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Nadia Lasa Martalita
Universitas Sriwijaya, Palembang, Indonesia
Economics, Econometrics & Finance

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Renewable Pathways Toward Decarbonization: Panel Evidence from EM7 Countries Nadia Lasa Martalita; Mukhlis Mukhlis; Abdul Bashir
Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol 9 No 2 (2026): Sharia Economics
Publisher : Universitas KH. Abdul Chalim Mojokerto

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31538/iijse.v9i2.10836

Abstract

Climate change driven by high CO₂ emissions has become a critical global challenge, particularly for emerging market economies that are experiencing rapid economic growth while remaining heavily reliant on fossil fuels. This study investigates the impact of the energy transition on CO₂ emissions in the seven largest emerging market economies (EM7), namely Brazil, China, India, Indonesia, Mexico, Russia, and Turkey, over the period 1990–2023, using panel data regression with a Fixed Effect Model. The empirical results indicate that energy intensity, GDP per capita, and population have a positive and statistically significant effect on CO₂ emissions, reflecting the environmental pressure from economic activity, population growth, and inefficient energy use. In contrast, renewable energy consumption has a negative and significant effect on CO₂ emissions, confirming the effectiveness of the energy transition in mitigating carbon output. These results highlight that expanding renewable energy adoption can offset the environmental impacts of economic and demographic growth, supporting the goals of the Paris Agreement and Sustainable Development Goal (SDG) 13 on climate action. The study provides important policy implications for governments, industry stakeholders, and society in emerging market economies, particularly in designing sustainable energy policies that balance economic growth with environmental sustainability.
Co-Authors Abdul Bashir Mukhlis Mukhlis