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Nexus between the renewable and nonrenewable energy consumption and carbon footprints: evidence from Asian emerging economies

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Abstract

The study examined the dynamic nexus between carbon footprints, nonrenewable energy and renewable energy consumption, financial development and economic growth, and combating climate change by using a dataset of selected 13 Asian emerging economies (Bangladesh, China, India, Indonesia, Iran, Malaysia, Nepal, Pakistan, Philippines, South Korea, Sri Lanka, Thailand, and Vietnam) from 1995 to 2020. This study empirical analysis uses the second generation of panel cointegration techniques to compensate for cross-sectional dependency and slope heterogeneity. The mean group, the common correlated effects mean group, and the augmented mean group are used to estimate the long-run equations. The findings suggest that economic growth and nonrenewable energy consumption exacerbate environmental degradation, but renewable energy consumption mitigates the total adverse effects on the environment over time. Additionally, economy-specific findings examine how the impact of nonrenewable energy and renewable energy consumption on the carbon footprint depends on energy consumption level. Furthermore, the Dumitrescu-Hurlin causality test reveals a statistically significant bidirectional correlation between financial development, carbon footprints, economic growth, and consumption of nonrenewable energy and renewable energy. Finally, the study says that Asian emerging economies should use more renewable energy and be more efficient in order to reduce their carbon footprints.

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Data availability

The dataset used during the current study is available from the author on request.

Notes

  1. British petroleum statistical review of world energy (BP) (2021a).

  2. Global Footprint Network (GFN) (2021) Ecological footprint of countries.

  3. Looney B (2020) Statistical Review of World Energy.

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Acknowledgements

I would like to thank Prince Sultan University for their support.

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  1. Finance Department, College of Business Administration, Prince Sultan University, Riyadh, Saudi Arabia

    Najia Saqib

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Saqib, N. Nexus between the renewable and nonrenewable energy consumption and carbon footprints: evidence from Asian emerging economies. Environ Sci Pollut Res 29, 58326–58340 (2022). https://doi.org/10.1007/s11356-022-19948-8

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