Assessing the impact of three emission (3E) parameters on environmental quality in Canada: A provincial data analysis using the quantiles via moments approach

Existing studies rarely examine the simultaneous effects of three emitting indicators (3E) - full emitting non-renewable, non-emitting renewable, and low-emitting nuclear - on three specific greenhouse gases: CO2, CH4, and N2O. We investigate the impact of three energy types on environmental quality, using Canadian data from 1990-2022. It incorporates macroeconomic policies, economic uncertainty, geopolitical risks, and eco-innovation, and employs the quantiles via moments method to explore the evolving relationships among these factors, considering provincial variances. Findings reveal that non-renewable energy sources deteriorate environmental quality by increasing CO2, CH4, and N2O emissions across all quantiles (from q.5 to q.95), while renewable and nuclear energies, along with eco-innovation initiatives, have a beneficial effect by reducing greenhouse gas emissions across all quantiles. Economic policy uncertainty is a contributing factor to greenhouse gas emissions across all quantiles, whereas geopolitical risks primarily impact the middle to upper quantiles (from q.50 to q.95). To counteract the lack of cross-sectional dependence in the quantiles via moments methodology, this paper employs Driscoll and Kraay's standard errors approach to fortify its findings' reliability. It concludes with policy suggestions promoting renewable energy and eco-innovation through increased investment, vibrant long-term policies, provincial collaboration, and adoption of green technologies.