The Relationship between Renewable Energy Consumption and Carbon Emission: A Case Study for OECD Countries
DOI:
https://doi.org/10.5281/zenodo.7497303Keywords:
Renewable Energy, Carbon Emission, CO2, Dynamic Panel DataAbstract
The main purpose of this study is to measure the effects of renewable energy consumption on CO2 emissions and to evaluate the validity of Environmental Kuznet Curve (EKC) hypothesis in 37 OECD countries for the period 2002-2014.This study employs one step-system Generalized Method of Moments (GMM) dynamic panel data model. This study statistically proves that renewable energy has a negative effect on CO2 emissions. Beside this, while an increase in GDP affects CO2 emissions positively, an increase in square of GDP affects CO2 emissions negatively. Which means that EKC hypothesis is valid in 37 OECD countries. With respect to the control variables, study proves that physical investment variable is positively correlated with CO2 emissions while openness index is negatively correlated with CO2 emissions
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