The effect of renewable energy on carbon emissions through globalization

The effect of renewable energy on carbon emissions through globalization

2024 | Gyimah Justice, George Nyantakyi, Sam Hayford Isaac
This study investigates the direct and indirect effects of renewable energy on carbon emissions through globalization, using a mediation model. The research spans from 1990 to 2020, focusing on Ghana, a country with abundant renewable resources but limited utilization. The findings reveal that renewable energy has a direct and negative impact on carbon emissions, while foreign direct investment (FDI) has a direct and positive effect. Trade openness, however, does not significantly affect carbon emissions. The indirect effects show that renewable energy through FDI negatively affects carbon emissions, whereas through trade openness, it has a positive effect. The study emphasizes the need for policies that restrict trade sectors to reduce the trading of high-emission technologies. It also highlights the importance of renewable energy in mitigating carbon emissions and the mixed effects of globalization on environmental sustainability, depending on the recipient country. The research contributes to the understanding of the complex relationship between globalization, renewable energy, and carbon emissions, providing insights for policymakers to develop effective strategies for environmental sustainability.This study investigates the direct and indirect effects of renewable energy on carbon emissions through globalization, using a mediation model. The research spans from 1990 to 2020, focusing on Ghana, a country with abundant renewable resources but limited utilization. The findings reveal that renewable energy has a direct and negative impact on carbon emissions, while foreign direct investment (FDI) has a direct and positive effect. Trade openness, however, does not significantly affect carbon emissions. The indirect effects show that renewable energy through FDI negatively affects carbon emissions, whereas through trade openness, it has a positive effect. The study emphasizes the need for policies that restrict trade sectors to reduce the trading of high-emission technologies. It also highlights the importance of renewable energy in mitigating carbon emissions and the mixed effects of globalization on environmental sustainability, depending on the recipient country. The research contributes to the understanding of the complex relationship between globalization, renewable energy, and carbon emissions, providing insights for policymakers to develop effective strategies for environmental sustainability.
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Understanding The effect of renewable energy on carbon emissions through globalization