The influence of renewable energy sources on CO₂ emissions: a multi-factor analysis across leading countries

The global community faces a critical challenge as rising CO₂ emissions threaten both environmental sustainability and human well-being. The swift addressing of these issues is crucial to preserving and enhancing environmental integrity. Therefore, c from 1990 to 2022, advanced statistical methods, including multiple diagnostic tests, Panel-Corrected Standard Errors (PCSE), and Feasible Generalized Least Squares (FGLS), were employed. The findings reveal that renewable energy is pivotal in mitigating CO₂ emissions, while Fintech and industrialization also contribute to reducing emissions. Conversely, geopolitical risk is found to exacerbate CO₂ emissions. Notably, hydro energy does not significantly contribute to CO₂ emissions reduction, whereas wind and solar energy play a substantial role in the same. The study identifies unidirectional causality among the various selected variables and provides crucial policy implications for the development of renewable energy sources and the maintenance of environmental quality.