Renewable energy,  carbon emissions and economic growth : Evidence from renewable energy-consuming countries

This paper examines the dynamic relationship between renewable energy consumption, carbon dioxide emissions, and economic growth in a panel of 15 major renewable energy consuming countries over the period 1990–2020. To account for cross-country heterogeneity and long-run dynamics, the study applies advanced panel econometric techniques, including panel unit root tests (ADF and PP), panel cointegration tests (Kao, Pedroni, and Westerlund), and long-run estimators such as the Pooled Mean Group (PMG) and Fully Modified Ordinary Least Squares (FMOLS). The empirical findings provide strong evidence of a long-run cointegration relationship among renewable energy consumption, carbon emissions, and economic growth. Moreover, the results indicate that renewable energy consumption promotes economic growth while contributing to the reduction of carbon emissions in the long run. These findings underscore the importance of renewable energy development as a key policy instrument for achieving sustainable economic growth and mitigating environmental degradation. The study offers relevant policy implications for energy transition strategies aimed at reconciling economic development JEL Classification: Q42, Q43, Q53, O44