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The Energy-Growth Nexus: History, Development, and New Challenges

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... The Energy-Growth Nexus (EGN) literature investigates the causal relationship between energy consumption and economic growth (Hajko et al., 2018). The effects of global warming emerged as a key energy related policy topic following the oil shocks of the 1970s. ...
... The Energy-Growth Nexus (EGN) literature investigates the causal relationship between energy consumption and economic growth (Hajko et al., 2018). Following Jorgenson's introduction of an energy variable into Robert Solow's theory of economic growth (Kasperowicz et al., 2020), Kraft and Kraft's (1978) seminal paper on the causal relationship between energy and gross national product (GNP) identified unidirectional causality from GNP to energy. ...
... Kraft and Kraft's (1978) findings suggested that energy conservation policies would not impair economic growth. This was a significant observation following the period after the energy crises in the 1970s and the threat of reduced energy supply (Hajko et al., 2018). Research into the relevance of energy for economic growth continued, leading to four hypotheses on the relationship between energy consumption and economic growth; growth, conservation, feedback, and neutrality (Apergis & Payne, 2012); with associated implications for energy policy. ...
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This paper investigates the effect of renewable energy on economic growth in Croatia for the period 1996-2018. The Autoregressive Distributed Lag (ARDL) technique is used to find the long run relationships between renewable energy, energy consumption and economic growth. The empirical analysis indicates that renewable energy has a positive and significant effect on economic growth in the short and long run. These findings indicate that the Croatian government can continue to boost renewable energy investment without impeding economic growth.
... Nearly five decades have passed since Kraft and Kraft (1978) published their first paper on the energy-growth nexus (Hajko et al. 2018). Their study arguably helped form the basis on which countries have developed regulations and policy recommendations. ...
... These notably include issues with estimation procedures, such as poor data coverage, different sample periods, and the presence of structural breaks in the data. Other issues that have been noted are, for instance, inappropriate combinations of panel datasets, estimations of causation that rely on panel homogeneity, and the attribution of equal weights to all countries despite considerable heterogeneity in macroeconomic indicators (Hajko et al. 2018). ...
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Over the past two decades, numerous developed and developing nations have witnessed a remarkable shift from manufacturing-based economies to those that center around the service sector. This development has led to a staggering growth in the consumption of energy-intensive goods, and Canada has not been immune to this trend. Despite being home to abundant energy reserves, the country’s economic expansion has manifestly relied on prodigious energy consumption. Within this context of symbiotic energy-economic growth, this study investigates the empirical relationship between energy consumption and economic growth using Canadian time-series data from 1980 to 2020. In doing so, this paper offers a vital contribution to the development of theoretical frameworks within the sphere of endogenous growth. Besides, to arrive at empirical findings, a model known as the autoregressive distributed lag (ARDL) model, renowned for its ability to discern both short- and long-term coefficients, is employed. The results reveal that economic growth has a significant positive long-run effect on energy consumption and other explanatory variables. All variables other than trade openness demonstrate a positive relationship with economic growth in the short run. From Toda-Yamamoto causality test, it is evident that there exist bidirectional causal links between economic growth and energy consumption and between economic growth and financial development. Several unidirectional causalities were also observed for other variables. Based on these findings, it is recommended that Canada boosts its investment in energy infrastructure, especially in rural and backward regions, to deliver necessary energy services. An optimal trade-off between Canada’s vast energy resources and economic growth can perhaps be achieved by minimizing the disparity in access to energy services across all parts of the country. Other policy implications are discussed.
... Second, understanding the energy-growth nexus is essential to formulating energy policies. In addition, Hajko et al. (2018) argue that the growth-energy nexus is an empirical exploratory area that needs a more robust theoretical foundation. They consider the interaction between growth and energy related to the Granger causality. ...
... It is widely acknowledged that the interaction between these two factors is related to the Granger causality relationship without a solid theoretical basis. Hajko et al. (2018) argue that the economic growthenergy consumption nexus is an empirical exploratory area that needs a more robust theoretical foundation. Munir et al. (2019) studied the interaction between CO 2 emissions, energy consumption, and economic growth in the ASEAN-5 countries from 1980 to 2016. ...
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The Association of Southeast Asian Nations (ASEAN), a new global economic force, has struggled to achieve a dual objective of enhanced economic growth and improved environmental quality. Financial development is generally considered an important tool in achieving these simultaneous objectives. This paper examines the response mechanism and the inter-relationship between the ASEAN region’s financial development, energy consumption, and economic growth. Unlike previous studies, the paper uses a generalized method of moments panel vector autoregression (GMM-panel VAR) framework for the 1981–2021 period. The second-generation Granger causality test is used to identify their causality relationship. Economic growth supports financial development and reduces energy consumption from fossil fuel sources in the ASEAN countries. Financial development also reduces fossil fuel energy consumption. The bi-directional relationship between economic growth and fossil fuel energy consumption exists. Energy consumption and financial development are also bi-directionally linked. However, only the unidirectional Granger causality from economic growth to financial development is found. The variance decomposition analysis results confirm that economic growth accounts for the most significant variance in fossil fuel energy consumption and financial development in the ASEAN countries. Policy implications have emerged based on these findings.
... There has been a lot of discussion on whether or not energy use contributes to economic expansion. Both the theoretical and empirical sides of this discussion have a long way to go [52,53]. ...
