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An increase in energy consumption indicates increased economic activity; whether it leads to prosperity depends on the sustainability and stability of the energy source. This study has selected the top ten highly carbon emitting countries to assess renewable energy consumption dynamics for 1991 to 2018. The development of renewable energy ventures is not an overnight transformation. Further, it also entails an infrastructure development gestation which may increase CO2 emissions for the short term. To assess this non-linear pattern with CO2 and its heterogeneities, renewable energy consumption and its three types (Wind, Solar and Hydropower) are used. The empirical results estimated with a pooled mean group (PMG) method indicate that renewable energy consumption and hydropower follows inverted U-shaped behavior, with wind and solar energy consumption behavior also U-shaped. Forest area and patents are responsible for carbon remissions, while economic growth is responsible for increasing carbon emissions in sampled countries.

Renewable Energy Consumption and Carbon Emissions—Testing Nonlinearity for Highly Carbon Emitting Countries