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Impact of Globalization and Renewable Energy Consumption on Environmental Degradation: A Lesson for South Africa

1Department of Earth Science, Faculty of Science, Olabisi Onabanjo University, Ogun State, Nigeria

2Faculty of Economics and Administrative Sciences, Department of Accounting and Finance, Cyprus International University, Mersin 10, 99040 Haspolat, Turkey

3Faculty of Economics and Administrative Sciences, Department of Banking and Finance, European University of Lefke, Lefke, Northern Cyprus TR-10, Mersin, Turkey

4 Faculty of Economics and Administrative Science, Department of Business Administration, Cyprus International University, 99040 Nicosia, Turkey

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Received: 2 Aug 2021; Revised: 5 Oct 2021; Accepted: 19 Oct 2021; Available online: 3 Nov 2021; Published: 1 Feb 2022.
Editor(s): Grigorios Kyriakopoulos
Open Access Copyright (c) 2022 The Authors. Published by Centre of Biomass and Renewable Energy (CBIORE)
Creative Commons License This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

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Abstract

South Africa is one of Africa's most polluted countries, with rising CO2 emissions posing a threat. South Africa must discover ways of minimizing pollution and take necessary steps before it is too late in order to achieve sustainable growth. For this purpose, this research assesses the ecological consequences of globalization, nonrenewable energy use, economic growth and renewable energy consumption in South Africa. The study leverages on the non-linearity advantages of the novel quantile on quantile regression (QQR) method for a robust analysis as opposed to the use of conventional linear approaches, thereby overcoming conspicuous shortfalls in extant studies, while offering a detailed explanation of the overall dependency structure between CO2 emissions and globalization, nonrenewable energy use and renewable energy use using a dataset covering the period between 1970 and 2018. The outcomes suggest that nonrenewable energy use, globalization, and economic growth contribute to environmental degradation in the majority of the quantiles, while the effect of renewable energy use on CO2 is not strong at all quantiles. The study highlights that economic expansion, nonrenewable energy use and globalization play key roles in in mitigating environmental sustainability in South Africa, while renewable energy is not sufficient to meet environmental requirements.

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Keywords: Economic growth; Carbon emission; Globalization; South Africa; Quantile-on-Quantile

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