The relationship between energy and non-energy factors and CO₂ emissions in New Zealand

The use of renewable energy as a fuel source and expansion of forest areas are the best ways for reducing CO₂ emissions. This study aims to examine the effects of forest plantation area, renewable energies, real gross domestic product (GDP), and technological innovation on CO₂ emissions in 9 regions of New Zealand between 2006 and 2019. For this purpose, it employs a pooled mean group methodology. Investigating the regional impacts of various variables, especially the forest area, on CO₂ emissions is the main contribution of this study. The results suggest that planted forest areas can reduce CO₂ emissions in the long run, but its impact in the short run is not significant. Non-renewable energy consumption is the major contributor to CO₂ emissions in both the short and long run. While technological innovation and renewable energy consumption appear effective in reducing carbon emissions in the short term, they still contribute to increased CO₂ emissions in the long term. At the regional level, we found that the forest plantation areas in Manawatu-Whanganui and Gisborne are important regions for reducing CO₂ emissions. By taking account of these results, New Zealand should take swift action to properly manage and increase the current level of forest areas and if applicable expand them. It also needs to improve the current level of use of renewable energy to achieve its abatement goals.