Energy policy simulation in times of crisis: Revisiting the impact of renewable and non-renewable energy production on environmental quality in Germany

In this paper, we examine for the first time in the literature the implications of energy policy alternatives for Germany considering the aftermath of coronavirus as well as Electricity and Gas energy supply shortages. Whilst several policy options are open to the government, the choice of investmen...

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Published in:Energy Reports
Main Author: Adedoyin F.F.; Erum N.; Taşkin D.; Chebab D.
Format: Article
Language:English
Published: Elsevier Ltd 2023
Online Access:https://www.scopus.com/inward/record.uri?eid=2-s2.0-85151506286&doi=10.1016%2fj.egyr.2023.03.120&partnerID=40&md5=2f52f8517380b90e33d32a84948d8253
id 2-s2.0-85151506286
spelling 2-s2.0-85151506286
Adedoyin F.F.; Erum N.; Taşkin D.; Chebab D.
Energy policy simulation in times of crisis: Revisiting the impact of renewable and non-renewable energy production on environmental quality in Germany
2023
Energy Reports
9

10.1016/j.egyr.2023.03.120
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85151506286&doi=10.1016%2fj.egyr.2023.03.120&partnerID=40&md5=2f52f8517380b90e33d32a84948d8253
In this paper, we examine for the first time in the literature the implications of energy policy alternatives for Germany considering the aftermath of coronavirus as well as Electricity and Gas energy supply shortages. Whilst several policy options are open to the government, the choice of investment in renewable energy generation versus disinvestment in non-renewable energy such as coal energy generation provides divergent impacts in the long term. We utilize data from British Petroleum and the World Bank Development Indicator database for Germany covering 1981 to 2020 to explore a Carbon function by applying a battery of Autoregressive distributed lag model (ARDL), dynamic ARDL and Kernel-Based Regularized Least squares approaches. The particular policy tested is the pledge by Germany to decrease emissions by ∼100% in 2050, and this was integrated through the estimation of dynamic ARDL estimation. The simulation result shows that a +61% shock in renewable energy production decreases carbon emissions unlike coal energy production which increases carbon emissions in the beginning but the carbon emissions decrease thereafter. The findings highlight the inevitability of cutting down on coal production, and recommends energy investment alternatives. Hence, Germany's energy policy should contemplate more thoroughly on these factors. © 2023 The Author(s)
Elsevier Ltd
23524847
English
Article
All Open Access; Gold Open Access
author Adedoyin F.F.; Erum N.; Taşkin D.; Chebab D.
spellingShingle Adedoyin F.F.; Erum N.; Taşkin D.; Chebab D.
Energy policy simulation in times of crisis: Revisiting the impact of renewable and non-renewable energy production on environmental quality in Germany
author_facet Adedoyin F.F.; Erum N.; Taşkin D.; Chebab D.
author_sort Adedoyin F.F.; Erum N.; Taşkin D.; Chebab D.
title Energy policy simulation in times of crisis: Revisiting the impact of renewable and non-renewable energy production on environmental quality in Germany
title_short Energy policy simulation in times of crisis: Revisiting the impact of renewable and non-renewable energy production on environmental quality in Germany
title_full Energy policy simulation in times of crisis: Revisiting the impact of renewable and non-renewable energy production on environmental quality in Germany
title_fullStr Energy policy simulation in times of crisis: Revisiting the impact of renewable and non-renewable energy production on environmental quality in Germany
title_full_unstemmed Energy policy simulation in times of crisis: Revisiting the impact of renewable and non-renewable energy production on environmental quality in Germany
title_sort Energy policy simulation in times of crisis: Revisiting the impact of renewable and non-renewable energy production on environmental quality in Germany
publishDate 2023
container_title Energy Reports
container_volume 9
container_issue
doi_str_mv 10.1016/j.egyr.2023.03.120
url https://www.scopus.com/inward/record.uri?eid=2-s2.0-85151506286&doi=10.1016%2fj.egyr.2023.03.120&partnerID=40&md5=2f52f8517380b90e33d32a84948d8253
description In this paper, we examine for the first time in the literature the implications of energy policy alternatives for Germany considering the aftermath of coronavirus as well as Electricity and Gas energy supply shortages. Whilst several policy options are open to the government, the choice of investment in renewable energy generation versus disinvestment in non-renewable energy such as coal energy generation provides divergent impacts in the long term. We utilize data from British Petroleum and the World Bank Development Indicator database for Germany covering 1981 to 2020 to explore a Carbon function by applying a battery of Autoregressive distributed lag model (ARDL), dynamic ARDL and Kernel-Based Regularized Least squares approaches. The particular policy tested is the pledge by Germany to decrease emissions by ∼100% in 2050, and this was integrated through the estimation of dynamic ARDL estimation. The simulation result shows that a +61% shock in renewable energy production decreases carbon emissions unlike coal energy production which increases carbon emissions in the beginning but the carbon emissions decrease thereafter. The findings highlight the inevitability of cutting down on coal production, and recommends energy investment alternatives. Hence, Germany's energy policy should contemplate more thoroughly on these factors. © 2023 The Author(s)
publisher Elsevier Ltd
issn 23524847
language English
format Article
accesstype All Open Access; Gold Open Access
record_format scopus
collection Scopus
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