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Effect of natural resources, renewable energy and economic development on CO2 emissions in BRICS countries
Abstract
Economic development drives industrialization, which increased the value of the extracted natural resources. Excessive usage of natural resources, through agriculture, deforestation, and mining can affect the environment. In this regard, the present study investigates the effects of natural resources' abundance on carbon dioxide (CO2) emissions. The study uses annual panel data spanning from 1990 to 2015 in BRICS countries. The augmented mean group (AMG) panel algorithm, robust to crosssectional dependence and heterogeneity, infers the heterogeneous effect of natural resources on CO2 emissions among BRICS countries. Abundance of natural resources mitigates CO2 emission in Russia, but contributes to pollution in South Africa. In addition to this, natural resources help to form Environmental Kuznets Curve (EKC) hypothesis in Brazil, China, Russia, and South Africa. Finally, causality analysis suggested feedback hypothesis between natural resources and CO2 emissions.
... In SSA, the connections among environmental policy-technological progress-digitalisation, and the management of natural resources are receiving increased attention. There is a widespread recognition that uncontrolled economic expansion, urban development, and industrialization often lead to extensive extraction of natural resources in the pursuit of economic advancement (Danish et al., 2019). Empirical studies by Kim and Kim (2012), Kounetas and Tsekouras (2008) and Sadorsky (2010) examine the impact of technological innovation on carbon emissions, highlighting the importance of considering economic development levels and supporting infrastructure. ...
... Existing literature lacks comprehensive studies exploring the interplay between environmental regulation-technology-digitalization, and resource management in Africa. However, understanding how regulation-technology, and digitalization mediate the relationship between resource extraction and management can provide valuable insights into responsible sustainable practices, an area largely unexplored previously (Abid, 2017;Danish et al., 2019;Duodu et al., 2021). This inquiry aligns with the growing recognition of the role of digital technologies in facilitating data-driven approaches to environmental conservation and resource governance (Muhar et al., 2018;Sala, 2019). ...
... The contribution of the business regulatory environment (BRE) and policy for social inclusion (PSI) is more modest in resource-poor countries, with BRE contributing 1.5% and PSI contributing 1.4%. These findings are consistent with previous studies suggesting that while regulatory frameworks and social inclusion policies are important, their impact in resource-poor countries is often constrained by limited institutional capacity and governance challenges (Danish et al., 2019). Similarly, the contributions of voice and accountability (VA) and ICT goods exports (ICTGE) are relatively small, accounting for 0.4% and 0.8%, respectively. ...
The paper assesses the role of environmental policy, technological innovations, digitalisation, and natural resources
management across 29 Sub-Sahara Africa (SSA) countries from 1999 to 2022. The findings are contingent
on various econometric approaches that account for cross-sectional dependencies, notably: PVAR-GMM, Granger
causality and Quantile Regressions. The findings show that stringent environmental policies in resource-rich
countries positively influence natural resource management practices. However, in resource-poor countries,
the impact of such policies is less significant. Moreover, the results show that technological innovations,
particularly in digital infrastructure, can strengthen resource management practices across both resource-rich
and resource-poor countries in SSA. In resource-rich nations, fostering the development of digitalisation,
marked by increased fixed broadband subscriptions and digital infrastructure, correlates with more effective
resource management. Conversely, the impact of digital advancement on resource management practices in
resource-poor countries appears to be less pronounced, indicating potential challenges in leveraging digital
technologies for resource management in these contexts. These findings underline the importance of sustainable
resource management in promoting long-term economic growth, social equity, and environmental sustainability
across SSA. Policy implications are discussed.
... The U.S. possesses vast renewable energy potential, with regions across the country offering optimal conditions for solar and wind energy production. Research by Danish et al., (2019) underscores the importance of utilizing these resources to reduce emissions from fossil fuels and create a more sustainable energy system. However, not all studies agree on the feasibility of fully harnessing these resources. ...
... In response, policymakers and researchers are actively engaged in crafting energy strategies that involve a gradual shift from existing energy sources to more environmentally friendly alternatives . This transition underscores a heightened commitment to securing long-term environmental sustainability (Danish et al. 2019). Several studies, according to (Fu et al. 2021;Usman et al. 2022), have emphasized the significance of renewable energy in achieving environmental objectives. ...
... Regarding the nexus between ecological quality, economic growth (EG) and natural resources (NR), several studies have been documented with mixed findings surfacing. For instance, Danish et al. (2019) conducted an exhaustive analysis of factors influencing CO 2 in BRICS nations. The authors used data covering the period from 1990 to 2015 by employing ARDL. ...
In the pursuit of environmental sustainability, numerous countries, including the United States, are adjusting their policy frameworks to mitigate ecological degradation. This study explores the key drivers of load capacity factor (LF) from 1980 to 2021, with LF serving as a reliable proxy for ecological quality, as it reflects both the demand and supply sides of the environment. To better understand the dynamics across different time periods and to inform effective policy decisions, the research employs the Wavelet Kernel-Based Regularized Least Squares (WKRLS) approach. Unlike traditional kernel-based regularized least squares, WKRLS captures the marginal effects of independent variables on the dependent variable over various temporal scales, offering a more thorough view of these relationships. The results indicate that economic growth, trade openness, FDI inflows, and natural resource exploitation negatively affect ecological quality across short-, medium-, and long-term periods. In contrast, financial development and energy security have a positive impact. The outcomes from Wavelet Quantile Regression (WQR) corroborate the findings derived from WKRLS. Based on these results, policymakers should prioritize strengthening financial development and energy security, while addressing the adverse effects of trade openness, FDI inflows, and the exploitation of natural resources over various time horizons to foster improved ecological quality.
Graphical Abstract
... These energy sources hold the potential to generate energy more sustainably, lessen reliance on finite fossil fuel supplies, and lessen environmental effects (Abate, Nielsen, & Tveterås, 2016). While there is progress in incorporating renewable energy into conventional energy systems, there are still challenges to be addressed, including limited infrastructure and sporadic issues (Abate et al., 2016;Bahramimianrood, 2021). ...
... The long-term sustainability and efficient use of renewable energy technologies depend on the supply chain. An effective and durable supply chain is necessary for the production of solar panels and wind turbines as well as for the transportation and installation of energy systems (Baloch, Mahmood, & Zhang, 2019;Bathaei et al., 2019). The supply chain faces difficulties in locating sustainable raw materials, streamlining production procedures, and setting up trustworthy distribution systems. ...
... The energy infrastructure becomes more resilient and adaptable when a variety of renewable sources are included (Bahramimianrood, 2021). Weather-related changes, seasonal variations, or unplanned outages in one source are unlikely to have a major effect on the supply of energy as a whole. ...
This study looks into the opportunities and difficulties of integrating renewable energy into supply chains and provides advice on how to do it successfully. The introduction sets the stage for the conversation by emphasizing how important it is for businesses to switch to renewable energy sources while taking regulatory pressures, environmental concerns, and the changing nature of sustainable business practices into account. The methodology used for this study entails a thorough analysis of the body of prior research, synthesizing knowledge about opportunities and problems related to supply chains' adoption of renewable energy. The review's findings paint a complex picture that includes issues like the erratic nature of renewable energy sources, complicated regulations, and the shortage of trained workers. Manufacturing innovations, strategic alliances, and a dedication to sustainable practices all present opportunities. An important factor that coincides with the increasing focus on corporate responsibility is stakeholder engagement. The identification of innovative manufacturing technologies, like 3D printing and advanced materials, is suggested as a means of improving efficiency. Strong alliances and cooperative efforts, both in the industry and with regulatory agencies, aid in the establishment of robust and environmentally friendly supply chains. Engagement and training of employees become essential elements in ensuring that businesses have the trained labor force required for the adoption of renewable energy. To lessen environmental effects, it is also recommended to concentrate on lifecycle assessments and circular economy techniques. To sum up, this research offers a thorough analysis of the opportunities and problems associated with integrating renewable energy into supply chains. It also provides a roadmap for businesses looking to make their way through this ever-changing environment and help create a more sustainable future.
... Unlike other regression procedures, this technique yields reliable and immaculate findings even when dealing with CSD. The method is capable of addressing missing values as well (Danish et al., 2019). The D-K standard error is also a useful method for dealing with heteroscedasticity or longitudinal and serial dependence within the paradigm of fixed effects (Danish et al., 2019). ...
... The method is capable of addressing missing values as well (Danish et al., 2019). The D-K standard error is also a useful method for dealing with heteroscedasticity or longitudinal and serial dependence within the paradigm of fixed effects (Danish et al., 2019). Moreover, it applies to both balanced and imbalanced panel data sets, allowing for a more extended period and more flexibility due to its use of a non-parametric method. ...
