Energies, Vol. 18, Pages 4363: The Effects of Renewable Energy, Economic Growth, and Trade on CO2 Emissions in the EU-15

Energies, Vol. 18, Pages 4363: The Effects of Renewable Energy, Economic Growth, and Trade on CO2 Emissions in the EU-15

Energies doi: 10.3390/en18164363

Authors:
Nemanja Lojanica
Danijela Pantović
Miloš Dimitrijević
Saša Obradović
Dumitru Nancu

This study examines the impact of renewable energy, economic growth, and trade openness on CO2 emissions in the EU-15 countries over the period 1980–2022, employing the ARDL modeling framework. In addition, a panel PMG-ARDL model is employed as a robustness check. The analysis identifies cointegration among the variables in 11 out of the 15 countries studied. Economic growth is found to increase CO2 emissions, highlighting the ongoing challenge of aligning economic expansion with environmental objectives. The estimated coefficients for economic growth range from 0.43 to 5.70, depending on the country. Renewable energy significantly reduces emissions, highlighting its critical role in achieving sustainability (the corresponding coefficient moves in the range −0.13 to −0.96). Trade openness generally shows a neutral impact on emissions across most cases. Overall, renewable energy contributes to reducing CO2 emissions, whereas the effects of economic growth and trade openness remain mixed and country-specific. These findings highlight the need to promote cleaner technologies, enhance energy efficiency, and ensure broader access to environmentally friendly energy sources.