Renewable Energy Consumption and Carbon Emissions: Evidence from an Oil-Rich Economy

Shahriyar Mukhtarov (), Fuzuli Aliyev, Javid Aliyev and Richard Ajayi
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Shahriyar Mukhtarov: Faculty of Economics and International Relations, Vistula University, Stoklosy 3, 02-787 Warsaw, Poland
Javid Aliyev: Department of College of Islamic Studies, Islamic Finance and Economics, Hamad Bin Khalifa University, Education City, Doha P.O. Box 34110, Qatar
Richard Ajayi: Department of Finance, College of Business Administration, University of Central Florida, Orlando, FL 32816, USA

Sustainability, 2022, vol. 15, issue 1, 1-12

Abstract: This article examines the influence of renewable energy consumption, real GDP per capita, exports and imports on consumption-based CO 2 emissions in Azerbaijan from 1993 to 2019 by employing the Dynamic Ordinary Least Squares Method (DOLS). The results reveal that renewable energy consumption has a negative impact on CO 2 emissions, while real GDP per capita has a positive effect. According to the findings, a 1% increase in renewable energy consumption leads to a 0.26% decrease in consumption-based CO 2 emissions, while a 1% rise in real GDP per capita leads to a 0.46% rise in consumption-based CO 2 emissions. In addition, imports and exports show positive and negative effects respectively. Numerically, a 1% rise in imports results in a 0.18% rise in CO 2 emissions, whereas a 1% increase in exports reduces CO 2 emissions by 0.16%. This is consistent with expectations and theoretical outcomes described in the functional specification and data section. The negative influence of renewable energy consumption, as well as the larger effect of imports, emphasize the necessity of implementing ecologically friendly measures in both energy sectors (particularly, the need to increase the share of renewable energy in total energy use) and international trade.

Keywords: renewable energy; CO 2 emissions; DOLS; Azerbaijan (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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