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Long-run findings of CUP-FM
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In recent years, many empirical studies investigated the effects of globalization on the ecological footprint (EF). Most of these studies relied on the KOF index of globalization and studied the effects of total globalization and disaggregated impacts of economic, social, and political globalization on the EF. However, less attention has been given...
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This current study seeks to investigate the policy implication of Turkey’s recent energy policies on its sustainable development. This study uses Turkey’s country-specific data and series of 1974 to 2018 for effective investigation and justification of the findings of this study with emphasis on both short-run and long-run implications. Three model...
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... Furthermore, increasing population density in a region intensifies pressure on various resources, which leads to an increase in EF (Kihombo et al., 2021b). Besides, fossil fuel energy use can boost EF, and it is a major influencing factor of EF. ...
... An expansion in EF is noticed with an increase in POD, which elucidates that increasing POD levels are degrading the quality of the environment in the ASEAN. The expansion in EF due to POD is supported by the study of Kihombo et al. (2021b) for the WAME group of countries. Enhancement in population density expands the requirements of energy, transportation, housing, food, etc. in the region. ...
Sustainable development goal (SDG), which focuses on affordable and sustainable energy, provides a practical solution to realize sustainable growth. In addition, this target can encourage the realization of SDG 13 (climate action). However, factors like political and financial risk can impact climate actions and renewable energy. Therefore, this research extends the debate on the ecological footprint (EF) mitigation and achievement of SDGs by evaluating the renewable energy, political risk, financial risk, and EF nexus in an Environment Kuznets Curve (EKC) framework from 1986 to 2018. Panel data for the Association of Southeast Asian Nations (ASEAN) is estimated using second-generation approaches. The CuP-FM test results indicated that the EKC is present in ASEAN in the context of renewable energy, financial risk, and political risk. Furthermore, the findings revealed that controlling political and financial risks is a useful mitigation strategy because EF decreases as these risks are reduced. Notably, a decrease in EF has been linked to the use of renewable energy. These results are verified by using CO2 emissions as an alternative proxy for environmental degradation. Moreover, both financial and political risk Granger cause renewable energy and economic growth indicating that controlling financial and political risk is necessary for sustainable development.
... [73] examine the validity of the EKC hypothesis based on the data for the 1993-2017 period CO 2 and GDP per capita on the 5 largest countries in the G-20 economy and determine that the EKC hypothesis is valid between for the relationship CO 2 and GDP. Also, [74][75][76]; and [77] assert the validity of peripheral Kuznets curve. On the other hand, [78][79][80][81]; find that the EKC is invalid. ...
... Other studies have incorporated the impact of population density on environmental quality , but with mixed conclusions, too. Some verify the solid and consistent polluting impact of urban population size (Ahmad et al., 2021;Ahmed et al., 2020;Al-Mulali et al., 2015;Kihombo et al., 2022;Hossain, 2011;Zineb, 2016), while others (Munir and Ameer, 2018;Saidi and Mbarek, 2017) support that urbanization can reduce CO 2 emissions in the long run. Martínez-Zarzoso et al. (2007) conclude that the variability of the emissions impact from urbanization is not proportional and can be conditional on income group, vary from nation to nation, and even be insignificant in some specific countries. ...
This study investigates the relationship between disaggregated energy use, human development, trade openness, economic growth, urbanization, and sustainability index in OECD countries from 2014 to 2019. Static, quantile, and dynamic panel data approaches are employed. The findings reveal that fossil fuels such as petroleum, solid fuels, natural gas, and coal decrease sustainability. On the contrary, alternative sources such as renewable and nuclear energy seem to contribute positively to sustainable socioeconomic development. It is also interesting to note that alternative energy sources strongly influence socioeconomic sustainability in the lower and upper quantiles. Also, the human development index and trade openness improve sustainability, while urbanization seems to be an obstacle in complying with sustainability goals within OECD countries. Policymakers should revisit their strategies toward sustainable development by mitigating fossil fuels and urbanization and promoting human development, trade openness, and alternative energy sources as drivers of economic progress.
... effects in emerging economies, allowing them to transform their economies and rely more on 'clean' sectors . Our findings support those of Kihombo et al. (2022) and Wang et al. (2022), confirming the positive role of financial globalisation in the green economy. They confirmed that the technique effect dominates the scale effect in these economies. ...
