Electricity Production Sources and CO2 Emission in OECD countries: Static and Dynamic Panel Analysis
Keywords:Carbon dioxide, Environmental impact, Economics, Renewable, Sustainability
Industrialization, urbanization, population growth, and changes in lifestyle have all contributed to a rise in the OECD countries' risk of global warming. The amount of carbon dioxide (CO2) generated from heat and power sources put out is directly related to how much electricity they make. Finding out which sources are bad for the environment, and which are not is the primary motivation behind this study. The impact of different approaches to energy production on carbon dioxide emissions is analyzed using OECD data. The data is analyzed using Quantile Regression (QR), Generalized Method of Moments (GMM), and Pooled Ordinary Least Squares (OLS). The study found that CO2 emissions were significantly impacted in a positive direction when electricity was generated using coal, oil, or gas. The emissions from coal-fired power plants are the most detrimental. The generation of hydroelectricity and other forms of renewable energy can reduce CO2 emissions in all regression models. The most compelling evidence of a correlation between CO2 emissions and energy sources was uncovered in this study. In order to produce credible findings, the paper used both QR and GMM methods. Important implications for environmental policy are drawn from this article's findings. Both are required to lessen our reliance on fossil fuels and promote the development of renewable energy sources like solar, wind, and hydroelectricity.