Proposing Sustainable Development and Growth Strategies for CIS-7 Countries by Investigating the Persistence of Consumption-Based and Production-Based CO2 Emissions

Abstract

The increase in production is of great importance for economic growth. Energy is an irreparable input for economic growth. Besides, the basic routine activities of human beings, such as transportation, cooking, and heating, cannot be managed without energy. However, in countries that produce using fossil energy resources, CO₂ emissions are increasing day by day. Another critical factor that increases economic growth is the increase in exports. The increase in exports of products produced using fossil energy resources leads to increased CO₂ emissions and the environment becomes unsustainable. On the other hand, the future depletion of fossil energy resources will deal a resounding blow to the economies of the countries that export fossil energy and have high energy intensity. Within this scope, renewable energy is an essential and valid option to mitigate the harmful effects of environmental degradation and provide clean energy for sustainable development, economic growth initiatives, and the standard life of humans. Therefore, the study aims to investigate the persistence of consumption-based and production-based CO₂ emissions belonging to CIS countries between 1991 and 2019 by using ADF and FADF unit root tests. The test evidence plays a vital role in determining the sustainable development and renewable energy transition policies of CIS-7 countries with high energy intensity, the dominant role of fossil energy. As a result of the estimations, the production-based CO₂ emissions are applicable to implement the policies in Azerbaijan, Armenia, Belarus, Kyrgyzstan, Russia, and Ukraine. In contrast, the consumption-based CO₂ emissions of Azerbaijan, Kazakhstan, Russia, and Ukraine are persistently influenced by the policies.