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Carbon Dioxide, Nitrous Oxide, and Methane: What Types of Greenhouse Gases Are Most Affected by Green Investments and Renewable Energy Development?

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  • Aleksy Kwilinski

    (Department of Management, Faculty of Applied Sciences, WSB University, 41-300 Dabrowa Gornicza, Poland
    The London Academy of Science and Business, London W1U 6TU, UK
    Academic and Research Institute of Business, Economics and Management, Sumy State University, 40-007 Sumy, Ukraine)

  • Olena Dobrovolska

    (Faculty of Economics, Dresden University of Applied Sciences (HTWD), 01-069 Dresden, Germany)

  • Tomasz Wołowiec

    (Institute of Public Administration and Business, Lubelska Akademia WSEI, 20-209 Lublin, Poland)

  • Wiktor Cwynar

    (Institute of Public Administration and Business, Lubelska Akademia WSEI, 20-209 Lublin, Poland)

  • Iryna Didenko

    (Academic and Research Institute of Business, Economics and Management, Sumy State University, 40-007 Sumy, Ukraine)

  • Artem Artyukhov

    (Faculty of Commerce, University of Economics in Bratislava, 852-35 Bratislava, Slovakia)

  • Oleksandr Dluhopolskyi

    (Institute of Public Administration and Business, Lubelska Akademia WSEI, 20-209 Lublin, Poland
    Faculty of Economics and Management, West Ukrainian National University, 46027 Ternopil, Ukraine)

Abstract

The article aims to analyze the impact of green investments and the development of renewable energy on greenhouse gas emissions based on 223 countries in 2011–2021. The information base is the International Renewable Energy Agency, Our World in Data, Climate Policy Initiative, and FTSE Russell. Correlation analysis was used to check the data multicollinearity, multivariate regression analysis with stepwise variable entry—to formalize functional relationships. All variables characterizing the dynamics of green investments and the development of alternative energy, the number of annual investments in off-grid renewable energy has the largest impact on the amount of CO 2 and N 2 O. Thus, an annual investment increase of USD 1 million leads to a CO 2 emission increase of 4.5 kt and an N 2 O emission increase of 0.272 kt. Simultaneously, the green economy’s market capitalization level has the largest impact on the amount of CH 4 . In this case, a capitalization increases of USD 1 trillion leads to a CH 4 emission increase of 129.53 kt. The dynamics of renewable energy development have a statistically significant effect on only one of the three studied greenhouse gases—CO 2 emissions. Here, 1 MW growth of an absolute increase in off-grid renewable energy capacity leads to a 1171.17 kt reduction of CO 2 emissions. Checking input data for lags confirmed a time lag of one year between the level of green investments and the level of greenhouse gas emissions. That is, the impact of green investments on the level of greenhouse gas emissions is delayed by one year. The results of regression models taking into account lags confirmed that an increase in the level of green investments has a positive effect on reducing the level of greenhouse gas emissions (an increase in off-grid renewable energy annual investments of USD 1 million leads to a decrease in CO 2 of 1.18 kt and N 2 O of 1.102 kt; the increase in green economy market capitalization of USD 1 trillion leads to a decrease in CH 4 emissions of 0.64 kt).

Suggested Citation

  • Aleksy Kwilinski & Olena Dobrovolska & Tomasz Wołowiec & Wiktor Cwynar & Iryna Didenko & Artem Artyukhov & Oleksandr Dluhopolskyi, 2024. "Carbon Dioxide, Nitrous Oxide, and Methane: What Types of Greenhouse Gases Are Most Affected by Green Investments and Renewable Energy Development?," Energies, MDPI, vol. 17(4), pages 1-18, February.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:4:p:804-:d:1335401
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    References listed on IDEAS

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    1. Alina Vysochyna & Tetiana Vasylieva & Oleksandr Dluhopolskyi & Marcin Marczuk & Dymytrii Grytsyshen & Vitaliy Yunger & Agnieszka Sulimierska, 2023. "Impact of Coronavirus Disease COVID-19 on the Relationship between Healthcare Expenditures and Sustainable Economic Growth," IJERPH, MDPI, vol. 20(4), pages 1-18, February.
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    1. Bogdan Nichifor & Luminita Zait & Ovidiu Turcu, 2025. "Renewable Investments, Environmental Spending, and Emissions in Eastern Europe: A Spatial-Economic Analysis of Management and Policy Decisions Efficiency," Sustainability, MDPI, vol. 17(7), pages 1-33, March.

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