The impact of renewable energy consumption on carbon dioxide emissions: Empirical evidence from developing countries in Asia

Abstract

This empirical study examines the relationship between environmental quality, economic development, renewable and non-renewable energy (RE) consumption in 13 developing countries in Asia. We use panel data in the period from 1980 to 2014 and panel cointegration, fully modified ordinary least squares (OLS) and dynamics OLS estimators are employed to test for cointegration in the long-run. The study confirms the existence of the inverted U-shape Environmental Kuznets Curve hypothesis in 13 Asia countries for both estimators with the increment of GDP per capita and conventional energy consumption decreasing the environmental quality. However, the empirical finding suggests that RE consumption is insignificant in contributing to less pollution regarding CO 2 emissions. This study concludes that to comprehend better the potential factors affecting the CO 2 emissions, the sampled countries can design a strategic plan to mitigate the rate of global warming and climate change, while at the same time stimulating economic development and promoting energy from eco-friendly resources.