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The interdependence between CO2 emissions, economic growth, renewable and non-renewable energies, and service development: evidence from 65 countries

Author

Listed:
  • Mehdi Ben Jebli

    (University of Jendouba
    Campus University of Manouba)

  • Montassar Kahia

    (Qassim University
    University of Tunis El Manar)

Abstract

This study examined the interdependence between CO2 emissions, economic growth, energy generation, and value-added service for a panel of 65 countries. An important contribution of this study is to explore the role of service sector development in the mitigation of pollutant emissions, considering renewable energy as a resource of production. The authors used the annual data of studied variables covering the period of 1980 to 2014 and utilized the vector autoregressive (VAR) model, Granger causality, and Toda–Yamamoto tests. The empirics of Granger causality suggest that there are strong bidirectional causalities between CO2 emissions and non-renewable energy, CO2 emissions and value-added service, non-renewable energy and value-added service, and unidirectional causality from CO2 emissions to renewable energy in the short-run. Furthermore, the empirics suggest that bidirectional causalities exist between the service sector toward CO2 emissions and value-added service toward non-renewable energy in the long-run. The findings of this study support the validity of an environmental Kuznets curve for the case of sample countries. The study proposed that increasing renewable energy rates could be good plans to stimulate service activities and decreasing non-renewable energy rates will reduce pollutant emissions.

Suggested Citation

  • Mehdi Ben Jebli & Montassar Kahia, 2020. "The interdependence between CO2 emissions, economic growth, renewable and non-renewable energies, and service development: evidence from 65 countries," Climatic Change, Springer, vol. 162(2), pages 193-212, September.
    • Handle: RePEc:spr:climat:v:162:y:2020:i:2:d:10.1007_s10584-020-02773-8
    DOI: 10.1007/s10584-020-02773-8
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    2. Gideon Kwaku Minua Ampofo & Jinhua Cheng & Edwin Twum Ayimadu & Daniel Akwasi Asante, 2021. "Investigating the Asymmetric Effect of Economic Growth on Environmental Quality in the Next 11 Countries," Energies, MDPI, vol. 14(2), pages 1-29, January.
    3. Imen Chaouali & Mehdi Ben Jebli & Wadim Strielkowski, 2023. "How renewable energy and service growth influence environmental quality: Evidence from a sustainable development perspective," Natural Resources Forum, Blackwell Publishing, vol. 47(2), pages 257-275, May.
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    6. Héctor F. Salazar-Núñez & Francisco Venegas-Martínez & José Antonio Lozano-Díez, 2022. "Assessing the interdependence among renewable and non-renewable energies, economic growth, and CO2 emissions in Mexico," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(11), pages 12850-12866, November.
    7. Liu, Ying & Lin, Boqiang & Xu, Bin, 2021. "Modeling the impact of energy abundance on economic growth and CO2 emissions by quantile regression: Evidence from China," Energy, Elsevier, vol. 227(C).
    8. Ortega-Ruiz, G. & Mena-Nieto, A. & Golpe, A.A. & García-Ramos, J.E., 2022. "CO2 emissions and causal relationships in the six largest world emitters," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
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    More about this item

    Keywords

    Renewable energy; Value-added service; Carbon dioxide emissions; Vector error model; Granger causality;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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