... There are various econometric approaches to investigate the short-and long-run relationships between variables in the panel data. However, in the presence of CD, using first-generation methods like FMOLS, DOLS, etc., will produce bias and inconsistent regression results [39,52]. CS-ARDL developed by Chudik and Pesaran [38] is an updated version of the pooled mean group (PMG), and it addresses both CD and slope heterogeneity issues. ...
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The research motivates to provide some implications about the role of energy innovation (EINN) in the resource curse hypothesis. The significance of EINN is crucial for mitigating the economic and environmental damage caused by the excessive consumption of natural resources (NR). The study aims to inspect the effect of energy consumption (EC), EINN, and NR on the economic growth (EG) of OECD countries from 1990 to 2015. The study emphasizes the importance of EINN by incorporating the EINN in the empirical framework of the resource curse hypothesis (RCH) and contributes to the current research on RCH. The study has used the various advanced econometrics techniques that are robust in controlling the cross-section dependence (CD) and slope heterogeneity of the panel data. The results clarify that EINN is a decisive factor in the analysis of the RCH. The positive association between EINN and EG suggests that EINN is beneficial in improving the EG of OECD countries. The results reveal the negative impact of NR on EG; however, with the inclusion of EINN, the absolute value of the NR’s effect has declined significantly from −0.299% to −0.076% in the long run. The findings suggest that improvements in the EINN are crucial to increase the efficiency and productivity of NR and to avoid the RCH in the OECD countries. Thus, OECD countries should encourage energy innovation policies by promoting their application, so that replacement of traditional energy sources with new energy can be realized.
... For example, Kraft and Kraft (1978), using the econometric 4 REMEF (The Mexican Journal of Economics and Finance) Energy consumption, financial development, CO2 emissions, and economic growth in 23 developing economies method developed by Sims (1972), concluded that the gross national product leaded to energy consumption, thus introducing the issue of causality in the field. There are four known hypotheses of the Granger causality between energy and economic activity (Hajko et al., 2019;Rajaguru and Khan, 2021). The hypotheses are: (i) neutrality, (ii) growth (iii) conservation, and (iv) feedback. ...
... The conservation hypothesis states that energy policies aimed at diminishing energy consumption may not have a negative effect on economic activity. In fact, environmental activists and policymakers would expect this hypothesis to hold in the future to mitigate global warming (Hajko et al., 2019). For instance, Moftah and Dilek (2021) demonstrated that 16 Middle East and North Africa countries conformed to the conservation hypothesis. ...
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This study examines the nexus among energy consumption, CO2 emissions, financial development, and economic growth in 23 developing countries. The econometric approach is based on panel pairwise Granger causality and GMM estimations of panel VAR-Granger causality with fixed effects. Our study is probably one of the first to estimate joint relationships between financial (bank credit to private sector and liquid liabilities), energy (primary energy consumption and electricity generation), environmental (CO2 emissions), and economic variables (GDP and inflation rates) in less developed economies over the 2001-2019 period. The results confirm bidirectional causality between financial development and CO2, financial development and GDP, and primary energy consumption and CO2; and unidirectional from financial development to energy consumption and from electricity generation to CO2. We did not find evidence of a relationship between GDP and energy or CO2 emissions. Due to data availability, we could not complement our analysis with further testing, which would enrich the results. The research may guide policymakers in designing policies to reduce contamination, improve energy use, and promote financial development.
... Wang et al. (2015) found that air pollution can be minimized by encouraging the number of internet users and invest in the ICT sector for a better environment. Technological and high-tech evolution help to unfold the energy consumption patterns by industrial energy efficiency (Hajko et al. 2018). The greenhouse gases can be minimized by using efficient industrial processes and energy consumption substitutions (Coroama et al. 2013). ...
... The greenhouse gases can be minimized by using efficient industrial processes and energy consumption substitutions (Coroama et al. 2013). CO 2 emission is inversely proportional to energy efficiency (Hajko et al. 2018), as ICT is a helpful instrument to reduce environmental degradation and its impact on public health (Asongu et al. 2017). ...
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The Chinese economy traces an outstanding economics growth and development by utilizing its natural resources and cheap labor force along with environmental problems. China is focusing on policies related to technology for people’s well-being. Despite this, about 2 million Chinese are going to die yearly due to air pollution regarding the Global Air Quality Report of the World Health Organization. The marginal impact of technology innovation and adoption is inaudible in the Chinese pollution equation. Therefore, this study analysis spotlights on nexuses of technology innovation and adoption CO2 emission for the Chinese economy, respectively. The marginal impacts infer that technology innovation and trade openness are mitigating the CO2 emission, whereas technology adoption and GDP enrich the CO2 emission in the Chinese context. Lag periods of technology innovation and adoption also have significant linkage with CO2 emission. Hence, an increase in technology innovation will help lessen the CO2 emission. The introduction of green energy and efficient ICT equipment is needed to tackle environmental degradation. The policy-makers can put a carbon tax on inefficient industrial processes and products for sustainable development.
... On March 28, 2015, with the authorization of the State Council, three ministries and commissions of China announced the "Vision and Actions on Jointly Building the Silk Road Economic Belt and the Twenty-First Century Maritime Silk Road" (NDRC 2015). Hajko et al. (2018) suggest that energy is integral factor of production. Sustainable economic growth directly depends upon the energy consumption (Rauf et al. 2018a), as the rapid economic growth and population expansion are increasing the Responsible editor: Muhammad Shahbaz demand for energy (Hajko et al. 2018). ...
