| Article Information |
| Journal: |
Business and Economics Research Journal |
| Title of Article: |
Threshold Effect of Renewable Energy Consumption on Carbon Dioxide Emissions: The Case of the European Union |
| Author(s): |
Ömer Akkuş, Bahadır Furkan Güler |
| Volume: |
16 |
| Number: |
3 |
| Year: |
2025 |
| Page: |
243-259 |
| ISSN: |
2619-9491 |
| DOI Number: |
10.20409/berj.2025.466 |
|
| Abstract |
| This study examines the effects of renewable energy consumption on carbon dioxide emissions in 21 European Union (EU) member countries for the period 2001-2019. In this study, instead of explaining the heterogeneity structure in the fixed parameters, the structural features of the slope parameters are analyzed. In this context, the panel threshold model is used to indicate regime changes in the relationships between variables. While the findings reveal that renewable energy consumption has a single threshold value, it has been determined that this variable affects carbon dioxide emissions with two different regimes. The results of both regimes reveal that an increase in renewable energy consumption reduces carbon dioxide emissions, but the magnitude of this effect is different in each regime. Another important result is that policies regarding renewable energy consumption in these EU members will affect each other due to cross-sectional dependency. These results indicate the importance of increasing renewable energy investments and implementing energy efficiency policies together. Moreover, the development of common energy policies across EU countries can support a sustainable energy transition, but this process needs to consider national differences and flexibility of implementation. |
| Keywords: |
Renewable Energy, Energy Consumption, Carbon Dioxide Emissions, Panel Threshold Model, European Union |
|
| JEL Classification: |
Q42, O52 |
|
