Modelling the effect of renewable energy and public-private partnership in testing EKC hypothesis: Evidence from methods moment of quantile regression

Global warming is creating a distressing situation around the globe and, accordingly, requires substantial solutions. Among the potential solutions are shifting towards renewable resources and encouraging investments through Public-Private Partnership Investment (PPPI) in the green initiatives. Hence the present study explores the relationships of the aforementioned factors with the level of carbon dioxide emissions under the Environment Kuznets Curve (EKC) hypothesis framework. Utilizing the recently developed Method of Moments of Quantile Regression (MMQR) method, the results revealed that the EKC is present only in the lower quantiles, whereas there is less probability of its presence in higher quantiles of carbon dioxide emissions. Renewable energy serves as a solution for mitigating CO2 emissions in lower and upper quantiles only, whereas, for the mid-quantiles, the relationship is insignificant. Lastly, for the case of PPPI, the relationships are similar across all of the quantiles of the CO2 emissions already discussed earlier in light of the existing studies. Based on the findings, it is recommended that the government channels more resources towards renewable energy development, whereas greater PPPIs should be made in the areas and industries that are environmentally friendly.