... Hajko et al. (2018) suggest that energy is integral factor of production. Sustainable economic growth directly depends upon the energy consumption (Rauf et al. 2018a), as the rapid economic growth and population expansion are increasing the Responsible editor: Muhammad Shahbaz demand for energy (Hajko et al. 2018). Due to continual economic growth, Chinese economy has appeared to be the world's largest consumer and importer of energy and is utilizing the energy consumption at the rate of 1.04% (Hafeez et al. 2019a), whereas the OBOR economies (42.8, and 24% of world energy and household consumption, respectively) will create an increase in energy consumption and potential energy market because of its dynamic role in the economy to boost up the economic growth and sustainable development Yao et al. 2019). ...
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China launched the One Belt & One Road (OBOR) initiative to minimize the energy resource shortage. The China’s nearby countries are rich in energy resources especially Middle East and North Africa (MENA) and Asian countries which make them ideal locations to cooperate with China in terms of energy resources, as 42.8% of world energy consumption belongs to OBOR countries. The present study elaborates the spatial distribution pattern of energy consumption disparities and its impact on environment. To do this, an entropy approach is utilized to compute the energy consumption inequalities in OBOR and its regions. The spatial and Pareto analysis show that MENA, East, and Southeast Asian economies have the highest degree of energy consumption inequalities, while European and Central Asian economies show the lowest energy consumption inequalities in OBOR region. The long-run estimates indicate that energy consumption inequalities enhance the CO2 emission in OBOR and its region except South and Southeast Asia. Financial development also has a significantly positive impact on CO2 emission in all models for OBOR and its regions except East Asia. Based on findings, the spatial distribution analysis is applicable to maintain balance in regional energy consumption inequality within OBOR and its regions.
... A researcher typically faces several challenges working in energy-growth nexus. In many studies, data availability is the key determinant to choose the sample period and methodologies (Hajko, Sebri, Al-Saidi, & Balsalobre-Lorente, 2018 ...
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This article examines the nexus between economic growth and two renewable energy sources, namely wind and solar, to separate out the contrast between these two sources, for India deploying system generalised method of moments and vector error correction method suitable to capture the dynamic nature of panel data. Unlike most of the earlier studies, it takes into account cross-sectional dependence and addresses the issue of endogeneity. India has been chosen because despite India being one of the largest producers of renewable energy globally; the nexus is under-studied. This article finds the installation of solar energy capacity positively influences the Gross State Domestic Product (GSDP) growth. Moreover, there is a bi-directional positive relation between the installation of wind energy capacity and GSDP growth. Hence the adoption of renewable energy is helping the states to grow faster. However, the study found not much difference in the nature of the nexus between solar energy growth and wind energy growth for India. JEL Codes: O13, P28, P44, Q56
... All of these economic activities deplete natural resources and produce harmful trash. Mining, deforestation, and agriculture all contribute to natural resources extractions and impact sustainability (Hajko et al., 2018). Nowadays, artificial intelligence and digitalization are performing well in engaging environmental sustainability. ...
Article
In the era of development, the world is facing severe challenges, and environmental degradation is one of them. However, the globe has tried to introduce several initiatives to fight for environmental sustainability, such as the Sustainable Development Goals. The leading role of the proposed goals is to balance development and environmental anxiety. Therefore, to these issues, artificial intelligence and technological advancements play a vital role in the natural resource economy in the digital age. Policy analysts are always looking for solutions and have come up with several viable remedies to this problem. Consequently, information & communication technology (ICT) plays a significant role in sustainability in the digital era. However, under the theme of natural resource sustainability, the effectiveness of ICT has a significant impact on sustainability. Accordingly, the current study investigates the long-run effect of income per capita, tourism, natural resources rents, urbanization, and ICT on environmental sustainability in 36 OECD economies from 2000 to 2018. The current research employs an Augmented Mean Group (AMG) and two-step GMM to investigate the study's objectives. Results show the positive contribution of urbanization, natural resources, and tourism to CO2 emissions, while ICT reduces emissions. Besides, an inverted EKC curve is also validated for selected economies. In addition, the moderate effect of ICT on urbanization, natural resources, and tourism shows a significant decline in CO2 emissions. In light of the findings, this study recommends several crucial measures for environmental sustainability.
... Through the lens of RBV theory, contingency theory, and dynamic capability theory, in the sequential effect of the research's findings, and secondly in line with previous empirical research, strategic agility was found to provide sustainable competitive advantage (Adamik et al. 2018;Sherehiy and Karwowski 2014;Al-Romedy 2019;Barahmah et al. 2022;Battour et al. 2021;Claus et al. 2020;Kotter 2015;Mason 2010, Nkuda 2017Nurcholis 2021). This means rapid recognition of the ability to identify changes, trends, and opportunities in the environment, adapting and restructuring team members to quickly perform tasks and change conditions rapidly (Hajko et al. 2018). This also means that sustainable competitive advantage will be achieved by creating a strategic, broad, or comprehensive networking capability with suppliers and distributors. ...
