Is the share of renewable energy sources determining the CO2 kWh and income relation in electricity generation?

Victor Moutinho and Margarita Robaina

Renewable and Sustainable Energy Reviews, 2016, vol. 65, issue C, 902-914

Abstract: The present study examines the long and short-run causality of the share of renewable energy sources (RES) in the relation between Carbon Dioxide emissions of electricity generation (CO2 kWh) and real income (GDP) for 20 European countries over 1991–2010, and in sub period 2001–2010. We used Cointegration Analysis and the Innovative Accounting Approach that includes Forecast Error Variance Decomposition and Impulse Response Functions (IRFs). Our results provide supportive evidence for the validity of the Environmental Kuznets Curve (EKC), and suggest that renewable energy can be a potential determining driver of the difference in the emissions-income relations across European countries and a significant way of reducing CO2 kWh. Moreover, in this particular 2001–2010 subperiod the share of renewable energy in electricity output will have significant influence on the shape of the EKC, which will shift downward as RES increases, suggesting lower (environmental) costs of development. In these sub period, 2001–2010, all the results show a common pattern expected of CO2 emissions in electricity generation after the European Directive 2001/77/EC, and reveal the importance of the interactive impact of renewable energy sources and GDP to reduce the CO2 emissions in electricity generation.

Keywords: Carbon dioxide emissions per kWh; Electricity generation; Environmental Kuznets Curve; Innovative accounting approach; Panel cointegration tests; Renewable energy (search for similar items in EconPapers)
JEL-codes: Q40 Q43 Q53 Q56 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1364032116303380
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:rensus:v:65:y:2016:i:c:p:902-914

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic
http://www.elsevier. ... 600126/bibliographic

DOI: 10.1016/j.rser.2016.07.007

Access Statistics for this article

Renewable and Sustainable Energy Reviews is currently edited by L. Kazmerski

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