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Renewable energy, energy intensity and carbon reduction: Experience of large emerging economies

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  • Rahman, Mohammad Mafizur
  • Sultana, Nahid
  • Velayutham, Eswaran

Abstract

High level of carbon emissions is still a policy agenda because of its detrimental effect on environment. CO2 emissions are growing quickly in emerging countries with the high energy consumption, industrial activities, and rapid globalization. So, it is important to examine the roles of emission-inducing factors in these countries. To this end, this research investigates the dynamic effects of energy intensity, renewable energy, industrialization, urbanization and international trade on carbon intensity in the 25 largest emerging economies of the world. The study is based on the data period of 1990–2018, where the Pool Mean Group (PMG) estimation technique of the panel Autoregressive Distributed Lag (ARDL) approach is used, along with different diagnostic tests. The findings are, in the long-run, carbon intensity is increased by energy intensity and industrialization, and decreased by renewable energy use and urbanization. An increase of one unit in energy intensity and industrialization increased carbon intensity by 2.616 unit and 0.002 unit, respectively. Conversely, carbon intensity reduced by 0.003 unit with an increase of one unit in renewable energy and urbanization. In the short-run, carbon intensity is positively associated with energy intensity only with a coefficient value of 0.811. Therefore, an increase in renewable energy production and use, and enhancement of green technology for industrial production can be viable options for carbon reduction.

Suggested Citation

  • Rahman, Mohammad Mafizur & Sultana, Nahid & Velayutham, Eswaran, 2022. "Renewable energy, energy intensity and carbon reduction: Experience of large emerging economies," Renewable Energy, Elsevier, vol. 184(C), pages 252-265.
    • Handle: RePEc:eee:renene:v:184:y:2022:i:c:p:252-265
    DOI: 10.1016/j.renene.2021.11.068
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    More about this item

    Keywords

    Renewable energy; Carbon intensity; Industrialization; Urbanization; Panel ARDL;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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