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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.
Economic activities and CO2 emissions: Evaluating the impacts of renewable energy, industrial growth, and financial development in CO2-intensive economies Dallali, Atef; Ben Jebli, Mehdi
International Journal of Renewable Energy Development Vol 14, No 6 (2025): November 2025
Publisher : Center of Biomass & Renewable Energy (CBIORE)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61435/ijred.2025.61779

Abstract

This study addresses the pressing challenge of mitigating carbon dioxide (CO2) emissions within the top ten emitting countries, which are critical to achieving global climate goals yet often analyzed separately. We investigate the intricate relationships between economic growth (GDP), renewable and non-renewable energy consumption (RE, NRE), financial development (FDI), industrial value-added (IVA), and CO2 emissions from 1990 to 2021, overcoming the limitations of single-country studies and mixed findings in existing literature. Employing a panel-based Pooled Mean Group-Autoregressive Distributed Lag (PMG-ARDL) model and Granger causality tests, we disentangle short-run and long-run dynamics, revealing that non-renewable energy significantly increases emissions while renewable energy, financial development, and industrial value-added offer mitigating effects. We provide nuanced evidence supporting the Environmental Kuznets Curve (EKC) hypothesis, suggesting a potential pathway toward sustainable growth. Furthermore, Granger causality analysis reveals significant bidirectional relationships, highlighting the interconnectedness of economic and environmental factors. We translate these findings into actionable policy recommendations, emphasizing targeted investments in clean technologies and financial strategies to foster industrial development while simultaneously curbing emissions. By providing a comprehensive analysis of these dynamics within a key group of countries, this research offers critical insights for overcoming the challenges of emissions reduction and achieving sustainable development.