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The Impacts of Non-Fossil Energy, Economic Growth, Energy Consumption, and Oil Price on Carbon Intensity: Evidence from a Panel Quantile Regression Analysis of EU 28

Author

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  • Cheng Cheng

    (School of Management Science and Engineering, Shanxi University of Finance and Economics, 696 Wucheng Road, Taiyuan 030006, China)

  • Xiaohang Ren

    (School of Mathematical Sciences, University of Southampton, Southampton SO17 1BJ, UK)

  • Zhen Wang

    (Academy of Chinese Energy Strategy, China University of Petroleum-Beijing, 18 Fuxue Road, Changping, Beijing 102249, China)

  • Yukun Shi

    (Adam Smith Business School, University of Glasgow, West Quadrangle, Gilbert Scott Building, Glasgow G12 8QQ, UK)

Abstract

This study investigates some determinants of carbon intensity in 28 countries in the European Union (EU), including non-fossil energy, economic growth, energy consumption, and oil price. A panel quantile regression method, which considers both individual heterogeneity and distributional heterogeneity, is applied in this paper. The empirical results imply that the influences of these determinants on carbon intensity are heterogeneous and asymmetric across different quantiles. Specifically, non-fossil energy can significantly decrease carbon intensity, but shows a U-shaped relationship. Economic growth has a negative impact on carbon intensity, especially for medium-emission and high-emission countries. The effects of heating degree days on carbon intensity are positive, although the coefficients are not significant at low quantiles, they become significant from medium quantiles. Besides, we find an inverse U-shaped relationship between crude oil price and carbon intensity. Finally, several relevant policy recommendations are proposed based on the empirical results.

Suggested Citation

  • Cheng Cheng & Xiaohang Ren & Zhen Wang & Yukun Shi, 2018. "The Impacts of Non-Fossil Energy, Economic Growth, Energy Consumption, and Oil Price on Carbon Intensity: Evidence from a Panel Quantile Regression Analysis of EU 28," Sustainability, MDPI, vol. 10(11), pages 1-20, November.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:11:p:4067-:d:180966
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