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A Dynamic Analysis of Air Pollution: Implications of Economic Growth and Renewable Energy Consumption

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  • Jia Yu Xie

    (Department of Food and Resource Economics, Korea University, 145 Anam-ro, Seongbuk-gu, Seoul 02841, Korea)

  • Dong Hee Suh

    (Department of Food and Resource Economics, Korea University, 145 Anam-ro, Seongbuk-gu, Seoul 02841, Korea)

  • Sung-Kwan Joo

    (School of Electrical Engineering, Korea University, 145 Anam-ro, Seongbuk-gu, Seoul 02841, Korea)

Abstract

This paper examines how economic growth and renewable energy consumption are associated with air pollution using a dynamic panel approach. Focusing on several major air pollutants, namely, particulate matter, sulfur dioxide, nitrogen oxide, and carbon monoxide, this paper tests the environmental Kuznets hypothesis and determines whether the use of renewable energy sources contributes to a reduction in air pollution. Data from a balanced panel of 145 countries for the period between 2000 and 2014 was used for the estimation of the dynamic panel model. The results of the dynamic panel model showed inverted U-shaped curves for the relationship between economic development and particulate matter and sulfur dioxide emissions. The results also revealed that increasing renewable energy consumption contributes to an improvement in air quality. Moreover, it was found that urbanization tends to decrease sulfur dioxide and nitrogen oxide emissions, while trade openness reduces particulate matter and carbon monoxide emissions but increases sulfur dioxide emissions.

Suggested Citation

  • Jia Yu Xie & Dong Hee Suh & Sung-Kwan Joo, 2021. "A Dynamic Analysis of Air Pollution: Implications of Economic Growth and Renewable Energy Consumption," IJERPH, MDPI, vol. 18(18), pages 1-15, September.
    • Handle: RePEc:gam:jijerp:v:18:y:2021:i:18:p:9906-:d:639606
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    2. Chuanming Yang & Jie Shen & Zhonghua Jiang & Junyu Chen & Yi Xie, 2024. "Evaluation of Atmospheric Environmental Efficiency and Spatiotemporal Differences in the Yangtze River Delta Region of China," Sustainability, MDPI, vol. 16(6), pages 1-16, March.
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    4. Mwahib Mohammed & Sufian Abdel-Gadir, 2023. "Unveiling the Environmental–Economic Nexus: Cointegration and Causality Analysis of Air Pollution and Growth in Oman," Sustainability, MDPI, vol. 15(24), pages 1-18, December.

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