The impact of renewable energy consumption and economic growth on CO2 emissions: New evidence using panel ardl study of selected countries

Abstract

Most countries consume more non-renewable energy to generate economic activities. Hence, economic growth plays a vital role in contributing to higher CO2 emissions. Therefore, this type of energy has reduced and replaced by renewable energy. Renewable energy is said not to be detrimental to the environment. Consequently, it is imperative to examine the effects of renewable energy consumption and economic growth on CO2 emissions in selected countries by per capita income. Using a sample of high-income, upper-middle-income, and lower middle-income, and low-income countries for the period of 1990-2017, and the estimation method of the panel ARDL, the main results show that in the long run, overall renewable energy consumption can reduce CO2 emissions. However, economic growth and population growth can result in higher CO2 emissions in the long term. In the short run, the results show that higher overall economic growth can contribute to higher CO2 emissions. Contrarily, higher population growth, and renewable energy consumption can help reduce CO2 emissions in the short run.