Uncovering the role of clean fuel energy technology in reducing CO2 emissions in G20 countries: A panel nonparametric analysis

The use of clean fuel energy plays a critical role in reducing CO ₂ emissions and environmental degradation in G20 countries, which comprise about 4.69 billion people (55%) of the world's population and 85% of the global GDP. There is a lack of analytical studies on the driving forces of emissions, mainly the use of cooking fuels as a green technology that households in G20 countries use. In this study, we intend to examine the effect of clean fuel energy technology on CO ₂ emissions over 2000-2021 using a cross-country panel of G20 countries based on data sourced from the World Bank. For this purpose, we used CO ₂ emissions per capita as a dependent variable and the use of fuel technology as an independent variable. We also considered electricity consumption, urbanisation, GDP per capita, trade openness, population, urbanisation, foreign direct investment (FDI), and clean fuel as possible determinants of CO ₂ emissions. The study employs panel data stationary models, including random and fixed effects models. However, after a diagnostics check, the paper finds that the data has cross-sectional dependency; therefore, it uses a second-generation panel model. This study recommends that the coverage of LPG use encourages the promotion of a cleaner cooking fuel program that can fulfill the objectives of the Sustainable Development Goals.