocks to fossil energy consumption exert upward (downward) pressure on CO₂ emissions. Furthermore, the asymmetric causality test divulges that a positive change in forest rents causes a negative change in CO₂ emissions and a negative change in forest rents causes a positive change in CO₂ emissions. Based on these findings, the study recommends the need for policymakers to formulate sound policies to protect the forests and transit toward clean energy consumption to minimize energy-related CO₂ emissions in the country.

The role of alternative energy and globalization in decarbonization prospects of the oil-producing African economies

This study assesses the environmental impacts of the energy mix of mainly oil-producing African nations. The economic aspects of decarbonization prospects were also viewed from the perspectives of fossil energy dependence among the countries. More insights on the impacts of energy mix on decarbonization prospects were also provided on a country-specific analysis basis via the application of second-generation econometric techniques in assessing carbon emission levels across the countries between 1990 and 2015. From the results, only renewable resources proved to be a significant decarbonization tool among the understudied oil-rich economies. Moreover, the consequences of the trio of fossil fuel consumption, income growth, and globalization are diametrically opposed to achieving decarbonization as the rise in their usage significantly acts as pollutant-inducing tools. The validity of the environmental Kuznets curve (EKC) conjecture was also upheld for the combined analysis of the panel countries. The study thus opined that the reduction in conventional energy dependence will enhance environmental quality. Consequently, given the advantages of the geographical locations of these countries in Africa, concerted strategies for more investment in clean renewable energy sources like solar and wind were suggested to policymakers among other recommendations.

Evaluating the role of renewable energy and technology innovations in lowering CO2 emission: a wavelet coherence approach

Environmental sustainability is one of the most critical issues that require efficient environmental and economic policies in modern times. Advancements in renewables and green technologies contribute significantly to sustained long-term development without affecting environmental quality. Several studies focus on the association of carbon dioxide emissions (CO₂e) with economic variables. However, they ignored the impact of technological innovations and renewable energy consumption on CO₂e in developed countries. Therefore, this study examines the relationship between CO₂e, energy consumption, gross domestic product (GDP), renewable energy consumption, and technology innovations in G-7 countries by employing cross-sectionally augmented autoregressive distributed (CS-ARDL) lag and wavelet coherence techniques during 1990-2020. The results depict that GDP and renewable energy consumption are inversely related to CO₂e. A 1% increase in CO₂e will decrease GDP and renewable energy consumption by 0.459 and 0.172% in the long run and by 0.471 and 0.183% in the short run in G7 countries. Technology innovations negatively impact CO₂e in the short run while positively influencing it in the long run. Considering the advancements in green technologies in different energy-dependent and manufacturing sectors is crucial for a sustainable environment in the long run. Such initiatives ensure the effective use of energy sources by limiting CO₂e in the atmosphere. Moreover, the dynamic common correlated effects mean group model confirms the reliability and effectiveness of the CS-ARDL. The wavelet coherence approach revealed a causality relation between CO2e and technology innovation in Italy, Japan, the UK, and the USA during the study period.