Renewables solve emissions, energy independence, and international climate law---but continued innovation is key.

Rahman et al. 24, [Arifur Rahman (School of Economics, Lanzhou University), S.M. Woahid Murad (School of Accounting, Economics and Finance, Curtin University; Department of Economics, Noakhali Science and Technology University), A.K.M. Mohsin (Logistikum, University of Applied Sciences Upper Austria; Supply Chain Intelligence Institute Austria), & Xiaowen Wang (School of Economics, Lanzhou University), “Does renewable energy proactively contribute to mitigating carbonemissions in major fossil fuels consuming countries?” Journal of Cleaner Production, , accessed 7-4-2024, 4/5/24] Mr.Mr.

5. Conclusion, policy implications, and limitations of the study

Carbon emissions are the main driver of greenhouse gas emissions, which have been increasing over the last few decades in almost all countries in the world, including the least industrialized ones. The success of global climate initiatives, particularly the Sustainable Development Goal (SDG-13) and the Conference of Parties (COP28) agreements, has an intrinsic connection to the actions taken by the world’s major consumers of fossil fuels. Transitioning from fossil fuels dominance to renewable energy expansion is essential for achieving global climate initiatives. This study examines the proactive role of renewable energy in improving environmental sustainability and examines the effects of fossil fuel usage, real gross domestic product, square of RGDP, and patents on carbon emissions in major fossil fuelsconsuming countries. This study consists of annual disaggregated data from 1990 to 2020, both considering and disregarding the EKC model. Following controls for country, year, and interactive fixed effects, our empirical analysis reveals a significant inverse relationship between the use of renewable energy and carbon emissions. We also apply the method of moment quantile regression in order to investigate the effects that our explanatory variables have on carbon emissions at various quantiles. The MM-QR results show that the coefficients for renewable energy are negative at all quantiles. The Wald test results validate the asymmetric effects of fossil fuel energy consumption, real gross domestic product (RGDP) and renewable energy on carbon emissions at various quantile levels.

For non-stationary panel data analysis, several panel unit root tests were examined and the results confirmed that, all the variables are stationary at first difference I(1). As cross-sectional dependence and slope heterogeneity exist in our variables, we use different econometric methods to address them. We further utilize panel ARDL to investigate the short-run and long-run correlations between variables, exploring renewable energy consumption and real GDP reduce CO2 emission in the long run, both with and without the EKC model. On the other hand, fossil fuel consumption, RGDP2, and patent increase CO2 emissions in the long run. Nevertheless, we didn’t find any significant results in the short run. To avoid the endogeneity problem, we apply the system GMM method in our study. We apply the same method when conducting robustness analysis. Findings show that we have properly addressed the endogeneity issue, and our results are also valid in the robustness analysis.

5.1. Policy implications

The increasing use of fossil fuels has raised significant concerns due to the escalation of carbon emissions. Addressing this issue increasingly demands a transition to renewable energy sources. This transition provides a remedy to mitigate the impacts of climate change, decrease carbon emissions, and foster a more environmentally sustainable energy system. Without an in-depth knowledge of the cost-effectiveness and environmental benefits, it is extremely difficult to enhance the proportion of renewable energy. Countries reliant on fossil fuels can address environmental challenges by implementing enduring strategies, including transitioning to renewable energy like solar and wind, which offer numerous benefits. Such shifts can improve energy independence and contribute to environmental protection. Embracing renewables helps meet international climate objectives and can significantly cut down on pollutants, especially greenhouse gases like CO2, potentially improving air quality and fostering ecological sustainability. Additionally, by tapping into renewable resources like solar, wind, hydro, and biomass, these countries could reduce their dependence on imported fossil fuels, enhancing their energy stability.

Environmental issues are sometimes overlooked in innovations in technology, resulting in insufficient carbon emission reduction. In order to attain notable CO2 reductions, it is crucial to concentrate on the development of environmentally friendly innovations. However, a comprehensive strategy can be undertaken to substantially decrease the dependence on fossil fuels (oil, gas and coal) as the predominant energy source in different sectors, especially in power generation and transportation. This involves substituting coal and natural gas with a wide variety of alternative energy sources.

The extensive utilization of solar and wind energy for power generation is feasible due to their renewable and clean characteristics. Hydropower, a sustainable energy source, provides a dependable and steady energy supply, which is especially advantageous for generating power on a large scale. Biofuels from waste products, provide a feasible solution for both the power and transportation industries, serving as a sustainable and recyclable substitute for traditional fossil fuels. Furthermore, nuclear energy, renowned for its substantial energy production and minimal carbon emissions, can have a substantial impact on facilitating the energy transition. However, China and the USA make use of nuclear energy as an alternative source of energy to address its increasing energy requirements and mitigate its carbon emissions. This low-carbon option enhances sporadic renewable sources such as solar and wind by offering a dependable and uninterrupted energy source. China’s allocation of resources towards nuclear technology enhances the variety of its energy sources and aids in achieving its long-run environmental and sustainable development objectives. Through the utilization of these diverse energy sources, it is feasible to establish a more sustainable and ecologically conscious energy framework, resulting in a substantial decrease in reliance on fossil fuels.