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A company’s environmental sensitivity primarily depends on its sustainability. Hence, investigating the factors that affect sustainable business performance contributes to the literature on the environment. Based on a resource-based view, dynamic capabilities, and contingency theory, this study examines the sequential relationships between the absorptive capacity, strategic agility, sustainable competitive advantage, and sustainable business performance of small- and medium-sized enterprises (SMEs), as well as the mediating role of sustainable competitive advantage in the relationship between strategic agility and sustainable business performance. The data for the study was collected from 421 SMEs operating as family businesses and analyzed using SEM. Research fndings show that the sub-dimensions of absorptive capacity, acquisition, and exploitation afect strategic agility; strategic agility affects sustainable competitive advantage, and sustainable competitive advantage affects sustainable business performance. In addition to these sequential relationships, sustainable competitive advantage was found to play a full mediating role in the relationship between strategic agility and sustainable business performance. The fndings of the study highlight the process to achieve sustainable performance for SMEs, which are the backbone of developing economies in today’s highly turbulent economic conditions
... This is done with the goal of lowering the likelihood of an incident occurring as well as its potential repercussions (Denuit et al., 2022). Risks in a relationship involving a supply chain can be reduced by entering into pre-crisis agreements and working together more effectively (Hajko et al., 2018). A poor image in the eyes of the public can be detrimental to a company's bottom line and overall performance. ...
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An entrepreneurial orientation is a method of implementing a strategy that makes use of a variety of resources that are owned by organizations. Entrepreneurial orientation is one of the primary factors that led to the company's founding. Risk sharing is a useful tactic that can be implemented by businesses in order to mitigate the amount of risk to which they are exposed. As a consequence of this, the objective of the research is to ascertain how the performance of an enterprise can be affected by the presence of both an entrepreneurial orientation and shared risk. The proliferation of news media has led to modifications in the ways in which businesses carry out their day-to-day operations, which in turn has an effect on the overall success of the organization. As a direct consequence of this, the research looked into the function that the news media play as a moderator of the connections that exist between entrepreneurial orientation, risk sharing, and the level of performance achieved by organizations. Even for enormous, well-known businesses that are active on a global scale, damaging publicity has the potential to lower the value of their companies. The aim of this study was to investigate the impact of entrepreneurial orientation and risk sharing on organizational performance with the mediating role of news media and moderating role of public opinion. In order to achieve the objective of the study, a quantitative research approach was utilized. Data were collected from 450 managers of SMEs with the help of a questionnaire that was adapted from previous studies. A simple random sampling technique was used to collect data. The findings of the study showed that the relationship between entrepreneurial orientation, risk sharing, and organizational performance is positive and significant. The findings also showed that news media significantly mediated this relationship and public opinion moderated the relationship between news media and organizational performance. The current study has some practical and managerial implications which help SMEs to increase their performance.
... Since the seminar study proposed by Grossman and Krueger (2019), numerous studies have explored the nexus between economic growth and environmental degradation (Panayotou, 1993;Selden and Song, 1994;Balsalobre-Lorente et al., 2017;Hajko et al., 2018;and Özcan and Öztürk, 2019). ...
... The EKC model explains the nexus between economic growth and the environment as a polynomial (often quadratic) relationship (Hajko et al., 2018). Table 1 includes some of the recent literature to show the multi-dimensional relationship between environment and economy with a special focus on Asia. ...
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Economic development may have distinct implications for the environment based on gender-diferentiated employment in various sectors of the economy. This is the frst major attempt to incorporate gender in environmental modeling using sector-wise female employment status and gender parity index. In this study, we investigate the environmentgender nexus through the Environmental Kuznets Curve (EKC) hypothesis in 36 Asian countries for the period 1991–2017 by panel data estimations. We fnd in all estimations through panel FMOLS that (a) per capita GDP positively afects CO2 emissions and (b) per capita CO2 is afected by per capita GDP squared negatively, thus confrming EKC for panel Asian data with 971 observations. The estimations of the paper also confrm the EKC hypothesis through panel data models in which GDP and GDP squared variables. Our fndings suggest male and female labor market participation impacts the environment diferently, particularly in the agricultural sectors. We also fnd that an increased schooling ratio (gender parity index) negatively impacts environmental degradation. The fndings of the present study are expected to give insights into policymakers for understanding the theoretical and statistical association between environmental quality and male/female labor force in agricultural and industrial sectors for 36 Asian countries.
... For this reason, we included CO 2 emissions (CO2) to account for the pollution level in the environment. Similarly, we have energy consumption (EC), foreign direct investment (FDI), economic development (GDPPER), economic growth (GDP), and trade openness (TR) to account for the energy use, investment, and trade as well as the economic structure (Jin, Duan, and Tang 2018;Lin and Lin 2010;Akhmetshin et al. 2018;Buhari, Lorente, and Nasir 2020;Hajko et al. 2018;Broughel and Thierer 2019), while e it is the error term for country i in year t. ...
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This study examines the effect of corruption on green innovation. We employed a panel corrected standard error (PCSE) and robust checking system generalized moment of method (S-GMM) model on a panel sample of 61 OECD and non-OECD countries between 2010 to 2018. Our results show that corruption is significant and positively related to green innovation in 61 countries. Similarly, we find that corruption has an increasing impact on green innovation in non-OECD countries. However, in OECD countries, corruption reduces the likelihood of attaining green innovation. Our results are robust to alternative estimation. Therefore, our results extend the green innovation literature and inform policymakers of the need to pay attention to the effect of corruption.
