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Exploring the nexus: Climate change concerns, renewable energy, and carbon emissions
1Department of Finance, NEOMA Business School, France.
Abstract:
Amid growing concerns over sustainable development, understanding how public concerns regarding governmental, legal, societal, and environmental factors interact to influence renewable energy production and carbon emissions is essential. We utilize news-based data and TVP-VAR model to explore these dynamic interlinkages. The findings show that government programs are the most influential drivers within the shock transmission network, significantly impacting renewable energy development. Social events and environmental risks influence renewable energy production and carbon emissions through government programs. We find a two-way relationship: carbon emissions drive renewable energy production, which, in turn, reduces emissions. Legal actions are primarily reactive, adapting to evolving climate concerns and carbon emission trends. Major climate events, such as the 2009 Copenhagen Conference and the 2015 Paris Agreement, reshaped the influence network. Following these events, government programs and social events became stronger drivers of renewable energy development. These insights offer practical implications for designing targeted interventions to accelerate the transition toward sustainability and effective climate action.
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