Renewable Energy and Carbon Emissions: New Empirical Evidence from the Union for the Mediterranean

Abstract

This approach focuses on the renewable energy-carbon emission nexus by delivering new empirical evidence from 37 members of the Union for the Mediterranean. The approach makes use of panel data for the period 2002–2018 and uses panel data econometrical approaches, which are panel random effects regression, feasible generalized least squares regression, and the difference-generalized method of moments estimation, to understand how agricultural activity, economic growth, and renewable energy use impact carbon emissions. The results indicate that economic growth increases carbon emissions, whereas renewable energy use decreases them. In addition, separate analyses for EU and non-EU members indicate that agricultural activity has a significant negative effect only for the non-EU countries, which is further discussed with some relevant empirical evidence. The approach utilizes three fields of policy action. Firstly, economic growth comes to the Union countries with a cost-carbon emissions. Policymaking needs to include strategies to turn growth into sustainable growth. Secondly, the magnitude of the impact of economic growth on carbon emissions is greater than the magnitude of the impact of renewable energy. Research and development efforts need to improve this situation. Thirdly, the use of appropriate tools and technologies can decrease the carbon footprint of agricultural activity.