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A causal link between renewable energy, energy efficiency, property rights, and CO2 emissions in developed countries: A road map for environmental sustainability

Abstract:

CO2 emissions are the leading causes of deterioration in air quality and global warming. Likewise, it has been shown that clean energy reduces air pollution, so this would be a way out of environmental pollution. Some previous studies have focused on knowing the determinants of environmental pollution; however, they have omitted the State’s role. Thus, this study explores the long-term nexus between CO2 emissions and renewable energy, energy efficiency, fossil fuels, GDP, property rights from 1995 to 2019 in nine developed countries. The results reveal a long-term equilibrium relationship in developed European countries, but not in developed non-European countries. The main results show that renewable energy and energy efficiency are negatively correlated with CO2 emissions. In developed European countries, a 1% increase in renewable energy consumption represents a 0.03% decrease in CO2 emissions. Finally, some policy measures are suggested to achieve environmental sustainability.