The impact of energy efficiency and renewable energy consumption on carbon emissions in G7 countries

Abstract

This study analyzes the impact of energy efficiency and renewable energy use on carbon emissions in G7 countries. The period examined covers the years 1971–2023. There are two important results. The first is the cointegration relationship between the variables. Accordingly, there is a long-run cointegration relationship between energy efficiency, renewable energy use and carbon emissions. The second is the direction and strength of this long-run relationship. When energy efficiency increases, carbon emissions decrease. This result is consistent with general expectations. On the other hand, there is a positive relationship between renewable energy consumption and carbon emissions. This result is not consistent with general expectations. The existence of a positive relationship between renewable energy consumption and carbon emissions is an issue that needs to be discussed.

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