How do renewable energy, gross capital formation, and natural resource rent affect economic growth in G7 countries? Evidence from the novel GMM-PVAR approach.

This paper is to examine the dynamic causal relationship between economic growth, renewable energy consumption, and CO2 with a broad perspective. The study is analyzed by dividing into two main parts. Growth and energy consumption in the first part, and the relationship between renewable energy and CO2 in the second part, within the framework of the basic hypotheses in the literature. On the other hand, as an observation group, the G7 economies were examined in the 1997-2019 period. According to PVAR regression estimates, if GDPPC increases by 1%, REN decreases by 0.81%, while CO2 increases by 0.71%. However, CO2 and REN do not appear to have any influence on growth. According to the causality estimates, a unidirectional causal relation from GDPPC to CO2 and REN was determined. In this case, the conservation hypothesis is valid. Considering the relation between CO2 and REN, no significant relation was found between the two variables in both regression and causality estimations. In this case, the neutrality hypothesis is valid between the two variables. It is seen that the diversity of energy sources or the investments made in them are inefficient. Our study offers a different perspective on energy resources and air pollution for the G7 economies.

Testing the EKC hypothesis for the USA by avoiding aggregation bias: a microstudy by subsectors.

The aim of this study is to examine the impact of foreign direct investments, economic growth, and energy consumption on carbon dioxide subcomponents in the case of the USA. Dynamic ARDL (DARDL) econometric method is used covering the period 1972-2020. In addition to the total CO2 emission, the subcomponents of CO2 emission are examined separately within the framework of the EKC hypothesis in the USA by avoiding aggregation bias for the first time. The CO2 emission subcomponents used in the study are as follows; CO2 emissions from liquid fuel consumption, residential buildings, and commercial and public services; electricity and heat production; and other sectors, excluding residential buildings and commercial and public services, and CO2 emissions from transportation. Each CO2 emission component is used as a dependent variable and 6 different models were created. Foreign direct investments, trade, and energy consumption are used as control variables. No results supporting the EKC hypothesis are determined in any model, except for model 1, where total CO2 emission is the dependent variable. In addition, the trade variable has been determined as an important factor in reducing CO2 emissions in the short and long term. Trade and GDP per capita increasing and energy consumption reducing will show positive results in order to increase the environmental quality in the USA. Moreover, the study in which this EKC hypothesis is tested with CO2 emission and its subcomponents is an important study in terms of providing the opportunity to analyze the environmental quality from different angles at the same time and to take various measures together in the US economy.

Environmental quality and renewable energy consumption with different quality indicators: evidence from robust result with panel quantile approach.

The purpose of this paper is to research the relation among environmental quality and renewable energy in the RECAI country group. The study used per capita CO2 emission, energy intensity, and Aggregate National Savings as a measure of environmental quality. Other variables used in the study are renewable energy consumption, fossil fuel consumption, GDP per capita, and foreign direct investments. In the study, three different models to see different environmental quality indicators by panel quantile method for 19202090-. According to the results obtained, unlike other models, renewable energy consumption in model 1 positively affects energy intensity in all quantiles. In other words, renewable energy consumption negatively affects environmental quality. In model 1 and model 3, the coefficients of fossil fuel consumption were positive and negative, respectively. Unlike model 2, the coefficient estimates of fossil fuel consumption in model 3 were predominantly negative. Fossil fuel consumption shows a positive effect on environmental quality, which is similar to model 1. Economic growth negatively affects environmental quality in all models. There is a one-way causal relationship from renewable energy consumption to energy intensity and energy intensity to growth.

The effects of energy poverty on economic growth: a panel data analysis for BRICS countries.

Energy consumption is an indispensable element for the purpose of achieving economic growth. Clean energy sources must be put into use to achieve a sustainable environment. The aim of this study is to investigate the relationship among growth, energy consumption, employment, education, and inflation with PVAR, FMOLS, and DOLS analysis in BRICS countries. The study that covers the 2001-2018 observation period included growth as the dependent variable in the equation. The only common result of the three coefficient estimates is that there is no significant relationship between education and growth. However, the increase in income has a decreasing effect on the level of education. The direction of causality between the two variables is from growth to education. Contrary to the PVAR estimate, according to FMOLS and DOLS, energy consumption and employment have a positive contribution towards growth. However, according to PVAR regression results, income growth has a positive effect on employment. Moreover, a unidirectional causal relation from energy consumption to growth and a bidirectional relation between growth and employment have been determined. This one-way relationship between energy consumption and GDP depicts that the growth hypothesis is valid. Furthermore, an energy poverty problem does not exist in BRICS countries. According to FMOLS, DOLS, and PVAR forecasts, the relationship between inflation and growth is complex. In accordance with PVAR estimates, the increase in growth reduces inflation, and the causality from growth to inflation also supports the PVAR results. According to the outcome of the research, energy poverty is not observed in the panel countries. It would be wise for BRICS countries to increase their energy consumption and employment levels in order to increase growth. However, considering the air pollution caused by fossil fuel consumption, it is key that they employ renewable energy sources.

The link between urbanization and air pollution in Turkey: evidence from dynamic autoregressive distributed lag simulations.

This study investigates the relationship between urbanization and air pollution in Turkey. Dynamic ARDL method was used for the period 1960-2015. According to the findings, there is a positive and statistically significant relationship between long-term urbanization and CO2. If urbanization increased by 1%, carbon emissions increased by 0.02%. There is a similar relationship between the shocks that will occur in population growth and CO2 emission in the long term. However, there is a negative and statistically insignificant relationship between the two variables. In the relationship between GDP and CO2, there is a positive relationship in the long term. GDP increase of 1% increases CO2 emissions by 0.11%. There is a similar relationship between long-term GDP shocks and CO2 emissions. According to short-term analysis results, energy consumption increases CO2 emissions by the same rate as GDP. However, the astonishing result of the study emerges here. Empirical results show that a long-term positive shock in energy consumption reduces CO2 emissions and a negative shock increases pollution. According to these results, Turkey has not reached the point of sustainable growth. For this reason, this developing country needs to make regulatory implementations and determine future policies for these impacts affecting air pollution.

The nexus between economic growth, tourism development, energy consumption, and CO2 emissions in Mediterranean countries.

This study aims to analyze the relationship among international tourism, energy consumption, carbon dioxide emissions, and economic growth in Mediterranean countries for the 1995-2014 data period. According to the results of panel quantile regression model for 17 countries, the tourism-led growth hypothesis is valid in low growth levels, but deviations from this hypothesis are determined after the middle growth level. Also, the CO2 coefficient at low growth levels indicated that sustainable growth is achieved, but no significant results are obtained at subsequent growth levels. Finally, energy consumption supports economic growth at low and medium growth levels. Short-run causality test results illustrated that there is bidirectional causality between GDP and all explanatory variables.