Foreign aid, remittance, and foreign direct investment have a significant role in shaping and promoting globalization and these factors also play a vital role in determining health quality in developing countries. Developing countries, especially South Asian countries still need research and policies to efficiently utilize the contributions of these external capital sources in their health sector. For this reason, the present study examined the effects of different globalization-related factors (remittances, foreign direct investment, foreign aid) and health spending from 2000 to 2020 on the quality of healthcare in six South Asian countries: Bangladesh, India, Nepal, Pakistan, Maldives, and Sri Lanka. Moreover, this investigation introduces an unprecedented facet to the realm of health sector research by introducing a novel health quality index that incorporates life expectancy, newborn mortality rate, maternal mortality rate, and illness prevalence (specifically tuberculosis). This study used Augment Mean Group (AMG) estimation for data analysis. To ensure the precision and dependability of the findings, this research utilizes sophisticated statistical methodologies, including the Common Correlated Effect of Mean Group (CCEMG), Driscoll-Kraay Robust Standard Error approaches, and Dumitrescu and Hurlin (D-H) causality test, thereby establishing their dependability. The findings of the study demonstrate that foreign aid and health spending have a significant beneficial impact on the health quality of South Asia. In contrast, remittances tend to harm health quality. Furthermore, the influence of FDI on the quality of health in South Asia is equivocal. South Asian countries must allocate more of their budget to the health sector and ensure that foreign aid is properly utilized for its development. On the other hand, these countries are required to take policy and create an environment that will help to improve health quality through effective use of remittance and FDI.
... Unlike other regression procedures, this technique yields reliable and immaculate findings even when dealing with CSD. The method is capable of addressing missing values as well (Danish et al., 2019). The D-K standard error is also a useful method for dealing with heteroscedasticity or longitudinal and serial dependence within the paradigm of fixed effects (Danish et al., 2019). ...
... The method is capable of addressing missing values as well (Danish et al., 2019). The D-K standard error is also a useful method for dealing with heteroscedasticity or longitudinal and serial dependence within the paradigm of fixed effects (Danish et al., 2019). Moreover, it applies to both balanced and imbalanced panel data sets, allowing for a more extended period and more flexibility due to its use of a non-parametric method. ...
... However, this estimation method is applicable only if the variables in question are integrated of order I(0) or I(1). This approach is appropriate for both small and large samples [98,99]. For long-term and short-term estimations, this study utilizes the CS-ARDL estimator [100], which allows the long-term parameters to remain constant across individual groups of nations while accommodating short-term estimations, error variances, and intercept heterogeneity. ...
... This model is considered efficient and reliable if the long-term conditions are satisfied. Regardless of whether the series is I(1) or I(0), the CS-ARDL model has the advantage of providing both long-term and short-term estimates simultaneously [98]. ...
South Asian countries are included in the economies of developing Asia. The region of South Asia is predominantly affected by energy poverty issues due to a heavy reliance on conventional energy and unpredictable access to energy services. It has about a quarter of the world's population and is home to three of the world's ten most populated countries: India, Pakistan, and Bangladesh. This study investigates environmental sustainability dynamics in South Asian countries from 2000 to 2021, utilizing the Cross-sectional Autoregressive Distributed Lag (CS-ARDL) and Dumitrescu-Hurlin (D-H) causality methods. The research offers insights into the long-term trends and causal relationships that shape environmental outcomes in South Asian nations. Based on empirical findings, in the long-term, it is revealed that increases in energy poverty, economic growth, income inequality, and capital formation raise greenhouse gas (GHG) emissions, while renewable energy and labor reduce GHG emissions. On the other hand, the error correction term shows the speed of adjustment toward equilibrium at 0.75%. Furthermore, the D-H panel causality reveals a directional link between variables. These findings highlight the urgent need for South Asian countries to implement policies to address energy poverty, promote renewable energy adoption, and reduce income inequality to mitigate GHG emissions and achieve long-term environmental sustainability effectively.
... The study discovered a link between economic development and renewable energy. Baloch et al. [30] used an augmented mean group estimator to investigate the association between renewable energy, GDP growth, and CO2 emissions in the BRICS from 1990 to 2015. In contrast, the study revealed that with the exception of South Africa, renewable energy utilization resulted in lower CO2 emissions in all BRICS nations. ...
This study examined the effect of renewable energy on CO2 emissions in a group of forty-five nations in Sub-Saharan Africa using
the data spanned from 1980 and 2020. It is pertinent to note that renewable energy usage can be felt in industrialization; therefore,
industrialization as a variable was captured alongside. For this, a two-step system GMM estimator was employed, which accounts for endogeneity while ignoring variable bias. The study found that higher industry value additions resulted in increased CO2 emissions, whereas increased renewable power generation resulted in less environmental damage. If the increase in renewable power generation is causal, it cuts carbon emissions by 0.22 percent. Furthermore, it was discovered that the usage of renewable energy mediates the link between industry value additions and CO2 emissions. It was recommended that authorities of SSA countries should encourage the usage of renewables through various policies and programs.
... Renewable energy is more environment-friendly than other sources of energy. Our results are also supported by various existing literatures (Wang and Dong 2019;Danish et al., 2019;Dingru et al. 2021;Wang et al. 2022;Li et al. 2023). ...
Since the last two decades, carbon neutrality has become a primary target of all economies. Governmental environmental policies stand as the most potent tools in the arsenal when it comes to tempering the effects of climate change. Fostering the adoption of green energy sources and embracing energy efficiency principles may assume an essential role in upholding the standard of ecological integrity. The primary objective of this inquiry revolves around the meticulous analysis of the intricate interplay between economic growth, the trajectory of industrialization, the up-gradation of industrial sector structure, the integration of green energy paradigms, and the implementation of energy efficiency strategies and environmental policies in the frame spanning from 2000 to 2019. To tackle the matter of cross-sectional dependency and heterogeneity, second-generation cointegration estimators, Dynamic Seemingly Unrelated Regression (DSUR) and Augmented Mean Group (AMG), were employed to estimate long-run relationships. The consequences of DSUR and AMG indicate that while economic and industrial growth contributes to environmental degradation, renewable energy usage, and medium–high-tech industries mitigate the carbon emissions in selected countries. Further study results suggest that energy intensity positively impacts environmental degradation, which means energy efficiency helps mitigate CO2 emissions in these countries. This study also reveals that the degree of stringency in environmental policy negatively affects CO2 releases in the selected nations. Consequently, our study recommends the enhancement of the stringency of environmental policies, promoting environmentally friendly energy usage, the efficient use of energy, and the advancement of industries into medium–high-tech industries as effective ways to mitigate climate change in specific developing countries.
... Our results align with the study of Adebayo et al. (2022) that brought attention to the significant health hazards linked to natural resource rents. The study by Danish et al. (2019) also reveals that natural resource rent is linked to higher emission levels in BRICS countries. Both studies highlight the need for sustainable resource management practices that prioritize the protection of public health and environmental well-being. ...
In light of the far-reaching consequences of ineffective natural resource management, an expanding body of scholarly investigation has emphasized environmental and economic repercussions while largely overlooking the implications for public health and social development. The present research fills this gap by investigating the influence of green technological innovation and natural resource management on health risks and social development in eleven leading industrial economies. The analysis employs extensive second-generation econometrics techniques on data framework from 1990 to 2019, controlling for variables such as gross domestic product, economic complexity, fossil fuel consumption, and foreign direct investment. The results of the CS-ARDL model indicate that green technological innovations significantly reduce health risks in both the short and long run while also improving social development. Conversely, resource management increases health risks but also contributes to social development in underlying countries. Economic complexity initially increases health risks in the short run but eventually improves in the long run. Additionally, gross domestic product positively affects social development but imposes health risks in the long run. Robustness checks, specifically the AMG test, confirm the results’ consistency and reliability. The findings emphasize the importance of implementing appropriate resource policy measures to effectively reduce health risks through responsible resource management practices and the widespread diffusion of green technology.
... As is well-documented, rising temperatures and environmental degradation have become some of the most severe existential threats to humans in recent years (Druic a et al., 2022). A previous study has revealed that consumption patterns play a significant role in protecting the environment (Baloch et al., 2019). Therefore, it is crucial for researchers worldwide to investigate the relationship between natural resource availability and the pace of environmental degradation. ...
ChatGPT and Bard (now known as Gemini) are becoming indispensable resources for researchers, academicians and diverse stakeholders within the academic landscape. At the same time, traditional digital tools such as scholarly databases continue to be widely used. Web of Science and Scopus are the most extensive academic databases and are generally regarded as consistently reliable scholarly research resources. With the increasing acceptance of artificial intelligence (AI) in academic writing, this study focuses on understanding the reliability of the new AI models compared to Scopus and Web of Science. The study includes a bibliometric analysis of green, sustainable and ecological buying behaviour, covering the period from 1 January 2011 to 21 May 2023. These results are used to compare the results from the AI and the traditional scholarly databases on several parameters. Overall, the findings suggest that AI models like ChatGPT and Bard are not yet reliable for academic writing tasks. It appears to be too early to depend on AI for such tasks.
... Fossil energy sources, including oil and coal, are the primary causes of air pollution and greenhouse gas (GHG) emissions (Sunardi et al., 2021). The widespread use of these energy sources has led to global climate change and increased carbon emissions (Danish et al., 2019). The energy crisis and environmental pollution associated with fossil fuel use have raised concerns about the instability of fossil fuel prices, the increasing dependence on limited fossil energy sources, and various environmental problems (Apergis & Payne, 2010). ...
To address environmental issues, Indonesia aims to achieve a 23% renewable energy share by 2025 and 31% by 2050, according to the National Energy Plan. This article examines the regulations governing the management of rooftop solar power plant (rooftop-PV) in Indonesia and their connection to pro-environment consumer behavior. Despite Indonesia’s ambitious targets for Renewable Energy (RE) growth, progress in the field still needs improvement. Pro-environmental behavior (PEB) within the community is crucial for adopting rooftop PV as a more environmentally friendly energy alternative. This research employs a qualitative descriptive methodology with content analysis to evaluate the current situation. The research findings indicate that rooftop PV offers economic benefits through cost savings for consumers and is supported by existing regulations. However, some businesses feel that the government needs to expedite revising relevant regulations to address investment stagnation and installed solar panel capacity. Concerns arise that proposed policy changes may hinder the growth of rooftop PV businesses and the achievement of national capacity targets. The role of pro-environment consumer behavior, which has the potential to drive rooftop PV adoption, will be influenced by psychological and social factors, as well as changes in applicable regulations.
