Revisiting energy efficiency and energy related CO₂ emissions: Evidence from RCEP economies

Since the last four decades, energy demand has been reached to the utmost level, which also leads to emissions and causes environmental degradation, global warming and climate change all over the world. In this sense, policy makers have suggested various measures including renewable adoption and energy efficiency. Current study aims to investigate the influence of economic growth, energy consumption, renewable electricity output, and energy efficiency on the energy related emissions. A panel of 12 RCEP economies are examined covering the period 1990-2020. Since the data follows irregular path, therefore a novel method of moment panel quantile regression is employed along with the Granger causality test. The empirical results indicate that economic growth and energy consumption significantly enhances energy related emissions, where the magnitude and significance level is found strengthening from lower to upper quantiles (Q_0.25, Q_0.50, Q_0.75 and Q_0.90). Conversely, renewable electricity and energy efficiency are the significant tools for lowering energy related emissions in the region. Additionally, a unidirectional causality is found from energy consumption and renewable electricity output to energy related emissions. However, a feedback effect is validated between economic growth, energy efficiency, and energy related emissions. Based on the empirical findings, this study suggests enhancement of renewable electricity output and adoption of energy efficient technologies to reduce environmental degradation and emission level.