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The mitigation of climate change is the main issue for environmental policymakers. A large number of authors analysed the impact of various factors on greenhouse gas (GHG) emissions. In this paper, we proposed a multiplicative approach to use 2- and 3-way interactions simultaneously in order to analyse the effects of energy efficiency, renewable energy and sector mix as the moderators that shape the economic activity – environmental degradation nexus. The results encompassing global panel data show that the turning point increased from 1990 to 1995 to 2002–2007 and decreased afterwards. Considering the analysis of moderators, a high share of agriculture and industry sectors make the curve flat with a positive slope and a high level of economic activity was associated with more GHG emissions with no turning point. The marginal effect of energy efficiency to reduce the negative impact of agriculture and industry sectors was growing. Meanwhile, the marginal effect of renewables to reduce the negative impact of agriculture and industry sectors was diminishing. Service sector and energy efficiency, service sector and renewables worked as the substituting forces reducing GHG emissions with a diminishing marginal rate of substitution. Therefore, this study confirms that the economic activity – environmental degradation relationship is very complex and further studies should consider the role of the moderators of this nexus. [Display omitted] • Technique, composition effects should be considered as moderators of HGH emissions. • The multiplicative approach was applied to model interactions of GHG factors. • Agriculture, industry sectors made the economic activity GHG emissions curve flat. • Marginal effect of renewables to reduce GHG emissions was diminishing. • Service sector and renewables worked as substituting forces reducing emissions. [ABSTRACT FROM AUTHOR]

Climate change mitigation is a topical issue with growing debate in the context of the renewable energy transition, global partnership, governance, and economic growth. The complexness of climate change makes it difficult to predict relationships and formulate policies across varied countries. Motivated by the core mandate of the Kyoto Protocol, we examined the individual, combined and interactive impact of growth in income, renewable energy, foreign direct investment, and governance on greenhouse gas emissions. We decomposed the relationships to account for the theories of scale effect, composition effect and technique effect. The study utilized a dynamic heterogeneous estimation technique with a panel data from 1990 to 2017 in 47 Sub-Saharan African countries. Our adopted empirical framework made it possible to account for heterogeneity, a situation that may be prevalent in countries with varied economic and environmental policies. The empirical results revealed that increasing the share of renewable energy by 1% declines greenhouse gas emissions by as much as 35.32% (95% Confidence interval) while a 1% increase in the coupling effect of income level, governance, and renewable energy consumption intensifies climate change by 0.79%. The interactive effects of scale, composition, and technique indicators were found to worsen climate change. The decoupling effect revealed that while foreign direct investment, income level, and governance exacerbate climate change, renewable energy consumption lessens climate change and its impact. From a policy perspective, the magnitude of the technique effect of renewable energy consumption depends on, inter alia , its share in the energy portfolio, technological innovation, and country-specific policy instruments. The study demonstrated that decoupling renewable energy from economic growth propels the transition from fossil fuels, leading to energy efficiency— explaining the decline in GHG emissions. • Dynamic heterogeneous method is used to develop 13 conceptual tools for mitigating climate change. • Climate change is decomposed into scale, composition and technique effects. • Increasing renewable energy consumption reduces climate change in Sub-Saharan African. • Income level exacerbates pollution intensities which affect climate change and its impact. • The study confirmed the validity of the Pollution Haven Hypotheses in Africa. [ABSTRACT FROM AUTHOR]