The Dynamic Relationship Between Renewable Energy and Carbon Emissions: A Panel Data Study on E7 Countries
DOI:
https://doi.org/10.63556/tisej.2026.1697Keywords:
Renewable Energy, CO2, Electric Energy, Growth, E7Abstract
Applying to renewable energy to mitigate the environmental damage caused by increasing fossil fuel consumption is of great importance for countries undergoing rapid development. The aim of this study is to reveal the relationship between carbon emissions, renewable energy consumption, and electrical energy consumption for seven (China, India, Brazil, Mexico, Indonesia, Russia, and Turkiye) developing countries. For this purpose, the relationships between foreign direct investment, GDP, natural resource use, and renewable electricity output were also examined. In the study, cross-sectional dependence and homogeneity were checked, and an appropriate panel unit root test was selected for the results. The panel unit root test results indicated that the variables in the study were stationary at the I(1) level, therefore, cointegration analysis was used. After determining the long-term cointegration relationship between the variables, the Dynamic Common Correlated Effects Estimator and the Augmented Mean Group Estimator were used to determine the short- and long-term coefficients. According to the Augmented Mean Group Estimator results, per capita primary renewable energy consumption reduces carbon emissions. Increases in foreign direct investment and electrical energy consumption increase carbon emissions. According to the results of the Dynamic Common Correlated Effects Estimator, an increase in primary renewable energy consumption reduces carbon emissions. Increases in foreign direct investment and electrical energy consumption increase carbon emissions. The study concluded that both predictors found the same variables to have the same effects on carbon emissions.
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