Renewable and non-renewable energy consumption, economic growth, and carbon emissions: evidence from G20 countries

This study analyses the relationship between energy consumption, economic growth, and carbon emissions in G-20 countries from 1966 to 2022. Employing panel co-integration tests and Granger causality analysis, the results show that most G-20 nations follow the growth hypothesis, where restrictions on energy consumption negatively affect economic growth. Conversely, increased energy consumption is positively associated with economic development. These findings suggest that while reducing energy use is necessary to combat carbon emissions and global warming, it must be done strategically to avoid hindering economic growth. Effective energy-saving policies are crucial to strike a balance between environmental sustainability and economic advancement for long-term global prosperity.