Economic Globalization, Renewable Energy, and CO2 Emissions in Selected Emerging Countries

Xenaneira Shodrokova, Anna Yulianita, Abdul Bashir

Sriwijaya University, Prabumulih, Indonesia

Abstract

The phenomenon of economic globalization (EG) has a significant impact on CO₂ emissions in emerging countries. This research seeks to examine the influence of EG and renewable energy consumption (REC) on CO₂ emissions by utilizing secondary data from the World Bank spanning the years 2000 to 2022. The study hypothesizes that EG contributes to higher CO₂ emissions, whereas the REC leads to a reduction in CO2 emissions. This study uses the Data Regression Results Panel with a Random Effect Model to analyze the data. The results show that EG contributes to economic growth accompanied by increased CO₂ emissions. Rapid increases in economic activity and industrialization, often driven by FDI and international trade, lead to increased use of fossil energy and CO₂ emissions. These findings support the pollution haven hypothesis that suggests that high-polluting production tends to move to countries with looser environmental regulations. However, the study also found that increased REC is associated with a decrease in CO₂ emissions. The theoretical significance of the results of this study shows that while EG can drive economic growth, it also has a negative impact on the environment. In practical terms, this research underscores the necessity for policies that promote the use of renewable energy, enhance energy efficiency, and enforce stringent environmental regulations to mitigate the adverse environmental effects of economic globalization. Measures such as the promotion of renewable energy, the transfer of green technologies, increasing public awareness of environmental sustainability, diversifying the economy into greener sectors, and developing green infrastructure are essential.

Keywords

economic globalization; renewable energy; CO2 emission; emerging countries

JEL classification

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About Authors

Xenaneira Shodrokova

S.E, Master of Economics Student, Faculty of Economics, Sriwijaya University, Prabumulih, Indonesia (Jl. Palembang, Ogan Ilir Regency, Indralaya Indah, Kec. Indralaya, Prabumulih City, South Sumatra 30862, Indonesia); ORCID https://orcid.org/0009-0003-8034-6617 e-mail: xenaneira12@gmail.com

Anna Yulianita

S.E., M.Si, Lecturer and Coordinator of the Master of Economics Study Program, Faculty of Economics, Sriwijaya University, Prabumulih, Indonesia (Jl. Palembang, Ogan Ilir Regency, Indralaya Indah, Kec. Indralaya, Prabumulih City, South Sumatra 30862, Indonesia); ORCID https://orcid.org/0000-0001-8744-3274 e-mail: annayulia@unsri.ac.id

Abdul Bashir

S.E., M.Si, Lecturer in Development Economics, Faculty of Economics, Sriwijaya University, Prabumulih, Indonesia (Jl. Palembang, Ogan Ilir Regency, Indralaya Indah, Kec. Indralaya, Prabumulih City, South Sumatra 30862, Indonesia); ORCID https://orcid.org/0000-0002-4771-1366 e-mail: abd.bashir@unsri.ac.id

For citation

Shodrokova, X., Yulianita, A., Bashir, A. (2024). Economic Globalization, Renewable Energy, and CO₂ Emissions in Selected Emerging Countries. Journal of Applied Economic Research, Vol. 23, No. 3, 602-622. https://doi.org/10.15826/vestnik.2024.23.3.024

Article info

Received June 14, 2024; Revised July 9, 2024; Accepted July 16, 2024.

DOI: https://doi.org/10.15826/vestnik.2024.23.3.024

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