Assessing the CO 2 Emissions and Energy Source Consumption Nexus in Japan

Kentaka Aruga, Md. Monirul Islam () and Arifa Jannat
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Md. Monirul Islam: Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh
Arifa Jannat: Institute of Agribusiness and Development Studies, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh

Sustainability, 2024, vol. 16, issue 13, 1-18

Abstract: This research investigates the variation in the impact of different energy sources on carbon dioxide (CO 2 ) emissions in Japan during the period from January 2019 to March 2023. The results of the Autoregressive Distributed Lag (ARDL) model suggest that a 1% increase in energy consumption produced through the photovoltaic (PV) decreases carbon emission by 0.053% in the short-run. Conversely, a 1% increase in coal, oil, and liquefied natural gas (LNG) leads to an increase in CO 2 emissions by 0.317%, 0.038%, and 0.214%, respectively. The study also reveals an inverted-U-shaped relationship between CO 2 emissions and economic growth, represented by the Nikkei stock index. The research emphasizes the critical need for Japan to prioritize investments and incentives in renewable energy technologies such as the PV systems, which have been demonstrated to effectively reduce CO 2 emissions in Japan. This is essential to uphold long-term ecological balance and to proactively support the ongoing reduction in CO 2 intensity, a key objective outlined in the Paris Agreement.

Keywords: CO 2 emissions; renewable energy; non-renewable energy; Nikkei index; EKC; ARDL model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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