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The role of solar energy in achieving net-zero emission and green growth: a global analysis

Author

Listed:
  • Jingbing Sun

    (Xinjiang University)

  • Youmu Xie

    (Nankai University)

  • Sheng Zhou

    (Tianjin University of Commerce)

  • Jiali Dan

    (Nankai University)

Abstract

This study explores sustainable development and achieving net-zero emissions by assessing the impact of solar energy adoption on carbon emissions in 40 high and upper middle-income nations and 22 low and lower middle-income countries from 2000 to 2021. Dynamic GMM analysis reveals substantial potential in mitigating emissions, with a 1% increase in solar energy consumption corresponding to a 0.25% reduction in wealthier nations and a 0.10% reduction in lower-income countries. Green power generation positively influences emission reduction in both income groups. However, challenges arise in the green trade mechanism, where increased solar energy trade paradoxically links to higher CO2 emissions. Promising opportunities for environmental sustainability in high-income economies include prioritizing the development of a digital green finance market. In low-income economies, establishing a regulatory framework for the green finance market is crucial, emphasizing standards, guidelines, responsible lending, and incentives for environmentally friendly projects.

Suggested Citation

  • Jingbing Sun & Youmu Xie & Sheng Zhou & Jiali Dan, 2024. "The role of solar energy in achieving net-zero emission and green growth: a global analysis," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-16, April.
    • Handle: RePEc:kap:ecopln:v:57:y:2024:i:2:d:10.1007_s10644-024-09641-w
    DOI: 10.1007/s10644-024-09641-w
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    References listed on IDEAS

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    More about this item

    Keywords

    Solar energy deployment; Green transition; Carbon emissions; Green economic growth; GMM;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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