Evaluating the role of renewable energy and government consumption in reducing CO2 emissions: A dynamic panel data analysis

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60460709%3A41110%2F25%3A106237" target="_blank" >RIV/60460709:41110/25:106237 - isvavai.cz</a>

Výsledek na webu

<a href="https://www.sciencedirect.com/science/article/pii/S2772737825000343?pes=vor&utm_source=clarivate&getft_integrator=clarivate" target="_blank" >https://www.sciencedirect.com/science/article/pii/S2772737825000343?pes=vor&utm_source=clarivate&getft_integrator=clarivate</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1016/j.horiz.2025.100164" target="_blank" >10.1016/j.horiz.2025.100164</a>

Jazyk výsledku

čeština

Název v původním jazyce

Evaluating the role of renewable energy and government consumption in reducing CO2 emissions: A dynamic panel data analysis

Popis výsledku v původním jazyce

Reducing CO2 emissions poses a critical challenge for rapidly industrializing lower-middle-income countries (LMICs), where economic expansion pushes enhanced energy consumption, industrial activity, and transportation emissions. While previous research has separately examined the roles of renewable energy adoption and government spending in mitigating emissions, this study uniquely investigates their combined and interactive effects on CO2 emissions in LMICs, providing novel empirical insights through dynamic analysis. This research employs panel data from 26 LMICs spanning 2002 to 2022, utilizing fixed-effects, random-effects, and generalized method of moments (GMM) approaches to address endogeneity, autocorrelation, and unobserved heterogeneity. The robust GMM estimators, handling these issues effectively, ensure reliable and complete causal inferences. The findings from the preferred GMM model indicate that a 1 % increase in renewable energy consumption results in a 0.025 % reduction in CO2 emissions, but a 1 % rise in government expenditure contributes to a 0.0531 % decrease, when spending is environmentally aligned. However, the interaction term between renewable energy and government consumption demonstrates a small but significant positive effect, indicating that poorly targeted fiscal spending may dilute the environmental benefits of renewables. GDP growth and energy use dramatically rise emissions, supporting the Environmental Kuznets Curve (EKC) hypothesis, while urbanization and education show mixed effects. These results underscore the necessity of integrating renewable energy expansion with strategic government fiscal interventions to promote sustainable emission reductions. The study adds to the body of knowledge on sustainable development literature by elucidating the complex interplay between fiscal policy and renewable energy adoption. We recommend that policymakers in LMICs prioritize green-aligned spending and phase out fossil incentives to maximize synergies, fostering scalable models for global climate goals.

Název v anglickém jazyce

Evaluating the role of renewable energy and government consumption in reducing CO2 emissions: A dynamic panel data analysis

Popis výsledku anglicky

Reducing CO2 emissions poses a critical challenge for rapidly industrializing lower-middle-income countries (LMICs), where economic expansion pushes enhanced energy consumption, industrial activity, and transportation emissions. While previous research has separately examined the roles of renewable energy adoption and government spending in mitigating emissions, this study uniquely investigates their combined and interactive effects on CO2 emissions in LMICs, providing novel empirical insights through dynamic analysis. This research employs panel data from 26 LMICs spanning 2002 to 2022, utilizing fixed-effects, random-effects, and generalized method of moments (GMM) approaches to address endogeneity, autocorrelation, and unobserved heterogeneity. The robust GMM estimators, handling these issues effectively, ensure reliable and complete causal inferences. The findings from the preferred GMM model indicate that a 1 % increase in renewable energy consumption results in a 0.025 % reduction in CO2 emissions, but a 1 % rise in government expenditure contributes to a 0.0531 % decrease, when spending is environmentally aligned. However, the interaction term between renewable energy and government consumption demonstrates a small but significant positive effect, indicating that poorly targeted fiscal spending may dilute the environmental benefits of renewables. GDP growth and energy use dramatically rise emissions, supporting the Environmental Kuznets Curve (EKC) hypothesis, while urbanization and education show mixed effects. These results underscore the necessity of integrating renewable energy expansion with strategic government fiscal interventions to promote sustainable emission reductions. The study adds to the body of knowledge on sustainable development literature by elucidating the complex interplay between fiscal policy and renewable energy adoption. We recommend that policymakers in LMICs prioritize green-aligned spending and phase out fossil incentives to maximize synergies, fostering scalable models for global climate goals.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

10511 - Environmental sciences (social aspects to be 5.7)

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2025

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

SUSTAINABLE HORIZONS

ISSN

2772-7378

e-ISSN

2772-7378

Svazek periodika

17

Číslo periodika v rámci svazku

neuvedeno

Stát vydavatele periodika

NL - Nizozemsko

Počet stran výsledku

17

Strana od-do

1-17

Kód UT WoS článku

001599322900001

EID výsledku v databázi Scopus

2-s2.0-105018906732