Impact of Fossil Fuels, Renewable Energy Consumption, and Economy on Carbon Emissions in Switzerland

Switzerland is moving toward the goal of becoming a carbon-free economy, which has become common for nations around the world. Despite having the intricated linkage between usages of fossil fuels, the adaption of alternative sources of energy, gross domestic product (GDP) growth, and carbon emissions, how Switzerland is actually tackling these concerns using econometric approaches like autoregressive distributed lag (ARDL), dynamic ordinary least squares (DOLS), and fully modified ordinary least squares (FMOLS) modes with time series data spanning from 1990 to 2023. Based on the analysis, this research interprets that dependency on primary energy sources surges carbon emissions, with a 1% rise in consumption causing a 1.86% increment over the long run. Conversely, sustainable energy sources encourage minimizing emissions by 0.87%, which becomes a deciding factor in decarbonization. Coordinating with the environmental Kuznets curve (EKC) theory, economic upswing advances societal development but also guides to elevated emissions without sustained sustainable solutions. In order to achieve both economic growth and environmental sustainability, it is crucial to make smart investments in renewable energy infrastructure, promote socioeconomic inclusion, and include the public. A framework for overcoming these obstacles, Switzerland’s Energy Strategy 2050 provides internationally applicable advice on how to reach net-zero emissions without weakening the economy. Focusing on the need to address climate change in a way that takes into account social, economic, and environmental concerns, this research offers policymakers practical evidence.