Urbanization Rate Associated with Renewable in Electricity Production and CO 2 Emissions in Jordan: A Threshold Regression Approach

Abstract This study examines the relationship between urbanization rates associated with the increasing dependency on renewable electricity production and CO2 emissions per capita and gross domestic per capita in Jordan. The empirical analysis uses annual data from Jordan for the period 1990–2022 to answer the question: What is/are the threshold urbanization rate/s that pushes CO2 emissions per capita to decline? Results suggest that two threshold values exist for Jordan, which implies a nonlinear relationship between urbanization rate and CO2 emissions per capita. The estimated threshold regression model shows (0.78, 0.91) as the threshold values of urbanization rate, and values between these thresholds push CO2 emissions per capita to decline. In addition, there is a significant negative relationship between these two variables.