The interplay of renewable energy and human capital: Unveiling the moderating pathways to carbon emission mitigation in a global panel study

This study investigates the complex interrelationship between renewable energy consumption (REC), human capital (HC), and carbon emissions (CO), with a special focus on the moderating role of HC in the REC–CO nexus. Using a comprehensive panel dataset of 126 countries over a 22-year period (2001–202...

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Bibliographic Details
Main Authors: Abdul Salam Maftoon, Abdul Razzaq, Muhammad Irfanullah Arfeen, Khalid Khan
Format: Article
Language:English
Published: Elsevier 2025-12-01
Series:Sustainable Futures
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Online Access:http://www.sciencedirect.com/science/article/pii/S2666188825006720
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Summary:This study investigates the complex interrelationship between renewable energy consumption (REC), human capital (HC), and carbon emissions (CO), with a special focus on the moderating role of HC in the REC–CO nexus. Using a comprehensive panel dataset of 126 countries over a 22-year period (2001–2022), sourced from the World Development Indicators (WDI), Our World in Data, and the Global Footprint Network, the study employs two-stage least squares (2SLS) regression to address endogeneity and ensure robust causal inferences. The findings reveal positive direct effects of REC (β = 0.725) and HC (β = 5.002) on CO, suggesting transitional inefficiencies and energy-intensive growth patterns associated with human capital development. However, a significantly negative interaction effect (β = –1.091) confirms that human capital can amplify the environmental benefits of REC. Control variables such as GDP per capita, financial deepening, and ecological footprint further explain emissions dynamics. This study contributes both methodologically—through advanced econometric modeling—and conceptually, by highlighting human capital as a pivotal factor in enhancing renewable energy effectiveness. The results support integrated policy strategies that combine green energy expansion with investments in education and skill development to achieve sustainable development goals.
ISSN:2666-1888