The impact of energy consumption preferences on CO2 emissions from different economic activities
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Date
2021
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Publisher
UMT,Lahore
Abstract
The objective of the study is to trace the impact of fossil fuel energy resources and reusable energy
resources on the CO2 emissions. To serve the purpose data regarding two of the main sectors of the
economy namely: production and logistics along with other control variables is used from IPCC. The
study is conducted for top 65 countries of the world from 1970 to 2016. The countries are
categorized from most to least in the list of CO2 emissions on the basis of data extracted from World
Bank Indicators. This study has estimated two models each of production and logistics taking
instance of two energy resources with other independent variables like population density, trade
openness and industry value added. The findings of the first model of logistics show that CO2
emissions fall by 2.2% with renewable energy resources. The results of the second model reveal that
CO2 emissions tend to increase with fossil fuel energy consumption. Similarly, in case of production,
the first model indicates the inverted U shaped graph reflecting the initial increase in CO2 emissions
with renewable energy consumption and fall in it eventually in the long run. The impact of other
independent variables is subject to the careful implementation as in case of logistics, with renewable
energy consumption practices the industry value added shows a substantial 91% decrease in CO2
emissions, although population density a marginal increase of 1% and trade openness shows a
decrease in CO2 emissions by almost 90%, while with continuation of fossil fuel energy consumption
practices although the CO2 emissions decrease but the impact is very little. Taking instance of
production sector the impact with both renewable and fossil fuel energy consumption is little but it
would be wise enough for the governments of the countries to adopt renewable energy consumption
practices for a longer more prosperous environmental preservation.