Assessing the long-term asymmetric relationship between energy consumption and CO2 emissions: Evidence from the Visegrad Group countries
DOI:
https://doi.org/10.18559/ebr.2024.1.1082Keywords:
asymmetric panel data, Visegrad Group, energy transition, asymmetric causality, renewable energy, CO2 emissionsAbstract
This study investigates the impact of renewable (REW) and non-renewable (NREW) energy usage, along with econom-ic growth (GDP), on carbon dioxide (CO2) emissions in the Visegrad countries, which rely heavily on traditional energy sources. Using data from 1991 to 2021, the analysis employs a panel asymmetric regression with Driscoll-Kraay and FGLS standard errors. The latent cointegration test reveals long-term relationships with asymmetry among the variables. Real GDP fluctuations exhibit a negative impact on CO2emissions for both positive and negative shocks. A reduc-tion in conventional energy source consumption leads to a greater CO2 emission reduction, confirming asymmetry. Conversely, an increase in consumption positively impacts CO2 reduction. However, non-conventional energy sources show no asymmetries. The OLS-based model proposed by Driscoll-Kraay showed reduced standard errors, but lower significance in the estimated parameters compared to the FGLS model. The findings recommend a sustainable energy transition for Visegrad countries by eliminating traditional sources and promoting renewable resources.
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