The primary objective of this study is to explore the links between fossil fuel energy consumption, industrial value-added, and carbon emissions in G20 countries over the period 1990-2020. Panel unit root test, co-integration test, and CS-ARDL estimator were used to determine the relationship among variables. The empirical results suggest that the driving force of carbon emissions in G20 countries varies significantly in advanced versus emerging economies. Evidence in a whole sample of G20 countries and advanced economies supports environmental Kuznets curve (EKC) hypothesis, while no evidence emerging economies supports EKC hypothesis. Apart from this, the empirical results show trade opens, FDI, government expenditures on health and education, research and development, and information and communication technology are other determinators of carbon emissions in G20 countries. Our results suggest that countries upgrade industrial structures by shifting their energy structures away from fossil fuels toward renewable energy sources in order to achieve sustainable environmental goals.
Keywords: Carbon emission; Fossil fuel energy; G20 countries; Industrial value-added.
© 2022. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.