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

Abstract

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.

Keywords

• Renewable energy consumption
• AMG estimator
• Income inequality
• OECD countries
• Trade openness