Renewable Energy, Trade and Economic Growth on Nitrous Oxide Emission in G-7 Countries Using Panel ARDL Approach

Abstract

This study's objective is to evaluate the influences of numerous variables, including trade openness, renewable energy, and gross domestic product, on nitrous oxide emissions from 1990 to 2022. The Kao and Pedroni result demonstrates that the variables are cointegrated. This study the relationships between renewable energy, GDP, and trade openness on CO2 emission in G-7 nations. Using the Panel ARDL approach, the results show that, in the long run, there is a positive and significant correlation between GDP and trade openness on nitrous oxide emission in G-7 countries. Additionally, there is an insignificant but positive link between renewable energy and N2O emissions. Our proposal to political leaders and government officials is that they should strongly encourage foreign investors to participate in the production of clean and renewable energy, such as green energy, rather than conventional energy, in order to both support the activities of our economy and promote environmental stability. The government has to impose rigorous environmental laws and regulations, as well as come up with incentives for people to follow those policies, in order to enhance the overall quality of the environment.