Investigating the Dynamic Impact of CO2 Emissions and Economic Growth on Renewable Energy Production: Evidence from FMOLS and DOLS Tests

Understanding the dynamic nexus between CO2 emissions and economic growth in the sustainable environment helps the economies in developing resources and formulating apposite energy policies. In the recent past, various studies have explored the nexus between CO2 emissions and economic growth. This s...

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Bibliographic Details
Published in:Processes 2019-08, Vol.7 (8), p.496
Main Authors: Khan, Muhammad Waris Ali, Panigrahi, Shrikant Krupasindhu, Almuniri, Khamis Said Nasser, Soomro, Mujeeb Iqbal, Mirjat, Nayyar Hussain, Alqaydi, Eisa Salim
Format: Article
Language:English
Subjects:
Carbon dioxide
Clean energy
Climate change
Economic development
Economic growth
Economics
Emissions
Energy policy
Energy technology
Fossil fuels
Greenhouse effect
Impact analysis
Investigations
Least squares
Renewable energy
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Summary:Understanding the dynamic nexus between CO2 emissions and economic growth in the sustainable environment helps the economies in developing resources and formulating apposite energy policies. In the recent past, various studies have explored the nexus between CO2 emissions and economic growth. This study, however, investigates the nexus between renewable energy production, CO2 emissions, and economic growth over the period from 1995 to 2016 for seven Association of Southeast Asian Nations (ASEAN) countries. Fully Modified Ordinary Least Square (FMOLS) and Dynamic Ordinary Least Square (DOLS) methodologies were used to estimate the long- and short-run relationships. The panel results revealed that renewable energy production has a significant long term effect on CO2 emissions for Vietnam (t = −2.990), Thailand (t = −2.505), and Indonesia (t = −2.515), and economic growth impact for Malaysia (t = 2.050), Thailand (t = −2.001), and the Philippines (t = −2.710). It is, therefore, vital that the ASEAN countries implement policies and strategies that ensure energy saving and continuous economic growth without forsaking the environment. This study, as such, recommends that ASEAN countries should take measures to decrease the reliance on fossil fuels for achieving these objectives. Future research should consider the principles of circular economy and clean energy development mechanisms integrated with renewable energy technologies.
ISSN:2227-9717
2227-9717
DOI:10.3390/pr7080496