Renewable energy, economic growth, human capital, and CO2 emission: an empirical analysis.

This study contributes to the literature by estimating the interaction effects of economic growth and renewable energy consumption on carbon dioxide (CO2) emissions with the inclusion of human capital. The interaction between economic growth and renewable energy consumption suggests how income level affects energy consumption and CO2 emissions. The study applies three-stage least square and ridge regression methods with Pakistani data from 1980 to 2014. The empirical findings show that the interaction effect of income and renewable energy contributes to CO2 emissions. Besides, trade openness also increases CO2 emissions, while the human capital mitigates CO2 emissions. Furthermore, the moderating effect of economic growth helps to form the environmental Kuznets curve (EKC) hypothesis in Pakistan.