The role of renewable energy consumption on global greenhouse gases: Econometric analysis of panel data

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Published: dic. 6, 2021

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Leidy Caraguay
Carrera de Economía, Universidad Nacional de Loja, Loja, Ecuador
Michelle López-Sánchez
Carrera de Economía, Universidad Nacional de Loja, Loja, Ecuador

Abstract

The objective of this document is to analyze the impact of renewable energy consumptionon greenhouse gases at a global level during the period 1990 - 2015. To verify thisrelationship, we used the panel data methodology and cointegration techniques. The resultsconfirm that energy consumption and greenhouse gas emissions have an equilibriumrelationship both in the short and long term, with a negative and significant relationshipbetween both variables, that is, the higher the energy consumption the higher the Greenhousegases tend to decline with the exception of extremely high-income countries. Apolicy implication derived from this research is to implement policies to reduce GHG emissions,replacing fossil energy sources with renewable energy sources and incentivize thepublic and private sectors to invest in the use of this type of clean energy.

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Caraguay, L. ., & López-Sánchez, M. . (2021). The role of renewable energy consumption on global greenhouse gases: Econometric analysis of panel data. Revista Económica, 9(1), 61–72. Retrieved from https://revistas.unl.edu.ec/index.php/economica/article/view/1149
Issue
Vol. 9 No. 1 (2021): RVE Vol 9 (January - June 2021)
Section
RESEARCH ARTICLES
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