The role of interaction effect between renewable energy consumption and real income in carbon emissions: Evidence from low-income countries

Ehigiamusoe K. U., Dogan E.

RENEWABLE & SUSTAINABLE ENERGY REVIEWS, cilt.154, 2022 (SCI-Expanded) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 154
  • Basım Tarihi: 2022
  • Doi Numarası: 10.1016/j.rser.2021.111883
  • Dergi Adı: RENEWABLE & SUSTAINABLE ENERGY REVIEWS
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Academic Search Premier, PASCAL, Aerospace Database, CAB Abstracts, Communication Abstracts, Compendex, Greenfile, INSPEC, Public Affairs Index, Veterinary Science Database, Civil Engineering Abstracts
  • Anahtar Kelimeler: Carbon emissions, Sustainability Renewable energy consumption, Real income, CO2 EMISSIONS, NONRENEWABLE ENERGY, ECONOMIC-GROWTH, FINANCIAL DEVELOPMENT, ENVIRONMENT NEXUS, DETERMINANTS, ELECTRICITY, INNOVATION, CAUSALITY
  • Abdullah Gül Üniversitesi Adresli: Evet

Özet

Even though the existing studies have extensively investigated the impacts of renewable energy and real income on carbon emissions, the literature overlooks the role of their interaction effect in the level of emissions. In addition, the studies have usually chosen high-income and middle-income countries as focused group. To fill these gaps in the existing body of energy-environment literature, this study investigates the impacts of real income, renewable energy consumption and their interaction effect on carbon emissions in low-income countries by employing empirical estimations that control different econometric and economic issues such as heterogeneity and cross-sectional dependence. The results reveal that renewable energy mitigates emissions; however, the interaction effect stays positive. The marginal effect of renewable energy on emissions varies with the levels of real income. Policymakers in these economies should implement policies and regulations to promote the adoption and use of renewable energy to mitigate carbon emissions. Besides, this study emphasizes that the levels of renewable energy and real income are not the only panacea to abating pollution, but the interaction effect should be considered in ensuring environmental sustainability.