The interdependence between CO 2 emissions, economic growth, renewable and non-renewable energies, and service developme
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The interdependence between CO2 emissions, economic growth, renewable and non-renewable energies, and service development: evidence from 65 countries Mehdi Ben Jebli 1,2
& Montassar Kahia
3,4
Received: 19 December 2019 / Accepted: 23 June 2020/ # Springer Nature B.V. 2020
Abstract
This study examined the interdependence between CO2 emissions, economic growth, energy generation, and value-added service for a panel of 65 countries. An important contribution of this study is to explore the role of service sector development in the mitigation of pollutant emissions, considering renewable energy as a resource of production. The authors used the annual data of studied variables covering the period of 1980 to 2014 and utilized the vector autoregressive (VAR) model, Granger causality, and Toda– Yamamoto tests. The empirics of Granger causality suggest that there are strong bidirectional causalities between CO2 emissions and non-renewable energy, CO2 emissions and value-added service, non-renewable energy and value-added service, and unidirectional causality from CO2 emissions to renewable energy in the short-run. Furthermore, the empirics suggest that bidirectional causalities exist between the service sector toward CO2 emissions and value-added service toward non-renewable energy in the long-run. The findings of this study support the validity of an environmental Kuznets curve for the case of sample countries. The study proposed that increasing renewable energy rates could be good plans to stimulate service activities and decreasing non-renewable energy rates will reduce pollutant emissions. Keywords Renewable energy . Value-added service . Carbon dioxide emissions . Vector error model . Granger causality JEL classification C23 . F64 . P28 . Q56
* Mehdi Ben Jebli [email protected] Montassar Kahia [email protected]; [email protected] Extended author information available on the last page of the article
Climatic Change
1 Introduction Global energy consumption grew speedily in 2018 and reached approximately twice the average rate of growth since 2010. The annual evolution of greenhouse gas (GHG) emissions produced from the global energy supply continues to increase rapidly. Fossil fuel energies continue to dominate global energy markets, and this fact is mainly explained by the increasing demand for heat, electricity, and transport fuels. Despite the deployment of new technologies generating lower emissions levels and the implementation of various plans and policies by many countries and regions, the potentiality of CO2 emissions remains in positive growth. The energy sector explains approximately two-thirds of emissions growth. In fact, the variation of CO2 emissions related to energy strongly increased to attain a level of 33.1 Giga-tons (Gt) in 2018. The consumption of coal in Asia was catastrophic and generated 10 Gt of CO2, followed by China, India, and the United States, with a proportion of 85% of total net CO2 emissions increase. However, the CO2 emissions rate is decreasing for Germany, J
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