Modeling the Urbanization Rate Associated with Renewable in Electricity Production and CO 2 Emissions: A Threshold Regression Approach

Abstract

This study examines the relationship between urbanization rates associated with the increasing dependency on renewable electricity production and CO₂ emissions per capita and gross domestic per capita in Jordan. The empirical analysis uses annual data from Jordan for the period 1990–2022 to answer the question: What is/are the threshold urbanization rate/s that pushes CO₂ emissions per capita to decline? Results suggest that two threshold values exist for Jordan, which implies a nonlinear relationship between urbanization rate and CO₂ emissions per capita. The estimated threshold regression model shows (0.78, 0.91) as the threshold values of urbanization rate, and values between these thresholds push CO₂ emissions per capita to decline. In addition, there is a significant negative relationship between these two variables. JEL: R0; Q2; Q5; C24;