Document Type
Article
Disciplines
2.2 ELECTRICAL, ELECTRONIC, INFORMATION ENGINEERING, Electrical and electronic engineering
Abstract
The current paper assessed the time-frequency analysis interrelationship between CO2 emissions and financial development, economic growth, renewable energy use, structural change, and non-renewable energy use in Sweden. We utilized a quarterly dataset stretching from 1980-2019. In order to unlock these interrelationships, we leverage wavelet tools (wavelet-based Granger causality and wavelet coherence). The wavelet-based Granger causality (WGC) test accounts for the issue of multiple time scales in a time series analysis. Another uniqueness of the WGC lies in its resistance to distribution assumption and misspecification in a time series model. Additionally, the wavelet coherence estimator instantaneously evaluates correlation and causality among the interacting indicators in a model. The outcomes of the wavelet coherence exposed that renewable energy, financial development, economic growth, structural change, and trade openness enhance the environment's quality while nonrenewable energy intensifies CO2. Moreover, the WGC shows that all the variables can predict each other. Based on these findings, policymakers in Sweden should focus more on improving public understanding of renewable energy and environmental preservation. We believe that Sweden's shift to service-sector-led growth will help to safeguard the environment.
DOI
https://doi.org/10.1016/j.heliyon.2022.e10697
Recommended Citation
Adebayo, T.S., Lanre Ibrahim, R. & Bonah Agyekum, E. (2022). The environmental aspects of renewable energy consumption and structural change in Sweden: A new perspective from wavelet-based granger causality approach. Heliyon, vol. 8, no. 9. doi:10.1016/j.heliyon.2022.e10697
Funder
European Union's Horizon 2020 research and Enterprise Ireland Marie Skłodowska-Curie grant agreement No.847402. The research funding from the Ministry of Science and Higher Education of the Russian Federation (Ural Federal University Program of Development within the Priority-2030 Program) is acknowledged: Grant number: FEUZ-2022-0031. The authors thank the support of the National Research and Development Agency of Chile (ANID), ANID/Fondap/15110019.
Creative Commons License
This work is licensed under a Creative Commons Attribution-No Derivative Works 4.0 International License.