The Environmental Kuznets Curve (EKC) hypothesis proposes an inverted U-shaped relationship between environmental degradation and economic growth. A revisited approach examines how renewable energy consumption dynamically impacts CO2 emissions, showing that renewable energy can significantly reduce environmental pollution when properly integrated into the energy mix.
Methodology — Wavelet coherence and regime-switching models allow researchers to capture non-linear relationships and structural breaks. Panel data from multiple countries reveal that the transition to renewable energy alters the traditional EKC trajectory, with emissions declining faster in economies that accelerate renewable deployment.
Ecological footprint — Beyond CO2, ecological footprint measurements across income levels provide a more comprehensive view of environmental pressure. Renewable energy adoption is associated with improved ecological outcomes, particularly in high-income countries that have passed the turning point of the EKC.