Estimating environmental Kuznets Curve in the presence of eco-innovation and solar energy: An analysis of G-7 economies

Wei Zhao, Yishu Liu and Lihua Huang

Renewable Energy, 2022, vol. 189, issue C, 304-314

Abstract: The current study aims to examine the relationships between solar energy, eco-innovations and carbon emissions in the context of the Environmental Kuznets Curve in group of seven countries over the period from 1995 to 2018. According to the EKC theory, urbanization and industrialization deplete natural resources and produce industrial and urban wastes at early phases of economic growth. For empirical analysis, second-generation panel estimation techniques, i.e., tests for unit root cointegration techniques and Cross-Sectional Augmented Distributed Lag Model for short-run, and long-run coefficient estimations have been employed. The estimated findings are reconfirmed by applying Augmented Mean Group and Common Correlated Effect Mean Group methods. Results reveal that solar energy and eco-innovation exert a significant and negative long-run effect on carbon dioxide emission. Our findings showing cross sectional dependence and heterogeneity in the panel data, suggest that group of seven countries must devise strategies to invest in environmentally friendly technologies, take measures to encourage consumers and businesses to adopt environmentally friendly innovations and to subsidize the use of solar energy to cope with the environmental problems. The article provides the guidelines to the regulators while developing policies regarding environmental degradation.

Keywords: Solar energy; Eco-innovations; EKC Hypothesis; G-7 Economies (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0960148122002695
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:189:y:2022:i:c:p:304-314

DOI: 10.1016/j.renene.2022.02.120

Access Statistics for this article

Renewable Energy is currently edited by Soteris A. Kalogirou and Paul Christodoulides

More articles in Renewable Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().