The Effects of Corruption, Renewable Energy, Trade and CO2 Emissions

Corruption reflects a set of illegal activities that jeopardize the smooth functioning economies, society, and climate environmental issues. This article tests relationships between economic growth, corruption, renewable energies, international trade, carbon dioxide emissions using panel data for European countries, namely Portugal, Spain, Italy, Ireland, Greece, from 1995–2015. As an econometric strategy, this research uses fully modified least squares (FMOLS), dynamic (DOLS), two-stage estimator (TSLS). Considering variables utilized in unit root test, we observed are integrated I (1) first difference. The cointegrated long run, Pedroni Kao residual cointegration test arguments. methodology Dumitrescu–Hurlin to causality emissions, energy shows there is unidirectional corruption growth corruption. results suggest index have statistically significant positive impact on emissions. However, energies trade reduce change improve quality.