... Their findings indicate that economies reliant on natural resources do not conform to the expected trajectory outlined by the EKC hypothesis. According to [66], the presence of ample natural resources in South Africa has been found to be a contributing factor to pollution. However, other studies such as [67,68] have provided evidence supporting the notion that plentiful natural resources lead to a reduction in CO 2 emissions. ...
This paper examines the long-term and short-run causative relationship among environmental sustainability, energy efficiency, renewable energy and carbon emissions from all over sources (coal, oil and fossil fuels) and sector wise division (heat and power, transportation, residential, manufacturing and other sectors. The empirical evidence presented in this study is derived from a balanced panel dataset spanning the annual periods from 2000 to 2021. The dataset specifically focuses on a selection of BRI Countries. The Kao test demonstrates the presence of cointegration across variables such as carbon dioxide emissions, environmental suitability, energy efficiency and renewable energy. The Panel Pooled Mean Group-Autoregressive Distributed Lag (PMG-ARDL) model indicates a statistically significant positive association between the environmental sustainability and disaggregated CO2 emissions over a long-term period. The study found a positive relationship between disaggregated CO2 emissions and environmental sustainability and energy efficiency, with renewable energy sources reducing emissions. It suggests a need for a structural transition from an energy-intensive economy to a decarbonized one, with sectors like heat and power positively impacting sustainability. Implementing measures to reduce emissions is crucial for tackling climate change.
While economic growth will help to achieve individuals’ welfare by increasing their capita income sustainable development must made safe the environment in which individuals live. To achieve these goals, nations must extract their natural resource and need strong institutions. The goals of this paper are to analyse the effects of political institutions and natural resource on economic growth by one side and by the other on sustainable development. Data are collected from world bank development on Asian countries during the period 2002-2023 and both POLS, FEM and GMM are used for estimate. Outcomes suggest that political institutions and natural resource effects on economic growth and sustainable development are mixed. This means that there is a need to reinforce institutions in Asian nations if they want that the extraction of their natural resource alleviates poverty, achieves people’s welfare while ensuring the sustainable development.
This study investigates the synergistic effects of energy alternatives, financial technology (FinTech), natural resources, and climate action within the BRICS nations, with a focus on achieving Sustainable Development Goal 13 (SDG13), which centers on climate action. The integration of system theory with panel Qualitative Comparative Analysis (QCA) and econometric methods enables a deeper exploration of how these factors interact to influence climate outcomes. The investigation is significant because BRICS countries—representing major emerging economies—are pivotal in global energy consumption, natural resource extraction, and financial systems, making them key players in the global transition towards sustainability. Identifying the configurational patterns of these variables and their impacts on climate action provides critical insights for policymakers aiming to balance economic growth with environmental sustainability. The findings reveal intricate configurations of conditions influencing climate action within the BRICS nations, highlighting the significance of factors such as renewable energy consumption, financial technology integration, and natural resources abundance. Econometric analyses further underscore the negative effects of fossil fuel energy consumption, positive effects of renewable energy consumption, financial technology, and natural resources abundance on climate action. This study contributes to the literature by integrating system theory into panel QCA and econometric analyses to provide a comprehensive understanding of the dynamics of climate action within the BRICS nations.
Environmental quality is a global concern, especially in Gulf Cooperation Council (GCC) countries where abundant mineral resources, economic growth, and globalization have strained the environment through urbanization and resource exploitation. This study examines the impact of globalization (GLOL), urbanization (URBN), natural resource extraction (NRER), institutional quality (INSQ), and foreign direct investment (FDI) on environmental quality in GCC countries from 1999 to 2021. Cross-sectional dependence (CSD) was assessed using the Lagrange Multiplier (LM) and cross-dependence (CD) techniques, and stationarity was confirmed with the Levin–Lin–Chu test. The Augmented Dickey–Fuller (ADF) co-integration test verified long-term relationships, and Pooled Mean Group Autoregressive Distributed Lag (PMG-ARDL) methodology assessed short- and long-term effects. Our findings show that FDI, GLOL, and INSQ have negative long-term impacts on environmental quality, while NRER and URBN are beneficial. In the short term, FDI and INSQ improve green quality, while GLOL, URBN, and NRER have detrimental effects. Policy recommendations include discouraging FDI in non-renewable projects, promoting sustainable FDI, addressing income inequality to improve environmental quality, and investing in urban development to reduce ecological footprints (ECFTs) and enhance environmental quality in GCC countries.
The global concern surrounding the environmental impacts of oil price fluctuations prompts us to investigate the skewed effects of such changes on environmental contamination in BRICS economies. Utilizing a yearly time series dataset from 1991 to 2020, the study employs quantile regression techniques to discern nuanced patterns between economic factors, financial development, oil prices, and their collective impact on the environment in BRICS nations. The results, gleaned from panel data analysis across BRICS nations, unveil a notable correlation between Gross Domestic Product (GDP) growth and a persistent increase in Greenhouse Gas (GHG) emissions. Intriguingly, the study reveals a negative correlation between GHG emissions and financial development, suggesting a potential mitigating effect of financial advancements on environmental harm. Moreover, the study identifies that extremely low, greater than median and extreme high oil prices do not significantly contribute to environmental degradation.
The members of the G20 have seen remarkable fiscal growth in recent years, along with a rise in the demand of consumers for energy. The G20 countries, however, use a significant amount of energy products derived from fossil fuels, which could be harmful to the sustainable development goals. This paper assesses the complex relationships between commerce, the energy transition, the use of natural resources, banking development, monetary development, geopolitical issues, and ecological deterioration. For our statistical analysis, this study employed extensive fiscal models and empirical datasets covering the years 1990–2020. The statistical findings using the Moments Quantile Regression method show that breakthroughs in finance and energy transition guarantee sustainable development. The geopolitical risk, economic expansion, and use of natural resources all contribute to the decline of ecological conditions. But trading's overall effect on the health of the world was not consistent. Our thorough empirical study makes it possible for governments to recommend effective laws to solve environmental issues.
This research investigates the Environmental Kuznets Curve (EKC) hypothesis within Brazil’s soy transportation sector. It aims to determine if CO 2 emissions from soy transport show an “Inverted-U” or “N” shaped relationship with income from 2002 to 2017. Using a mathematical optimization model and System GMM for analysis, the study finds an “N” shaped EKC, indicating emissions initially increase, decrease, and then rise again with income. This suggests long-term environmental damage from sector growth, highlighting the need for targeted measures to mitigate emissions and enhance operational productivity, such as investments in intermodal transport and road efficiency improvements.
This study aims at investigating the contextual factors surrounding the nexus between economic development and environmental degradation by utilising the Environmental Kuznets Curve (EKC) hypothesis and incorporating CO 2 emissions indicator. The environmental quality, energy source, economic growth nexus evaluation is heavily dependent on the level of economic growth. The study examines impact of different levels of economic expansion following an Environmental Kuznets Curve (EKC) hypothesis across Middle East and North Africa (MENA). Additionally, the present study examines the asymmetrical relationship that exist between economic growth and green energy, and the environmental quality. The study employs panel data ranging from 1996 to 2020 in the context of MENA nations. Several econometric tests were employed, second generation unit root tests, CIPS and CADF, Westerlund cointegration test. This study extends prior studies by applying the Panel Non‐Linear Autoregressive Distributed Lag (PNARDL). The Westerlund test validates a long run association among the variable of the study. The EKC hypothesis is validated in the short run for the MENA countries. It also reveals that a positive and negative shocks to the green energy decreases CO 2 emissions. The positive shock to GDP results in an increase in CO 2 emissions. Moreover, the study revealed a negative and significant relationship between FDI and CO 2 emission. A positive and significant relationship was found between trade openness and CO 2 emissions. Our findings suggest that the MENA nations should switch to green energy sources to lessen the impact of non‐renewable energy consumption on the environment and promote sustainable development, since non‐renewable energy is believed to have the greatest impact on economic activity.
In the context of globalization, good governance and energy financing are essential for sustainable and inclusive economic growth, particularly in emerging countries, as both are necessary for optimizing globalization. Existing research investigated the governance-energy-environment nexus; however, insufficient focus has been directed on the good governance-energy finance-globalization nexus in the BRICS countries. Hence, this study investigates the impact of energy finance and governance on globalization in BRICS countries, focusing on how energy finance, both fossil fuel and renewable, influences global integration. It examines the direct effect of governance on globalization and explores the moderating role of governance in strengthening the relationship between energy finance and globalization. Using advanced econometric models, including fully modified ordinary least square, augmented mean group, common correlated effects mean group, dynamic ordinary least square, two-stage least square, and generalized methods of the moment, the study provides empirical evidence on the significance of energy finance in driving globalization, with fossil fuel energy finance showing a negative impact and renewable energy finance a positive one. The results highlight the crucial role of good governance in enhancing the effectiveness of energy finance, suggesting that stronger governance frameworks can maximize the benefits of energy investments for globalization. This study provides novel insights by examining the moderating impacts of governance quality on the links between energy financing and globalization underpinning institutional theory within the BRICS nations. The findings highlight the necessity of improving governance frameworks to facilitate sustainable energy investments and globalization in BRICS states and other comparable countries, as effective governance and energy finance are both critical issues in the globalization discourse.
