What impacts of renewable energy consumption on CO2 emissions and the economic and financial development? A panel data vector autoregressive (PVAR) approach

Abstract

This study employed a PVAR approach due its numerous advantages to investigate the relative effects of renewable energy consumption on CO2 emissions and the economic and financial development in 24 MENA countries from 1980 to 2012. Results highlight that the degree of effect of renewable energy use is not very pronounced, which implies that the renewable energy sector in these economies is in its immaturity. This study shows that the investigated countries should improve the renewable energy sector through providing banking loans for investment on green energy projects not only to reduce environmental damage but also to promote economic growth simultaneously.