Effects of population, economic growth, and renewable energy consumption on carbon emissions

Abstract

This study aims to measure the impact of factors such as population, gross domestic product (GDP), and renewable energy consumption on CO₂ emissions. Based on macroeconomic data from Viet Nam during the period of 1990-2022 and employing the STIRPAT model, results from the present study have shown that (i) renewable energy consumption, mainly hydropower, wind, and solar energy, plays a crucial role in significantly reducing CO₂ emissions, thereby contributing to the realization of sustainable economic development; and (ii) there is empirical evidence supporting the Environmental Kuznets Curve (EKC) hypothesis, indicating a diminishing marginal effect of income on emission levels. However, the study provides reassurance by not identifying any statistically significant linear relationship between the population and CO₂ emissions in the context of Viet Nam. Based on these findings, the study proposes two keys policy directions: (1) transitioning toward a green growth model centred on social welfare, and (2) developing green economic zones to promote the use of renewable energy, thereby fostering sustainable growth and mitigating environmental degradation.