Highlights
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Biofuels persuading the CO2 emissions / circular economy.•
Investigate the relationship between economic growth and CO2 emissions by green energy projects.•
Green energy projects decrease CO2 emissions while other energy projects increase CO2 emissions.•
Panel co-reconciliation test verifies significance of long-run equilibrium correlation in their relationships.
Abstract
Green energy projects (including wind, solar, biomass, hydro projects) are the major constituents of biofuel projects and primary need of global world which are directly concerned with economic growth and gross domestic products (GDP) development. In last few decades, fossil fuel consumption and carbon dioxide (CO2) emission have been increased due to more economic growth and growing population. Moreover, the objective of this research is to assess the consequence of biofuel including natural gas, environmentally friendly power projects (renewable-energy), and thermal power utilization on financial turn of events including GDP and CO2 in ten top countries. Multivariate climate countries with ubiquitous CO2 emission during the period of 1990–2018 were selected to examine the long-run flexibility as well as the path of causality between different variables, the panel co-integration test, panel heterogonous Dumitrescu and Hurlin causality evaluation and panel completely modified ordinary least squares were employed. The panel co-reconciliation test verify that variables have a long-run equilibrium correlation in their relationships. Long haul versatility and causality tests show that natural gas doesn’t add to financial development or CO2 decreases. According to this present study, results can help to develop conservative policies regarding long-run and sustainable energy and design in energy development.