... follows the Granger causality approach based on victor error correction model to define the causality between the indicators. This test effectively examines the causality among the factors when the indicators are integrated of order I (1) and have a long-run association (Hajko et al., 2018). This study adopts the Granger causality method by estimating the VECM as follows: ...
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The ASEAN-4 countries namely Indonesia, Malaysia, Philippines and Thailand are experiencing increasing ecological footprints and shrinking biocapacity due to high urbanization rate, heavy reliance on traditional innovations and extensive use of fossil-fuel resources. In these economies, urban areas are the centers of gravity for economic activities and resource consumption. Against this backdrop, the primary interest of this study is to analyze the non-linear effect of urbanization on ecological footprints while considering the differential roles of indigenous and foreign innovations during 1980–2017. The results of Auto regressive distributed leg test uncover that urbanization and ecological footprints do not exhibit an inverted U-shape curve in both short-run and long-run across ASEAN-4. The impact of urbanization recorded relatively higher on ecological footprints in Indonesia and Thailand. Both indigenous and foreign innovations are not conducive to ecological footprints in ASEAN-4. For control variables, population, economic growth and non-renewable energy significantly increase ecological footprints while renewable energy yields rebound effect. These results are also verified by fully modified ordinary least square and dynamic ordinary least square tests. Also, bidirectional causality confirmed between urbanization and ecological footprints in these countries. Finally, several important policy implications are documented aimed at confronting the mounting threat of ecological footprints in these countries.
... This topic has become a mainstream for academic inquiry in the literature on environmental and energy economics. Scholars with an abundance of work have reiterated the critical role of renewable energy in environmental improvement (Armeanu et al. 2017;Bourcet 2020;Damette and Marques 2019;Dechezleprêtre and Sato 2017;Destek 2016;Hajko et al. 2018;Inglesi-Lotz and Dogan 2018;Mert et al. 2019;Mert and Bölük 2016;Sadorsky 2009;Zafar et al. 2019) and added that more renewable energy and environmental policies facilitate the development of the economy and energy efficiency. Gielen et al. (2019) asserted that green technologies that improve or provide a clean alternative for energy efficiency could help in green transformation. ...
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Many economies are seeking new ways to improve environmental quality through international collaboration in environmental-related technology development (ICERTD). Cost reduction, green market penetration, and green technology development are central to global partnerships for sustainable development, even though no empirical study explains the ICERTD-carbon dioxide (CO2 ) emissions nexus. The paper fills this knowledge gap in the energy economics literature by examining the relationship between ICERTD and CO2 emissions in the U.S. from 1990Q1 to 2018Q4 using domestic environmental innovation, trade openness, renewable energy consumption, and gross domestic product per capita as control variables. Fully modified ordinary least squares, dynamic ordinary least squares, and correlated component regression methods were employed for testing the long-run nexus among the variables. The present study revealed that (i) a long-run cointegration existed among ICERTD, domestic environmental innovation, trade openness, renewable energy consumption, gross domestic product per capita, and CO2 emissions; (ii) ICERTD, domestic environmental innovation, and renewable energy consumption benefited the U.S. in lowering CO2 emissions in the long run; and (iii) trade openness and gross domestic product per capita were positively associated with CO2 emissions. This study recommends important policy recommendations for increasing ICERTD for decarbonization.
... For example, Magazzino (2016) argued that energy use is important for all groups across the globe and it also helps in the development of country. Hajko et al. (2018) report that energy supply and technological development increases economic growth. Paul and Bhattacharya (2004) analyze the causality between India's energy usage and economic development, spanning the period of 1950-1996. ...
Article
Globally, all countries have producing different levels of carbon emissions and also facing both the problems of climate change and global warming due high carbon emissions in the atmosphere. Therefore, it is important to cutting carbon emissions in the atmosphere. This is only possible by switching to cleaner fuels, use of innovation technologies and development of carbon capture storages. These can substantially help the nations to reaching carbon neutrality. Given this background, this paper examines the effect of disaggregated energy consumption, technological innovations, capital on economic output and CO2 emissions in India for the period of 1990–2018. Based on empirical analysis, our long-run elasticities indicate that disaggregated energy consumption and technological innovations have a positive impact on economic growth, while renewable energy consumption and technological innovations have a positive impact on CO2 emissions. It implies that more use of energy consumption producing significant amount of CO2 emissions and by using renewable energy consumption and technological innovations (i.e. carbon capture storages) can significantly lowering CO2 emissions, which is clearly indicating that India has moving towards carbon neutrality. The causality analysis further indicates a unidirectional causal relationship running from disaggregated energy usage to economic growth and carbon emissions. These empirical findings suggest that the increased consumption of renewable power does not lead to rise carbon emissions, which, in turn, ensures sustainable economic growth.
... Since the last couple of decades, the titles like environmental degradation (ED), environmental pollution, global warming, and changing climate have received much attention from scholars, researchers, policymakers, and energy economists. The various studies in theoretical and empirical perspectives have been conducted to examine the trends in sustainable practices and a range of solutions (Danielle and Masilela, 2020;Hajko et al., 2018). Meanwhile, the natural environment has offered various sources to different industries and economies to meet their production requirements and day-to-day needs. ...
