Original scientific paper
https://doi.org/10.1080/1331677X.2022.2054454
Green energy, non-renewable energy, financial development and economic growth with carbon footprint: heterogeneous panel evidence from cross-country
Najia Saqib
Abstract
This study examines the relationship between green energy, nonrenewable energy, financial development, and economic growth
with carbon footprint by using panel data from 63 emerging and
developed economies for the time period from 1990 to 2020. The
study utilises second-generation panel data econometrics techniques to investigate cross-section independence and adjust for
cross-section heterogeneity. The studies also used the CIPS and
CADF unit root tests, Wester Lund bootstrap cointegration techniques, and AMG and CCEMG heterogeneous panel causality techniques. The findings show that, over the long run, all variables are
cointegrated. Additionally, the data indicate that non-renewable
energy consumption leads to carbon footprint, whereas green
energy reduces environmental degradation and supports the
reduction of environmental hazards. Likewise, financial development has a considerable negative effect on environmental degradation. A statistically significant bidirectional correlation is
found between green energy, nonrenewable energy, financial
development, economic growth, and carbon footprint according
to the Dumitrescu-Hurlin causality test. Finally, according to the
findings of the study, the economies that were examined should
use more green energy in order to reduce their carbon footprint.
Keywords
Carbon footprint; green energy; non-renewable energy; financial development; economic growth; panel D-H causality test; heterogeneous panel analysis
Hrčak ID:
303025
URI
Publication date:
31.3.2023.
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