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Journal : International Journal of Renewable Energy Development

Analyzing the influence of structural changes on CO2 emissions in OECD countries: Employing panel cointegration techniques Kahouli, Zohra; Hasni, Radhouane; Ben Jebli, Mehdi
International Journal of Renewable Energy Development Vol 14, No 1 (2025): January 2025
Publisher : Center of Biomass & Renewable Energy (CBIORE)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61435/ijred.2025.60697

Abstract

Structural transformations in OECD countries significantly influence carbon dioxide (CO2) emissions, affecting economic and social dimensions. These transformations encompass changes in industrial composition, technological progress, energy consumption patterns, and policy frameworks. This research investigates the impact of such structural shifts on CO2 emissions across a panel of 38 OECD countries between 2000 and 2021, using panel cointegration techniques to ensure robust analysis. The study confirms the presence of cross-sectional dependence among countries and establishes long-run cointegration relationships. Results from Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) models indicate that renewable energy, advancements in information and communication technology, and structural changes significantly reduce CO2 emissions. In contrast, economic growth, reliance on non-renewable energy, and institutional quality are linked to higher emissions. However, estimates derived from Panel-Corrected Standard Errors (PCSE) and Mean Group Panel (MGP) methods differ from those of FMOLS and DOLS, underscoring potential methodological variances in evaluating these relationships. This study highlights the pivotal role of structural changes in emission reduction strategies, while also emphasizing the importance of methodological choices in policy analysis. The findings provide valuable insights for policymakers aiming to align economic growth with environmental sustainability within OECD countries. Moreover, the research stresses the necessity of incorporating structural changes into long-term climate strategies to ensure their effectiveness. Future studies could expand the analysis by integrating more recent data and exploring non-linear relationships to refine policy recommendations further.
The polluters' paradox: Exploring the impact of green transition potential on carbon emissions in top ten emitters Hamrouni, Daghbagi; Kahouli, Zohra; Hasni, Radhouane; Ouerghi, Imen
International Journal of Renewable Energy Development Vol 15, No 2 (2026): March 2026
Publisher : Center of Biomass & Renewable Energy (CBIORE)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61435/ijred.2026.62024

Abstract

Understanding the determinants of CO2emissions and the real possibilities for energy transition is essential to supporting sustainable growth, particularly for the world's ten largest emitters. These countries present a notable paradox: despite high economic complexity and efforts towards green transition, their emissions remain among the highest, revealing a persistent structural dependence on carbon-intensive activities and thus calling into question their effective capacity to sustainably reduce their emissions. This study fills a gap by simultaneously analyzing polluting specialisation and green transition potential using two indicators derived from economic complexity: the Brown Lock-In Index (BLI) and the Green Complexity Potential (GCP). The analysis, conducted on a panel of the ten largest CO2 emitters between 1999 and 2023 using FMOLS and PCSE estimators, shows that a carbon-intensive economic structure significantly increases emissions, while a higher green complexity potential contributes to their reduction. Furthermore, while economic growth and the use of non-renewable energies intensify environmental pressure, the consumption of renewable energies plays an important mitigating role. By highlighting the combined effect of polluting specialization and transition potential, this study offers decision-makers a structured understanding of the sources of their emissions and the real margins for transitioning to a low-carbon economy.