Revisiting the environmental Kuznetz curve and pollution haven hypothesis in N-11 economies: Fresh evidence from panel quantile regression

The green response of financial inclusion, infrastructure development and renewable energy to the environmental sustainability: A newly evidence from OECD economies

Recently, economic environmental degradation is being considered a leading chellenge in forefront of policy analysts. Thus, the present study introduces core environmental determinants such as infrastructure development, finacail inclusion, gross domestic product, population, and renewable energy consumption. Financial inclusion (FI) is crucial for attaining a environment. The present study selects the Organization for Economic Co-operation and Development (OECD) over period of 2004-2022. The results show that financial inclusin, infrastructure development(ID), and renewable energy (RE) play a vital influence in decreasing carbon emissions. The OECD nations should surge their investment in renewable energy and infrastructure development. Furthermore, to ensure long-term environmental sustainability, it is imperative to broaden the scope of FI. Thus, the inclusion of green infrastructure is essential in order to shift from the utilization of fossil fuels to RE sources. Similarly, policymakers should incorporate FI into climate actions at the local, national, and regional levels. However, it is crucial to promote the economic shift towards RE sources in order to mitigate the environmental impact from humn and economic activities. This study is conducive to the execution of the United Nations (UN) Sustainable Development Goals (SDG).

The role of FDI and energy intensity upon the consolidation of circular economies among the European Union

This manuscript critically examines the intricate interplay between diverse foreign direct investment (FDI) flows, energy intensity, and their consequential effects on circular economies (CEs), specifically in terms of the waste recycling ratio, within the member states of the European Union over the period spanning from 2000 to 2021. Our findings substantiate that inflows and outflows of FDI have different implications for waste recycling, where an increase of 1% OFDI implies an increase of recycling ratio by 0.03%, a relationship that is potentially contingent upon the inherent characteristics of the flow itself in relation to its contributions to local productivity dynamics. In this vein, the influx of FDI, which is associated with amplified capital inputs and heightened productivity levels, is observed to exert a dampening effect on recycling capabilities, by an average of 0.01% for every 1% change. Conversely, the outflow of FDI entails reduced capital inputs, thereby curbing waste generation resulting from enhanced productivity capacities. Moreover, diminished energy intensity exerts a positive influence on the recycling ratio, thereby fostering the advancement of CE. To capitalize on their locational advantages, it is recommended that the European Union proactively foster the development of specialized zones that concentrate inflows of FDI, thereby facilitating the logistical complexities associated with waste recycling arising from FDI-driven productive activities. Such strategic initiatives hold the potential to contribute to heightened resource efficiency within the broader productivity relationship.

Factors affecting carbon dioxide emissions for sustainable development goals - New insights into six asian developed countries

The worldwide economic scene faces the dual challenges of rising sea levels and escalating carbon dioxide (CO2) emissions. Environmental contamination impedes sustainable growth, increasing the demand for sustainable energy resources as a fundamental aspect of sustainable economies. The present research uses an analytical model to examine the elements influencing carbon dioxide output in six economically developed Asian nations, intending to assist in realizing the UNSDG- United Nations' Sustainable Development Goals. The manuscript applies the fixed effect model- FEM and the random effects approach- REM method. The research contributes to the science of the environment, climate research, and long-term environmental growth. Data for this investigation were sourced from the World Bank, covering the period from 2000 to 2020, about Hong Kong, Israel, Japan, Korea, Singapore, and China. This paper investigates the nexus between power usage (ECO), fossil fuel use (FFU), sustainable energy adoption (REC), foreign direct investment (FDI), imports, exports, economic development, population, and ecological contamination across six developed Asian countries. The study uses panel data regression analysis to examine how these factors influence carbon dioxide output, aiming to provide insights for long-term environmental growth policies. Key findings highlight the considerable effect of energy consumption patterns and economic activities on pollution levels, emphasizing the need for enhancements in energy conservation, a shift towards sustainable energy sources, and practical rules protecting the environment to mitigate environmental degradation. The empirical findings indicate that various factors, such as power usage, fossil fuel-based energy, sustainable energy usage, foreign direct investment (FDI), import and export activities, economic development, and population size, impact ecological contamination within these six nations. Specifically, FDI, economic development, and green energy influenced environmental degradation negatively. Conversely, factors such as power usage, energy from fossil sources usage, imports, exports, and population size correlate positively with ecological contamination. The research consequently advocates for developing green, circular, and sustainable economic frameworks within these six developed Asian countries in the foreseeable future.

