Evaluating the Environmental Kuznets Curve: The Role of Renewable Energy, Economic Growth, Urban Density and Trade Openness on CO2 Emissions. An Analysis for High-Income Countries Using the CS-ARDL Model

Juan Vallejo-Mata, María Gabriela González Bautista, Luis Eduardo Solis Granda and Eduardo Germán Zurita Moreano
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María Gabriela González Bautista: Universidad Nacional de Chimborazo, Ecuador
Luis Eduardo Solis Granda: Universidad Estatal de Milagro, Ecuador
Eduardo Germán Zurita Moreano: Universidad Nacional de Chimborazo, Ecuador

International Journal of Energy Economics and Policy, 2024, vol. 14, issue 6, 580-596

Abstract: In view of the environmental challenges the world is currently facing, the objective of this research was to examine the short- and long-term effect of renewable energies on CO2 emissions. In addition, to deepen the analysis, the Environmental Kuznet Curve (EKC) hypothesis, and the effects of urban population density and trade openness on CO2 emissions in 30 high-income countries in the period 2000-2020 were evaluated. A cross-sectional autoregressive distributed lags model (CS-ARDL) and the Augmented Mean Group (AMG) model were estimated for robustness checks. The findings reveal that renewable energy consumption reduces CO2 emissions in both the short and long term. Furthermore, there is strong evidence to support the EKC hypothesis. Finally, openness to trade was found to increase CO2 emissions, while the relationship between urban density and CO2 emissions is statistically non-significant. This information is expected to be crucial for the generation of public policies framed in sustainable development.

Keywords: CO2 Emissions; Renewable Energies; Kuznet Hypothesis; Trade Openness; CS-ARDL (search for similar items in EconPapers)
JEL-codes: F18 O13 Q56 (search for similar items in EconPapers)
Date: 2024
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