The nexus of carbon emissions, financial development, renewable energy consumption, and technological innovation: What should be the priorities in light of COP 21 Agreements?

This study analyses the dynamics of carbon emissions for N-11 countries from 1990 to 2017. We introduce some innovative factors such as financial development, human capital, renewable energy consumption, and gross domestic product as determinants of carbon dioxide (CO) emissions. The empirical estimations are based on Pesaran (2007) unit root test, common correlated effect mean group, and augmented mean group. The findings reveal a positive relationship between carbon emissions and financial development as well as a gross domestic product. In contrast, technological innovation and renewable energy consumption are adversely related to carbon emissions. These findings have important implications, and we recommend the promotion of technological innovation and the use of renewable energy consumption. This will help in achieving the goals set by COP21.