Regulatory pathways to green energy transition for sustainable environment: The fostering role of human rights, banking sector development, economic complexity, and economic freedom

Green energy transition directly contributes to Sustainable Development Goals 7 and 13, which are among the 17 development goals determined by the United Nations. However, what are the determinants of this green energy transition? Researchers' answers to this question will assist in formulating policy prescriptions that will enable concrete steps toward achieving these goals. This study investigates how the development of the banking sector, human rights, economic complexity, and economic freedom affect the green energy transition in China, which is the biggest emitter of greenhouse gases globally but is also one of the leading countries in renewable energy production. The study covers the years 1995-2022. Advanced time series analysis methods were employed, and robust results were reported. According to the findings, Economic Freedom, Human Rights, and Economic Complexity have increased the transition to green energy in China. No effect of banking sector development was found. The country should improve economic freedom and human rights and increase knowledge/innovation-based production to accelerate China's transition to green energy and contribute to environmental sustainability.

Decomposing scale, technique and composition effects of foreign direct investment on environmental quality

This study aimed to investigate how the decomposing scale effect, technique effect and composition effect of foreign direct investment (FDI) impact on carbon dioxide (CO2) emissions for 115 nations spanning 1999 to 2019 by employing Generalised Method of Moments (GMM) model. The results indicated that FDI, real GDP per capita, capital-labor ratio, institutional quality and urbanization increase CO2 emissions while the square of real GDP per capita and trade openness contributed to reducing CO2 emissions. Also, our findings fail to support Environmental Kuznets Curve (EKC) theory. The outcomes of this research illustrated that scale effect dominates composition effect and followed by technique effect. The interaction effect of FDI and technique effect has the least influence on CO2 levels in reducing the harmful effects of FDI on CO2. Furthermore, it should be highlighted that although FDI increases CO2 emissions, its detrimental impact on CO2 emissions is moderately mitigated by its interactions with three economic mechanisms. Therefore, it is necessary to enhance the technical processes of production as well as the development of modern technologies. We recommended that policymakers balance sustainable economic development with environmental sustainability by considering the indirect effects of factors on CO2 emissions.

Old wine in a new bottle: Applying the novel dynamic ARDL simulations approach to explore the impact of energy efficiency, financial development, economic growth, foreign direct investment, and urbanization on CO2 emissions

Achieving carbon neutrality targets is crucial while considering the adverse impacts of carbon dioxide emissions (CE) on human life and the ecosystem. Therefore, its socioeconomic drivers have frequently been probed in the existing body of literature. Therefore, we investigate the impact of energy efficiency, FDI, financial development, urbanization, and economic growth on CE in Pakistan from 1975 to 2020. For this purpose, we apply the novel dynamic ARDL simulation approach to retrieve the short- and long-run estimates. The empirical results confirm that cointegration exists among the considered variables. Further, both the short- and long-run results reveal that energy efficiency impedes emissions, whereas urbanization, financial development, and FDI increase emissions. Considering the outcomes, there is a need to enhance energy efficiency in Pakistan. For this purpose, investment in technological advancements and innovations is required. Moreover, R&D in the energy sector should be promoted.

A different look at the environmental Kuznets curve from the perspective of environmental deterioration and economic policy uncertainty: evidence from fragile countries

Environmental degradation is one of the most significant issues that developing nations confront and needs to be resolved right away in order for them to achieve sustainable development. Government policies are crucial in this situation since emerging nations frequently struggle with the issue of policy ambiguity, which can result in environmental deterioration. In this context, this study investigates how policy uncertainty affects environmental degradation in the five fragile emerging economies known as the Fragile Five-Brazil, India, Indonesia, South Africa, and Turkey. Using data from 1996 to 2019, we estimate a Panel Quantile Regression analysis. The empirical findings indicate that economic policy uncertainty and technology innovation increases the environmental degradation whereas environmental degradation is slowed down by financial development and renewable energy consumption. Empirical evidence also confirms the presence of EKC hypothesis in fragile economies. Based on the findings, we suggest both a policy and an environmental framework for achieving sustainable development in fragile economies.

