Green Growth or Grey Future? Evidence from Next 11 Countries
Abstract
This study provides a comprehensive analysis of the relationship between CO₂ emissions, per capita income (GDP), per capita renewable energy consumption, overall per capita energy use, and trade openness for the Next Eleven (N11) countries over the period 1986–2023, within the conceptual framework of the Environmental Kuznets Curve (EKC). By employing both static and dynamic panel data estimation techniques, the research captures not only the immediate but also the long-term interactions between economic growth, energy use, and environmental outcomes. The empirical results indicate that rising per capita income and increased reliance on conventional energy sources are significant drivers of CO₂ emissions in N11 countries, reflecting the environmental costs of rapid industrialization and economic expansion. In contrast, higher levels of renewable energy consumption are found to play a crucial role in reducing emissions, emphasizing the importance of transitioning towards sustainable energy systems. Additionally, the validation of the EKC hypothesis suggests a non-linear relationship between economic growth and environmental quality. These findings highlight the urgent need for N11 countries to adopt policies that accelerate investment in renewable energy infrastructure, enhance energy efficiency, and integrate environmental considerations into their growth strategies in order to mitigate pollution and support sustainable development.
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References
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