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The adoption of renewable energy towards environmental sustainability: Evidence from Partial Least Square Structural Equation Modelling (PLS-SEM)

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  • Justice Gyimah
  • Sabastian Batasuma
  • Xilong Yao
  • Gladys Wauk

Abstract

The effect of carbon emissions on the environment has made some of the Sustainable Development Goals difficult to achieve. Despite the efforts of international bodies, there is still a need to address the problem since the transition is not complete. Therefore, this study investigates the effect of globalization, economic growth, financial inclusion, renewable energy, and government institutions on carbon emissions from the period of 1998 to 2021. To be able to assess both the direct and indirect effects of the variables, the Partial Least Square Structural Equation Modelling is employed, where renewable energy serves as the mediator, and the Two-Stage Least Squares is employed as the robustness check. The findings of the study reveal that globalization promotes the use of renewable energy, but financial inclusion has a negative effect on renewable energy use. Renewable energy has a direct positive and significant effect on carbon emissions. Financial inclusion has an indirect negative and significant effect on carbon emissions. The results imply that more enlightenment on financial inclusion will help a smooth transition, and globalization should be embraced when all environmental regulations are enforced.

Suggested Citation

  • Justice Gyimah & Sabastian Batasuma & Xilong Yao & Gladys Wauk, 2024. "The adoption of renewable energy towards environmental sustainability: Evidence from Partial Least Square Structural Equation Modelling (PLS-SEM)," PLOS ONE, Public Library of Science, vol. 19(4), pages 1-20, April.
    • Handle: RePEc:plo:pone00:0299727
    DOI: 10.1371/journal.pone.0299727
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    References listed on IDEAS

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    1. Hu, Hui & Xie, Nan & Fang, Debin & Zhang, Xiaoling, 2018. "The role of renewable energy consumption and commercial services trade in carbon dioxide reduction: Evidence from 25 developing countries," Applied Energy, Elsevier, vol. 211(C), pages 1229-1244.
    2. Destek, Mehmet Akif & Aslan, Alper, 2020. "Disaggregated renewable energy consumption and environmental pollution nexus in G-7 countries," Renewable Energy, Elsevier, vol. 151(C), pages 1298-1306.
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