The impact of Chinese foreign direct investment and environmental tax revenues on air degradation in Europe: a spatial regression approach, 2000-2020

This study analyzes air pollution through the effects of China's FDI in 27 European countries over a 20-year period, with a focus on the impact of environmental tax revenues (ETRs) and the environmental context in China. The relationship is estimated through spatial regressions that account for the presence of air pollutants in neighboring countries. The findings suggest that China's FDI in Europe does not contribute to air pollution but rather has a positive impact. The presence of environmental charges filters out non-polluting investments, which has a non-linear relationship with PM2.5 pollution rates. The study also concludes that air pollution is closely linked to the global environmental context, highlighting the positive effects of international agreements in the fight against climate change. Specifically, the study finds a link between China's efforts to address its polluting activities and their impact on European air quality.

Impact of economic policy uncertainty and renewable energy on environmental quality: testing the LCC hypothesis for fast growing economies

This study investigates the influence of economic policy uncertainty and trade openness on load capacity factor for fast growing countries for time period of 1996-2019. The empirical outcomes verify the presence of the LCC hypothesis in fast growing economies. Results also show that economic policy uncertainty reduces environmental quality for lower quantiles, whereas renewable energy consumption is a useful tool for improving environmental quality. Moreover, the negative sign of the coefficient of trade openness demonstrates that the current pattern of trade is not providing the desired outcomes. Based on these empirical findings, we suggest a comprehensive policy framework to attain the targets of SDG 07 (renewable energy), SDG 08 (economic growth), and SDG 13 (climate action).

Unveiling the health consequences of air pollution in the world's most polluted nations

Air pollution poses a persuasive threat to global health, demonstrating widespread detrimental effects on populations worldwide. Exposure to pollutants, notably particulate matter with a diameter of 2.5 µm (PM2.5), has been unequivocally linked to a spectrum of adverse health outcomes. A nuanced understanding of the relationship between them is crucial for implementing effective policies. This study employs a comprehensive investigation, utilizing the extended health production function framework alongside the system generalized method of moments (SGMM) technique, to scrutinize the interplay between air pollution and health outcomes. Focusing on a panel of the top twenty polluted nations from 2000 to 2021, the findings yield substantial insights. Notably, PM2.5 concentration emerges as a significant factor, correlating with a reduction in life expectancy by 3.69 years and an increase in infant mortality rates by 0.294%. Urbanization is found to increase life expectancy by 0.083 years while concurrently decreasing infant mortality rates by 0.00022%. An increase in real per capita gross domestic product corresponds with an improvement in life expectancy by 0.21 years and a decrease in infant mortality rates by 0.00065%. Similarly, an elevated school enrollment rate is associated with a rise in life expectancy by 0.17 years and a decline in infant mortality rates by 0.00032%. However, a higher population growth rate is found to modestly decrease life expectancy by 0.019 years and slightly elevate infant mortality rates by 0.000016%. The analysis reveals that per capita greenhouse gas emissions exert a negative impact, diminishing life expectancy by 0.486 years and elevating infant mortality rates by 0.00061%, while per capita energy consumption marginally reduces life expectancy by 0.026 years and increases infant mortality rates by 0.00004%. Additionally, economic volatility shock presents a notable decrement in life expectancy by 0.041 years and an increase in infant mortality rates by 0.000045%, with inflationary shock further exacerbating adverse health outcomes by lowering life expectancy by 0.70 years and elevating infant mortality rates by 0.00025%. Moreover, the study scrutinizes the role of institutional quality, revealing a constructive impact on health outcomes. Specifically, the institutional quality index is associated with an increase in life expectancy by 0.66% and a decrease in infant mortality rates by 0.0006%. Extending the analysis to examine the nuanced dimensions of institutional quality, the findings discern that economic institutions wield a notably stronger positive influence on health outcomes compared to political and institutional governance indices. Finally, the results underscore the pivotal moderating role of institutional quality in mitigating the deleterious impact of PM2.5 concentration on health outcomes, counterbalancing the influence of external shocks, and improving the relationships between explanatory variables and health outcome indicators. These findings offer critical insights for guiding evidence-based policy implications, with a focus on fostering resilient, sustainable, and health-conscious societies.

