International Journal of Renewable Energy Development 11 (1) 2022: 145-155
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IJRED-ISSN: 2252-4940.Copyright © 2022. The Authors. Published by CBIORE
Contents list available at IJRED website
Int. Journal of Renewable Energy Development (IJRED)
Journal homepage: https://ijred.undip.ac.id
Impact of Globalization and Renewable Energy Consumption
on Environmental Degradation: A Lesson for South Africa
Seun Damola Oladipupo
1
, Husam Rjoub
2
, Dervis Kirikkaleli
3
,
Tomiwa Sunday Adebayo
4*
1
Department of Earth Science, Faculty of Science, Olabisi Onabanjo University, Ogun State, Nigeria.
2
Faculty of Economics and Administrative Sciences, Department of Accounting and Finance, Cyprus International
University, Mersin 10, 99040 Haspolat, Turkey
3
Faculty 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
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.
Keywords: Economic growth; Carbon emission; Globalization; Renewable Energy Consumption; Quantile-on-Quantile Regressions
Article History: Received: 2
nd
August 2021; Revised: 5
th
Oct 2021; Accepted: 19
th
Oct 2021; Available online: 3
rd
November 2021
How to Cite This Article: Oladipupo, S.D., Rjoub, H., Kirikkaleli, D., Adebayo, T.S. (2022) Impact of Globalization and Renewable Energy
Consumption on Environmental Degradation: A Lesson for Developing Nations. Int. J. Renew. En. Dev., 11(1), 145-155
https://doi.org/10.14710/ijred.2022.40452
1. Introduction
Environmentalists, energy economists, and
policymakers around the world who plan and enact energy
and environmental policies have been debating the effects
of constant demand on biodiversity and the environment.
Considering the overall awareness of the need for safer,
green energy sources, this is reasonable (Adebayo and
Kirikkaleli, 2021). According to the literature on energy
economics, energy consumption is associated with
economic growth because increased energy use leads to
increased economic expansion (Bekun et al. 2020; Alola et
al. 2021). However, a rise in economic activity will lead to
increased energy use and, as a result, a decrease in energy
consumption. According to Halicioglu (2009) before the
industrial revolution, energy use and economic expansion
were found to be linked. Nevertheless, this association is
to blame for the increase in environmental pollution
caused by CO2 emissions as a result of massive industrial
*
Corresponding author: Twaikline@gmail.com
production and fossil fuel usage for long-term economic
development. A growing economy requires more energy
and production to maintain actual economic growth
(Ozturk, 2010; Fareed et al. 2021).
The use of energy is expected to augment pollution
levels, and there is a strong link between pollution and
economic expansion. As a result, the current research
aims to evaluate the effect of energy use, globalization,
and GDP on CO2 emissions in South Africa. Since the
innovative study of Grossman and Krueger (1991), the
effect of economic growth on CO2 emissions has been
extensively investigated by scholars in the literature. In
earlier environmental degradation studies, renewable
energy consumption (REC) was also examined. Since
decreasing CO2 emissions by reducing energy use can have
a detrimental impact on economic growth, governments
have been exploring alternative energy sources such as
nuclear and renewable energy as a replacement for fossil
Research Article