A collaborative research effort, including co-authors Özdeşer and Seraj from Near East University, has investigated the relationship between energy usage, economic growth, renewable energy, and carbon emissions in the European Union from 1990 to 2019. The study introduces the concept of “effective capital,” representing the interaction between energy and capital in the production process, as a novel variable. Utilizing the Generalized Method of Moments, known for its robustness in handling endogeneity and overcoming statistical issues, the research sheds light on the complex dynamics of carbon emissions.
The findings affirm previous studies, showing that renewable energy sources effectively reduce carbon emissions, while economic growth driven by non-renewable energy exacerbates them. The study highlights the significant role of effective capital and energy use in influencing carbon emissions, underscoring the importance of policies aimed at promoting renewable energy adoption and curbing excessive energy consumption.
Furthermore, the research emphasizes the importance of addressing population growth to reduce carbon emissions and mitigate the impacts of global warming. Despite limitations such as the indirect inclusion of non-renewable energy in total energy use, the study suggests avenues for future research, advocating for a more nuanced examination of the interaction between renewable energy and capital to better understand their impact on carbon emissions.
This collaborative effort provides valuable insights into the complex relationship between energy usage, economic growth, renewable energy, and carbon emissions in the European Union. By advocating for renewable energy adoption and policies to address population growth, the study offers actionable recommendations to mitigate the adverse effects of carbon emissions and combat global warming in the region.
More Information:
https://link.springer.com/article/10.1007/s11356-022-24188-x
