Consumption and Territory Based CO2 Emissions, Renewable Energy Consumption, Exports and Imports Nexus in South America: Spatial Analyses

The present research investigates the environmental effects of trade, Renewable Energy Consumption (REC), and industry value-added in South America, doing spatial analyses from 1990-2018. The income per capita has a positive effect on the local CO2 emissions. Further, it has negative environmental spillovers in neighboring countries regarding consumption-based CO2 emissions but not in terms of territory-based CO2 emissions. Exports have negative and positive effects on consumption and territory-based CO2 emissions, respectively. Moreover, exports carry positive environmental spillovers in neighboring countries in case of both consumption and territory-based CO2 emissions. Imports have a positive effect on consumption-based CO2 emissions but could not affect territory-based CO2 emissions. Industry value-added has negative environmental spillovers in the case of consumption based CO2 emissions. REC helps to reduce consumption and territory-based CO2 emissions in both local and neighboring countries.

Automated summary

This research investigates the environmental effects of trade, Renewable Energy Consumption (REC), and industry value-added in South America. The study finds that income per capita has a positive effect on local CO2 emissions, while exports have negative effects on consumption-based CO2 emissions and positive effects on territory-based CO2 emissions. Imports have a positive effect on consumption-based CO2 emissions. Industry value-added has negative environmental spillovers on consumption-based CO2 emissions. REC helps reduce CO2 emissions in both local and neighboring countries.