The Nonlinear Influences of Natural Gas Consumption, Thermal Electricity and Renewable Electricity on Carbon Emissions

This study examines the nonlinear influences of natural gas consumption, thermal electricity, and renewable electricity on carbon emissions by means of the panel data of 32 countries in OECD in the period of 1993-2010. This study applies artificial neural network (ANN) technique to undertake the empirical research. The results show natural gas consumption has an inverse U-shaped effect on carbon emissions. Besides, thermal electricity has a positive effect on carbon emissions. In addition, this study finds out that renewable electricity has a negative influence upon carbon emissions. Hence, the development of renewable electricity is one of the most effective approaches to reduce carbon emissions. Furthermore, the reduction of thermal electricity can significantly decrease carbon emissions