How are electricity generation effective on carbon neutrality in the global south? Evidence from sectoral CO2 emissions by daily data

Abstract

In light of the efforts to ensure carbon neutrality by combating climate-related problems the study investigates the effectiveness of electricity generation (EG) from the main renewable sources (hydro-HEG solar -SEG and wind-WEG). In this context the study examines the countries of the Global South (i.e. Brazil China and India) considers EG at a disaggregated level and sectoral CO 2 emissions applies nonlinear methods and uses daily data between January 2 2019 and December 31 2022. The results demonstrate that (i) disaggregated EG sources have a stronger (weaker) time and frequency dependency on sectoral CO 2 emissions in China (Brazil and India), (ii) HEG has a stimulating impact on sectoral CO 2 emissions in all countries, (iii) SEG has an increasing impact on sectoral CO 2 emissions in Brazil and China while it provides a decrease in sectoral CO 2 emissions in India, (iv) WEG upsurges sectoral CO 2 emissions in China while it achieves a CO 2 reduction in Brazil and India, (v) disaggregated level EG has a causal impact on sectoral CO 2 emissions across all quantiles except some lower middle and higher quantiles. The study adds scientific value to existing knowledge by analyzing for the first time which EG sources are effective in reducing daily CO 2 emissions in the Global South. Based on the outcomes the study demonstrates that WEG is the best EG source for Brazil that SEG and WEG are optimal EG sources for India and that China cannot benefit from the EG sources considered. In this way the study provides fresh insights for the countries of the Global South and underlines the crucial role of renewable EG in ensuring carbon neutrality.