TY - JOUR
T1 - Role of solar-based renewable energy in mitigating CO2 emissions: Evidence from quantile-on-quantile estimation
AU - Yu, Jinna
AU - Tang, Yuk Ming
AU - Chau, Ka Yin
AU - Nazar, Raima
AU - Ali, Sajid
AU - Iqbal, Wasim
N1 - Funding Information:
Overall, the findings reveal a negative association between SEC and CO2 in the majority of selected countries. The negative impact of WEC on CO2 is dominant in nine (i.e., Australia, Germany, Japan, Spain, Italy, USA, South Korea, UK, and China) out of ten selected economies, which recommends that by utilizing CO2 as an environmental indicator, SEC improves environmental quality in these countries. We have observed that solar energy is an effective strategy for reducing CO2. Our empirical findings back up our proposition and a number of previous studies, like [3,20]; which shows the optimistic role of solar-based renewable energy in mitigating pollution. Our findings also support the study of [41]; who found that solar energy had a substantially lower carbon footprint during its life cycle than gas or coal. The observation of significant and negative coefficients for SEC supports a recent COP21 energy day policy argument emphasizing the necessity of reducing barriers to renewable energy growth. There is a concern that the production of solar panels is linked to large reductions in emissions in the recent year as a result of technological innovations. The findings are partially consistent with [6,8]; who found that renewable (solar) energy was inversely correlated with CO2 in the USA and China, respectively. In France, a mixed relationship is observed between SEC and CO2, which is due to specific conditions like growth patterns, technology, business cycles, and population. This outcome is also aligning with the empirical study of [9]; who found a mixed relationship between renewable energy and CO2 emissions in different regions of China. Despite the fact that solar-based renewable energy is significantly less polluting than other conventional energies, the manufacturing method for solar PV systems generates toxic materials that can contribute to CO2. The ability to produce solar energy also relies on the levels of expertise and technology employed during the production process. The favorable impact of solar-based renewable energy on CO2 is also attributable to the lack of financial incentives, which discourage the development of solar energy technology and, as a result, green energy consumption. Other possible reasons for the positive association between the significant number of quantiles of SEC and CO2 are legal and institutional hurdles that dissuaded the expansion of solar energy technology, as well as increased usage of other renewable energy sources (i.e. wind and hydroelectricity) in some countries.
Publisher Copyright:
© 2021 Elsevier Ltd
PY - 2022/1
Y1 - 2022/1
N2 - Renewable energy plays an important role in the modern economic growth paradigm. As a perpetual source, solar-based renewable energy has the ability to reduce CO2 emissions, which has been neglected in prior empirical studies. We have analyzed the asymmetric association between solar energy consumption and CO2 emissions in the top ten solar energy-consuming countries (Australia, Germany, Japan, Spain, Italy, USA, South Korea, UK, France, and China). Using data from 1991 to 2018, a novel methodology, ‘Quantile-on-Quantile (QQ)’, is applied. The results explore the mode of how quantiles of solar energy consumption asymmetrically affect the quantiles of CO2 emissions by providing an adequate framework to comprehend the overall dependence structure. The empirical findings demonstrate that solar energy consumption reduces CO2 emissions at different quantiles for all selected countries except France. The overall relationship is stronger at higher quantiles of CO2 emissions for various countries. The outcomes suggest that the intensity of asymmetric relationship in solar energy-CO2 emissions nexus differs with countries that need individual caution and attention for governments in formulating the policies connected to solar energy and the environment. Our empirical evidence also emphasizes that solar energy should be integrated for sustainable growth and environmental quality.
AB - Renewable energy plays an important role in the modern economic growth paradigm. As a perpetual source, solar-based renewable energy has the ability to reduce CO2 emissions, which has been neglected in prior empirical studies. We have analyzed the asymmetric association between solar energy consumption and CO2 emissions in the top ten solar energy-consuming countries (Australia, Germany, Japan, Spain, Italy, USA, South Korea, UK, France, and China). Using data from 1991 to 2018, a novel methodology, ‘Quantile-on-Quantile (QQ)’, is applied. The results explore the mode of how quantiles of solar energy consumption asymmetrically affect the quantiles of CO2 emissions by providing an adequate framework to comprehend the overall dependence structure. The empirical findings demonstrate that solar energy consumption reduces CO2 emissions at different quantiles for all selected countries except France. The overall relationship is stronger at higher quantiles of CO2 emissions for various countries. The outcomes suggest that the intensity of asymmetric relationship in solar energy-CO2 emissions nexus differs with countries that need individual caution and attention for governments in formulating the policies connected to solar energy and the environment. Our empirical evidence also emphasizes that solar energy should be integrated for sustainable growth and environmental quality.
KW - CO2 emissions
KW - Quantile-on-quantile (QQ) estimation
KW - Solar energy consumption (SEC)
UR - http://www.scopus.com/inward/record.url?scp=85117119386&partnerID=8YFLogxK
U2 - 10.1016/j.renene.2021.10.002
DO - 10.1016/j.renene.2021.10.002
M3 - Journal article
AN - SCOPUS:85117119386
SN - 0960-1481
VL - 182
SP - 216
EP - 226
JO - Renewable Energy
JF - Renewable Energy
ER -
