Does Renewable Energy Minimize Greenhouse Gas Emissions in Asia? Evidence from the Bayesian Approach

The study examines the role of renewable energy production and consumption in lowering greenhouse gas (GHG) emissions in selected Asian countries for the period 2004–2020 using a Bayesian approach. Employing Bayesian model averaging (BMA), the estimation reveals that clean energy resources have contributed to curtailing emissions in upper-middle-income nations. Nevertheless, the positive influence is not clear or inverse in wealthy countries and lower-middle-income ones. Additionally, other factors relating to economic development, trade openness, financial access, international tourism, and forestry are included to capture the bigger picture of the nexus between GHG emissions and their determinants. The Environmental Kuznets Curve (EKC) hypothesis is found in high-income nations but not the rest of Asia. Based on the findings, policymakers can implement more effective regulations to reach the net-zero goals.