Industrial growth, clean energy generation, and pollution: evidence from top ten industrial countries
2021
Kahia, Montassar | Ben Jebli, Mehdi
Unlike the previous study, this paper employs panel cointegration and Granger causation approaches to discuss the associations among carbon dioxide (CO₂) emissions, GDP growth, clean energy generation, and industrial growth for the top ten industrial countries spanning the period 1980-2014. The primary empirical outcomes show a two-way long-run association between environmental indicator, GDP growth, and clean energy generation, while one short-run causation from clean energy generation to CO₂ emissions and from industrial growth to clean energy generation. The computed coefficients elasticity’s under FMOLS, DOLS, and CCR estimates revealed that the clean energy generation statistically contributes to declining emissions of CO₂ in Australia, Austria, and Chile while statistically increase emissions of CO₂ in Denmark and the Netherlands. Industrial growth statistically contributes to reducing emissions of CO₂ in Denmark and Norway but increases emissions in Chile, France, and Sweden. For the global panel, industrial growth leads to mitigate the rate of emissions while clean energy generation raises CO₂ emissions in the long period. Investing in clean energy is needed to stimulate the growth of the industrial sector and then reduce the rate of emissions.
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