Purpose
This study aims to explore the association among financial resources, renewable energy, environmental degradation and technological innovation in BRICS economies.
Design/methodology/approach
To estimate the long-run impacts between these variables, the AMG method of estimation, which incorporates cross-sectional reliance and slope homogeneity, is adopted in this research.
Findings
According to the empirical findings, the long-run coefficients of environmental degradation and technological innovation show a statistically significant and negative impact on renewable sources of energy. Furthermore, a 1% increase in environmental degradation reduces 0.32% of renewable sources of energy in BRICS economies. Whereas only the coefficient of GDP shows a positive and statistically significant impact on renewable sources of energy, which demonstrates that a 1% increase in economic growth causes a 0.02% incline in renewable sources of energy. Therefore, strong policy recommendations are provided to encourage green energy utilization in these economies.
Originality/value
The majority of the participating nations have inexpensive labor and an abundance of resources from nature, which strengthens their appeal. Given that population growth is still quite conservative, this presents a chance for GDP per capita to expand significantly.
The technique of fertilizer consumption increases yields from agriculture, but because it involves chemicals, there are disagreements regarding how it affects the environment. Based on this, the aim of this study is to investigate the effects of fertilizer consumption on load capacity factor in Turkey through novel technique (multivariate quantile-on-quantile regression) for the period 1970–2021. In this regard, factors that have significant effects on the environment, such as trade globalization, renewable energy usage, natural resources, are also included in the empirical model to avoid omitted variable bias. In addition, real national income and the square of real national income are also included in the model to check the validity of the possible load capacity curve (LCC) hypothesis. According to the findings of the study, a U-shaped relationship between economic growth and environmental quality is valid, thus proving the existence of the LCC hypothesis. Additionally, trade globalization and fertilizer consumption appear to increase environmental damage. On the other hand, renewable energy consumption increases load capacity. In addition, Kernel-based regularized least squares technique is used for robustness control. According to the findings obtained from here, 1 % increase in fertilizer consumption reduces the load capacity factor by 0.03 %. Based on the findings, policy recommendations are made to provide subsidies or financial incentives for the use of organic fertilizers and biofertilizers. Indeed, these alternatives can increase load capacity by improving soil health and reducing chemical runoff.
The main purpose of this study is to investigate the relationship between human development index, urbanization, economic growth and ecological footprint in MINT countries (Mexico, Indonesia, Nigeria and Turkiye) for the years 2003-2022. First of all, the cointegration relationship between human development index, urbanization, economic growth and ecological footprint was examined with Gengenbach, Urbain and Westerlund (2016) panel cointegration. As a result of the cointegration analysis, it was concluded that the variables were cointegrated. The long-term relationship was estimated by the DOLSMG method. According to the DOLSMG estimator, it was determined that a 1% increase in the human development index in MINT countries reduced the ecological footprint by 1.89%, a 1% increase in urbanization increased the ecological footprint by 0.22%, and a 1% increase in economic growth increased the ecological footprint insignificantly. Secondly, the relationship between human development index, urbanization, economic growth and ecological footprint was examined with Dumitrescu and Hurlin (2012) panel causality analysis. According to the findings, there is a bidirectional causality relationship between ecological footprint and urbanization in MINT countries. Additionally, the findings of the study show that there is a unidirectional causality relationship from ecological footprint to human development index and a unidirectional causality relationship from economic growth to ecological footprint.
Obviously, fnancial development is one of the factors to consider in designing
climate policies. We investigated the efects of fnancial development on CO2
emissions alongside income, total factor productivity, and international trade
in Gulf Cooperation Council (GCC) countries. Ignoring common factors can
lead to erroneous fndings and misleading policy recommendations. The same
consequences occur if the nature of a factor’s efects is incorrectly considered.
Hence, the Asymmetric Pooled Mean Group augmented with common unobserved
factors—a cutting-edge method allowing for the discovery of not only the features
of the pooled panel but also the characteristics of each country—was applied to
data from 1992 to 2021. Additionally, we accounted for key properties of the panel
time series data—cross-sectional dependence, non-stationarity and heterogeneity.
To our knowledge, there is no such application for GCC countries, and only one
internationally. In designing climate policy measures, a few key fndings of our
research are worth considering. (i) policies should account for factors common
to GCC countries, as ignoring them makes CO2 efects of fnancial development
misleading. (ii) an upturn in fnancial development leads to less emissions than a
downturn in it. This asymmetric efect implies that policies should boost fnancial
development. (iii) CO2 in GCC countries may converge to an identical relationship
in the long run implying that there are common climate initiatives and projects that
GCC authorities should work on jointly.
The trade-off between economic goods and environmental sustainability has increasingly become a cause of concern in the World. The trade-off between environmental sustainability and economic growth is explained by the excessive use of energy, especially fossil fuel that emits pollutants to the environment. To this end, the shift from fossil fuels to clean fuels has been recommended to eradicate environmental damage. This research acknowledges the complementarity of capital assets and energy resources (factors of production), as represented by the effective capital index. Thus, this research seek to investigate on how effective capital affecst the sustainability of the environment. The twenty-seven European Union nations are taken as the case, by considering their dataset from 1990 to 2019. The second-generation methods (Augmented Mean Group, Cross-sectionally Augmented Autoregressive Distributive Lag and Dynamic Common Correlated Effects Mean Group) are used for data analysis. Research findings depicts that effective capital is depreciating the environment with a magnitude of 1.17–3.08%. Energy efficiency and renewable energy are improving environmental sustainability by a magnitude of 0.3 and 0.1 units, respectively. These findings depicts that effective capital is deteriorating the environment because of the inclusion of fossil fuel, while the efficient use of energy and the use of clean fuels improves the quality of the environment. Major policies recommends embracing on effective capital that only includes renewable energy with the exclusion of non-renewable energy, which is detrimental to the environment. Accordingly, improving renewable energy development is recommended in order to shift to its use, from fossil fuels.
This research examines the relation between internal audit function quality, audit committee effectiveness and earnings management. GMM dynamic linear regression is used for abnormal accruals. Logit and Probit non-linear regression are used for earnings management to exceed both, the zero profit threshold and the one last year’s profit. The study finds a positive relationship between the firm’s tendency to manage its earnings using either abnormal accruals or the zero profit threshold; and the firm’s value. Most importantly, the study underlines that audit committee effectiveness is positively associated with positive abnormal accruals and the zero profit threshold. This paper provides significant results that abnormal accruals and earnings management to exceed the zero profit threshold make the firms’ value more reflected by the earnings. This research aspires making a new contribution to the literature by giving proof that an effective audit committee is predisposed to strengthen managerial beneficial behaviors.
This study investigates the impact of income generated from natural resources on environmental sustainability and analyses the moderating role of institutional quality in carbon emissions function. An extensive dataset from 61 developing nations covering the years 2000–2018 has been taken, which uses a dynamic heterogeneous panel data model. Our study follows a rigorous methodology by applying the pooled mean group estimator. An extensive examination of the impacts over the short run and long run is possible using this method. This study reveals multifaceted findings: in the short run, the effect of institutional quality and natural resources revenues on carbon emissions is insignificant, implying that such factors have a relatively minor impact. The long-term examination reveals that income derived from natural resources causes a spike in carbon emissions, which causes environmental deterioration and climate change. Strong institutional quality can significantly mitigate the adverse effects of correlation between revenues from natural resources and carbon emissions, which have been observed. The study's moderating effect of natural resources richness, which gradually reduces institutional quality's ability to reduce carbon emissions, is a crucial finding. Our study significantly advances the field of environmental economics, especially when discussing sustainable development in emerging nations with abundant natural resources. It emphasizes the delicate balance that must be struck between preserving efficient environmental governance and maximizing the richness of natural resources. Our findings underscore the crucial need for developing nations to strengthen their institutional frameworks and capacities and have substantial policy implications. These steps are essential to ensuring that the use of natural resources is in line with environmental sustainability objectives, turning resource curses into blessings for long-term development and environmental preservation. This research opens the door to sector-specific impacts and personalized policy interventions in resource-rich developing economies.
Since most developing countries located across Latin America and the Caribbean have bountiful deposits of mineral resources and are also large-scale mineral exporters, this study appraises the validity of the hypothesis regarding the carbon curse of mineral resources using a sample of 13 developing nations from this region. Besides, the potency of technological innovation finance in containing carbon emissions, exerted from utilization of mineral resources, is also explored. In this regard, considering the period from 1998 to 2021 and employing advanced panel data estimators, the results verify the hypothesis regarding the carbon curse of mineral resources by linking more mineral resource utilization with higher carbon discharges. Besides, providing more technological innovation finance is observed to reduce carbon emissions in the long run. More importantly, the results affirm that scaling such financial provisions offsets the carbon discharges associated with mineral resource utilization, especially by acting as a moderator between mineral resource use and carbon emissions. Hence, these findings certify that technological innovation financing is highly effective in helping the concerned nations avoid the carbon curse of mineral resources. Furthermore, results show that implementing trade liberalization policies reduces carbon emissions while the pollution haven hypothesis is also verified based on the finding of the positive nexus between foreign direct investment receipts and carbon emissions. Hence, considering these analytical outcomes, several environmentally sustainable mineral resource-based policies are suggested for the concerned Latin American and Caribbean countries.
