Renewable energy and CO2 emissions: New evidence with the panel threshold model

The increased concerns over climate change led to a large body of literature that examined the impact of energy and economic growth on carbon dioxide (CO2) emissions per capita. The majority of the existing studies employed various linear panel estimation techniques ignoring the potential nonlinear effects of energy and income on CO2 emissions per capita. To fill this gap, this study uses panel data consisting of 97 countries between 1995 and 2015 and examines the nonlinear impact of renewable, non-renewable energy consumption, economic growth on CO2 emissions per capita by using a dynamic panel threshold model that is robust to cross-section dependence. Our findings indicate the effect of growth in renewable…