Criticality of geothermal and coal energy consumption toward carbon neutrality: evidence from newly industrialized countries

This study examines the long-term effects of coal and geothermal consumption on carbon emission while controlling for globalization and economic growth toward carbon neutrality in newly industrialized countries, including Brazil, China, India, Mexico, Malaysia, the Philippines, South Africa, Turkey, Indonesia, and Thailand for the period of 1990–2008. We compare the resulting relationships from various estimation techniques, such as fixed-effect ordinary least squares, dynamic ordinary least squares, fully modified ordinary least squares, and method of moment quantile regression. Overall, this study determines that the consumption of coal and geothermal energy is a significant determinant with a causal effect on carbon emission. The rise in coal energy consumption significantly increases carbon emission across all quantiles (0.1–0.90), whereas the rise in geothermal energy consumption reduces it across all quantiles (0.1–0.90). This relationship is also consistent across all quantiles (0.1–0.9). Policy suggestions are proposed on the basis of these findings.