Dynamic impact of demographic features, FDI, and technological innovations on ecological footprint: evidence from European emerging economies

Climate change effect mitigation is a critical priority for top leaders and communities around the globe. Human-induced environmental issues are affecting humankind's standard of living and development potential and the planetary boundaries. Sustainability objectives aim to enhance environmental quality and ensure sustainable development for all by eliminating social inequalities. This study examines the complex relationships between demographic features, foreign direct investment, technological innovation, and ecological footprint, emphasizing the relevance of population aging, population density, and urbanization in this context. The research uses a selection of emerging European economies during 1995-2018. The reasons for countries' selection are related to the increasing rate of population aging in European countries, the attractiveness for foreign direct investment, the economic growth, and the technological advancement potential these emerging countries possess. In order to investigate the long-run relationship between the selected variables, the study tests the cross-section dependence, homogeneity, and cointegration and uses Konya tests to determine panel causality. Based on Konya methodology, differences between countries in the panel are evidenced and discussed accordingly. Our findings confirm the long-run relationship between environment, technological innovation, population aging, and FDI. The results of this research are highly relevant for policymakers in selected countries for identifying the set of correlations and the relevance of various variables in such national economies. Demographic features such as population aging and population density are critical for Europe, and the results show the impact on the ecological footprint.

Empirical analysis of factors influencing industrial eco-efficiency in the Yellow River Basin from a social embeddedness perspective

Measuring industrial eco-efficiency (IEE) is essential to improve environmental quality and industrial restructuring. However, most studies ignore the influence of embeddedness on industrial eco-efficiency and lack analysis of the pathways of influence factors. Therefore, this study assesses industrial eco-efficiency in the Yellow River Basin (YRB) using a super-efficiency model slacks-based measure (Super-SBM) that considers non-desired outputs, outlines the social embeddedness of IEE, and empirically analyzes the driving mechanism of IEE from the perspective of embeddedness by constructing hierarchical linear modeling (HLM) to address the pathways of action of the influencing factors of industrial eco-efficiency. The results showed that 50.79% of the overall differences in IEE in the YRB were caused by social embeddedness. Economic development level, industrial agglomeration, and environmental regulation (ER) are significant direct influencing factors. Increasing cognitive and cultural embeddedness will enhance the positive relationship between economic development level and IEE. Political and relational embeddedness significantly moderates the positive relationship between industrial agglomeration and eco-efficiency. Cultural embeddedness can significantly and directly affect industrial eco-efficiency and weaken the positive relationship between ERs and industrial eco-efficiency. Therefore, improving IEE should consider both fundamental and embedded factors. Our findings are conducive to promoting high-quality development in the YRB and support the government in formulating differentiated policies. In addition, this paper tries to establish an empirical analysis method suitable for social embeddedness theory, and the empirical results help to improve the situation due to the lack of empirical analysis of social embeddedness theory.

Dynamic linkages between tourism development, renewable energy and high-quality economic development: Evidence from spatial Durbin model

There has been a shift in focus toward environmentally and economically sustainable forms of economic growth known as High-quality economic development (HQED). However, this study analyzes the impact of tourism development (TD) and renewable energy consumption on HQED in 30 provinces of China, while covering the time period from 2007 to 2021. TD and HQED has been measured with help of Global Moran Index. This study has used dynamic spatial Durbin model (SDM) to measure the dynamic impact of TD index and renewable energy consumption on HQED along with green finance, foreign direct investment and investment in education. The findings from empirical analysis shows that TD has negative impact on HQED and in more developed regions, the relationship is positive, while in the less developed western part of China, the U-shape has been reversed. Central and northeastern China have a U-shaped connection, while it has been noticed the interaction term of TD and renewable energy endorses HQED. In addition, renewable energy consumption, green finance and increase in education investment have positive and significant impact on HQED while foreign direct investment has negative impact on HQED in China. Therefore, in the light of this study policymakers should focus on the quality of tourism industry, green finance for renewable energy supply and enhancing education investment in China to attain the goal of HQED.

The synergistic reduction effect of PM2.5 and CO2: evidence from national key ecological functional areas in China

China faces the dual pressure of haze pollution control and carbon emission reduction. The goals of national key ecological functional areas (NKEFAs) are to improve ecological quality and enhance ecological supply. In this paper, a time-varying difference-in-differences model is used to assess the impact of NKEFAs on PM2.5 and CO2 by the panel data of prefecture-level cities of China and then investigate the synergistic reduction effect. This quasi-natural experiment reveals that NKEFAs can effectively reduce both PM2.5 and CO2 and then achieve the synergistic emission reduction effect. Land use pattern optimization and productivity enhancement are identified as key drivers for promoting this synergistic effect. This effect is observed in NKEFAs of water conservation and soil conservation types, as well as in the northern region, middle and lower reaches of the Yangtze River, and southeast coastal areas of the southern region. This study provides valuable theoretical references and empirical insights for realizing a synergistic status of environmental improvement and low-carbon transformation.