Article
Environmental degradation is significantly studied both in the past and the current literature; however, steps towards reducing the environmental pollution in carbon emission and haze pollution like PM2.5 are not under rational attention. This study tries to cover this gap while considering the carbon emission and PM2.5 through observing the role of renewable energy, non-renewable energy, environmental taxes, and ecological innovation for the top Asian economies from 1990 to 2017. For analysis purposes, this research considers cross-sectional dependence analysis, unit root test with and without structural break (Pesaran, 2007), slope heterogeneity analysis, Westerlund and Edgerton (2008) panel cointegration analysis, Banerjee and Carrion-i-Silvestre (2017) cointegration analysis, long-short run CS-ARDL results, as well as AMG and CCEMG for robustness check. The empirical evidence in both the short-and long-run has confirmed the negative and significant effect of renewable energy sources, ecological innovation, and environmental taxes on carbon emissions and PM2.5. Whereas, non-renewable energy sources are causing environmental degradation in the targeted economies. Finally, various policy implications related to carbon emission and haze pollution like PM2.5 are also provided to control their harmful effect on the natural environment.
... The EKC hypothesis asserts an inverse U-shaped relationship between environmental quality and economic growth (Hajko et al. 2018;Murshed 2021c;Khan et al. 2021). The empirical studies on the EKC hypothesis were pioneered by Grossman and Krueger (1991) in which the authors failed to establish the validity of the EKC hypothesis in the context of Mexico. ...
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In the current century, the G7 countries have attached more importance to energy security, and have prioritized low-carbon sources which have necessitated the consumption of nuclear and renewable energy resources to achieve a resilient low-carbon system. However, it is still not clear if the sacrifice has paid-off since the environmental quality in majority of these countries is yet to be significantly improved. As such, this study employs advanced panel data econometric techniques that account for cross-sectional dependence and slope heterogeneity issues to explore the impacts of nuclear and renewable energy use in respect of CO 2 emission mitigation in six of the seven G7 countries. The core objective of this study is to justify whether energy diversification through promotion of nuclear and renewable energy consumption can assist the G7 nations in complying with their commitments concerning the Paris Climate Change and Sustainable Development Goals agendas. The overall findings from the econometric analysis affirm the abating role of nuclear energy on CO 2 emissions. However, renewable energy consumption is found to be statistically insignificant in explaining the variations in the CO 2 emission levels. On the other hand, economic growth is found to initially boost the CO 2 emission level but mitigate it later on; thus the authenticity of the Environmental Kuznets Curve hypothesis is established in the G7 context. Besides, the country-specific results suggest that nuclear energy significantly reduces CO 2 emissions in all the countries, except in Canada and the United Stat es. Also, renewable energy significantly curbs CO 2 emissions only in Canada and France. Furthermore, the Environmental Kuznets Curve hypothesis is validated for Canada, France, the United Kingdom and the United States. In line with these findings, it is pertinent for the G7 countries to boost nuclear energy use to reduce the fossil fuel dependency in majority of the G7 nations in order to mitigate CO 2 emissions. Moreover, it is also suggested that these nations adopt relevant policies to further green their consumption and production processes to ensure a complementarity between economic growth and environmental development.
... To avoid falling into the state of technical obsolescence, measures must be taken to encourage technological innovations (Balsalobre et al. 2018). Vladimir et al. (2018) suggests that through the adoption of renewable energy and the establishment of more energy-thrift technologies, the decoupling of emissions from energy use can be achieved, thereby reducing the negative impact of the energy sector on resource efficiency and the environment. However, when economic systems interact with corruption, the positive effects of energy innovation on environmental quality are reduced (Daniel et al. 2019). ...
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Investigating the regional correlation and factors affecting agricultural greenhouse gas (GHG) emissions can help establish a regional mechanism for the synergistic reduction of emissions and produce chain-like reductions. Different from the traditional geographical relationship analysis framework, linear analysis ideas, we use social network analysis to discern the regional correlations in agricultural GHG emissions from a relational network viewpoint, clarify the network functions of each node, and explain agricultural GHG correlation from a spatial, economic, and technological viewpoint by nonparametric regression. The results indicate that (1) the emission network is stable and there is a relationship of control between regions, (2) Central China is the most important region in agricultural GHG networks; however, the importance of the northwest and southwest has increased; the northeast has remained relatively independent, (3) influencers are mainly concentrated in the middle of the Yangtze River and the northwest, while dependentors are concentrated in municipalities such as Beijing and Tianjin, and the coastal regions in the southeast, and (4) the interprovincial agricultural GHG correlation can be enhanced by shortening the spatial distance, strengthening economic ties, and increasing the diffusion of technology. Implementing a “leader–follower” strategy according to the role of each region and enhancing the intermediator’s “conduit” role will ultimately lead to the formation of an interprovincial interactive and cooperative emission reduction mechanism.
... Some studies have also used the ECI to compare the trade competitiveness associated with the degree of R&D in economies. The effects of R&D processes can be considered an indicator of technical progress, which affects economic growth (Fang, 2011;Balsalobre et al., 2015;Hajko et al., 2018) and also reduces the costs of producing renewable energy (Stafforte and Tamberi, 2012). R&D undoubtedly contributes to businesses' efficiency and competitiveness (Andersson et al., 2018), and the structural change caused by innovation creates new sectors that lead to sustained economic development (Saviotti and Pyka, 2004;Saviotti et al., 2016;Á lvarez et al., 2017). ...
