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The Role of the Key Components of Renewable Energy (Combustible Renewables and Waste) in the Context of CO 2 Emissions and Economic Growth of Selected Countries in Europe

Author

Listed:
  • Shahjahan Ali

    (Doctoral School of Economic and Regional Sciences, Hungarian University of Agriculture and Life Sciences, Pater Karoly Street-1, 2100 Gödöllő, Hungary)

  • Shahnaj Akter

    (Business School, Beijing Normal University, No. 19 Xinjiekouwai Street, Beijing 100875, China)

  • Csaba Fogarassy

    (Institute of Sustainable Development and Farming, Hungarian University of Agriculture and Life Sciences, Pater Karoly Street-1, 2100 Gödöllő, Hungary)

Abstract
In the case of developing countries, it is not clear which crisis management tools will ensure sustainable development in a sustainable and environmentally friendly way, as well as reducing CO 2 emissions in addition to ensuring GDP growth. The next analysis discusses the details of this issue. The study explores the connection between per capita GDP, emission of CO 2 , combustible energy, and waste consumption. The Hausman test ratifies that the regression model with the fixed effect is the proper method for the panel balanced data from 1990 to 2019 in the selected 13 countries of the EU. This study ordered the data into three categories (for 13 selected countries, the top nine EU countries (in GDP), and Visegrad countries (Hungary, Slovakia, Czech Republic and Poland)). The study found a significant positive effect of combustible energy and waste consumption and the negative impact of CO 2 emission on GDP per capita. The cointegration test confirms that all three variables are cointegrated. This implies a long-term link among all three variables in the context of all three types of the selected panel. The Granger causality results ensure that there is a two-way cause–effect relation between the variables. The study strongly recommends that developed European Union countries (the top nine EU countries) increase energy production from biomass-based renewable energy and waste to stimulate economic growth. The same strategy was not recommended in the Visegrad countries because of the much lower GDP growth due to the N-shaped Kuznets curve. In these countries, it is advisable to avoid unexpected increases in CO 2 emissions from biomass and fossil fuel-burning, to achieve greenhouse gas reductions using other circular, platform-based models instead of simple biomass energy production. Due to the low level of energy efficiency and the lack of application of technological innovation, the energy use of biomass can significantly slow down GDP growth in less developed EU countries (such as the V4 countries).

Suggested Citation

  • Shahjahan Ali & Shahnaj Akter & Csaba Fogarassy, 2021. "The Role of the Key Components of Renewable Energy (Combustible Renewables and Waste) in the Context of CO 2 Emissions and Economic Growth of Selected Countries in Europe," Energies, MDPI, vol. 14(8), pages 1-18, April.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:8:p:2034-:d:531366
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