Assessing Hybrid Solar-Wind Potential for Industrial Decarbonization Strategies: Global Shift to Green Development

Haroon ur Rashid Khan, Usama Awan, Khalid Zaman, Abdelmohsen A. Nassani, Mohamed Haffar and Muhammad Moinuddin Qazi Abro
Additional contact information
Haroon ur Rashid Khan: School of Engineering and Management, Nanjing University of Information Science and Technology, Nanjing 210044, China
Usama Awan: Industrial Engineering and Management, Lappeenranta-Lahti University of Technology LUT, P.O. Box 20, FI-53851 Lappeenranta, Finland
Khalid Zaman: Department of Economics, University of Haripur, Haripur 22620, Khyber Pakhtunkhwa, Pakistan
Abdelmohsen A. Nassani: Department of Management, College of Business Administration, King Saud University, P.O. Box 71115, Riyadh 11587, Saudi Arabia
Mohamed Haffar: Department of Management, Birmingham Business School, University of Birmingham, Birmingham B15 2TT, UK
Muhammad Moinuddin Qazi Abro: Department of Management, College of Business Administration, King Saud University, P.O. Box 71115, Riyadh 11587, Saudi Arabia

Energies, 2021, vol. 14, issue 22, 1-14

Abstract: The global energy mix is shifting from fossil fuels to combinations of multiple energy storage and generation types. Hybrid energy system advancements provide opportunities for developing and deploying innovative green technology solutions that can further reduce emissions and achieve net-zero emissions by 2050. This study examined the impact of an increasing share of wind and solar electricity production on reducing carbon intensity by controlling coal and lignite domestic consumption and the production of refined oil products in a world aggregated data panel. Data covering the last three decades were used for the analysis by the ARDL bounds testing approach. The results showed that an increasing share of wind and solar electricity production would be helpful to decrease carbon intensity in the short and long term. On the other hand, a 1% increase in coal and domestic lignite consumption increased carbon intensity by 0.343% in the short run and 0.174% in the long run. The production of refined oil products decreases carbon intensity by 0.510% in the short run and 0.700% in the long run. However, refining oil products is associated with positive and negative environmental externalities. The positive aspect depends upon the removal of harmful pollutants and the production of cleaner-burning fuels, while the negative part is related to the operational side of refineries and processing plants that may release contaminants into the atmosphere, affecting global air and water quality. Hence, it is crucial to improve processing and refining capacity to produce better-refined oil products by using renewable fuels in energy production. It is proposed that these are the most cost-effective pathways to achieve industrial decarbonization.

Keywords: renewable electricity production; industrial decarbonization strategies; refined oil products production; carbon intensity; decarbonization (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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