Linking between Renewable Energy, CO2 Emissions, and Economic Growth: Challenges for Candidates and Potential Candidates for the EU Membership

By Y. Bilan, Dalia Streimikiene, T. Vasylieva, Oleksii Lyulyov, Tetyana Pimonenko, A. Pavlyk. Sustainability, 2019

195 citations recorded by the source corpus.

This paper investigates the impact of renewable energy sources (RESs), CO2 emissions, macroeconomics, and the political stability in a country on the Gross Domestic Product (GDP). The authors analyse the dynamics of RESs use, CO2 emissions, and GDP development and also test the following hypotheses: (1) The country’s economic growth is related to the energy consumption, in terms of both human resources and capital; (2) the share of the renewable energy consumption of the total energy consumption has a positive impact on the economic growth; and (3) the share of the renewable energy consumption of the total energy consumption is unrelated to the economic growth. To test the above hypotheses, the authors use the modified Cobb-Douglas production function, which also considers RES production volumes, CO2 emissions, and economic growth. The study employs data between 1995 to 2015 from the candidate and potential candidate countries for the EU membership. The data are drawn from the World Bank and Eurostat. The analyses entail panel unit root tests, Pedroni panel cointegration tests, fully modified OLS (FMOLS), dynamic OLS (DOLS) panel cointegration techniques, and the Vector Error Correction model (VECM). The findings confirm the relationship between RESs, CO2 emissions, and the GDP. For the EU countries, RESs as human resources and capital have an impact on the GDP. Moreover, the results reveal a correction retraction when the economic growth leads to an increase in renewable energy consumption. The investigation also finds that candidate and potential candidate countries for the EU membership should foster renewable energy development. The authors conclude that developing affordable and effective instruments and mechanisms to boost the RES implementation is necessary to decrease the anthropogenic impact on the environment (in particular, decreasing CO2 emissions) without any attendant reduction in the economic growth.

Subfields: Economics and Econometrics, Pollution, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/bab49b36229bfdaaf5922c6e709d4cd215edefdb

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In Economics and Econometrics

1. R. Begum
2. Nuno Carlos Leitão
3. Daniel Balsalobre Lorente
4. A. Raihan
5. M. Said

In Pollution

1. Nuno Carlos Leitão
2. Daniel Balsalobre Lorente

In Renewable Energy, Sustainability and the Environment

1. R. Begum
2. Nuno Carlos Leitão
3. Daniel Balsalobre Lorente
4. A. Raihan
5. M. Said

Citations in the corpus

• The Linkage between Economic Growth, Renewable Energy, Tourism, CO2 Emissions, and International Trade: The Evidence for the European Union (2020, background): “[24] found a negative correlation between renewable energy and CO2 emissions (REN < 0).”
• Dynamic Impacts of Economic Growth and Forested Area on Carbon Dioxide Emissions in Malaysia (2020, background): “Moreover, some studies revealed the environmental Kuznets curve (EKC) presenting the simple trail of economic growth and environmental pollutions or emissions for various countries including EU [55,60,61], Organisation of Islamic Cooperation (OIC) countries [32], and BRIC [56]; Middle East and North”