1
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Shahbaz M. Economic globalization-energy diversification nexus and implications for environmental management in China. JOURNAL OF ENVIRONMENTAL MANAGEMENT 2024; 360:121174. [PMID: 38759557 DOI: 10.1016/j.jenvman.2024.121174] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Subscribe] [Scholar Register] [Received: 04/12/2024] [Revised: 05/07/2024] [Accepted: 05/12/2024] [Indexed: 05/19/2024]
Abstract
Every nation on earth has the responsibility to implement effective environmental management measures for sustainable environmental quality. In doing so, this study scrutinizes the relationship between economic globalisation and energy diversification in the Chinese economy from 1995 to 2022 for designing and implanting policies for environmental management. It uses industrialization, foreign direct investment, foreign remittances, and information & communication technology as supplementary factors into augmented energy diversification demand function. This empirical analysis shows cointegration between the variables, with economic globalisation positively impacting energy diversification. Factors such as foreign direct investment, foreign remittances, and information & communication technology contribute to energy diversity. However, industrialization has an adverse relationship with energy diversification. The relationship forms an inverted-U shaped between economic globalization and energy diversification. Our causality analysis indicates that economic globalization positively causes energy diversification. This study also reveals a reciprocal and beneficial cause-and-effect association between foreign direct investment and energy diversification. Lastly, foreign remittances and information & communication technologies positively cause energy diversification.
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Affiliation(s)
- Muhammad Shahbaz
- Department of International Trade and Finance, School of Management and Economics, Beijing Institute of Technology, Beijing, China; GUST Center for Sustainable Development (CSD), Gulf University for Science and Technology, Hawally, Kuwait; Department of Land Economy, University of Cambridge, United Kingdom.
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2
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Yin C, Qamruzzaman M. Empowering renewable energy consumption through public-private investment, urbanization, and globalization: Evidence from CS-ARDL and NARDL. Heliyon 2024; 10:e26455. [PMID: 38420461 PMCID: PMC10900819 DOI: 10.1016/j.heliyon.2024.e26455] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Download PDF] [Journal Information] [Subscribe] [Scholar Register] [Received: 08/01/2023] [Revised: 01/31/2024] [Accepted: 02/13/2024] [Indexed: 03/02/2024] Open
Abstract
This study examines the interrelationship among public-private investment, urbanization, globalization, and renewable energy consumption in the BIMSTEC nations for 1995-2021. The study implemented linear and nonlinear frameworks to document the magnitudes of explanatory variables on REC. Referring to the study findings with CSD, CIPS, CADF, and PCT disclosed the presence of cross-sectional dependency; variables are integrated after the first difference, i.e., I (1), and long-run association. According to symmetric and asymmetric coefficients, Public-private partnerships and globalization have emerged as significant catalysts for developing renewable energy sources. At the same time, urbanization is exposed to an adverse tie with REC, especially in the long-run. Based on the abovementioned findings, the study presents crucial policy recommendations to facilitate the expeditious transition to renewable energy within the BIMSTEC nations. Policymakers should prioritize the cultivation of robust public-private partnerships, the provision of incentives for investments in renewable energy, and the formulation of comprehensive regulatory frameworks.
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Affiliation(s)
- Chaobing Yin
- FanLi Business School, Nanyang Institute of Technology, Henan Province, China
| | - Md Qamruzzaman
- School of Business and Economics, United International University, Dhaka 1212, Bangladesh
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3
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Huang Y, Rahman SU, Meo MS, Ali MSE, Khan S. Revisiting the environmental Kuznets curve: assessing the impact of climate policy uncertainty in the Belt and Road Initiative. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2024; 31:10579-10593. [PMID: 38198084 DOI: 10.1007/s11356-023-31471-y] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 05/17/2023] [Accepted: 12/06/2023] [Indexed: 01/11/2024]
Abstract
Climate change repercussions such as temperature shifts and more severe weather occurrences are felt globally. It contributes to larger-scale challenges, such as climate change and biodiversity loss in food production. As a result, the purpose of this research is to develop strategies to grow the economy without harming the environment. Therefore, we revisit the environmental Kuznets curve (EKC) hypothesis, considering the impact of climate policy uncertainty along with other control variables. We investigated yearly panel data from 47 Belt and Road Initiative (BRI) nations from 1998 to 2021. Pooled regression, fixed effect, and the generalized method of moment (GMM) findings all confirmed the presence of inverted U-shaped EKC in BRI counties. Findings from this paper provide policymakers with actionable ideas, outlining a framework for bringing trade and climate agendas into harmony in BRI countries. The best way to promote economic growth and reduce carbon dioxide emissions is to push for trade and climate policies to be coordinated. Moreover, improving institutional quality is essential for strong environmental governance, as it facilitates the adoption of environmentally friendly industrialization techniques and the efficient administration of climate policy uncertainties.
