Effects of International Climate Policy on Renewable Energy Consumption: The Context of the Kyoto Protocol

Abstract

Purpose: The key objective of this study is to explore the effect of the Kyoto Protocol on Renewable Energy Consumption at the national level.

Methodology: The study employed the matching and difference-in-differences (DiD) estimation approaches. The study analysis is based on secondary resources assessed through openly access documents, journals, and libraries. Data used in the analysis were collected from publicly available data sources.

Findings: The study finds that the Kyoto Protocol has a significant and positive impact on renewable energy consumption at the national level in the Annex I countries compared to non-Annex I countries. It indicates that there has been a specific effect of the Kyoto Protocol on renewable energy in Annex I countries since these countries were legally bound with emissions reduction commitments of the Protocol. Findings indicate that Annex I countries overlooked environmental pollution at the early stages of their economic and industrial development, but with their higher economic development, they are taking measures to prevent environmental pollution, such as increasing REC. Findings here reckon with the argument of the effectiveness of global climate governance in mitigating climate change effects.

Unique Contribution to Theory, Practice and Policy: Findings support the Environmental Kuznets Curve (EKC) proposition. Results stresses on the effectiveness of global climate governance for mitigating climate change effects. In this context, rich countries should deliver more financial and technological supports to poor countries.