Econometric analysis of the effects of globalization, technology innovation and renewable energy consumption on CO2 emissions: Evidence from top five CO2-emitting countries

Abstract

Introduction: Anthropogenic CO₂ emission is a pressing global challenge wreaking serious health, environmental and socioeconomic havocs which require urgent attention. Given these undesirable outcomes and the enormous contribution of some set of countries to global CO₂ emissions; this study investigated the long-run effects of globalization, technology innovation and renewable energy consumption on CO₂ emissions in top 5 CO₂-emitting countries across the globe.

Materials and methods: To achieve the study objective, annual CO₂ emissions, globalization, technology innovation, renewable energy and economic growth data of the top 5 CO₂-emitting countries spanning from 1990 to 2022 was analysed using panel autoregressive distributed lag modelling technique and Dumitrescu-Hurlin panel causality test.

Results: CO₂ emissions, globalization, technology innovation, renewable energy consumption and economic growth were found to have long-run relationship in top 5 CO₂-emitting countries. Particularly, renewable energy consumption was found to have negative effect on CO₂ emissions while globalization and technology innovation were found to have positive direct effects on CO₂ emissions. However, globalization and technology innovation had inhibitive interaction effect on CO₂ emissions. Findings also revealed mutually reinforcing causal relationship between economic growth and CO₂ emissions; and between technology innovation and CO₂ emissions.

Conclusion: The findings underscore the fact that urgent prioritisation of renewable energy consumption and international relationships which encourage the transfer, development and adoption of environment-friendly technological innovations will reduce CO₂ emissions and its undesirable environmental, health and socioeconomic effects in top 5 CO₂-emitting countries.