A study, co-authored by researchers Awosusi and Ojekemi from Near East University, delves into the relationship between geothermal energy usage and CO2 emissions across the top seven geothermal energy-consuming nations. Geothermal energy, known for its potential to contribute to decarbonization without relying on fuel combustion, has garnered global attention for its environmental benefits.
The research analyzes quarterly data spanning from 1990 to 2019 to examine the impact of geothermal energy on CO2 emissions. Utilizing the quantile-on-quantile (QQ) approach, which combines conventional quantile analysis with nonparametric methods, the study provides robust estimations of the relationship between geothermal energy and CO2 emissions.
By categorizing the impacts into upper, medium, and lower quantiles, the QQ approach reveals nuanced findings. In nations like Italy, Mexico, and New Zealand, geothermal energy emerges as a mitigating factor, leading to reduced CO2 emissions. Conversely, in countries including India, the USA, Turkey, and the Philippines, geothermal energy usage is associated with an increase in CO2 emissions.
Furthermore, employing nonparametric causality-in-quantiles analysis, the study demonstrates that geothermal energy usage predicts CO2 emissions across all nations studied. This suggests a complex interplay between geothermal energy utilization and CO2 emissions, varying by country and quantile.
The study underscores the importance of considering geothermal energy’s impact on CO2 emissions within a nuanced framework. While it presents promising environmental benefits in certain contexts, the study highlights the need for tailored policies and strategies to maximize the positive effects of geothermal energy while mitigating any potential drawbacks. By understanding the diverse outcomes across different nations and quantiles, policymakers can develop informed strategies to leverage geothermal energy as a sustainable solution in the transition towards decarbonization.