This study investigates how economic growth, energy intensity, financial inclusion, and trade globalization impact the load capacity factor in the ASEAN-5 region. Using data from 2000 to 2022 from reputable databases, the study analyzed the load capacity curve (LCC) hypothesis through comprehensive statistical analysis. Several diagnostic tests, such as cross-sectional dependence, slope homogeneity, unit root, and cointegration, to select a suitable long-run estimation model were conducted. The study utilized the Driscoll-Kraay standard error (DKSE) approach to address identified issues like cross-sectional dependence, heterogeneity, and unit root problems. DKSE estimation showed that the LCC hypothesis was not present in the ASEAN-5 region. It is worth noting that an inverted-U-shaped relationship between per capita income and the load capacity factor was found, emphasizing the complexity of economic dynamics in the region. Furthermore, the analysis revealed a strong correlation between energy intensity and the load capacity factor, with trade globalization having a significant negative effect. Surprisingly, financial inclusion did not show a significant correlation with the load capacity factor, highlighting the intricate role of financial accessibility in economic performance. To enhance the strength of the DKSE estimation, the study also utilized quantile regression analysis, which supported the results of the DKSE approach. The study confirmed that the LCC hypothesis is not applicable in the ASEAN-5 region and offered a more detailed analysis of the varying effects of energy intensity and trade globalization at different levels. Conclusively, this study provides valuable insights into the complex relationships among economic growth, energy intensity, financial inclusion, and trade globalization in the ASEAN-5 region. A thorough analytical approach enhances comprehension of sustainable development and economic resilience in the region, guiding policy decisions and future research efforts. JEL: Q43, G21, F14, D24, F15
This systematic review examines the sources of greenhouse gas (GHG) emissions in Africa, investigates mitigation strategies, and projects future emissions. It evaluates comprehensive publications on climate change, global warming, GHG emission sources, and mitigation measures in Africa from 2013 to 2022. Ethiopia and South Africa are prominent nations in this field of study, with South Africa being the major source of GHG emissions. Rising GHG emissions and climate change pose significant ecological problems, necessitating effective mitigation techniques. North Africa has a small negative balance compared to Sub-Saharan Africa. Key drivers of GHG emissions and climate change were Land Use (AFOLU) sectors, accounting for 56% of total emissions in 2016 where currently energy sector count 73% of GHGs in 2022. It leads to biodiversity loss, water scarcity, economic losses, species extinction, ecological changes, and coastal life threats. Africa is responsible for 2–3% of global GHG emissions in last decays and currently increased to 3.6–4%. Agroforestry systems, which combine agriculture and forestry, have proven effective in reducing emissions, with the agroforestry sector predicted to sequester up to 135 metric tonnes of CO2 over the next 20 years. Africa should employ climate-smart agriculture and agroforestry to prevent climate change, lower emissions, and promote a green economy. This aligns with the Paris Agreement's goals of lowering carbon emissions and improving food security, reduce poverty, and environmental damage. This review is intended to aid academics and planners prioritize GHG emissions sources and design effective mitigation measures using African countries' resources and ecosystems.
The growing discourse surrounding biomass energy’s environmental ramifications has ignited debate among policymakers. While biomass remains a primary and readily accessible energy source, various studies have extensively examined its implications for health and the economy. However, there is a lack of evidence regarding its role in mitigating climate change. This study delves into the ecological footprint implications of biomass energy consumption in the Organisation for Economic Co-operation and Development (OECD) countries, spanning from 1990 to 2017. While the existing literature predominantly relies on parametric methodologies, offering estimates of biomass energy’s average impact on ecological footprints, it fails to capture temporal variations in this relationship. Consequently, this study employs both parametric and nonparametric time-varying techniques to elucidate the evolving impact of biomass energy utilization on ecological footprints across the studied nations. Findings from both analytical approaches converge to suggest that biomass energy usage amplifies the ecological footprint of OECD nations. Notably, the nonparametric analysis underscores the dynamic nature of this relationship over time. Based on these insights, policy recommendations are given to mitigate the adverse environmental consequences of biomass energy usage while exploring cleaner alternative energy sources.
The ecological footprint, a measure of human demand on earth’s ecosystems, represents the amount of biologically productive
land and sea area that is necessary to supply the resources a human population consumes and to mitigate associated waste. This
study estimates the impact of economic growth and natural resources on Pakistan’s ecological footprint using an autoregressive
distributive lag (ARDL) model for long-run estimation. The empirical findings indicate that natural resources have a positive
effect on an ecological footprint that deteriorates environmental quality and that natural resources help to support the environmental
Kuznets hypothesis (EKC). Bidirectional causality is found between natural resources and the ecological footprint, along
with a long-run causality between biocapacity and the ecological footprint. The innovative findings have important implications
for policy.
In a neo-classical aggregate production and Stochastic Impacts by Regression on Population, Affluence and Technology (STIRPAT) modeling framework, the paper attempts to explore the relationship between disaggregated energy consumption, economic growth, and carbon dioxide emissions in case of five emerging market economies—Brazil, Russia, China, India, and South Africa (BRICS) over the period 1992 to 2016. The study applied the robust unit root, cointegration, and long-run elasticity estimation methods like Pooled Mean Group and differenced panel generalized method of moments for empirical exercise. Having detected the panel heterogeneity and cross-sectional dependence, the cointegration tests documented the evidence of a long-run association among the variables. In the long-run, capital, labor, and non-renewable energy consumption are found to affect the economic growth positively. On the contrary, the impact of renewable energy consumption on the economic growth is found be positive but statistically insignificant. Moreover, population, per-capita income, and non-renewable energy consumption are found to increase the emissions whereas renewable energy consumption decreases them. Therefore, along with a proper emissions controls, BRICS countries should design and implement effective support policies so as to ensure the economic growth along with environmental sustainability.
This is the first attempt to explore linkages among industrialization, urbanization, energy consumption, CO2 emissions, and economic growth based on estimations in simultaneous equations framework. An economic growth model is extended to incorporate industrialization as shift factor and pollutant emissions as determinant of total factor productivity. A country panel of 30 Chinese provinces/cities and three regional panels, for periods 2000–2016, are estimated employing Augmented Mean Group (AMG) estimator as well as Common Correlated Effects Mean Group (CCEMG) estimator that are robust to both cross-sectional dependence and cointegration. The empirical findings are as follows: (i) the impact of urbanization on economic growth varied from negative to neutral to positive for western-, intermediate-, and eastern-economic zone, respectively, and is known as “urbanization ladder effect,” (ii) moving from western to eastern economic zone, as regions develop, industry expansion has more powerful impact on economic growth, and thus, we define it as “industry expansion effect,” (iii) industrialization promotes rapid urbanization in less developed and less employment saturated regions; hence, we name it as “employment saturation effect,” (iv) economic growth in more developed regions pulled the CO2 emissions downward, while pushed it upward in case of less developed regions; therefore, we call it “growth pull/push effect,” and (v) in bidirectional causality between energy consumption and economic growth, the “feedback effect” of economic growth remained dominant for all four panels. Based on empirical findings, policies are suggested for Chinese economy. Further, these policies have potential to extract implications for the rest of the world.
In the modern era of globalization, the rapid increase in information and telecommunication technologies (ICTs) contributes in various sectors of an economy; however, the environmental consequences of ICTs cannot be ignored. Therefore, the study investigates the nexus between ICTs, economic growth, financial development, and environmental quality in emerging economies. The novel feature of the study is that the interaction term of ICT is introduced with economic growth and financial development. The empirical findings of the study are based on panel mean group (MG) and augmented mean group (AMG) estimation methods from 1990 to 2015. The following empirical results are established: first the ICTs significantly affect CO2 emissions. Second, the moderating effect of ICT and financial development stimulate the level of CO2 emissions. Third, economic growth contributes CO2 emission; however, the interaction between ICT and GDP mitigates the level of pollution. Policy thresholds with the R&D in ICT sector are required to mitigate the level of CO2 emission. Introduction of green ICTs projects in the financial sector is a better choice to improve the energy efficiency.
This study examined the drivers of environmental degradation and pollution in 17 countries in Africa from 1971 to 2013. The empirical study was analyzed with Westerlund error-correction model and panel cointegration tests with 1000 bootstrapping samples, U-shape test, fixed and random effect estimators, and panel causality test. The investigation of the nexus between environmental pollution economic growth in Africa confirms the validity of the EKC hypothesis in Africa at a turning point of US 101/capita and upper bound GDP of US 7958 GDP per capita, confirming the scale effect hypothesis. The empirical findings revealed that energy consumption, food production, economic growth, permanent crop, agricultural land, birth rate, and fertility rate play a major role in environmental degradation and pollution in Africa, thus supporting the global indicators for achieving the sustainable development goals by 2030.
This article investigates the long-run and causal linkages between economic growth, CO2 emissions, renewable and non-renewable (fossil fuels) energy consumption, the Composite Trade Intensity (CTI) as a proxy for trade openness, and the Chinn-Ito index as a proxy for financial openness for a panel of the Commonwealth of Independent States (CIS) region including Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan over the period of 1992–2015. It is the first time that CTI and the Chinn-Ito indexes are used in an economic-pollution model. Employing three panel unit root tests, panel cointegration estimation methods (DOLS and FMOLS), and two panel causality tests, the main empirical results provided evidence for the bidirectional long-run relationship between all the variables in all 12 sampled countries except for economic growth-renewable energy use linkage. The findings of causality tests indicated that there is a unidirectional short-run panel causality running from economic growth, financial openness, and trade openness to CO2 emissions and from fossil fuel energy consumption to renewable energy use.