Green growth is a novel theme, gaining prominence in the current era. Therefore, this study investigates the impact of green innovation and financial globalisation on green growth in the BRICS (Brazil, Russia, India, China and South Africa) economies. The study employs the CS-ARDL model for the analysis. The findings confirm that the long-run estimates of environmental innovations and patents are positively significant, ensuring that environment-related technologies are helpful in attaining green growth in the BRICS economies. Moreover, the estimates of financial globalisation are significantly positive, suggesting that a rise in financial globalisation leads to an increase in green growth in the BRICS economies. Our findings imply that, to promote green growth in the BRICS economies, policymakers should focus on R&D activities that can encourage the development of green innovations.
... It shows that Yamaha motors increase revenue by 4.5083% from 2017 to 2019 and in 2020 it came down by 14.58% due to the impact of covid-19 and in 2021 it becomes maintained and increased by 7.2 % 2021. Where the cost of goods sold increased from 2017 to 2019 but after became low in 2020, 2021 (Kihombo et al, 2022). In addition, that operating expenses have been increased 4.45% in 2018 and 3.1% in 2019 but after it came down to 11.92 in 2020 and 7.9 in 2021. ...
... The study reported that financial globalisation influences environmental performance through two channels, namely the composition effect and the scale effect. Another study done by Kihombo et al. (2022) supports our findings by disclosing that financial globalisation reduces CO2 emissions in WAME economies. In contrast, Sadiq et al. (2022) study contradict our findings by arguing that financial globalisation accelerates environmental deterioration in the BRICS region. ...
The study aims to explore the asymmetric impact of financial glo-balisation on renewable CO2 emissions for selected Asian economies for a time span from 1990 to 2019. A sample of 35 economies is selected on the basis of the availability of data. To get the estimates of the variables, the analysis has applied FMOLS and DOLS estimation methods. The linear estimate of financial globalisation in the FMOLS model is negative and significant but positive and insignificant in the DOLS model. The estimates attached to positive financial globalisation are negatively significant in both FMOLS and DOLS models, implying that an increase in financial globalisation causes the environmental quality to improve. Similarly, the estimates attached to negative financial globalisation in both FMOLS and DOLS are negative and suggest that a fall in financial globalisation causes the environmental quality to deteriorate. The magnitudes of positive and negative changes are different; hence, they have a significantly different impact on environmental quality. The robust results clearly indicate that the effects of financial globalisation on CO2 emissions are asymmetric. Therefore, the policymakers should focus on positive as well as negative changes in financial globalisation while considering the impact of financial globalisation on CO2 emissions in Asian regions. ARTICLE HISTORY
... Idode and Sanusi, 2019; Mamba et al., 2020)and environmental sustainability (Acheampong et al., 2019;Akadiri and Adebayo, 2021;Kihombo et al., 2021;Mahalik et al., 2021;Miao et al., 2022;Shahzad et al., 2022). Mahalik et al. (2021) assess the effect of foreign aid and foreign energy aid on CO2 emission and posit that these inflows improve environmental quality whereas remittances harm the environment. ...
... In this respect, the authors argue that the effect of globalization on renewable energy depends on the form in which financial globalization takes. In the same vein, Kihombo et al. (2021) however argue that the ability of financial globalization to affect environmental sustainability depends on its effect on economic growth and on population density. ...
Despite growing attention on the role of renewable energy in promoting economic growth and environmental sustainability, its adoption rate remains uncomfortably low, especially in developing countries. This study attempts to explore the ways to extend the installed capacity of renewable energy in 16 sub-Saharan African (SSA) countries over the period1980-2017. The results from panel cointegration econometric techniques suggest that policies to enhance financial integration should increase the installed capacity of renewable energy in SSA both in the long and short-run. This long-run effect holds, although disproportionately when the financial integration index is disaggregated into its de facto and de jure aspects. Moreover, the quantile regression analysis reveals that the effect of financial integration on renewable energy capacity is positive but heterogeneous across the conditional distribution of renewable energy capacity. However, the positive effect of financial integration is not enough to ensure the diversification of the energy mix. The results finally show that economic growth is positively linked to renewable energy generation capacity while financial development is negatively associated with renewable energy production.
... Inconsistent results have been published by studies that calculate the impacts of innovations on CO 2 emissions. For example, the work of Kihombo et al. [33] studied the impact of innovations on carbon emissions over the years of 1990-2018. The results indicated that innovations have been mitigating carbon emissions over the years. ...
