Where do we stand on cutting coal dependency? : evidence from the top coal-dependent economies

Cutting the global economy's dependence on coal has always been seen as one of the most effective measures to reduce carbon emissions and ensure environmental sustainability. However, the demand for coal can vary greatly from country to country. Therefore, the primary objective of this study is to identify where the countries with the highest coal consumption stand in reducing coal dependence in energy supply from 1997 to 2021 by utilizing panel data methods and accounting for the possible occurrence of cross-sectional dependence. The empirical results denote that (i) the models used are cross-sectionally independent, (ii) there is a long-run relationship between the variables (iii) rising economic growth upsurges coal demand, while its square reduces coal consumption; therefore, the coal-Kuznets curve is valid; (iv) population density and industrialization boost coal consumption, while demand for natural gas and renewable energy reduces it. Based on the empirical outcomes, the study suggests that natural gas should be promoted alongside renewables to displace coal consumption globally, and that countries should consider the coal-Kuznets curve to channel the increased revenues into clean energy investments.