This study is the first attempt to investigate the nexus among per capita carbon dioxide (CO2) emissions, gross domestic product (GDP), and natural gas and renewable energy consumption within the framework of the environmental Kuznets curve (EKC), in a 1985-2016 sample of BRICS countries (i.e., Brazil, Russia, India, China, and South Africa). For this purpose, panel unit root, cointegration, and causality tests allowing for cross-sectional dependence are conducted. Employing the augmented mean group (AMG) estimator, the results provide strong evidence in favor of the EKC hypothesis for the BRICS countries by proposing that the EKC holds in all five BRICS countries; the turning points (TPs) lie between 16,553.77 (China), while the turning years (TYs) are estimated to be between 2018 (Russia) and 2035 (India). Furthermore, increasing natural gas and renewable energy consumption lowers CO2 emissions, which indicates that, 1% increase in natural gas and renewable energy consumption for the BRICS countries will decrease CO2 emissions by 0.1641% and 0.2601%, respectively. The causality analysis underscores feedback hypothetical links among CO2 emissions, natural gas consumption, and renewable energy consumption in the long run. Some policy implications are highlighted for BRICS countries’ policymakers not only for tackling CO2 emissions, but also for promoting growth in the natural gas and renewable energy industries.
In the last two decades, there has been a rich debate about the environmental degradation that results from exposure to solid urban waste. Growing public concern with environmental issues has led to the implementation of various strategic plans for waste management in several developed countries, especially in the European Union. In this paper, the relationships were assessed between economic growth, renewable energy extraction and greenhouse gas (GHG) emissions in the waste sector. The Environmental Kuznets Curve hypothesis was analysed for the member states of the European Union, in the presence of electricity generation, landfill and GHG emissions for the period 1995 to 2012. The results revealed that there is no inverted-U-shaped relationship between income and GHG emissions in European Union countries. The renewable fuel extracted from waste contributes to a reduction in GHG, and although the electricity produced also increases emissions somewhat, they would be far greater if the waste-based generation of renewable energy did not take place. The waste sector needs to strengthen its political, economic, institutional and social communication instruments to meet its aims for mitigating the levels of pollutants generated by European economies. To achieve the objectives of the Horizon 2020 programme, currently in force in the countries of the European Union, it will be necessary to increase the share of renewable energy in the energy mix.
As a result of great increases in CO2 emissions in the last few decades, many papers have examined the relationship between renewable energy and CO2 emissions in the energy economics literature, because as a clean energy source, renewable energy can reduce CO2 emissions and solve environmental problems stemming from increases in CO2 emissions. When one analyses these papers, he/she will observe that they employ fixed parameter estimation methods, and time-varying effects of non-renewable and renewable energy consumption/production on greenhouse gas emissions are ignored. In order to fulfil this gap in the literature, this paper examines the effects of non-renewable and renewable energy on CO2 emissions in Turkey over the period 1970-2013 by employing fixed parameter and time-varying parameter estimation methods. Estimation methods reveal that CO2 emissions are positively related to non-renewable energy and renewable energy in Turkey. Since policy makers expect renewable energy to decrease CO2 emissions, this paper argues that renewable energy is not able to satisfy the expectations of policy makers though fewer CO2 emissions arise through production of electricity using renewable sources. In conclusion, the paper argues that policy makers should implement long-term energy policies in Turkey.
The objective of this study is to explore the influence of the real income (GDP), renewable energy consumption
and non-renewable energy consumption on carbon dioxide (CO2) emissions for the United States of America (USA) in the environmental Kuznets curve (EKC) model for the period 1980–2014. The Zivot-Andrews unit root test with a structural break and the Clemente-Montanes-Reyes unit root test with a structural break report that the analyzed variables become stationary at first-differences. The Gregory-Hansen cointegration test with a structural break and the bounds testing for cointegration in the presence of a structural break show CO2 emissions, the real income, the quadratic real income, renewable and non-renewable energy consumption are
cointegrated. The long-run estimates obtained from the ARDL model indicate that increases in renewable energy consumption mitigate environmental degradation whereas increases in non-renewable energy consumption contribute to CO2 emissions. In addition, the EKC hypothesis is not valid for the USA. Since we use time-series econometric approaches that account for structural break in the data, findings of this study are robust, reliable and accurate. The US government is advised to put more weights on renewable sources in
energy mix, to support and encourage the use and adoption of renewable energy and clean technologies, and to increase the public awareness of renewable energy for lower levels of emissions.
This study examines the impact of foreign direct investment (FDI) and the potential of renewable energy consumption on carbon dioxide (CO2) emissions in 21 Kyoto countries using an unbalanced panel data. For this purpose, Environmental Kuznets Curve (EKC) hypothesis was tested using panel cointegration analysis. Panel causality tests show that there are significant long-run causalities from the variables to carbon emissions, renewable energy consumption, fossil fuel energy consumption and inflow foreign direct investments. The results of our model support the pollution haloes hypothesis which states that FDI brings in clean technology and improves the environmental standards. However, an inverted U-shaped relationship (EKC) was not supported by the estimated model for the 21 Kyoto countries. This means that economic growth cannot ensure environmental protection itself or environmental goals cannot await economic growth. Another important finding is that renewable energy consumption decreases carbon emissions. Based on the empirical results, some important policy implications emerge. Kyoto countries should stimulate the FDI inflows and usage of renewable energy consumption to mitigate the air pollution and meet the emission targets. This paper provides new insights into environment and energy policies through FDI inclusion.
Economywide reforms often contribute simultaneously to economic, social and environmental gains. However, Unintended adverse side effects occur in many cases—when such growth inducing reforms are undertaken while neglecting other policy, market or institutional imperfections. The remedy does not generally require reversal of the original economywide reforms, but rather the ex-ante implementation of additional complementary measures that remove such imperfections. The EKC approach seeks to relate the state of the environment to the stage of development. Developing countries could learn from the experiences of industrialized nations, and restructure growth and development to `tunnel' through any potential EKC—thereby avoiding going through the same stages of growth that involve relatively high (and even irreversible) levels of environmental harm. An environmentally adjusted measure of national income could significantly change the shape of the development-environment relationship. Recommendations for decision-making include: actively seeking `win–win' policies that simultaneously yield both economic and environmental gains; pre-empting environmental harm through ex-ante remedial measures; and fine-tuning reform policies to avoid severe environmental damage. The adoption of more sustainable policies will facilitate the attainment of higher levels of development at a lower environmental cost.
We investigate the salary returns to the ability to play football with both feet. The majority of footballers are predominantly right footed. Using two data sets, a cross-section of footballers in the five main European leagues and a panel of players in the German Bundesliga, we find robust evidence of a substantial salary premium for two-footed ability, even after controlling for available player performance measures. We assess how this premium varies across the salary distribution and by player position.
This paper proposes simple tests of error cross section dependence which are applicable to a variety of panel data models, including stationary and unit root dynamic heterogeneous panels with short T and large N. The proposed tests are based on average of pair-wise correlation coefficients of the OLS residuals from the individual regressions in the panel, and can be used to test for cross section dependence of any fixed order p, as well as the case where no a priori ordering of the cross section units is assumed, referred to as CD(p) and CD tests, respectively. Asymptotic distributions of these tests are derived and their power function analyzed under different alternatives. It is shown that these tests are correctly centred for fixed N and T, and are robust to single or multiple breaks in the slope coefficients and/or error variances. The small sample properties of the tests are investigated and compared to the Lagrange multiplier test of Breusch and Pagan using Monte Carlo experiments. It is shown that the tests have the correct size in very small samples and satisfactory power, and as predicted by the theory, quite robust to the presence of unit roots and structural breaks. The use of the CD test is illustrated by applying it to study the degree of dependence in per capita output innovations across countries within a given region and across countries in different regions. The results show significant evidence of cross dependence in output innovations across many countries and regions in the world.
This paper examines the relationship between CO2 emissions, renewable energy consumption (RENEC) and economic growth in Tunisia via an Autoregressive Distributed Lag model. Our research question is to what extent renewable energies can be used as an alternative to conventional energies, which are very well known by their strong emissions of greenhouse gases. We use Granger causality tests to check the short and long-run equilibrium relationship. Furthermore, we try to determine the causality direction between these three variables for the Tunisian economy. The results reveal that for the gross domestic product (GDP), CO2 emissions and RENEC are stable in the long-term. However, the Granger causality tests indicate a bidirectional relationship between GDP and CO2 emissions as well as between RENEC and GDP but no relationship between CO2 emissions and RENEC. Thus, to succeed an energy transition project and to benefit from positive impacts on economic growth and environment protection, an appropriate strategy encouraging renewable energy use should be adopted.
As an indicator of environmental degradation, the ecological footprint has seen immense attention in the literature. However, because of the complex feedback in the relationships among economic development, biodiversity, ecosystem services, and human wellbeing, the footprint remains poorly understood and largely neglected in political decision-making. This study examines the relationship between economic growth and the ecological footprint as it relates to biocapacity and human capital. The autoregressive distributive lag (ARDL) econometric approach with a structural break is applied to data from 1971 from 2014 to reveal that economic growth increases ecological footprint that contributes to environmental degradation. In addition, biocapacity also increases the ecological footprint and contributes to environmental degradation. A causality analysis suggests there is no causality regarding the relationship between economic growth and the ecological footprint.
