Assessing the Interaction among Energy Transition, CO2 Emissions and Green Growth in 63 Economies

Abstract

This paper analyzes the interactions among energy transition, CO2 emissions, and green growth in a sample of 63 countries. Cointegration, causality, and panel data models are estimated. The cointegration test shows a stable long-term relationship among the three variables under study. Furthermore, CO2 emissions and the energy transition cause green growth in the Granger sense, at least in the short term, with lags of one and two years. Similarly, dynamic panel data models show that the energy transition has a significant impact on reducing CO2 emissions and drives green growth, while CO2 emissions have negative effects on green growth in the whole sample. The results provide decision-makers with a solid foundation for designing and implementing public policies that promote the energy transition and reduce CO2 emissions, thereby driving green growth through the rapid implementation of this transition for a better environment and sustainable development.