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Industrial growth, clean energy generation, and pollution: evidence from top ten industrial countries

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Abstract

Unlike the previous study, this paper employs panel cointegration and Granger causation approaches to discuss the associations among carbon dioxide (CO2) emissions, GDP growth, clean energy generation, and industrial growth for the top ten industrial countries spanning the period 1980-2014. The primary empirical outcomes show a two-way long-run association between environmental indicator, GDP growth, and clean energy generation, while one short-run causation from clean energy generation to CO2 emissions and from industrial growth to clean energy generation. The computed coefficients elasticity’s under FMOLS, DOLS, and CCR estimates revealed that the clean energy generation statistically contributes to declining emissions of CO2 in Australia, Austria, and Chile while statistically increase emissions of CO2 in Denmark and the Netherlands. Industrial growth statistically contributes to reducing emissions of CO2 in Denmark and Norway but increases emissions in Chile, France, and Sweden. For the global panel, industrial growth leads to mitigate the rate of emissions while clean energy generation raises CO2 emissions in the long period. Investing in clean energy is needed to stimulate the growth of the industrial sector and then reduce the rate of emissions.

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Availability of data and material

The datasets used during the current study are available from the corresponding or first author on reasonable request.

Code availability

Eviews 10.0 software.

Notes

  1. There are other countries which have higher industrial growth than that of the selected countries. However, these non-selected countries do not have enough data on renewable energy.

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Authors and Affiliations

  1. Department of Finance and Economics, College of Business and Economics, Qassim University, P.O.Box: 6640, Buraidah, 51452, Saudi Arabia

    Montassar Kahia

  2. LAREQUAD & FSEGT, University of Tunis El Manar, Tunis, Tunisia

    Montassar Kahia

  3. FSJEG of Jendouba, University of Jendouba, Jendouba, Tunisia

    Mehdi Ben Jebli

  4. QUARG UR17ES26, ESCT, Campus University of Manouba, 2010, Manouba, Tunisia

    Mehdi Ben Jebli

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  1. Montassar Kahia
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  2. Mehdi Ben Jebli
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Montassar Kahia: introduction, literature review, concept-building, and data. Mehdi Ben Jebli: methods, analysis, discussion, conclusion, and implications.

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Correspondence to Mehdi Ben Jebli.

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Kahia, M., Ben Jebli, M. Industrial growth, clean energy generation, and pollution: evidence from top ten industrial countries. Environ Sci Pollut Res 28, 68407–68416 (2021). https://doi.org/10.1007/s11356-021-15311-5

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