The Causality between CO2 Emissions and Electricity Generations: Evidence from Environmental Quality

Abstract

This study aims to analyze the causality relationship between CO2 emissions and electricity generations in the 10 most populous countries. This study uses secondary data from the British Petroleum (BP) annual report from 2000-2021. The data analysis method uses Pairwise Dumitrescu-Hurlin Panel causality analysis, carried out by stationarity and cointegration tests. The results of the analysis state that there is a bidirectional relationship that influences each other between CO2 emissions and electricity generations. The implication of this research is the need for countries to prepare for renewable sources of electrical energy to be able to reduce CO2 emissions, especially those sourced from fossil energy.