Renewable energy, economic freedom and economic policy uncertainty: New evidence from a dynamic panel threshold analysis for the G-7 and BRIC countries

IŞIK C., Simionescu M., Ongan S., Radulescu M., Yousaf Z., Rehman A., ...More

Stochastic Environmental Research and Risk Assessment, vol.37, no.9, pp.3367-3382, 2023 (SCI-Expanded) identifier

  • Publication Type: Article / Article
  • Volume: 37 Issue: 9
  • Publication Date: 2023
  • Doi Number: 10.1007/s00477-023-02452-x
  • Journal Name: Stochastic Environmental Research and Risk Assessment
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Academic Search Premier, CAB Abstracts, Compendex, Environment Index, Geobase, Index Islamicus, Pollution Abstracts, zbMATH, Civil Engineering Abstracts
  • Page Numbers: pp.3367-3382
  • Keywords: BRIC and G-7 countries, EKC hypothesis, EPU, Renewable energy consumption
  • Anadolu University Affiliated: Yes


This study aims to demonstrate the impact of renewable energy consumption (REC) on environmental degradation using the EKC hypothesis testing for the BRIC and G-7 countries. Two EKC models were created and tested, with Model 2 including REC and other independent variables such as economic freedom (EF) and economic policy uncertainty (EPU), which affect the level of renewable energy consumption and CO2 emissions. Empirical findings indicate that the EKC hypothesis is verified faster in the REC-EF-EPU-based EKC model (Model 2) than in the EF-EPU-based EKC model (Model 1) for G-7 countries since the turning point takes place earlier in Model 2 than in Model 1 with REC. This suggests that renewable energy consumption accelerates the reduction of CO2 emissions. Moreover, this earlier turning point results in lower environmental cleaning costs, less time vesting, and saving resources and money for G-7 countries. However, the study found no evidence supporting the EKC hypothesis for the BRIC countries.