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Affiliation(s)
- Yi Huang
- School of Foreign Studies, Yiwu Industrial & Commercial College, Yiwu, China
| | - Saif Ur Rahman
- Faculty of Economics & Commerce, Superior University, Lahore, Pakistan.
| | - Muhammad Saeed Meo
- Sunway Business School, Sunway University, Petaling Jaya, Kuala Lumpur, Malaysia
- University of Economics and Human Sciences, Warsaw, Poland
| | | | - Sarwar Khan
- University of Central Punjab, Lahore, Pakistan
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4
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Imran M, Liu X, Saud S, Akhtar MH, Haseeb A, Wang R, Azam K. The non-linear relationship between globalization, financial development and energy consumption: Evidence from BRICS economies. PLoS One 2023; 18:e0293890. [PMID: 38064428 PMCID: PMC10707598 DOI: 10.1371/journal.pone.0293890] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [MESH Headings] [Grants] [Track Full Text] [Figures] [Journal Information] [Subscribe] [Scholar Register] [Received: 08/29/2023] [Accepted: 10/23/2023] [Indexed: 12/18/2023] Open
Abstract
In the era of globalization, financial development plays a key role in socioeconomic and environmental development. However, its adverse consequences on human life, environmental hazards, and high energy consumption cannot be ignored. Thus, this study investigates the non-linear relationship between globalization, financial development, and energy consumption for BRICS economies. In doing so, we have applied second-generation tests to identify cross-sectional dependence in the data. Cross-sectional augmented Dickey-Fuller (CADF) and Cross-sectional Im-Pesaran Shin (CIPS) have been performed to find the stationary level of variables. The long-term equilibrium link between the investigated variables has been established in continuance using the Westerlund Cointegration test. The Dynamic Seemingly Unrelated Regression (DSUR) indicates that U-shaped relationships exist for financial development and globalization with energy consumption. Conversely, there is an inverted U-shaped relationship exist between economic growth and energy consumption in BRICS. The Dumitrescu-Hurlin panel causality test findings show that a unidirectional link runs from energy consumption to financial development, economic growth to energy consumption, and globalization towards energy usage. Important policy implications have also been discussed.
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Affiliation(s)
- Muhammad Imran
- Information Research Institute, Qilu University of Technology (Shandong Academy of Sciences), Jinan, Shandong, China
| | - Xiangyang Liu
- Information Research Institute, Qilu University of Technology (Shandong Academy of Sciences), Jinan, Shandong, China
| | - Shah Saud
- School of Management and Economics, Beijing Institute of Technology, Beijing, China
| | | | - Abdul Haseeb
- Department of Management Sciences, University of Haripur, Haripur, Pakistan
| | - Rongyu Wang
- Information Research Institute, Qilu University of Technology (Shandong Academy of Sciences), Jinan, Shandong, China
| | - Kamran Azam
- Department of Management Sciences, University of Haripur, Haripur, Pakistan
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5
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Ozcan B, Temiz M. Re-visiting resource curse hypothesis in China through the lens of human capital and globalization. JOURNAL OF ENVIRONMENTAL MANAGEMENT 2023; 338:117685. [PMID: 37023608 DOI: 10.1016/j.jenvman.2023.117685] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 12/27/2022] [Revised: 02/13/2023] [Accepted: 03/05/2023] [Indexed: 06/19/2023]
Abstract
The resource curse hypothesis has recently become an important research topic in environmental economics. However, there still needs to be consensus in the literature on whether natural resource rents (NRRs) support economic growth. Previous studies on China have mainly analyzed the resource curse hypothesis based on local or regional data. However, this study examines the issue based on national-level data using globalization and human capital as control variables. The dynamic Auto-Regressive Distributive Lag (DARDL) Simulations and the Kernel-based Regularized Least Squares (KRLS) techniques are employed for policy formulation for 1980-2019. The empirical assessments indicate that NRRs escalate economic growth, i.e., China's resource curse hypothesis is invalid. Further, empirical outcomes reveal that human capital and globalization encourage China's economic growth. The KRLS, a machine learning algorithm, also supports the findings of the DARDL approach. Finally, based on the empirical outcomes, several policy recommendations can be developed, such as more investment in the education sector and the use of NRRs for productive sectors of the economy.
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Affiliation(s)
- Burcu Ozcan
- Firat University, Faculty of Economics and Administrative Sciences, Department of Economics, Elazig, 23200, Turkey
| | - Mehmet Temiz
- Firat University, Faculty of Economics and Administrative Sciences, Department of Economics, Elazig, 23200, Turkey
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6
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Xu J, Weng J, Yuan R. Impacts of financial development on the energy consumption in China from the perspective of poverty alleviation efficiency. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2023; 30:63647-63660. [PMID: 37055690 DOI: 10.1007/s11356-023-26759-y] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Subscribe] [Scholar Register] [Received: 12/27/2022] [Accepted: 03/28/2023] [Indexed: 04/15/2023]
Abstract
Poverty alleviation and energy saving are two major issues of sustainable development targets. Meanwhile, financial development (FD) is a powerful engine of economic growth, which is regard as a valid approach to contain the demand for energy consumption (EC). However, few studies link the three factors and explore the specific impact mechanism of poverty alleviation efficiency (PE) on the tie between FD and EC. Thus, we employ the mediation and threshold models to evaluate the influence of FD on the EC in China during 2010-2019 from the perspective of PE. We affirm that FD indirectly promotes EC through the channel of PE. The mediating effect of PE is responsible for 15.75% of the total effect of FD on the EC. Moreover, FD generates a significant threshold impact on the EC considering the change of PE. When the PE exceeds 0.524, the role of FD in promoting EC is strengthened. Ultimately, the outcome suggests policymakers need to prominent the trade-off between energy saving and poverty reduction during the fast evolution of financial system.
