Does renewable energy adaptation, globalization, and financial development matter for environmental quality and economic progress? Evidence from panel of big five (B5) economies

Li Xu, Xiuli Wang and Wen Guo

Renewable Energy, 2022, vol. 192, issue C, 631-640

Abstract: Renewable energy adaptation can play a critical role to halt climate change, although many researchers in the past tried to estimate its effect toward the environment, but the findings are still unclear and complex due to limitation of data and adopted methodologies. Therefore, to overcome the weaknesses, this paper aims to re-investigate the role of renewable energy adaptation, financial development and globalization toward environmental quality and economic progress in leading economies, we call it big five economies (B5) of the world. These economies (USA, China, UK, Germany, and Japan) were chosen based on ranking by the IMF. In this paper, we applied panel techniques for data analysis including panel data unit roots test, padroni cointegration analysis and panel data FMOLS and panel DOLS. Further, to explore country specific results and to ensure the robustness of findings, frequency domain causality test was applied. Results of estimation reveal that renewable energy adaptation mitigate the environmental impact to improve environmental quality and reinforce economic progress in B5 countries. Although, financial development, capital formation, natural resources and globalization improve economic progress, but these factors create adverse consequence for the environmental quality. Similarly, it can be stated that it’s a tradeoff between economy and the environment. Further, the role of trade is found as constructive for environmental quality and economic progress in B5 economies. We believe that the conclusions of our study hold promise for key insights for the policy development.

Keywords: Renewable energy; Environment; Economy; Globalization; Financial development (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0960148122006383
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:192:y:2022:i:c:p:631-640

DOI: 10.1016/j.renene.2022.05.004

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 ().