The role of renewable energy, alternative and nuclear energy in mitigating carbon emissions in the CPTPP countries

• Published in: Renewable energy Vol. 161; pp. 278 - 292
• Main Authors: Vo, Duc Hong, Vo, Anh The, Ho, Chi Minh, Nguyen, Ha Minh
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01-12-2020
• Subjects: Alternative and nuclear energy; CO2 emissions; CPTPP; Granger causality; Renewable energy; C52; Q43; CPTPP; Alternative and nuclear energy; Renewable energy; CO2 emissions; C12; Granger causality; Q42
• ISSN: 0960-1481; 1879-0682
• DOI: 10.1016/j.renene.2020.07.093

The paper investigates the role of renewable energy and alternative and nuclear energy in mitigating CO2 emissions. Trade openness is added to consider its effect on the environment, as it appears to be a crucial factor in interregional cooperation and development. We adopt a sample of nine signatories to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) from 1971 to 2014. Various time-series econometric methods are utilized including two long-run estimators - fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) - and a Granger-causality test. Several noteworthy findings are achieved from this paper. First, the inverse U-shaped relationship is found in six countries: Australia, Canada, Chile, New Zealand, Peru and Vietnam. The U-shaped relationship is found in Japan and Malaysia whereas no evidence is observed in Mexico. Second, the adoption of either renewable energy or alternative and nuclear energy would mitigate CO2 emissions and trade openness plays an important role in facilitating this effect. Third, the directions of Granger causality among the variables of interests including consumption of renewable energy; consumption of alternative and nuclear energy, trade openness and CO2 emissions, do vary across countries and between the short term and the long term.
•Inverse U-shaped relationship in Australia, Canada, Chile, New Zealand, Peru, Vietnam.•U-shaped relationship in Japan and Malaysia and no evidence in Mexico.•Consumption of renewable energy, alternative & nuclear energy reducing CO2 emissions.