Environmental Impact of Renewable Energy: The Entrepreneurial Connection

Abstract

This study examines the impact of entrepreneurship and renewable energy on environmental indicators across 89 countries from 2006 to 2020. Using the Autoregressive Distributed Lag (ARDL) approach, we find that entrepreneurship consistently reduces CO2 emissions and tree cover loss across all income groups. However, effects on service, agricultural, industrial emissions and PM2.5 exposure vary significantly by economic background. Integrating renewable energy into entrepreneurial ventures generally reduces CO2 emissions, enhancing environmental sustainability. The impact on agricultural emissions varies by income group, indicating a context-specific interplay. The study emphasizes the need for tailored policies considering unique regional economic and environmental contexts to foster sustainable entrepreneurship.