Investigating the Role of Renewable and Non-Renewable Energy and Economic Growth on Carbon Emission in OECD Countries

Increased exploitation and consumption of fossil resources in the last century and competitive efforts for economic growth and development have led to excessive emissions of carbon dioxide, resulting in widespread environmental degradation and climate changes. Therefore, it is necessary to study the relationship between the level of economic activities and environmental indicators for optimal management and protection of the environment along with attention to economic progress. Achieving the goal of controlling global warming depends on a significant reduction in greenhouse gas emissions, which in turn is significantly related to energy consumption, especially fossil fuels. In this study, the effects of renewable energy and non-renewable energy consumption along with economic growth, trade openness, and financial development on Carbon dioxide emissions have been investigated using the panel method to show the interactions and interactive behavior of variables. This study was conducted using data available for the OECD countries and the period from 1990 to 2014. The results show that there is a positive and significant relationship between increased carbon dioxide emissions and the consumption of non-renewable energy. Economic growth, renewable energy consumption, trade openness, and financial development reduce carbon dioxide emissions and improve environmental conditions.