Nexus between biomass energy consumption and environment in OECD countries: a panel data analysis

The biomass energy impacts on the environment remain a hot issue of debate in recent years. However, evidence on biomass energy in climate change mitigation is unclear. Keep this in view; the present study focuses on exploring the nexus between biomass energy and greenhouse gas emission through research and development for a panel 26 Organization for Economic Co-operation and Development countries from 1990 to 2014. The panel unit root test and wasteland cointegration test are used for confirmation of the stationary level and cointegration of underlying variables of the study respectively. The mean group panel data estimators are employed that take heterogeneity and dependencies across countries into account. The findings of the study are summarized as biomass energy consumption contributes to greenhouse gas emissions. Also, research and development help in greenhouse gas reduction. Finally, the neutrality hypothesis has confirmed the relationship between biomass energy and greenhouse gas emissions. Policies are directed to control the detrimental role of biomass energy in air pollution.