Exploring the impact of public investment on income, energy consumption, and CO2 emissions in ASEAN: new insights from a panel cointegration approach

Policy adjustments can help strike a balance between economic growth and environmental sustainability, which has increasingly been the heart to nations and regions throughout the World. This paper examines how public investment affects economic growth, energy consumption, and CO2 emissions in eight ASEAN countries: Cambodia, Myanmar, Malaysia, Indonesia, the Philippines, Singapore, Thailand, and Vietnam. Extension of a Cobb-Douglas production function and application of panel cointegration techniques reveal bidirectional Granger causation between public investment and both private development and CO2 emissions from 1980 to 2019. Public investment Granger causes energy usage, the opposite does not hold statistically. More findings from pooled mean group estimations show a mean-reversion dynamic that corrects disequilibria by 14% yearly. State investment crowds in private sector growth, energy use, and carbon footprint. It also finds an inverted U-shaped relationship between public investment and energy consumption, and a U-shaped relationship between public investment and CO2 emissions, indicating complex regional interactions. It is suggested the implementation of public investment policies that enrich green infrastructure projects to foster growth while minimizing environmental impacts, and encourage a strategic approach to public investment for prioritizing environmental sustainability and thus, achieving Sustainable Development Goals 7 to 9 and 11 to 13 in this region.

Identifying and assessing the multiple effects of informal environmental regulation on carbon emissions in China

Against the backdrop of the global carbon peak and carbon neutrality goals, the role of informal environmental regulation, epitomized by public engagement, is assuming an increasingly pivotal position within the realm of environmental management. By contrast, amidst the prevailing landscape dominated by formal environmental regulation (command-and-control and market-driven approaches), the environmental effects of informal environmental regulation on carbon emissions have received scant attention. Consequently, we examine the net, nonlinear, and mediation effects of informal environmental regulation on carbon emissions using panel data from 30 provinces in China, from 2003 to 2019. We find that informal environmental regulation has a significant effect on regional carbon emission reduction, especially in the eastern cities, pilot cities, and cities with long-term governor's tenure. Its U-shaped effect is confirmed by changes in environmental decentralization. The key points remain valid after the robustness test and the endogenous processing. The mechanism analysis shows that informal environmental regulation can reduce carbon emissions in the dual channels by improving industrial structure transition and renewable energy substitution. Therefore, this study assesses the management effectiveness of informal environmental regulation and determines the underlying mechanism between it and regional carbon emission reduction to provide a reference and an empirical basis for other countries regarding environmental improvement.

Analyzing the influencing factors of collaborative innovation and industrial structure upgrading on the economy: reflection on the economic dilemma of enterprises

The present study has investigated the impact of enterprises, collaborative innovation, industrial structure, inflation, and entrepreneurship in 27 provinces of China. The study used annual time series data from 2003 to 2019. This study adopts the CC-EMG and AMG tests to estimate the long-term association between the variables. The study applied one-step system GMM, two-step system GMM, Cup-FM, and Cup-BC regression estimations to calculate robust and reliable outcomes. The findings show that collaborative innovation, industrial structure, and entrepreneurship positively impact economic growth, whereas enterprises and inflation negatively impact economic growth. The estimated results also provide important policy implications for the selected and the other emerging economies in designing an appropriate way forward to economic development.

Can using energy resources productively and promoting good governance boost carbon productivity? An economic growth-environmental degradation decoupling analysis on 116 global countries

Decoupling economic growth from environmental pollution for promoting low-carbon growth has become a global objective. Though the previous studies have mostly analyzed how environmental pollution can be reduced, not much emphasis was given to assessing how economic growth can be enhanced while limiting environmental damages in tandem. Hence, this study examines how carbon productivity is determined by energy productivity improvement, good governance, financial development, financial globalization, and international trade using data from 116 global economies. Overall, the analytical findings reveal that energy productivity improvement initially cannot decouple economic growth from environmental pollution by inhibiting carbon productivity. However, later on, using energy productively does manage to decouple economic growth from environmental pollution by boosting carbon productivity. Accordingly, the U-shaped nexus between these variables is confirmed by these statistical findings. Besides, the results also endorse the carbon productivity-boosting effects of good governance, financial development, and international trade while foreign direct investment receipts are not found to exert any significant impact on carbon productivity. On the other hand, the robustness tests' results affirm that the carbon productivity-influencing impacts are heterogeneous across countries belonging from different categories of national income, carbon productivity, energy productivity, governance, and regional locations, as well. Nevertheless, the results overall confirm that countries having comparatively higher levels of energy productivity and governance are more likely to decouple the growth of their respective economies from environmental pollution. Based on these findings, some decoupling policies are recommended.

