IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/115763.html

The Role of Renewable Energy Consumption in Promoting Sustainability and Circular Economy. A Data-Driven Analysis

Author

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

Abstract

In this article we investigate the role of “Renewable Energy Consumption” in the context of Circular Economy. We use data from the World Bank for 193 countries in the period 2011-2020. We perform several econometric techniques i.e., Panel Data with Fixed Effects, Panel Data with Random Effects, Pooled OLS, WLS. Our results show that “Renewable Energy Consumption” is positively associated among others to “Cooling Degree Days” and “Adjusted savings: net forest depletion” and negatively associated among others to “GHG net emissions/removals by LUCF” and “Mean Drought Index”. Furthermore, we perform a cluster analysis with the application of the k-Means algorithm optimized with the Silhouette Coefficient and we find the presence of two clusters. Finally, we compare eight different machine learning algorithms to predict the value of Renewable Energy Consumption. Our results show that the Polynomial Regression is the best algorithm in the sense of prediction and that on average the renewable energy consumption is expected to growth of 2.61%.

Suggested Citation

  • Laureti, Lucio & Costantiello, Alberto & Leogrande, Angelo, 2022. "The Role of Renewable Energy Consumption in Promoting Sustainability and Circular Economy. A Data-Driven Analysis," MPRA Paper 115763, University Library of Munich, Germany, revised 25 Dec 2022.
    • Handle: RePEc:pra:mprapa:115763
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/115763/1/MPRA_paper_115763.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zhang, Mingming & Zhang, Shichang & Lee, Chien-Chiang & Zhou, Dequn, 2021. "Effects of trade openness on renewable energy consumption in OECD countries: New insights from panel smooth transition regression modelling," Energy Economics, Elsevier, vol. 104(C).
    2. Atif, Muhammad & Hossain, Mohammed & Alam, Md Samsul & Goergen, Marc, 2021. "Does board gender diversity affect renewable energy consumption?," Journal of Corporate Finance, Elsevier, vol. 66(C).
    3. Radmehr, Riza & Henneberry, Shida Rastegari & Shayanmehr, Samira, 2021. "Renewable Energy Consumption, CO2 Emissions, and Economic Growth Nexus: A Simultaneity Spatial Modeling Analysis of EU Countries," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 13-27.
    4. Bangake, Chrysost & Eggoh, Jude C., 2012. "Pooled Mean Group estimation on international capital mobility in African countries," Research in Economics, Elsevier, vol. 66(1), pages 7-17.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Leogrande, Angelo & Costantiello, Alberto, 2023. "The Role of GDP Growth in the ESG Approach at World Level," SocArXiv 93sn2, Center for Open Science.
    2. repec:osf:socarx:r56hu_v1 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Derese Kebede Teklie & Mete Han Yağmur, 2024. "The Role of Green Innovation, Renewable Energy, and Institutional Quality in Promoting Green Growth: Evidence from African Countries," Sustainability, MDPI, vol. 16(14), pages 1-23, July.
    2. Zhao, Jun & Dong, Kangyin & Dong, Xiucheng & Shahbaz, Muhammad, 2022. "How renewable energy alleviate energy poverty? A global analysis," Renewable Energy, Elsevier, vol. 186(C), pages 299-311.
    3. Abida Hafeez & Karim Bux Shah Syed & Fiza Qureshi, 2019. "Exploring the Relationship between Government R & D Expenditures and Economic Growth in a Global Perspective: A PMG Estimation Approach," International Business Research, Canadian Center of Science and Education, vol. 12(4), pages 163-174, April.
    4. Zhongwei, Huang & Liu, Yishu, 2022. "The role of eco-innovations, trade openness, and human capital in sustainable renewable energy consumption: Evidence using CS-ARDL approach," Renewable Energy, Elsevier, vol. 201(P1), pages 131-140.
