Revisiting the impact of renewable energy on carbon emission in 130 countries—The mediating effect of resource rental rents and human capital

Abstract

More efficient use of renewable energy to reduce carbon emission requires a more comprehensive understanding of the impact of renewable energy on carbon emissions. To this end, this work investigates the linear and nonlinear relationship between renewable energy consumption and carbon emissions in 130 countries from the new perspective of resource capital factors (total natural resources rents) and human capital (human capital index). The results are given that from a global perspective, the increase in the proportion of renewable energy consumption can accelerate the reduction of per capita carbon emissions before reaching a particular threshold value of total natural resources rents. When a specific natural threshold value is reached, the increase in the proportion of renewable energy consumption will reduce the rate of per capita carbon emissions. Another interesting finding is that the greater the human factor, the lower the reduction rate of per capita carbon dioxide emissions. To explain the above phenomenon, all countries are divided into four different income levels for further heterogeneity research. When the threshold variables are different, the impact on carbon emissions in various income countries is heterogeneous, which is further analyzed in the article. Furthermore, a meaningful discovery shows that whether the threshold variable is natural or human factor, low-income countries benefit the most from the carbon reduction effect brought by the increase in the proportion of renewable energy consumption, followed by lower-middle income and upper-middle income countries, and the lowest is higher-income countries.