The dynamics of CO 2 emissions, energy consumption, and economic development: evidence from the top 28 greenhouse gas emitters

Previous studies have done more research on the relationship between carbon emission reduction, energy consumption, and economic growth in specific countries or regions, which rarely consider the issue of heterogeneity between countries or regions, and also lack the refinement of energy consumption categories. Using panel data from 2000 to 2017, this paper divided the top 28 global carbon emission countries into developed countries and developing countries, and explores co-integration and causality between renewable energy consumption, non-renewable energy consumption, economic growth, and carbon emission. Results suggested that there is a two-way causal relationship between carbon emissions and economic growth in all economies. There is a two-way causal relationship between economic growth in developed countries and consumption of renewable and non-renewable energy, while there is no significant relationship between economic growth and energy consumption in developing countries. There is a two-way causal relationship between carbon emissions and renewable energy in all economies, but there are significant differences; there is a two-way causal relationship between carbon emissions in developed countries and non-renewable energy, and only one-way causality exists in developing countries.