Energy Efficiency, Utilization of Renewable Energies, and Carbon Dioxide Emission: Case Study of G20 Countries

Abstract

Greenhouse gas emissions highly contribute to the climate change, in which the world pays big concern. The world’s 20 largest economies, the G20, supports around 86% of world GDP, 80% of total world trade and two-thirds of the world population, which make it contribute to 85% of the world’s energy-related emissions. This high emission level makes the G20 in need to implement a set of policies on energy efficiency and develop the implementation of friendly-renewable energy. This study analyzes the effects of energy efficiency and utilization of renewable energy on CO₂ emissions in the G20 countries, by applying the panel fixed effect model approach of data from 2000 to 2013. The result shows that energy efficiency and renewable energy affect negatively on CO₂ emissions. Implementing renewable energy has a greater effect on reducing CO₂ emissions than applying energy efficiency. The result also shows that population and per capita income affect positively on CO₂ emissions.