Every year, the problem of environmental degradation becomes more severe globally. It is
widely believed that technological innovation and economic complexity are understood as structural
transformations toward a more sophisticated and knowledge-based means of production as a viable
way to fight against climate change. However, the studies integrating these two elements into the
same environmental policy framework are still scant. With this in view, this study investigates the
dynamic linkage between economic complexity, technological innovations, economic growth, and
nonrenewable energy on CO2 emissions in the N-11 nations. This study uses data from 1980 to
2020. It applies the recent method of cross-sectional autoregressive distributed lags (CS-ARDL). The
cointegration method shows a strong association among the variables. The findings of the CS-ARDL
show that technological innovations are negatively related to environmental degradation, while
nonrenewable energy deteriorates the environment by escalating CO2 emissions. This study fails to
validate the EKC in the N-11 nations. In addition, economic complexity is helping these economies to
achieve environmental sustainability by lowering environmental pollution. Based on the findings,
this work recommends that the N-11 countries restructure their industrial sectors with low-carbon
energy sources. For this purpose, these countries should increase their research and development
budgets. This will help in launching environmentally friendly energy sources in their economic
development model.
... The empirical findings show that financial globalization reduces the ecological footprint and enhances the environmental quality besides neutralizing the negative impact of natural resources. The panel causality analysis [18] analyzed that financial globalization Granger causes an ecological footprint in the long run. The results depict that financial globalization reduces ecological footprint and enhances environmental sustainability. ...
... Baloch et al. [27] demonstrated that economic growth pollutes the environment indicating a positive effect on ecological footprint. Kihombo et al. [18] inspected the feedback effect between economic growth and ecological footprint besides the Environmental Kuznets hypothesis is also detected in the presence of financial globalization among economic growth and ecological footprint. Kirikkaleli et al. [19] examined that Gross Domestic product has a negative relationship with an ecological footprint in both periods (Short and Long-run). ...
... The existing literature on the link between economic globalization and CO2 emissions is inconclusive regarding whether economic globalization is the problem or the solution to the decarbonization process. Some studies show a positive effect of globalization on CO2 emissions (e.g., Lv and Xu, 2019;Nasir et al., 2019;Kirikkaleli et al., 2021;Sheraz et al., 2021;Yurtkuran, 2021;Jahanger, 2022), while other studies reveal a negative relationship (e.g., Liu et al., 2017;Zhang et al., 2017;Ahmed and Le, 2021;He et al., 2021;Kihombo et al., 2022;Adebayo et al., 2022). Similar mixed results are found in the case of MENA countries. ...
... Another contribution of this paper is to test the hypothesis of the asymmetric impact of economic globalization on CO2 emissions by comparing: i) short-and long-term effects; ii) trade globalization and financial globalization; and iii) oil-exporting and non-oil-exporting J o u r n a l P r e -p r o o f MENA countries. To the best of our knowledge, this is the first study that simultaneously explores these three heterogeneities compared to previous studies focusing on MENA countries (e.g., Omri et al., 2014;Abdouli and Hammami, 2018;Shahbaz et al., 2019;Awan et al., 2020;Kihombo et al., 2022). ...
... They found a negative link between globalization and environmental degradation. Using the same estimators, Kihombo et al. (2022) show that globalization improved environmental quality in West Asian and Middle As this literature review shows, existing studies have not tested whether positive and negative shocks of economic globalization can produce negative or positive effects on CO2 emissions, and whether one of these effects can be more powerful and persistent. The main contribution of this study is to examine this hypothesis, which identifies a potential asymmetric impact of economic globalization on CO2 emissions in MENA countries. ...
This paper explores whether economic globalization is (de)carbonizing the MENA region. Based on a comprehensive econometric analysis including ARDL and NARDL models for a panel of 17 MENA countries over the 1980–2018 period, it reveals the existence of asymmetric long-term impacts of economic globalization on CO2 emissions. As economic globalization increases, CO2 emissions increase, but the effect is much stronger for trade globalization than for financial globalization. On the other hand, the decrease in globalization has no effect. The study also shows that, the effects of financial globalization are different between OPEC and non-OPEC MENA countries. It appears that financial globalization pushes OPEC MENA oil-exporting countries to reduce their CO2 emissions with the transfer of technologies and the development of their financial market. These different results between OPEC and non-OPEC MENA countries allow us to propose differentiated policies for these two groups of countries.