    5. Carrilho-Nunes, Inês & Catalão-Lopes, Margarida, 2022. "The effects of environmental policy and technology transfer on GHG emissions: The case of Portugal," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 255-264.
    6. Faik Bilgili & Daniel Balsalobre-Lorente & Sevda Kuşkaya & Mohammed Alnour & Seyit Önderol & Mohammad Enamul Hoque, 2024. "Are research and development on energy efficiency and energy sources effective in the level of CO2 emissions? Fresh evidence from EU data," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 24183-24219, September.
    7. Filip Hampl & Dagmar Vágnerová Linnertová, 2025. "How the interaction between board gender diversity and ESG shapes dividend policy," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(2), pages 2472-2490, March.
    8. Trinh, Vu Quang & Trinh, Hai Hong & Nguyen, Thi Hong Hanh & Vo, Xuan Vinh, 2023. "Board gender diversity and firm-level climate change exposure: A global perspective," Finance Research Letters, Elsevier, vol. 55(PB).
    9. Barroso, Raúl & Duan, Tinghua & Guo, Siyue (Sarina) & Kowalewski, Oskar, 2024. "Board gender diversity reform and corporate carbon emissions," Journal of Corporate Finance, Elsevier, vol. 87(C).
    10. Ikram, Muhammad & Nahdi, Rabie, 2025. "Toward sustainable development: Unfolding the nexus among exports, foreign direct investment, capital formation, natural resource rent, unemployment, and low-carbon transition in Morocco," Resources Policy, Elsevier, vol. 102(C).
    11. Bakari, Sayef, 2024. "Assessing the Impact of Domestic Investments and CO2 Emissions on Economic Growth in Sub-Saharan Africa: A Comprehensive Study (1990-2022)," MPRA Paper 120370, University Library of Munich, Germany.
    12. Riza Radmehr & Samira Shayanmehr & Ernest Baba Ali & Elvis Kwame Ofori & Elżbieta Jasińska & Michał Jasiński, 2022. "Exploring the Nexus of Renewable Energy, Ecological Footprint, and Economic Growth through Globalization and Human Capital in G7 Economics," Sustainability, MDPI, vol. 14(19), pages 1-19, September.
    13. Asteriou, Dimitrios & Katsikas, Epameinondas & Spanos, Konstantinos, 2026. "An optimum currency area index for BRICS: A Bayesian prediction model," Economic Modelling, Elsevier, vol. 155(C).
    14. Ly, Alpha, 2025. "Scaling up renewables without phasing down fossil fuels? Rethinking the role of financial globalization," Energy Policy, Elsevier, vol. 204(C).
    15. Dey, Subhashish & Sreenivasulu, Anduri & Veerendra, G.T.N. & Rao, K. Venkateswara & Babu, P.S.S. Anjaneya, 2022. "Renewable energy present status and future potentials in India: An overview," Innovation and Green Development, Elsevier, vol. 1(1).
    16. Lee, Chien-Chiang & Zou, Jinyang & Chen, Pei-Fen, 2025. "The impact of artificial intelligence on the energy consumption of corporations: The role of human capital," Energy Economics, Elsevier, vol. 143(C).
    17. Stéphane Mbiankeu Nguea & Hervé Kaffo Fotio, 2025. "The heterogeneous effects of renewable energy, urbanization and democracy on CO2 emissions: Does economic growth matter?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(4), pages 8835-8861, April.
    18. Nusair, Salah A., 2019. "Oil price and inflation dynamics in the Gulf Cooperation Council countries," Energy, Elsevier, vol. 181(C), pages 997-1011.
    19. Saqib, Najia & Ozturk, Ilhan & Sharif, Arshian & Cichoń, Dariusz, 2024. "Enhancing sustainable energy: Mineral exports, financial development, and foreign investment can build a greener future?," Resources Policy, Elsevier, vol. 97(C).
    20. R. M. Ammar Zahid & Umer Sahil Maqsood & Shoaib Irshad & Muhammad Kaleem Khan, 2025. "The role of women on board in combatting greenwashing: A new perspective on environmental performance," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 34(1), pages 121-136, January.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • 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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:115763. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.