Investigating the dynamic effects of service value added on CO2 emissions: Novel insights from a non-parametric approach.

Carbon dioxide (CO2) emissions are the primary contributors to climate change. Addressing and mitigating climate change necessitates the effective management and utilization of renewable energy consumption, which poses a substantial challenge for the forthcoming decades. This study explores the dynamic effects of service value added (SVA) and renewable energy on environmental quality, particularly focusing on CO2 emissions. Unlike previous studies, we employ a non-parametric modeling approach to uncover the time-varying influence of service sector growth on CO2 emissions. Specifically, we apply the local linear dummy variable estimation (LLDVE) method to a panel of the 17 highest-emitting nations over the period 1980-2021. Our study uncovers a non-linear relationship between CO2 emissions and SVA. From 1980 to 2003, we observe a negative correlation. However, starting from 2005 to 2020, we witness a shift towards a positive correlation, indicating a rise in energy consumption within the service sector. The results indicate that significant emitter economies have yet to achieve sustainability, with the service sector continuing to contribute to pollution. Addressing this issue necessitates more robust climate change policies and increased investment in clean energy, specifically targeting the service sector, including buildings and transport.

An assessment of the influence of clean energy and service development on environmental degradation: evidence for a non-linear ARDL approach for Tunisia.

This paper investigates the nexus among renewable energy consumption, carbon dioxide emissions, economic development, and service growth in Tunisia under the linear and non-linear autoregressive distributed lags techniques and the Granger causality tests, for the 1980-2020 period. The empirical linear findings proved that renewable energy and service growth positively affect carbon emissions in the long term. The non-linear findings proved that a negative energy shock positively influences environmental quality in the long term. More prominently, in the long run, unilateral causalities from all the modeled variables to carbon emissions have been revealed. To mitigate climate change and get the economy back on track for more prosperity, the Tunisian government must develop an efficient strategy friendly to the environment and further explore the relationship between new technologies and renewable energy. Indeed, we propose to policymakers to encourage and promote the use of innovative clean technologies in the production of renewable energy.