... For energy consumption perspective, Thailand should aim to reduce the use of conventional energy and promote the use of renewable energy, and this may typically remain an alternative for Thailand to mitigate the energy consumption impacts on the environment as suggested by many researchers Bello et al. 2018;Hajko et al. 2018;Wang and Dong 2019). Although both conventional and renewable energy devastate the effects on the environment (Abbasi and Abbasi 2000;Dincer 2000;Gill 2005;Akella et al. 2009;Saidur et al. 2011;Popp et al. 2014), Thailand should aim to increase renewable energy by increasing energy efficiency and incorporate advanced technology and innovation in the energy supply chain as suggested by Dincer (2000). ...
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... On the other hand, this brilliant economic performance has made China the largest energy consumer and the leading responsible country for global CO 2 emissions. It is well known that there is a close relationship between energy, economic growth, and CO 2 emissions (Hajko et al. 2018). According to the IEA (2018) report, China is responsible for 26% of global CO 2 emissions in 2016. ...
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... The argument is that eradication of trade restrictions and seeking or scouting charges attached to market interactions is a significant boost to trade volume (Rauch and Trindade, 2002;Hajko et al, 2018;Balsalobre-Lorente et al 2019). Felbermayr and Toubal, (2012) asserted that migrants boost trade relations with their hosts in these ways: i) Migrants help host countries to overcome trade restrictions that have to do with traditions, customs, language are tackled, and so business links are established. ...
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... There is a clear and strong correlation between energy and GDP 2 along with its provision of goods and services, although the causal direction is still debated (Menegaki 2014;Hajko et al., 2018;Kalimeris et al., 2014). We can think of energy as access to manpower or servants, each with the same work power as a healthy adult male. ...
... All such activities of the economy raise the amount of natural resource reduction, together with rising the extent and destructiveness leftover produced. As well as, the researcher Hajko et al. (2018) stated that the huge amount of consumption of natural resources via mining, deforestation, and agriculture as well as affect the atmosphere. ...
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... The econometric methodologies employed in this strand of the literature follow the evolution of the methodologies in the broader "X-variable-nexus," for example, the most widely known in the literature energy-growth nexus (Hajko et al. 2018;Inglesi-Lotz 2018;Menegaki 2018). Static approaches give their place to more dynamic ones such as in Gupta et al. (2018). ...
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This paper utilizes time-varying parameters Bayesian vector auto-regression model with stochastic volatility approach to investigate the time-varying dynamic relation between FDI, growth and trade partisan conflict in the US. The empirical results confirm that an increase in trade partisan conflict will deter FDI inflows to the US and discourage economic activities. Besides, we also examine the responses of equity investment, intra-company loans and reinvestment earnings given trade partisan conflict shock. In a robustness check, we consider different measurements on FDI and other control variables. The negative role of a trade partisan conflict shock is not altered, indicating the robustness of the findings. Moreover, trade partisan conflicts like GATT, Omnibus Bill Veto, NAFTA, Bush versus Kerry, the financial crisis and TPP are key factors which affect the dynamics. The US government should remedy the negative impacts of trade policy conflict on FDI inflows and economic growth.
... Although a vast amount of the energy-environment-growth literatureincluding the typical branch fields of energy demand and environmental Kuznets curve (EKC) studies as well as more recent areas such as the food-energy-water nexus )has already been generated, little consensus has been reached. Therefore, recent studies have underlined the need for new breakthrough investigations within the nexus that will systemise this research and render the nexus field more comprehensible for policy-making (Hajko et al., 2018;Menegaki and Tsani, 2018;Tsani and Menegaki, 2018). ...
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This paper examined the interaction effect of oil prices on financial instability, trade openness, and economic growth in leading ASEAN countries. Based on the data from 1970 to 2019, this research used the second-generation panel approach to examine the effects of this study. The results of the cross-sectional dependency (CD) test, and the slope homogeneity test showed that slope heterogeneity exists among countries and in the relationship between cross-sectional units. The findings of the co-integration have shown that financial instability, trade openness, oil prices, and economic growth have stable and long-run linkages. In addition, the findings have shown that economic growth is adversely impacted by financial instability and oil prices, and that trade openness has a positive effect on economic growth. The findings further demonstrated the negative effects on economic growth of the interaction between oil prices and financial instability. The interaction term for oil prices and openness in trade, however, has a positive effect on leading ASEAN economies' economic growth. Nevertheless, the findings of the causal test showed a one-way causal association between financial instability and economic growth; oil prices and economic growth. Similarly, the results confirmed the bidirectional causality between trade openness and economic growth.
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This study investigates the long-run relationship between renewable energy consumption and economic growth for E-7 countries over the period 1992–2012 by heterogeneous panel data analysis techniques. Heterogeneous panel cointegration test results confirm the existence of a long-run relationship among real gross domestic product (GDP), renewable energy consumption, real gross fixed capital formation, and labor force. According to the long-run output elasticities, renewable energy consumption has a positive impact on real GDP in E-7 countries. In this study, long-run output elasticities of each country are also estimated by time series analysis techniques. Empirical findings reveal the heterogeneity across countries.
