The impact of renewable energy consumption, trade openness, CO2 emissions, income inequality, on economic growth

This research explores the influence of real oil prices, trade openness, carbon emanations, economic growth, and income inequality on renewable energy consumption (REC) in twenty (20) OECD nations from 1991 to 2020 by employing the AMG assessor, which takes into account slope heterogeneity (SH) and CSD. The empirical outcomes confirm a significant favorable long-run relationship between these nexus, except for Carbon emanations, which are adversely related with REC, respectively. The findings also reveal that trade openness, REC, income inequality, and real oil prices all have a one-way causal relationship with CO2 emanations. Notwithstanding, it has discovered that there is bi-directional causality between income inequality and REC.

Automated summary

This research examines the impact of real oil prices, trade openness, carbon emissions, economic growth, and income inequality on renewable energy consumption. The empirical results show a significant positive long-term relationship between these factors and renewable energy consumption, except for carbon emissions. The findings also indicate a one-way causal relationship between trade openness, renewable energy consumption, income inequality, and real oil prices with CO2 emissions. However, it is found that there is a bi-directional causality between income inequality and renewable energy consumption.