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Impacts of Paris agreement, fossil fuel consumption, and net energy imports on CO2 emissions: a panel data approach for three West European countries

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Abstract

The Paris agreement is a legally binding international treaty on climate change. This study examines the Paris agreement and other explanatory variables such as net energy imports, and consumption of three significant fossil fuel impacts on carbon dioxide (CO2) emissions in three selected European countries, including Germany, Spain, and France. We employed fully modified OLS (FMOLS) and dynamic OLS (DOLS) regression methods to evaluate the effects based on panel data from 1995 to 2019. The results suggest that the impact of the Paris agreement is negligible. According to the FMOLS model, the Paris agreement reduces CO2 emissions by roughly 1%. It seems that the Paris agreement is less effective than it was hoped to be. For consumption of three primary fossil fuels and net energy import effects on the CO2 emissions, the results are as expected to be because any increase in the parameters will grow in carbon dioxide emissions in both models. It is worth mentioning that the most crucial factor in CO2 emissions is the crude oil consumption that has an immense impact on both models. In the other words, a 1% increase in the usage of crude oil will release 0.56% CO2 in the atmosphere.

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Notes

  1. Foreign direct investment.

  2. The Middle East and North Africa countries.

  3. Fully Modified Ordinary Least Squares.

  4. Dynamic Ordinary Least Squares Model.

  5. Augmented Dickey-Fuller.

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Authors and Affiliations

  1. Urmia University of Technology, Urmia, Iran

    Nahid Rezaei Sadr

  2. Petroleum Faculty of Tehran, Petroleum University of Technology, Tehran, Iran

    Tarokh Bahrdo

  3. Department of Industrial Engineering, Urmia University of Technology, Urmia, Iran

    Rahim Taghizadeh

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  1. Nahid Rezaei Sadr
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  2. Tarokh Bahrdo
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  3. Rahim Taghizadeh
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Correspondence to Rahim Taghizadeh.

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Rezaei Sadr, N., Bahrdo, T. & Taghizadeh, R. Impacts of Paris agreement, fossil fuel consumption, and net energy imports on CO2 emissions: a panel data approach for three West European countries. Clean Techn Environ Policy 24, 1521–1534 (2022). https://doi.org/10.1007/s10098-021-02264-z

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