Correlation between Economic Growth and Carbon Emissions in the Context of the Transition to a Zero-Carbon Economy

Abstract

Abstract The energy sector is increasingly popular today and plays a vital role in our everyday lives. That is why, in this paper I am trying to analyze the existing literature and find a correlation between economic growth and carbon emissions. I utilized various scenarios for this research. The first direction is based on a study seeks to scrutinize earlier literature encompassing economic growth, energy consumption, and carbon emissions, encompassing both individual country analyses and multi-country studies spanning until the year 2019. The second one on usage of both growth and environmental functions to illustrate the efficacy of renewable energy in fostering economic growth and mitigating carbon emissions in the context of the 15 primary renewable energy-consuming nations. Exploring the impact of disaggregated energy consumption, technological innovations, and capital on economic output and CO2 emissions in India from 1990 to 2018 is the third direction, while the fourth has at its base the influence of Information and Communication Technology (ICT) on renewable energy consumption using panel data from 90 countries spanning the period 2000-2014. The fifth scenario is about the effects of climate change and technological innovation on economic growth, energy consumption, and carbon emissions by analyzing annual observations of diverse variables across Asian and European countries from 1996 to 2021. The final perspective investigates the factors influencing Energy Mix Diversification (EMD) by utilizing a panel sample encompassing seven major emerging (E7) economies—Brazil, China, India, Indonesia, Mexico, Russia, and Turkey—observed from 1995 to 2018.