12 October 2017 | Balsalobre-Lorente, Daniel and Shahbaz, Muhammad and Roubaud, David and Farhani, Sahbi
This study examines the relationship between economic growth, renewable electricity consumption, and natural resources in influencing CO₂ emissions in the EU-5 countries (Germany, France, Italy, Spain, and the United Kingdom) from 1985 to 2016. The research investigates the environmental Kuznets curve (EKC) hypothesis, which suggests an inverted U-shaped relationship between economic growth and environmental degradation. The study finds an N-shaped relationship between economic growth and CO₂ emissions, indicating that emissions initially increase with economic growth but eventually decrease after a certain income level. The study incorporates additional variables such as renewable electricity consumption, trade openness, natural resource abundance, and energy innovation to enhance the carbon emission function. Renewable electricity consumption, natural resources, and energy innovation improve environmental quality, while trade openness and the interaction between economic growth and renewable electricity consumption increase CO₂ emissions. The study confirms the need for renewable energy regulations and energy innovation to reduce the negative effects of fossil fuels on the environment. The findings suggest that renewable energy and energy innovation are crucial for reducing CO₂ emissions and promoting sustainable economic growth. The study also highlights the importance of trade openness and natural resource abundance in influencing environmental quality. The results indicate that energy innovation measures can help delay technical obsolescence and reduce environmental pollution. The study concludes that renewable energy and energy innovation are essential for maintaining a path of decreasing CO₂ emissions at higher income levels. The study also emphasizes the role of natural resource abundance in reducing CO₂ emissions. The findings have important implications for policy makers in promoting renewable energy and energy innovation to achieve sustainable economic growth and reduce environmental degradation.This study examines the relationship between economic growth, renewable electricity consumption, and natural resources in influencing CO₂ emissions in the EU-5 countries (Germany, France, Italy, Spain, and the United Kingdom) from 1985 to 2016. The research investigates the environmental Kuznets curve (EKC) hypothesis, which suggests an inverted U-shaped relationship between economic growth and environmental degradation. The study finds an N-shaped relationship between economic growth and CO₂ emissions, indicating that emissions initially increase with economic growth but eventually decrease after a certain income level. The study incorporates additional variables such as renewable electricity consumption, trade openness, natural resource abundance, and energy innovation to enhance the carbon emission function. Renewable electricity consumption, natural resources, and energy innovation improve environmental quality, while trade openness and the interaction between economic growth and renewable electricity consumption increase CO₂ emissions. The study confirms the need for renewable energy regulations and energy innovation to reduce the negative effects of fossil fuels on the environment. The findings suggest that renewable energy and energy innovation are crucial for reducing CO₂ emissions and promoting sustainable economic growth. The study also highlights the importance of trade openness and natural resource abundance in influencing environmental quality. The results indicate that energy innovation measures can help delay technical obsolescence and reduce environmental pollution. The study concludes that renewable energy and energy innovation are essential for maintaining a path of decreasing CO₂ emissions at higher income levels. The study also emphasizes the role of natural resource abundance in reducing CO₂ emissions. The findings have important implications for policy makers in promoting renewable energy and energy innovation to achieve sustainable economic growth and reduce environmental degradation.