Does Renewable Energy Sector Affect Industrialization-CO2 Emissions Nexus in Europe and Central Asia?

Current research assesses the impact of industrialization and renewable energy sector on greenhouse gas emissions, proxied by CO2 emissions in Europe Central Asia. We rely a two-step system GMM estimator sample 48 countries over period 2000–2018. Empirical results show that has positive effect emissions: 10% increase industry value added as % GDP leads to an 2.6% emissions. In contrast, mitigates Ten percentage points consumption reduces per capita 2.2%. The interaction term between is negative, suggesting compensates for negative environmental quality. Our main also confirm U-shaped inverted relationship study number policy implications avenues future research.