Renewable energy, economic growth, human capital, and CO2 emission: an empirical analysis
2019
Mahmood, Nasir | Wang, Zhaohua | Hassan, Syed Tauseef
This study contributes to the literature by estimating the interaction effects of economic growth and renewable energy consumption on carbon dioxide (CO₂) emissions with the inclusion of human capital. The interaction between economic growth and renewable energy consumption suggests how income level affects energy consumption and CO₂ emissions. The study applies three-stage least square and ridge regression methods with Pakistani data from 1980 to 2014. The empirical findings show that the interaction effect of income and renewable energy contributes to CO₂ emissions. Besides, trade openness also increases CO₂ emissions, while the human capital mitigates CO₂ emissions. Furthermore, the moderating effect of economic growth helps to form the environmental Kuznets curve (EKC) hypothesis in Pakistan.
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