Testing the environmental Kuznets curve (EKC) hypothesis amidst climate policy uncertainty: sectoral analysis using the novel Fourier ARDL approach

Exploring the impact of renewable energy on economic growth and carbon emissions: Evidence from partial least squares structural equation modeling

The concern for environmental sustainability comes along with sustainable energy for consumption. Therefore, this study aims to explore the direct and indirect effects of renewable energy on economic growth and carbon emissions by employing Partial Least Square Structure Equation Modeling and Granger Causality Test and the data for this study is from 1990 to 2021. The results from the Partial Least Squares Structure Equation Modeling indicate that renewable energy consumption causes carbon emissions and has no effect on economic growth. Financial inclusion and foreign direct investment have positive effects on carbon emissions. However, renewable energy has an indirect negative effect on carbon emissions through economic growth. Foreign direct investment affects economic growth positively. Furthermore, the results from the Granger causality test indicate that renewable energy has a unidirectional causality relationship with financial inclusion and foreign direct investment and has a feedback causality relationship with economic growth. In addition, there is a feedback causal effect between financial inclusion and carbon emissions, a unidirectional effect running from carbon emissions to foreign direct investment, and a causal effect from economic growth to foreign direct investment. This study has suggested comprehensive policy recommendations for policymakers based on the findings.

The mediating role of renewable energy, sectoral output and economic growth on greenhouse gas emissions: African regional perspective

Global greenhouse gas emissions are increasing when they should be progressively reducing, given worldwide concerted emissions mitigation efforts and protocols. To effectively tackle emissions to foster a sustainable climate, the situation's complexity needs a sector- and region-specific approach, not a one-stop analysis. We must first understand where the emissions originate-which sectors contribute the most to them. This study employs a panel multiregional framework with advanced econometric techniques accounting for cross-sectional dependence and heterogeneous slope coefficients to analyse GHG emissions (CO2 and CH4), sectoral output, economic growth and renewable energy dynamics across African regions from 2010 to 2019. The empirical findings are as follows: First, regional impacts of the economic sectors vary substantially, reflecting technological and socioeconomic differences leading to heterogeneous environmental patterns in the short and long term. Second, the estimated EKC turning points are uniformly lower, indicating slower environmental impact growth with sectoral development in African regions. Third, trade and urbanization are critical drivers of emissions in most regions and economic sectors, with a more pervasive impact on CO2 emissions than CH4 emissions. Finally, sectoral output imposes differential indirect CO2 and CH4 emissions effects via renewable energy, with East African manufacturing exhibiting the most significant emissions-reduction impact. Disaggregated, regional, and sectoral-specific strategies are recommended for designing green development pathways policies.