Better renewable with economic growth without carbon growth: A comparative study of impact of turbine, photovoltaics, and hydropower on economy and carbon emission

The pursuit of sustainable development has become a prevalent goal in numerous countries. Therefore, renewable energy development is deemed the prime alternative, as it not only curtails CO2 emissions but also stimulates economic prosperity. Hence, there is a need to investigate rational options for renewable energy development. This paper utilises a research framework that combines linear and non-linear modelling. The specific results are as follows. The study's findings reveal that wind, solar and hydro energy can each promote economic growth and lower carbon emissions. Nevertheless, wind energy exhibits the most effective reduction in emissions, followed by solar energy, and lastly, hydro energy. When it comes to promoting economic development, hydro energy proves to be the most effective, followed by wind energy and then solar energy. Additionally, a panel threshold model is utilised to assess further the CO2 reduction for solar, wind, and hydro energy across a range of economic levels. The results indicate a double threshold effect for wind energy, whereby the effectiveness of CO2 suppression initially increases and then decreases as the economic level rises. In contrast, the use of solar power displays a sole threshold effect that incentivizes CO2 emissions at sub-threshold economic levels, yet significantly curbs them beyond it. Similarly, hydro energy also demonstrates a single threshold effect, but lacks statistical significance below the established threshold and actually heightens carbon emissions above it. Our observations can assist in creating sustainable renewable energy development strategies.