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

In recent years, climate policy has experienced several episodes of crest and trough in the US, which has induced profound uncertainty. This climate policy uncertainty (CPU) may exert economic, social, and environmental impacts. Therefore, using the environmental Kuznets curve (EKC) framework, this study targets to probe whether CPU affects sectoral carbon dioxide emissions (COE) in the US. We make use of advanced econometric procedures such as the novel SOR unit root test (to probe the order of integration of the entire dataset) and the novel Fourier ARDL approach (to retrieve the long- and short-run estimates). The findings delineate that the EKC holds for the industrial, electric power, commercial, and residential sectors. In addition, CPU escalates COE in the residential, commercial, and electric power sectors in both the long- and short-run. Parallel to this, CPU affects industrial COE neither in the short-run nor in the long-run. Keeping in view the key findings, we propose a set of sector-specific policy implications to curb COE.

The role of global collaboration in environmental technology development, natural resources, and marine energy generation technologies toward carbon neutrality in knowledge-based economies

This study aims to explore the influence of renewable energy consumption (REC), global collaboration in environmental technology development (GCETD), gross domestic product per capita (GDPPC), marine energy generation technologies (MGT), trade openness (TDOT), natural resources (NRs), and carbon dioxide emissions (CO₂e) in 34 selected knowledge-based economies from 1990 to 2020. The results show that MGT and REC, an environmentally friendly source of energy, are positively connected with zero carbon emissions, reflecting the ability to serve as an alternative energy option for a sustainable environment. In addition, the study reveals that NRS, such as the accessibility of hydrocarbon resources, can have a positive effect on CO₂e, implying that the unsustainable use of NRs may lead to the expansion of CO₂e. Additionally, the study pinpoints that GDPPC and TDOT, as a gauge of economic expansion, play an essential part in a carbon-neutral future, suggesting that greater amounts of commercial success could result in greater ecological sustainability. The results also show that GCETD is linked to lower CO₂e. This means that working together on an international level helps to improve environmental technologies and slow down the effects of global warming. It is suggested that governments should focus on and encourages GCETD, the use of REC, and TDOT to speed up the path toward zero emissions. Also, decision-makers should think about backing research and development investments in MGT as a potential way to reach zero CO₂e in a knowledge-based economies.

An empirical analysis of the impact of renewable and non-renewable energy consumption on economic growth and carbon dioxide emissions: evidence from seven Northeast Asian countries

Oil and natural consumption are non-renewable energy sources that are the main drivers of economic growth, but these energy sources are also the main causes of environmental degradation in Northeast Asian countries. The main objective of this study is to examine the impact of renewable energy consumption, non-renewable energy consumption on CO₂ emissions, and economic growth in seven selected Northeast Asian countries during the period 1970-2020. First, the cross-sectional dependence test recommended by Pesaran, Ullah, and Yamagata (2008) concludes that there is no cross-sectional dependence in the panel data model, so it is feasible to use the first-generation panel data methods. Later, cointegration tests proposed by Pedroni (Oxford Bull Econ Stat 61:653-670, 1999, Economet Theor 20:597-625, 2004), Kao (J Econom 90:1-44, 1999), and Westerlund (2007) were adopted, revealing long-term cointegration relationships among model panel variables. Long-term variable coefficient elasticities were detected using the estimation techniques of panel fully modified ordinary least squares (FMOLS) and panel dynamic ordinary least squares (DOLS). Two-way causality of variables was detected using the Dumitrescue-Hurlin (Econ Model 29:1450-1460, 2012) panel causality test. The results of the analysis highlight the significant progressive effects of renewable energy consumption, nonrenewable energy consumption, employed labor force, and capital formation on long-run economic growth. The study also concluded that renewable energy consumption significantly reduced long-term CO₂ emissions, while non-renewable energy consumption significantly contributed to long-term CO₂ emissions. Estimates from the FMOLS technique reflect a significant progressive effect of GDP and GDP³ on CO₂ emissions, while GDP² has a significant adverse effect on CO₂ emissions, thus validating the N-shaped EKC assumption in selected group of countries. Furthermore, the feedback hypothesis is supported based on the two-way causality between renewable energy consumption and economic growth. Strategically, this evidence-based empirical study demonstrates that renewable energy is a valuable process that can protect the environment and contribute to future economic growth in selected countries by addressing energy security and reducing carbon emissions.