Energy import dependence, renewable energy deployment, and carbon emissions in G20 countries

Abstract

Against the background of unbalanced global energy distribution and increased exogenous shocks to energy trade, major countries bear special responsibilities for energy security and the achievement of greenhouse gas emission reduction under the Paris Agreement. Stabilizing energy supply chains and deploying renewable energy on a large scale are seen as fundamental ways to address both issues. To this end, this paper uses a sample of G20 countries covering the period 1980–2020 to estimate the links between energy import dependence, renewable energy deployment, and carbon emissions per capita. The results indicate that the energy import dependence of G20 countries can act as a combined brake on carbon emissions in large developed countries and emerging market countries, suggesting that global energy trade also has an additional role in reducing carbon emissions. Oil import dependence as one of the robustness check strategies further confirms these findings. The impact mechanism estimates imply that the channel for reducing carbon emissions of energy import dependence was to prompt countries to accelerate renewable energy deployment. Within the established framework of energy demand and economic growth, the universal deployment of renewable energy is a fundamental way to achieve environmental friendliness. These findings provide insights into multinational coordinated policies that ensure open and cooperative international energy markets and a transnational energy trading system that puts humanity on a path to global carbon neutrality.