The role of renewable energy production on greenhouse gas emission reduction in international petroleum companies under energy transition policy

This study explores the impact of renewable energy production on GHG emissions under energy transition in a panel of 27 international petroleum companies over the period of 2015–2023. For this purpose, we utilize the dynamic generalized method of momentum in the framework of Porter hypothesis. We find strong evidence that renewable energy production positively affects GHG emissions reduction in the short and long run. The outcomes also disclosed that the impact of research and development on GHG emissions reduction is only valid in the short run. Interestingly, both renewable energy production and research and development has an inverted U-shaped pattern in the relationship we identified from their side to GHG emissions. Furthermore, we find that research and development play a fundamental role in mediating the relationship between REP and GHG emissions. Finally, the effect of REP on GHG emissions is found to be more preannounced in EU international petroleum companies relatively to non-EU international petroleum companies. The study provides valuable information for policymakers and petroleum companies’ managers.