The dilemma of rising environmental pollution in recent decades has raised the demand for clean energy sources. However, some newly developed energy sources, such as biomass energy, may or may not contribute to reducing environmental stress. This study investigates biomass energy consumption and environmental pollution in BRICS countries by applying the generalized system method of moment (GMM) model for empirical estimation from 1992 to 2013. The results show that biomass energy consumption behaves as a clean energy source in reducing environmental pollution. The study also found support for the presence of an N-shaped relationship between income and pollution and found that trade openness is the only factor that contributes to pollution in BRICS countries. These results can assist policymakers in considering biomass energy as a clean source of energy in the effort to achieve both energy security and environmental sustainability.
In the recent era of globalisation, the tourism sector is growing rapidly and stimulates economic growth across the world, however, the inevitable environmental consequences of tourism cannot be ignored. For sustainable tourism, it is necessary to understand the interrelationship between economic growth, tourism, and environmental quality. Hence, the objective of the current research is to investigate the dynamic relationship between tourism, economic growth, and CO2 emissions from 1995 to 2014 in the context of BRICS economies. A group of econometric tests robust to heterogeneity and cross-sectional dependence is applied to achieve accurate and unbiased results. Empirical findings propose that tourism sector significantly encourages economic growth; however, tourism degrades the quality of the environment. Also, globalisation has a long-term relationship with economic growth but an insignificant relationship with CO2 emissions. The long-term elasticities further recommend that investment stimulate economic growth and mitigate CO2 emissions. Moreover, environmental Kuznets curve (EKC) holds in BRICS countries in its significance to tourism and globalisation. Finally, a heterogeneous panel non-causality test detects bi-directional causality between tourism receipts and CO2 emissions. Moreover, tourism and investment in tourism Granger cause each other. Empirical findings direct towards important policy implications. © 2018
Although Sub-Saharan Africa (SSA) countries make less environmental pollution compared with other regions, the notably increasing economic growth and accelerating process of urbanization have resulted in the increase of energy needs and, thus, lead to environmental degradation. To empirically investigate the determinants of environmental degradation by accounting for the significant roles played by economic growth, non-renewable and
renewable energy consumption, and urbanization, a balanced panel dataset of 14 SSA countries over 1990–2014
is utilized. Also, the ecological footprint (EF), considered a more comprehensive indicator, is used as a proxy of
environmental degradation. The results confirm strong cross-sectional dependence within the SSA countries. The Augmented Mean Group (AMG) estimator indicates that economic growth, non-renewable energy consumption, and urbanization exert positive effects on the EF in the SSA countries, while renewable energy consumption plays a negative role in the EF. Moreover, bidirectional long-run causality runs among economic growth, non-renewable consumption, urbanization, and the EF; in contrast, unidirectional causality is found to run from renewable energy consumption to the EF. Therefore, for the SSA countries, the upgrading of industrial structure and further improvement of renewable energy are needed. In addition, urbanization plays a crucial role in contributing to environmental degradation and requires immediate policy response in the SSA countries.
Climate change has become a global phenomenon due to its threat to sustainable development. However, economic development plays a complementary role in both climate change and sustainability. Thus, the environmental Kuznets curve hypothesis is critical to climate change policy formulation and development strategies. Accordingly, this study examined the validity of environmental Kuznets curve hypothesis by investigating the relationship between economic growth, energy consumption, financial development, and ecological footprint for the period from 1977 to 2013 in 11 newly industrialized countries. For this purpose, the study employed both augmented mean group (AMG) estimator and heterogeneous panel causality method which are suitable for dependent and heterogeneous panels. The results of the estimator show that there is an inverted U-shaped relationship between economic growth and ecological footprint. According to the causality test results, it is concluded that there is bi-directional causality between economic growth and ecological footprint.
This study examines Environmental Kuznets and Environmental Sustainability curve hypotheses for Australia, China, Ghana and the USA from 1971 to 2013 in order to examine the factors contributing to adverse greenhouse gas emission and economic impacts relative to their development. The study revealed that the decline of carbon dioxide emissions in developed countries can be attributed to a paradigm shift and structural change from high-energy intensive and carbon-intensive industries to services and information-intensive industries. The increasing levels of carbon dioxide emissions in developing and least developing countries can be attributed to the economy driven by agriculture, transport and services. Environmental policies and regulations in developing and least developing countries are weaker compared to developed countries, as such, they become a haven for high-energy and carbon-intensive industries. The high awareness of environmental sustainability, technological advancement, stringent environmental regulations and policies in developed countries result in a decline in energy intensity and a decline in carbon dioxide emissions. The Environmental Sustainability Curve hypothesis shows that the affecting factors include economic growth, energy consumption patterns and carbon dioxide emissions. The study reveals electric power consumption as the main contributor of energy intensity in the selected countries. Decoupling economic growth from electric power consumption and improving energy efficiency in China, Ghana, Australia, and the USA will enhance energy security and decline the economic related dynamics and activities on the environment.
In accordance with the Sustainable Development Goal 17 of improving global partnership for sustainable development, this study examined the effect of foreign direct investment inflows, economic development, and energy consumption on greenhouse gas emissions from 1982 to 2016 for the top five emitters of greenhouse gas emissions from fuel combustion in the developing countries, namely; China, India, Iran, Indonesia and South Africa. The study employed a panel data regression with Driscoll-Kraay standard errors, U test estimation approach and panel quantile regression with non-additive fixed-effects. The study found a strong positive effect of energy consumption on greenhouse gas emissions and confirmed the validity of the pollution haven hypothesis. The environmental Kuznets curve hypothesis is valid for China and Indonesia at a turning point of US 2999; second, a U-shape relationship is valid for India and South Africa at a turning point of US 7573. Foreign direct investment inflows with clean technological transfer and improvement in labour and environmental management practices will help developing countries to achieve the sustainable development goals. Mitigation of greenhouse gas emissions depends on enhanced energy efficiency, adoption of clean and modern energy technologies, such as renewable energy, nuclear, and the utilization of carbon capture and storage for fossil fuel and biomass energy generation processes.
This study examined the impact of disaggregate and aggregate energy, economic development, urbanization and political institutional quality on environmental pollution using a time series data spanning from 1971 to 2017. The study employed response surface regressions, structural break cumulative sum (CUSUM) test based on recursive residuals and ordinary least squares (OLS) residuals for parameter stability en route to estimating the autoregressive distributed lag (ARDL) regression. The environmental Kuznets curve (EKC) hypothesis is valid in South Africa with an extreme point of ZAR 56,114 which occurred in 2011. Evidence from the study reveals that political institutional quality plays a huge role in the social, governance and economic readiness to mitigate climate change and its impact. Structural adjustment in disaggregate and aggregate energy consumption, economic growth, and political institutional quality play a critical role in environmental quality. Fossil-fuel rich countries require diversification of the energy portfolio by incorporating renewable energy sources which will promote environmental sustainability and improve air quality while reducing their economy's vulnerability to price volatility. A paradigm shift from energy and carbon-intensive industries to a service-oriented economy will cause a structural economic change thus, aiding in the mitigation of climate change and its impacts.
Closing the gap between economy activity and environmental quality is one of the solutions for reaching “sustainable
development” inMalaysia. To do so, the cubic polynomial functional form of EKC is utilized by accommodating
renewable energy into the base of the EKCmodel and validating its hypothesis between CO2emissions and
GDP growth for the 1971–2015 period. The F-bounds, VECM Granger causality, CUSUM, and CUSUMSQ tests are
utilized. The estimated results consistently show that the inverted N-shaped EKC hypothesis holds in Malaysia.
Ceteris paribus, the CO2 emissions will be declined when the GDP reach RM2841.9 billion in 2030, which is beyond
the sample period. The renewable energy has a negative significant effect on CO2 emissions, and the direction
of causality is running from CO2 emissions to renewable energy. Also, the GDP growth will be the remedy for
environmental pollution problems and that renewable energy is one of important elements to be considered for
improving environmental quality. A tighter and concentrated environmental policy is needed to direct the environment–
economic growth nexus toward a downward trend. Consequently, these results may help Malaysian
policymakers to establish an energy policy that guarantees a balance between economic growth and environmental
prosperity.
Undoubtedly, the increasing rates of CO2 emissions contribute highly to climate change. Studies stress the importance of understanding the determinants of emissions, in order to implement appropriate policies. In the past, literature only looked at the effect of aggregate energy to emissions; while nowadays, with the increasing role of renewables, they aim at evaluating the impacts of renewable and non-renewable energies separately. Also, studies ignored possible cross-dependence among countries; concept particularly important for countries linked by trade or geographical position. Also, only lately, studies focused on developing economies.
In this study, we aim to address these gaps of the literature by estimating the determinants (renewable and non-renewable energy, income and trade openness) of CO2 emissions for the ten biggest electricity generators in Sub-Saharan Africa for the period 1980 to 2011 by employing panel estimation techniques robust to cross dependence. A long-run relationship between the main variables is confirmed. Increases in non-renewable energy consumption intensify pollution while the opposite holds for renewable energy. With regards to direction of causal relationships, we observe a unidirectional causality running from emissions, income, trade and non-renewable energies towards renewable energies; from non-renewable energy to emissions; and from emissions and non-renewable energies to trade.
