Borradores de Economía - Connecting the Dots: Renewable Energy, Economic Growth, Reforestation, and Greenhouse Gas Emissions in Colombia
La serie Borradores de Economía es una publicación de la Subgerencia de Estudios Económicos del Banco de la República. Los trabajos son de carácter provisional, las opiniones y posibles errores son responsabilidad exclusiva del autor y sus contenidos no comprometen al Banco de la República ni a su Junta Directiva.
The series Borradores de Economía (Working Papers on Economics) contributes to the dissemination and promotion of the work by researchers from the institution. On multiple occasions, these works have been the result of collaborative work with individuals from other national or international institutions. This series is indexed at Research Papers in Economics (RePEc). The opinions contained in this document are the sole responsibility of the author and do not commit Banco de la República or its Board of Directors.
Abstract
This study aims to establish a comprehensive linkage between CO2 emissions and the composition of energy sources, economic growth, and reforestation, thereby shedding light on their intricate connections in Colombia over the period 1970-2018. First, we use different types of energy consumption including non-renewable, renewable, and hydroelectric sources. As expected, our findings reveal a noteworthy effect of non-renewable sources that lead to increased emissions, while renewable sources help mitigate those emissions. Second, the preservation of forested areas plays a crucial role in mitigating CO2 emissions. Third, the agricultural sector significantly contributes to the rise in emissions, encompassing both crops and livestock, a characteristic often observed in emerging economies. Moreover, in the long-run equilibrium, we find real GDP show the characteristic inverted U-shaped pattern commonly linked with the Environmental Kuznets Curve (EKC) hypothesis.
26TH OF MARCH, 2024 - 
