The Impact of Fossil Fuel Consumption, Renewable Energies, and Economic Growth on Environment Change in Lithuania

The world is approaching a critical juncture beyond which climate change may become irreversible, threatening the entitlement of current and future generations to a healthy and sustainable planet. Therefore, this study assesses the impact of fossil fuels, renewable energy, and economic growth on carbon dioxide (CO2) emissions in Lithuania, using data from 1996 to 2020. The Autoregressive Distributed Lag (ARDL) bound test is employed to examine the long-term relationship between these variables. Additionally, the ARDL model is used to evaluate the individual effects of each variable on CO2 emissions. Surprisingly, the findings reveal that fossil fuels reduce the harmful impact of carbon emissions in Lithuania, while investment in renewable energy mitigates and alleviates these emissions. However, economic growth is positively and significantly associated with an increase in carbon emissions, suggesting that emissions will rise as the economy expands. These results advocate for policies that promote sustainable economic growth, foster the adoption of environmentally friendly investments, and enhance resilience to mitigate CO2 emissions and address climate change in Lithuania.