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Revisiting global energy efficiency and CO2 emission nexus: fresh evidence from the panel quantile regression model

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Abstract

Given the importance of energy efficiency in environmental degradation, the effects of energy efficiency and renewable and nonrenewable energy consumption on global environmental pollution were investigated. For this purpose, panel data from 107 countries from 1996 to 2014 were examined. In addition, the present study also tested the well-known environmental Kuznets curve (EKC). The long-run relations were estimated by applying a panel quantile regression (PQR) approach, which is useful for finding heterogeneous effects at lower- and upper-level quantiles of CO2 emissions. The empirical results indicated that energy efficiency had a significantly negative impact on CO2 emissions with low intensity at higher-level quantiles.

Furthermore, the impact of renewable and nonrenewable energy consumption on environmental degradation was significantly negative and positive across all quantiles, respectively. The empirical results provide evidence supporting an inverted U-shaped nexus between GDP and CO2, whereby the EKC is found valid. Hence, energy efficiency improvement and renewable energy consumption policies must align with strategies to curb environmental degradation.

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Authors and Affiliations

  1. Nisantasi University Graduate School, Istanbul, Turkey

    Ashar Awan

  2. Kashmir Institute of Economics, University of Azad Jammu and Kashmir, Muzaffarabad, Pakistan

    Ashar Awan

  3. Faculty of Communication, Department of Public Relations and Publicity, Erciyes University, Kayseri, Turkey

    Mustafa Kocoglu

  4. Department of Economics, Erciyes University, Kayseri, Turkey

    Tooba Pervaiz Banday

  5. Department of Agricultural Economics, School of Agriculture, Shiraz University, Shiraz, Iran

    Mohammad Hassan Tarazkar

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  1. Ashar Awan
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  2. Mustafa Kocoglu
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  3. Tooba Pervaiz Banday
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  4. Mohammad Hassan Tarazkar
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Correspondence to Mohammad Hassan Tarazkar.

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Awan, A., Kocoglu, M., Banday, T.P. et al. Revisiting global energy efficiency and CO2 emission nexus: fresh evidence from the panel quantile regression model. Environ Sci Pollut Res 29, 47502–47515 (2022). https://doi.org/10.1007/s11356-022-19101-5

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