The Effect of Renewable Energy Consumption on Reducing Carbon Emissions (With Emphasis on Wind and Solar Energy)

Document Type : Original Article

Authors

1 Ph.D. Candidate in Economics, Department of Economics, Ferdowsi University of Mashhad, Mashhad, Iran

2 M.A student in Economics, Department of Economics, Ferdowsi University of Mashhad, Mashhad, Iran

3 Associate Professor, Department of Economics, Ferdowsi University of Mashhad, Mashhad, Iran

10.22080/jeem.2023.4527

Abstract

Renewable energies have the ability to reduce greenhouse gas (GHG) emissions. Still, in previous studies, less attention has been paid to their role by emphasizing two sources of wind and solar energy. Therefore, the current research seeks to investigate the role of renewable energy consumption, wind and solar energy consumption in reducing per capita carbon emissions (CO2) by using the very new approach of quantile-on-quantile regression (QQR) modelling in the annual period from 1990 to 2021 and for Group of 7 (G7) countries. The QQR econometric approach investigates how the per capita consumption quotients of renewable energy, wind and solar energy have an asymmetric effect on the per capita CO2 emission quantities by providing a sufficient framework to understand the overall dependence structure. The results show that the use of renewable energy, especially wind and solar energy, as an alternative to traditional energy sources (fossil energy) can lead to a significant reduction in carbon emissions. More precisely, it can be concluded that the per capita consumption of renewable energy and the per capita consumption of wind and solar energy have had a negative effect on per capita carbon emissions in all G7 countries and in all quantiles (0.05 to 0.95). However, in some quantiles, this negative correlation was weaker. In this way, the need to pay attention to the development policies of renewable and new energies and to provide solutions to have a greater impact on the reduction of CO2 emissions in the environment is of great importance.

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Journal of Energy Economics Modeling
Volume 1, Issue 1
September 2023

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