Can Renewable Energy, Carbon Taxes, and Economic Growth Mitigate Countries’ Carbon Emissions?

Abstract

The objective of this study is to provide empirical evidence on the effect of different types of renewable energy use (wind, solar, and hydro), the existence of carbon taxes, and economic growth conditions on carbon emissions of countries. The sample of this research is countries in the world in the 11-year observation period from 2010 to 2020 for 47 countries. The analysis method uses the panel data method stage. The results show that renewable energy, especially wind and solar, significantly affects a country’s carbon emissions in terms of electricity generation and installed capacity. While the installed capacity of hydropower affects emissions, its generation does not. The presence of a carbon tax and a country’s GDP have no effect on the level of carbon emissions. These findings emphasize the paramount importance of renewable energy in mitigating carbon emissions.