ECONOMIC GROWTH, RENEWABLE ENERGY, AND LAND USE: THEIR IMPACT ON CARBON EMISSIONS IN EUROPE AND ASIA

Abstract

This study examines the effect of economic growth, use of renewable energy, urbanization, industry, tourism, agriculture, and deforestation on carbon emissions in Europe and Asia. We employ Fully Modified Ordinary Least Squares (FMOLS) analysis to investigate the relationships between these variables. We use data on 40 Asian and 45 European countries. Our results show that economic expansion, industrialization, urbanization, and tourism significantly raise carbon emissions. On the other hand, forest acreage and the use of renewable energy sources reduce the emissions. The results highlight that there are regional differences, with Asia's economic activity being more heavily responsible for emissions. Moreover, we find that Europe is gaining from increased use of renewable energy sources and sustainable land management. The study highlights the need for region-specific laws that encourage the use of region-specific policies.