Examining the Relationship between Renewable Energy Consumption and Total Factor Productivity on Consumption-Based Carbon Emissions in Major Oil-Exporting Countries
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Abstract
Carbon emissions represent a major global challenge threatening sustainability. As the energy sector is a key contributor to greenhouse gas emissions, this study examines the impact of renewable energy use and total factor productivity on consumption-based carbon emissions in 10 major oil-exporting countries during 2000–2020 using the Generalized Method of Moments (GMM). Unlike traditional measures, the study adopts consumption-based carbon emissions as the dependent variable. The independent variables include renewable energy consumption, total factor productivity (TFP), GDP, imports, and exports. The results show a statistically significant negative relationship between renewable energy use, TFP, and carbon emissions. Specifically, a 1% increase in renewable energy consumption and TFP reduces consumption-based carbon emissions by approximately 2% and 18%, respectively. The study recommends adopting incentive policies to promote renewable energy use, implementing carbon taxes, encouraging investment in clean energy, and adopting productivity-enhancing technologiesا
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