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The aim of this study is to explore the relationship between renewable energy consumption and economic growth within the framework of traditional production function for the period of 1990–2012 in 9 Black Sea and Balkan countries. For this purpose, we use Pedroni (1999, 2004) panel cointegration, Pedroni (2000, 2001) co-integration estimate methods and Dumitrescu and Hurlin (2012) heterogeneous panel causality estimation techniques. The study has concluded that there is a long term balance relationship between renewable energy consumption and economic growth and renewable energy consumption has a positive impact on economic growth. Heterogeneous panel causality analysis results support growth hypothesis in Bulgaria, Greece, Macedonia, Russia and Ukraine; feedback hypothesis in Albania, Georgia and Romania; neutrality hypothesis in Turkey and according to the panel data set including all nine countries the results support feedback hypothesis. With the findings, it was concluded that there is a significant impact of renewable energy consumption on economic growth in Balkan and Black Sea Countries.
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Contemplation of the world’s disappearing supplies of minerals, forests, and other exhaustible assets has led to demands for regulation of their exploitation. The feeling that these products are now too cheap for the good of future generations, that they are being selfishly exploited at too rapid a rate, and that in consequence of their excessive cheapness they are being produced and consumed wastefully has given rise to the conservation movement. The method ordinarily proposed to stop the wholesale devastation of irreplaceable natural resources, or of natural resources replaceable only with difficulty and long delay, is to forbid production at certain times and in certain regions or to hamper production by insisting that obsolete and inefficient methods be continued. The prohibitions against oil and mineral development and cutting timber on certain government lands have this justification, as have also closed seasons for fish and game and statutes forbidding certain highly efficient means of catching fish. Taxation would be a more economic method than publicly ordained inefficiency in the case of purely commercial activities such as mining and fishing for profit, if not also for sport fishing. However, the opposition of those who are making the profits, with the apathy of everyone else, is usually sufficient to prevent the diversion into the public treasury of any considerable part of the proceeds of the exploitation of natural resources.
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The current study investigates the causal relationship between economic growth and renewable energy consumption in the BRICS countries over the period 1971–2010 within a multivariate framework. The ARDL bounds testing approach to cointegration and vector error correction model (VECM) are used to examine the long-run and causal relationships between economic growth, renewable energy consumption , trade openness and carbon dioxide emissions. Empirical evidence shows that, based on the ARDL estimates, there exist long-run equilibrium relationships among the competing variables. Regarding the VECM results, bi-directional Granger causality exists between economic growth and renewable energy consumption, suggesting the feedback hypothesis, which can explain the role of renewable energy in stimulating economic growth in BRICS countries.
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The renewable energy consumption–economic growth nexus is a growing area of research over the last few years, emanating to mixed results. The aim of the current study is to quantitatively synthesise the empirical literature on the subject using the meta-analysis approach. In particular, a meta-multinomial regression is employed to investigate the sources of variation in the direction of causality between renewable energy consumption and economic growth. This causal relationship takes the form of four hypotheses, namely the feedback, conservation, growth and neutrality hypotheses. To the best of author's knowledge, this study constitutes the first meta-analysis undertaken on the renewable energy consumption–economic growth nexus. The empirical results reveal that the variation in the supported hypotheses is due to a number of characteristics including model specification, data characteristics, estimation techniques (cointegration methods and causality tests), and development level of the country on which a study was conducted.
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As the global population grows, consumption of water, energy, and food will also increase, placing stresses on these three sectors, raising the importance of the Water-Energy-Food Nexus (WEFN). This article highlights research challenges and identifies process systems engineering research opportunities to appropriately model and optimize the WEFN. A brief overview of relevant, foundational WEFN research is first presented. We then identify challenges in the multiple scales of the WEFN, ranging from the household scale to the global scale. There are further challenges with appropriate system boundary definitions, and challenges in modeling the decision-making and conflicting objectives of multiple stakeholders in the WEFN. Uncertainties of all kinds appear at all scales of the WEFN and must also be considered. We use two motivating WEFN examples to frame these challenges and propose future avenues and opportunities for research. Possible approaches to the abovementioned challenges are proposed.
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Global trends such as urbanization, demographic and climate change that are currently underway pose serious challenges to sustainable development and integrated resources management. The complex relations between demands, resource availability and quality and financial and physical constraints can be addressed by knowledge based policies and reform of professional practice. The nexus approach recognizes the urgent need for this knowledge and its interpretation in a policy- relevant setting that is guided by the understanding that there is a lack of blueprints for development based on integrated management of water, soil and waste resources in the Member States. Generation and application of knowledge is both a priority for individual but also institutional capacity development.
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This paper investigates the causality among economic growth, renewable energy consumption, capital and labor for new EU member countries for the period of 1990–2009, by using asymmetric causality test approach and autoregressive distributed lag (ARDL) approach. The empirical results support that renewable energy consumption has positive impacts on economic growth for all investigated countries. But only for Bulgaria, Estonia, Poland, and Slovenia there is statistically significant impact on economic growth has found. And also supports neutrality hypothesis for Cyprus, Estonia, Hungary, Poland and Slovenia while the conservation hypothesis is present for Czech Republic. The fact that there is a causal relationship from economic growth to renewable energy consumption and the growth hypothesis is supported for Bulgaria, referring to causality from energy consumption to economic growth.