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The energy transition is at the core of sustainable development as it helps to combat global warming and climate change. Similarly, carbon markets also support the climate change mitigation. Therefore, by realizing the potential role of clean energy and carbon markets in ensuring environmental sustainability, this study analyzes the spillovers and connectedness between the environment (global carbon) and renewable energy sources (wind, solar, geothermal, biofuel, and fuel cell). The empirical analysis is conducted by applying the novel "TVP-VAR" connectedness framework of Balcilar et al. (2021) on the daily data over the period from August 1, 2014, to February 4, 2022. The findings show that solar and biofuel appear as the highest net shock transmitter among alternative renewable sources while global carbon is shown as the net receiver of shocks. The largest transmission of shocks to global carbon is observed from wind followed by solar. Although these findings support the connectedness between renewable energy and the environment, however this connectedness is influenced by economic crises such as the oil crisis and pandemic crisis. During COVID-19, the fuel cell was the highest transmitter of shocks. The results are important for policy formulation, investment, and portfolio management as they provide insights into the interconnectedness and help in boosting climate actions. [ABSTRACT FROM AUTHOR]

Reducing fossil fuels use while promoting the adoption of clean and renewable energy sources is crucial for mitigating climate change and attaining the sustainable development goals. This study investigates the driving forces of the share of non-hydroelectricity sources in total electricity generation. Using panel data of forty-six developed and developing countries over 1980–2011 and employing panel cointegration estimation techniques, we examine the key factors that influence the share of non-hydro renewable energy sources in the short and long run. The results of the study show that the driving factors have different impacts on the size and share of non-hydro renewable energy; and these impacts are mostly in the long run. Oil price increase and financial development has a significant positive effect on the amount and share of non-hydro renewable electricity generation. The impact of trade openness is ambiguous. Economic development enhances the size of non-hydro renewables but undermines its share in total electricity. Foreign direct investments, ratification of the Kyoto protocol, gross fixed capital formation and resource rent have no significant impact on non-hydro renewable electricity generation. Based on the results, appropriate policy recommendations are proffered. [ABSTRACT FROM AUTHOR]