CO₂ emissions, economic and population growth, and renewable energy: Empirical evidence across regions

This study empirically investigates the nexus among carbon dioxide (CO₂) emissions, economic and population growth, and renewable energy across regions. To do so, an unbalanced panel dataset of 128 countries over the period 1990–2014 is utilized. Considering the cross-sectional dependence and slope homogeneity observed in the panel, a series of econometric techniques allowing for cross-sectional dependence and slope homogeneity is employed. The results of cross-sectional dependence and slope homogeneity tests confirm the existence of significant cross-sectional dependence and heterogeneity. The empirical results of the common correlated effects mean group (CCEMG) estimator indicate that, at both the global and regional levels, population size and economic growth positively and significantly influence CO₂ emission levels. Furthermore, although increased renewable energy intensity leads to a decline in CO₂ emissions for all of the six regions, its coefficient in S. & Cent. America and Europe & Eurasia is considerably higher than the levels seen in other regions, which may be affected by the proportion of renewable energy in the primary energy mix. Finally, the results of panel causality testing provide evidence of varied causality links among the variables across regions.