The influence of renewable energy usage on consumption-based carbon emissions in MINT economies

Tomiwa Sunday Adebayo; Abraham Ayobamiji Awosusi; Husam Rjoub; Ephraim Bonah Agyekum; Dervis Kirikkaleli

doi:10.1016/j.heliyon.2022.e08941

The influence of renewable energy usage on consumption-based carbon emissions in MINT economies

Heliyon. 2022 Feb 16;8(2):e08941. doi: 10.1016/j.heliyon.2022.e08941. eCollection 2022 Feb.

Authors

Tomiwa Sunday Adebayo^{1

2}, Abraham Ayobamiji Awosusi³, Husam Rjoub⁴, Ephraim Bonah Agyekum⁵, Dervis Kirikkaleli⁶

Affiliations

¹ Department of Business Administration, Faculty of Economics and Administrative Science, Cyprus International University, 99040 Nicosia, Turkey.
² Department of Finance & Accounting, Akfa University, Tashkent, Uzbekistan.
³ Faculty of Economics and Administrative Science, Department of Economics, Near East University, Northern Cyprus, TR-10 Mersin, Turkey.
⁴ Department of Accounting and Finance, Faculty of Economics and Administrative Sciences, Cyprus International University, Mersin 10, 99040 Haspolat, Turkey.
⁵ Department of Nuclear and Renewable Energy, Ural Federal University Named after the First President of Russia Boris, 19 Mira Street, Ekaterinburg, 620002 Yeltsin, Russia.
⁶ Faculty of Economics and Administrative Sciences, Department of Banking and Finance, European University of Lefke, Northern Cyprus TR-10, Mersin, Turkey.

Abstract

An accurate carbon emissions measurement is critical for developing an appropriate climate strategy to address ecological issues. A meaningful climate policy reaction can be offered based on trade adjusted statistics of carbon emissions. This research utilizes second-generation panel co-integration techniques to investigate the influence of globalization and renewable energy utilization on consumption-based carbon emissions (CCO₂) as well as the role of nonrenewable energy use and economic growth in the MINT-(Mexico, Indonesia, Nigeria and Turkey) countries from 1990 to 2018. The outcomes of the cross-sectional dependency and heterogeneity tests revealed slope heterogeneity and cross-sectional units across nations. Furthermore, the outcomes of the cointegration test provided evidence of a long-run association between consumption-based CO₂ emissions (CCCO₂) and the regressors. Moreover, the outcomes of both common correlated effect mean group (CCEMG) and augmented mean group (AMG) unveiled that economic growth and nonrenewable energy utilization contribute to the degradation of the environment, while globalization and renewable energy utilization help to curb the degradation of the environment. Furthermore, the outcomes of the causality test showed that all the regressors can predict CCO₂ emissions in the MINT nations. Thus, policy channeled towards globalization, economic growth, and renewable energy utilization will have a significant effect on CCO₂ emissions. Based on the study outcomes, significant policy recommendations are made for policymakers in the MINT nations.

Keywords: Consumption-based carbon emissions; Economic growth; Globalization; MINT Economies; Renewable energy.