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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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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author Abdul Salam Maftoon
Abdul Razzaq
Muhammad Irfanullah Arfeen
Khalid Khan
author_facet Abdul Salam Maftoon
Abdul Razzaq
Muhammad Irfanullah Arfeen
Khalid Khan
author_sort Abdul Salam Maftoon
collection DOAJ
description 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.
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publishDate 2025-12-01
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spelling doaj-art-48b76dee44b84992a34a58b7202cf6762025-08-20T02:57:30ZengElsevierSustainable Futures2666-18882025-12-011010110810.1016/j.sftr.2025.101108The interplay of renewable energy and human capital: Unveiling the moderating pathways to carbon emission mitigation in a global panel studyAbdul Salam Maftoon0Abdul Razzaq1Muhammad Irfanullah Arfeen2Khalid Khan3Department of Management Sciences, University of Loralai, Pakistan; Corresponding author.Quaid-i-Azam School of Management Sciences, Quaid-i-Azam University Islamabad, PakistanQuaid-i-Azam School of Management Sciences, Quaid-i-Azam University Islamabad, PakistanDepartment of Political Science, University of Loralai, PakistanThis 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.http://www.sciencedirect.com/science/article/pii/S2666188825006720Renewable energy consumptionHuman capitalCarbon emissionsEnvironmental sustainabilityTwo-stage least squares (2SLS)Panel data analysis
spellingShingle Abdul Salam Maftoon
Abdul Razzaq
Muhammad Irfanullah Arfeen
Khalid Khan
The interplay of renewable energy and human capital: Unveiling the moderating pathways to carbon emission mitigation in a global panel study
Sustainable Futures
Renewable energy consumption
Human capital
Carbon emissions
Environmental sustainability
Two-stage least squares (2SLS)
Panel data analysis
title The interplay of renewable energy and human capital: Unveiling the moderating pathways to carbon emission mitigation in a global panel study
title_full The interplay of renewable energy and human capital: Unveiling the moderating pathways to carbon emission mitigation in a global panel study
title_fullStr The interplay of renewable energy and human capital: Unveiling the moderating pathways to carbon emission mitigation in a global panel study
title_full_unstemmed The interplay of renewable energy and human capital: Unveiling the moderating pathways to carbon emission mitigation in a global panel study
title_short The interplay of renewable energy and human capital: Unveiling the moderating pathways to carbon emission mitigation in a global panel study
title_sort interplay of renewable energy and human capital unveiling the moderating pathways to carbon emission mitigation in a global panel study
topic Renewable energy consumption
Human capital
Carbon emissions
Environmental sustainability
Two-stage least squares (2SLS)
Panel data analysis
url http://www.sciencedirect.com/science/article/pii/S2666188825006720
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