Renewable energy consumption and carbon emissions in developing countries: the role of capital markets
ABSTRACTThis study examines the impact of capital market on the relationship between energy consumption and carbon emissions. By employing a system Generalised Methods of Moments (GMM) for a sample of 138 developing countries over the period, 1990–2020, we find a U-shaped reverse relationship betwee...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2023-12-01
|
| Series: | International Journal of Sustainable Energy |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/14786451.2023.2268857 |
| _version_ | 1797640078622720000 |
|---|---|
| author | Daniel Ofori-Sasu Joshua Yindenaba Abor George Nana Agyekum Donkor Isaac Otchere |
| author_facet | Daniel Ofori-Sasu Joshua Yindenaba Abor George Nana Agyekum Donkor Isaac Otchere |
| author_sort | Daniel Ofori-Sasu |
| collection | DOAJ |
| description | ABSTRACTThis study examines the impact of capital market on the relationship between energy consumption and carbon emissions. By employing a system Generalised Methods of Moments (GMM) for a sample of 138 developing countries over the period, 1990–2020, we find a U-shaped reverse relationship between renewable energy consumption and carbon emissions. The study reveals that beyond a threshold of 71.03, renewable energy consumption tends to increase carbon emissions. Similarly, the initial levels of carbon emissions reduce the use of renewable energy but beyond a 2.5 level of carbon emissions, renewable energy consumption begins to increase. We find that both the stock market and bond market reduce carbon emissions and enhance the levels of renewable energy consumption. We provide evidence to support that the capital market enhances the negative impact of renewable energy consumption on carbon emissions, while the corporate bond market magnifies the reductive effect of carbon emissions on renewable energy consumption. |
| first_indexed | 2024-03-11T13:26:39Z |
| format | Article |
| id | doaj.art-9613706eaf694b308445229ae926ee50 |
| institution | Directory Open Access Journal |
| issn | 1478-6451 1478-646X |
| language | English |
| last_indexed | 2024-03-11T13:26:39Z |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | International Journal of Sustainable Energy |
| spelling | doaj.art-9613706eaf694b308445229ae926ee502023-11-03T06:19:09ZengTaylor & Francis GroupInternational Journal of Sustainable Energy1478-64511478-646X2023-12-014211407142910.1080/14786451.2023.2268857Renewable energy consumption and carbon emissions in developing countries: the role of capital marketsDaniel Ofori-Sasu0Joshua Yindenaba Abor1George Nana Agyekum Donkor2Isaac Otchere3University of Ghana Business School, Legon-Accra, GhanaUniversity of Ghana Business School, Legon-Accra, GhanaECOWAS Bank for Investment and Development, EBID, Lomé, TogoCarleton University, Ottawa, CanadaABSTRACTThis study examines the impact of capital market on the relationship between energy consumption and carbon emissions. By employing a system Generalised Methods of Moments (GMM) for a sample of 138 developing countries over the period, 1990–2020, we find a U-shaped reverse relationship between renewable energy consumption and carbon emissions. The study reveals that beyond a threshold of 71.03, renewable energy consumption tends to increase carbon emissions. Similarly, the initial levels of carbon emissions reduce the use of renewable energy but beyond a 2.5 level of carbon emissions, renewable energy consumption begins to increase. We find that both the stock market and bond market reduce carbon emissions and enhance the levels of renewable energy consumption. We provide evidence to support that the capital market enhances the negative impact of renewable energy consumption on carbon emissions, while the corporate bond market magnifies the reductive effect of carbon emissions on renewable energy consumption.https://www.tandfonline.com/doi/10.1080/14786451.2023.2268857Renewable energy consumptioncapital marketcarbon emissionsE44F63F64 |
| spellingShingle | Daniel Ofori-Sasu Joshua Yindenaba Abor George Nana Agyekum Donkor Isaac Otchere Renewable energy consumption and carbon emissions in developing countries: the role of capital markets International Journal of Sustainable Energy Renewable energy consumption capital market carbon emissions E44 F63 F64 |
| title | Renewable energy consumption and carbon emissions in developing countries: the role of capital markets |
| title_full | Renewable energy consumption and carbon emissions in developing countries: the role of capital markets |
| title_fullStr | Renewable energy consumption and carbon emissions in developing countries: the role of capital markets |
| title_full_unstemmed | Renewable energy consumption and carbon emissions in developing countries: the role of capital markets |
| title_short | Renewable energy consumption and carbon emissions in developing countries: the role of capital markets |
| title_sort | renewable energy consumption and carbon emissions in developing countries the role of capital markets |
| topic | Renewable energy consumption capital market carbon emissions E44 F63 F64 |
| url | https://www.tandfonline.com/doi/10.1080/14786451.2023.2268857 |
| work_keys_str_mv | AT danieloforisasu renewableenergyconsumptionandcarbonemissionsindevelopingcountriestheroleofcapitalmarkets AT joshuayindenabaabor renewableenergyconsumptionandcarbonemissionsindevelopingcountriestheroleofcapitalmarkets AT georgenanaagyekumdonkor renewableenergyconsumptionandcarbonemissionsindevelopingcountriestheroleofcapitalmarkets AT isaacotchere renewableenergyconsumptionandcarbonemissionsindevelopingcountriestheroleofcapitalmarkets |