The heterogeneity of renewable energy consumption, carbon emission and financial development in the globe: A panel quantile regression approach

The present study examines the heterogeneity of renewable energy consumption, Carbon dioxide emission and financial development in the global panel of 192 countries. Panel quantile regression has been used for tickling distributional and unobserved individual heterogeneity. The findings indicate that our variables in the model on each others are heterogeneous across quantiles. More specifically, the effect of renewable energy consumption on carbon emission is negative while financial development has increasing influence on carbon emission. Carbon emission decreases the use of renewable energy while financial development positively affects renewable energy consumption. The increasing effect of carbon emission and renewable energy consumption on financial development has also been found. Finally, the current study findings give important recommendations to policy makers.