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The Impact of Renewable Electricity Output on Sustainability in the Context of Circular Economy. A Global Perspective

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  • Laureti, Lucio
  • Costantiello, Alberto
  • Leogrande, Angelo

Abstract

In this article we investigate the impact of “Renewable Electricity Output” on green economy in the context of circular economy for 193 countries in the period 2011-2020. We use data from World Bank ESG framework. We perform Panel Data with Fixed Effects, Panel Data with Random Effects, WLS, and Pooled OLS. Our results show that Renewable Electricity Output is positively associated, among others, to “Adjusted Savings-Net Forest Depletion” and “Renewable Energy Consumption” and negatively associated, among others, to “CO2 Emission” and “Cooling Degree Days”. Furthermore, we perform a cluster analysis implementing the k-Means algorithm optimized with the Elbow Method and we find the presence of 4 clusters. Finally, we confront seven different machine learning algorithms to predict the future level of “Renewable Electricity Output”. Our results show that Linear Regression is the best algorithm and that the future value of renewable electricity output is predicted to growth on average at a rate of 0.83% for the selected countries.

Suggested Citation

  • Laureti, Lucio & Costantiello, Alberto & Leogrande, Angelo, 2022. "The Impact of Renewable Electricity Output on Sustainability in the Context of Circular Economy. A Global Perspective," MPRA Paper 115627, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:115627
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    1. Łukasz Skowron & Olena Chygryn & Marcin Gąsior & Vitaliia Koibichuk & Serhiy Lyeonov & Serhii Drozd & Oleksandr Dluhopolskyi, 2023. "Interconnection between the Dynamic of Growing Renewable Energy Production and the Level of CO 2 Emissions: A Multistage Approach for Modeling," Sustainability, MDPI, vol. 15(12), pages 1-19, June.
    2. Costantiello, Alberto & Leogrande, Angelo, 2023. "The Role of Political Stability in the Context of ESG Models at World Level," MPRA Paper 116887, University Library of Munich, Germany.
    3. Costantiello, Alberto & Leogrande, Angelo, 2023. "The Role Of Gdp Growth In The Esg Approach At World Level," SocArXiv r56hu, Center for Open Science.
    4. Dulal Chandra Pattak & Farian Tahrim & Mahdi Salehi & Liton Chandra Voumik & Salma Akter & Mohammad Ridwan & Beata Sadowska & Grzegorz Zimon, 2023. "The Driving Factors of Italy’s CO 2 Emissions Based on the STIRPAT Model: ARDL, FMOLS, DOLS, and CCR Approaches," Energies, MDPI, vol. 16(15), pages 1-21, August.

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    More about this item

    Keywords

    Environmental Economics; General; Valuation of Environmental Effects; Pollution Control Adoption and Costs; Recycling.;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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