Environmental quality effects of income, energy prices and trade: The role of renewable energy consumption in G-7 countries


Ike G. N., USMAN O., Alola A. A., Sarkodie S. A.

Science of the Total Environment, cilt.721, 2020 (SCI-Expanded) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 721
  • Basım Tarihi: 2020
  • Doi Numarası: 10.1016/j.scitotenv.2020.137813
  • Dergi Adı: Science of the Total Environment
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Academic Search Premier, PASCAL, Aerospace Database, Analytical Abstracts, Aqualine, Aquatic Science & Fisheries Abstracts (ASFA), BIOSIS, Biotechnology Research Abstracts, CAB Abstracts, Chimica, Communication Abstracts, Compendex, EMBASE, Environment Index, Food Science & Technology Abstracts, Geobase, Greenfile, MEDLINE, Metadex, Pollution Abstracts, Public Affairs Index, Veterinary Science Database, Civil Engineering Abstracts
  • Anahtar Kelimeler: EKC hypothesis, Energy prices, G7 countries, Renewable energy consumption
  • İstanbul Ticaret Üniversitesi Adresli: Evet

Özet

Renewable energy plays a vital role in achieving environmental sustainability, however, the mitigating effect varies across countries depending on the share of renewables in the energy mix. Herein, we analyze the effect of renewable energy consumption, energy prices, and trade on emissions in G-7 countries. The results demonstrate that renewable energy and energy prices exert negative pressure on CO2 emissions while trade volume exerts a robust positive pressure on CO2 emissions. The country-specific estimation results provide evidence of a negative effect of energy prices on CO2 emissions. While the environmental Kuznets curve hypothesis is validated at the panel and country-specific levels, the effect of renewable energy consumption and trade, are disparate across countries. The panel Granger causality shows a mono-directional causality flowing from energy prices, GDP, the quadratic term of GDP and trade to CO2 emissions. Renewable energy consumption, however, has no causal relationship with CO2 emissions but indirectly affects CO2 emissions through its direct effect on energy prices. Joint action on trade, energy prices, and country-specific renewable energy policies have implications for environmental sustainability and the attainment of the Sustainable Development Goals (SDGs).