The Impact of Renewable Energy and Economic Growth on Environmental Pollution: Using Second-Generation Panel Techniques

Samir Aouini; Hanane Beggat; Zakia Mahlous

doi:10.2478/eb-2023-0012

The Impact of Renewable Energy and Economic Growth on Environmental Pollution: Using Second-Generation Panel Techniques

Authors

Samir Aouini University of ElOued https://orcid.org/0000-0001-7088-3492
Hanane Beggat University of ElOued https://orcid.org/0000-0001-9247-2029
Zakia Mahlous University of ElOued https://orcid.org/0000-0002-3878-0298

DOI:

https://doi.org/10.2478/eb-2023-0012

Keywords:

Environmental pollution, environmental Kuznets curve, panel data, renewable energy

Abstract

This study examines the impact of economic growth, renewable energy consumption, and environmental stringency on environmental pollution within the framework of testing the environmental Kuznets hypothesis for 34 African countries during the period from 1990 to 2020 using second-generation panel estimation techniques. To ensure the stability of the variables, the study applied smoothing of the slopes, CADF, and CIPS unit root tests, and the Westerlund co-integration test to confirm the existence of a long-term balanced relationship between the variables based on the results obtained from the CCEMG model estimates of jointly correlated effects. The study confirmed the environmental Kuznets curve hypothesis in African countries, with the results indicating a relationship between growth and pollution in the form of an inverted “N”. Furthermore, it was found that the consumption of renewable energy reduced carbon dioxide emissions.

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