Do Economic Globalization and Paris Climate Accord Drive Bioenergy Consumption in Developing and Developed Countries?

Abstract

Climate change is driving the world to care about environmental sustainability, including the use of bioenergy. External factors like economic globalization and international agreements may impact the rise in bioenergy consumption. Hence, this study examines the impact of economic globalization and the Paris Climate Accord on bioenergy consumption in developing and developed countries. Economic globalization encourages developing and developed countries to use more bioenergy. One of the factors that compels both regions to employ bioenergy is a variety of ecologically friendly trade standards. In the meantime, the Paris Climate Accord only benefits the use of bioenergy in developed countries. Other factors that drive bioenergy consumption include the value-added of industry and agriculture, population growth, human development, and temperature. Meanwhile, GDP growth harms bioenergy consumption in developing countries. The study’s findings are consistent with the EKC theory, where strict regulations and innovation increase environmental awareness, while economic growth without proper supervision will harm the environment.