Effects of Environmental Innovations, Renewable Energy Consumption and Economic Growth on CO2 Emission: Panel Data Analysis for Select G-20 Countries

Creative Commons License


Anemon Muş Alparslan Üniversitesi Sosyal Bilimler Dergisi, vol.9, no.4, pp.1007-1017, 2021 (Peer-Reviewed Journal) identifier


Environmental problems are becoming more visible and this detrimental situation, negatively affectingthe national economies. Therefore, the economic effects and costs of environmental problems have become animportant research topic in the field of economics. In the literature, carbon dioxide (CO2) emission is generallyused as an environmental pollution indicator. It is thought that renewable energy investments and innovativeapproaches to the environment can overcome environmental problems in the long run. In this study, the effect ofenvironmental innovations (ETI), renewable energy (REC) and growth (GDP) on CO2 emission examined for 8countries, listed according to the IMF's classification in the G-20 country group between 1993 and 2018. DurbinH cointegration and FMOLS tests are used in the analysis, considering the cross-sectional dependency andheterogeneity. According to the analysis results, there is a long-term relationship between the variables. The effectsof the variables considered on CO2 emission differ by country, the change in REC and GDP for the panel generallyreduces CO2 emission, while the increase in ETI increases CO2 emission.