Electricity from Renewable Energy Resources: Sustainable Energy Transition and Emissions for Developed Economies

Previous studies cover the connection between production-based carbon emissions and economic, financial, and environmental indicators. However, the comprehensive analysis still needs empirical evidence concerning the consumption-based carbon emissions. The present analyzes 21 industrialized countries during 1990–2020 by using the second-generation panel techniques. The study's results reveal the existence of the long-run equilibrium stable connection between the variables. Due to asymmetric data distribution, this research employed the novel method of moment quantile regression and found that economic growth is the leading factor of consumption-based carbon emission throughout the selected quantiles. However, electricity from renewable resources, research and development in renewable energy, environmental related taxes, and development of environmental related technologies substantially reduce consumption-based emissions and encourage environmental sustainability. This study concludes that an energy transition is an important tool for developed economies to confront the issue of degraded environmental quality.