The Effect of Renewable Energy Use and ICT Development on CO 2 Emissions in EU Transition Economies: Evidence from Causality and Cointegration Analyses Under the Presence of Cross-Sectional Dependence and Heterogeneity

Betül Gür (), Gamze Sart, Yılmaz Bayar and Hicran Özgüner Kılıç
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Betül Gür: Department of Economics, Faculty of Business, Istanbul Ticaret University, 34445 Istanbul, Türkiye
Gamze Sart: Department of Educational Sciences, Hasan Ali Yucel Faculty of Education, Istanbul University-Cerrahpaşa, 34500 İstanbul, Türkiye
Yılmaz Bayar: Department of Public Finance, Faculty of Economics and Administrative Sciences, Bandirma Onyedi Eylül University, 10200 Balikesir, Türkiye
Hicran Özgüner Kılıç: Department of Business, Faculty of Economics and Administrative Sciences, Bandirma Onyedi Eylül University, 10200 Balikesir, Türkiye

Sustainability, 2025, vol. 17, issue 21, 1-18

Abstract: CO 2 emissions are amongst the most significant contributors to global warming and climate change and continue to increase throughout the world. In this regard, this study investigates the interplay amongst renewable energy use, ICTs, economic development, and CO 2 emissions in EU transition economies during the years of 2000–2021 through Emirmahmutoglu and Kose’s causality approach and LM bootstrap cointegration test. Panel-level causality analysis indicates a feedback interaction amongst renewable energy use, economic development, and CO 2 emissions, but a one-way causal effect of CO 2 emissions on ICT development. However, country-level causality analysis shows that the causal relationships amongst renewable energy use, ICTs, economic development, and CO 2 emissions change among EU transition economies. The estimated cointegration coefficients reveal that renewable energy use has a negative impact on CO 2 emissions in all countries, while the effects of ICTs and economic development on CO 2 emissions differ amongst the countries. The findings of this study emphasize the significant roles of renewable energy use and ICTs to reduce CO 2 emissions.

Keywords: CO 2 emissions; renewable energy use; ICT development; economic development; panel causality test (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:17:y:2025:i:21:p:9848-:d:1787518

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