Solar Energy and CO2 Emissions: CCEMG Estimations for 26 Countries

Taner Güney () and Duygu İnce ()
Additional contact information
Taner Güney: Karamanoglu Mehmetbey University
Duygu İnce: Karamanoglu Mehmetbey University

Journal of the Knowledge Economy, 2024, vol. 15, issue 1, No 96, 2383-2400

Abstract: Abstract This study examines the long-term relationships between solar energy, globalization, coal energy consumption, economic growth, and CO2 emissions. We included data from 26 countries for which data are available for 2000-2019. To consider the cross-sectional dependence and slope homogeneity, which are prominent in the panel data analysis, we preferred the mean group of co-related effects (CCEMG) method. According to OLS, FMOLS, and CCEMG estimations, solar energy consumption negatively affects CO2 emissions. A 1 % increase in solar energy consumption causes a 0.0106671% reduction in CO2 emissions. There is bidirectional causality between solar energy consumption and CO2 emissions in the long run. Globalization does not have a significant effect on CO2 emissions. However, coal energy consumption and economic growth appear to cause an increase in CO2 emissions. Because of the diversity and consistency of the methods we used to measure the relationships between variables in our article, the dominant power of solar energy in reducing carbon emissions has been proven once again. Encouraging the use of solar energy by countries and supporting investments in this field has emerged as benefiting from solar energy based only on the geographical advantage they have, regardless of globalization. For this reason, it is essential for environmental sustainability that governments give tax advantages and energy investment incentives to companies that prefer solar energy in their production processes. As a result, reduced carbon emissions will also bring about a greener environment.

Keywords: Solar energy; Globalization; CO2 emissions; CCEMG; Panel causality (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s13132-023-01337-2 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:jknowl:v:15:y:2024:i:1:d:10.1007_s13132-023-01337-2

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/13132

DOI: 10.1007/s13132-023-01337-2

Access Statistics for this article

Journal of the Knowledge Economy is currently edited by Elias G. Carayannis

More articles in Journal of the Knowledge Economy from Springer, Portland International Center for Management of Engineering and Technology (PICMET)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().