This study explores the relationship between economic growth and CO2 emissions in the so-called European Union 5 (EU-5) countries (Germany, France, Italy, Spain, and the United Kingdom) for the 1985–2016 period. In doing so, we employ a carbon emission function to investigate the environmental Kuznets curve phenomenon, which describes a relationship between economic growth and environmental degradation. The empirical results confirm the existence of an N-shaped relationship between economic growth and CO2 emissions in the EU-5 countries. We incorporate additional variables such as renewable electricity consumption, trade openness, natural resource abundance, and energy innovation to augment the carbon emission function. Renewable electricity consumption, natural resources, and energy innovation improve environmental quality, while trade openness and the interaction between economic growth and renewable electricity consumption exert a positive impact on CO2 emissions. This study is novel in that it presents an interaction between economic growth and renewable electricity consumption. We also confirm the need for renewable energy regulations related to increasing renewable sources and promoting energy innovation to reduce the negative effects of energy and fossil energy resources on environmental degradation.
In the modern era of globalization, information and communication technology (ICT) are considered
key sectors that profoundly contribute to economic growth. Most of the economic activities,
trade, and foreign direct investment are mainly dependent on modern sources of ICT. The
objective of present research work is to investigate the dynamic relationship between ICT, foreign
direct investment (FDI), economic growth incorporating trade and globalization for BRICS
economies over 2000–2014 by employing OLS with fixed effects, the FMOLS, the DOLS and the
group-mean estimator techniques robust to heterogeneity and cross-sectional dependence.
Empirical results of the study suggest the long-run elasticities between ICT and economic growth,
which suggests that ICT positively contributes to economic growth. Findings from long-run
output elasticities show that both FDI and globalization have a long-run effect on economic
growth. Furthermore, bi-directional causality exists between GDP and FDI, globalization and
economic growth, and trade and economic growth. Also, unidirectional causality is running from
globalization to trade. Globalization and ICT also Granger causes each other. Sensitivity analysis
is employed to check whether findings of the study are valid and reliable for policy recommendation.
The outcome of our study suggests policy recommendations for improving ICT
with the focus on economic growth, trade openness and facilitation of foreign investment in
BRICS countries.
Several studies have investigated the determinants of CO2 emission; however, prior research has been neglected to examine the emission of CO2 due to the trade of goods and services and royalty and licensing fees. To do so, the present work contributes to research stream by investigating the relationship between imported technology
and environmental degradation within the time span of 1980–2011 in the case of China. Based on the Auto Regressive Distributive Lag (ARDL) model and Vector Error Correction (VECM) Granger causality approach we draw an inference that imported technologies mainly contributes to CO2 emission in the long run path for China. The long run causality results originates bi-directional causality between imported technology and CO2 emission. Moreover, in the long run, feedback hypothesis is also detected between energy consumption and CO2 emission.To ensure the stability of model and reliability of results for policy implication numerous significant tests are carried out. This study suggests that Government of China needs to expand input in R&D for higher technological strength and intellectual property rights management capacity, which will be favorable for the protection of the environment.
This study aims to examine the volume of carbon dioxide (CO2) emissions by lag of the emissions and by the Gross Domestic Product (GDP) for the BRICS (Brazil, Russia, India, China, and South Africa) countries from 1980 to 2011. Due to the heterogeneity of CO2 emission among the BRICS countries, we organized the countries into two groups. In Group 1 (Brazil and Russia), we identified that the main causes of the variation of CO2 emission in time t are the emission of CO2 in time t-1 and the annual GDP of the country. In Group 2 (China, India, and South Africa), the findings do not depend on the income level of individual countries, but only from the emission of CO2 in the lag period. Therefore, the main contribution of this study is that the environmental consequences of growing economic activity may be very mixed and must be examined on a case-by-case basis.
The main contribution of this study is to test the Environmental Kuznets Curve (EKC) hypothesis at individual country analysis by the significance of renewable energy and non-renewable energy consumption in the context of Pakistan. A series of econometric techniques is used for the period of 1970-2012. The findings provide strong support for the presence of the EKC in the case of Pakistan. The results show that renewable energy plays a dominant role in reducing carbon dioxide emission and non-renewable energy consumption indeed the main culprit for promoting carbon dioxide emission. It is also observed that bi-directional causality exists not only between renewable energy consumption and CO2 emission but also non-renewable energy consumption and CO2 emission granger cause each other. Sensitivity analysis is performed to prove that model of this study is stable and findings of the study are valid and reliable for Policy implication. These findings suggest that Government needs to expand investment in renewable energy projects that might contribute to the efforts of climate mitigation.
The aim of this research is to investigate the pollution haven hypothesis (PHH) in Ghana utilizing CO2 emission as an indicator of air pollution for the period of 1980-2012. Moreover, we utilized gross domestic product (GDP), GDP square, energy consumption, renewable energy consumption, fossil fuel energy consumption, foreign direct investment, institutional quality, urbanization and trade openness as its main determinants. To achieve the goals of this research, different time series models were established utilizing the autoregressive distributed lag (ARDL) method. In addition to the fact that structural breaks are introduced into the estimation process, we contribute to the existing literature by focussing on a country that typifies the current scenario of increasing emission and foreign direct investment in the developing countries. The outcome of this research revealed cointegration which indicates the existence of long run relationship between the variables. Moreover, GDP, foreign direct investment, urban population, financial development and international trade have positive impact on CO2 emission, while institutional quality decreases emissions in Ghana. This indicates that PHH does exist in Ghana. A number of policy recommendations were provided for Ghana according to the results obtained.
The imperative to reduce CO2 emissions is stronger than ever and investment in renewable energy is one of the most viable options to reduce the carbon footprint. This article explores the dynamic causal relationship between CO2 emissions, renewable electricity consumption, non-renewable electricity consumption and economic growth in Algeria by using Autoregressive Distributed Lag Cointegration approach over the period 1980–2012. The empirical results confirm the existence of cointegration long-run relationship among the variables. We find that, in the long-run, economic growth and non-renewable electricity consumption have a detrimental effect on the environment quality, whereas renewable energy use has a beneficial environmental effect. Furthermore, in the short-run, results reveal unidirectional causality relationship running from GDP to NREC, supporting the conservation hypothesis, i.e. electricity consumption is dictated by economic growth. The results suggest broadly that renewable electricity consumption can help to enhance environmental quality in Algeria. But so far, renewable electricity generation has not reached a level that allows a significant contribution to energy-based carbon dioxide emissions reduction target.
This study combines a panel cointegration analysis with a set of robustness tests to assess the short and long-run impacts of renewable energy on CO2 emissions, as well as the Kuznets Environmental Curve hypothesis for 25 selected african countries, over the period 1980-2012. The results provide no evidence of a total validation of EKC predictions. However, CO2 emissions are found to increase with income per capita. The overall estimations strongly reveal that renewable energy, with a negative effect on CO2 emissions, coupled with an increasing long-run effect, remains an efficient substitute for the conventional fossil-fuelled energy. Nonetheless, the impact of renewable energy is outweighed by primary energy consumption in both the short and long run, entailing more global synergy for outpacing the environmental challenges.
We examine the reduced-form relationship between per capita income and various environmental indicators. Our study covers
four types of indicators: urban air pollution, the state of the oxygen regime in river basins, fecal contamination of river
basins, and contamination of river basins by heavy metals. We find no evidence that environmental quality deteriorates steadily
with economic growth. Rather, for most indicators, economic growth brings an initial phase of deterioration followed by a
subsequent phase of improvement. The turning points for the different pollutants vary, but in most cases they come before
a country reaches a per capita income of $8000.
This paper proposes a very simple test of Granger (1969) non-causality for heterogeneous panel data models. Our test statistic is based on the individual Wald statistics of Granger non causality averaged across the groups. First, this statistic is shown to converge sequentially to a standard normal distribution. Second, for a fixed T sample the semi-asymptotic distribution of the average statistic is characterized. A standardized statistic based on an approximation of the moments of Wald statistics is proposed. Monte Carlo experiments show that our panel standardized statistics provide very good small sample properties.
In general, a reduction in trade barriers will affect the environment by expanding the scale of economic activity, by altering the composition of economic activity and by initiating a change in the techniques of production. We present empirical evidence to assess the relative magnitudes of these three effects as they apply to further trade liberalization in Mexico. We first use comparable measures of three air pollutants in a cross-section of urban areas located in 42 countries to study the relationship between air quality and economic growth. We find for two pollutants (sulphur dioxide and `smoke') that concentrations increase with per capita GDP at low levels of national income, but decrease with GDP growth at higher levels of income. We then study the determinants of the industry pattern of US imports from Mexico and of value added by Mexico's maquiladora sector. We investigate whether the size of pollution abatement costs in US industry influences the pattern of international trade and investment. Finally, we use the results from a computable general equilibrium model to study the likely compositional effect of a North American Free Trade Agreement (NAFTA) on pollution in Mexico.
Accounting for Unobserved Heterogeneity in Panel Time Series Models
- S R Bond
- M Eberhardt
Bond, S.R., Eberhardt, M., 2013. Accounting for Unobserved Heterogeneity in Panel Time
Series Models (Unpublished mimeo).
World Bank. World Dev
World Bank, 2017. Annual Report 2017 End Extreme Poverty • Boost Shared Prosperity.
World Bank, 2018. World Bank. World Dev. Indic doi. http://databank.worldbank.org/
data/reports.aspx?Source=World%20Development%20Indicators#.