Investigating Economy Growth, Renewable Energy, Human Capital and Environmental Technology Interaction in CO 2 Emissions in Heterogeneous Emerging Economies
Ninditya Nareswari, Bahalwan Apriyansyah, Siskha Nur KhasanahAbstract
Research background
CO 2 emissions are a major driver of climate change, especially in heterogeneous emerging countries.
Purpose
This research investigates the impact of economic growth, financial development, renewable energy consumption, environment-related technology, and human capital on CO 2 emissions in heterogeneous emerging countries.
Research methodology
The study analysed data from 1994 to 2019 across twelve heterogeneous emerging countries. Utilizing the Cross-Sectional Autoregressive Distributed Lags (CS-ARDL) econometric approach, the results indicated findings over both the short and long term. Robustness is tested using the Augmented Mean Group (AMG) and Common Correlated Effects Mean Group (CCEMG) estimators, while Dumitrescu-Hurlin causality examines the bidirectional relationships.
Results
The results show that, in both the short and long term: (1) economic growth increases CO 2 emissions, (2) renewable energy use reduces emissions, and (3) the interaction of human capital and environmental technology lowers emissions. Further, the Dumitrescu-Hurlin causality tests show a bidirectional relationship between CO 2 emissions, economic growth, financial development, and human capital.
Novelty
This study provides policy recommendations to foster sustainable development and reduce CO 2 emissions, specifically in heterogeneous emerging countries.