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Affiliation(s)
- Jing Xu
- Business School, Henan University, Jinming Avenue North Section, Kaifeng, 475004, Henan, China
| | - Jinzhi Weng
- Business School, Henan University, Jinming Avenue North Section, Kaifeng, 475004, Henan, China
| | - Rong Yuan
- School of Economics and Business Management, Chongqing University, Shazheng Street 174, Chongqing, 400040, China.
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7
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Fatima N, Yanting Z, Guohua N. Interrelationship among environmental policy stringency, financial globalization in OECD countries, and CO2 emission with the role of technological innovation and financial development. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2023; 30:34085-34100. [PMID: 36508094 DOI: 10.1007/s11356-022-24392-9] [Citation(s) in RCA: 2] [Impact Index Per Article: 2.0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 10/19/2022] [Accepted: 11/21/2022] [Indexed: 06/18/2023]
Abstract
The study examines the nexus between financial globalization (FG), environmental policy stringency (EPS), financial development (FD), and technological innovation (INV) on CO2 emission with moderating effect of technological innovation on financial development and environmental degradation in 36 OECD countries with an updated dataset from the period of 1990 to 2020 using PMG (Pooled mean group) panel ARDL method. The results of stationarity tests; (Levin, Lin, and Chu test; ADF Fisher test) demonstrate that selected variables are stationary at level I(0) and first difference I(I); this confirms that PMG estimator can be employed. Cointegration tests indicate that cointegration exist among the variables. The empirical findings of the PMG estimator indicate that financial globalization and CO2 are negatively associated with each other. While financial development, environmental policy stringency, and technological innovation have positive impact on environmental degradation in OECD countries. Furthermore, technological innovation strengthens the association between financial development (FD) and environmental degradation (CO2 emission). In order to accelerate economic growth, the study recommends that policymakers should implement environmental policies to achieve low-carbon mechanisms, such as green infrastructure and renewable energy systems, which reduce energy consumption and greenhouse gas emissions. Therefore, it is crucial that the selected OECD countries should develop programs that increase awareness of the risks of carbon emissions.
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Affiliation(s)
- Nudrat Fatima
- Beijing Technology & Business University, Beijing, China
| | - Zheng Yanting
- Beijing Technology & Business University, Beijing, China.
| | - Ni Guohua
- Beijing Technology & Business University, Beijing, China
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8
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Adeleye BN, Akam D, Inuwa N, James HT, Basila D. Does globalization and energy usage influence carbon emissions in South Asia? An empirical revisit of the debate. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2023; 30:36190-36207. [PMID: 36547846 PMCID: PMC10039819 DOI: 10.1007/s11356-022-24457-9] [Citation(s) in RCA: 5] [Impact Index Per Article: 5.0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 09/20/2022] [Accepted: 11/24/2022] [Indexed: 06/02/2023]
Abstract
The 2030 United Nations Sustainable Development Goal (SDG) 13 agenda hinges on attaining a sustainable environment with the need to "take urgent action to combat climate change and its impacts". Hence, this study empirically revisits the debate on the effect of nonrenewable energy and globalization on carbon emissions within the framework of the Kuznets hypothesis using an unbalanced panel data from seven South Asian countries (Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka) covering 1980-2019. The variables of interest are carbon emissions measured in metric tons per capita, energy use measured as kg of oil equivalent per capita, and globalization index. To address five main objectives, we deploy four techniques: panel-corrected standard errors (PCSE), feasible generalized least squares (FGLS), quantile regression (QR), and fully modified ordinary least squares (FMOLS). For the most part, the findings reveal that the (1) inverted U-shaped energy-Kuznets curve holds; (2) U-shaped globalization-Kuznets curve is evident; (3) inverted U-shaped turning points for nonrenewable energy are 496.03 and 640.84, while for globalization are 38.83 and 39.04, respectively; (4) globalization-emission relationship indicates a U-shaped relationship at the median and 75th quantile; and (5) inverted U-shaped energy-Kuznets holds in Pakistan but a U-shaped nexus prevails in Nepal and Sri Lanka; inverted U-shaped globalization-Kuznets holds in Bangladesh and Sri Lanka, but U-shaped nexus is evident in Bhutan, Maldives, and Nepal. Deductively, our results show that South Asia countries (at early stage of development) are faced with the hazardous substance that deteriorates human health. Moreover, the non-linear square term of the nonrenewable energy-emissions relationship is negative, which validates the inverted U-shaped EKC theory. Overall, the effect of energy and globalization on carbon emissions is opposite while the consistency at the 75th quantile result indicates that countries with intense globalization are prone to environmental degradation.
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Affiliation(s)
- Bosede Ngozi Adeleye
- Department of Accountancy, Finance and Economics, University of Lincoln, Lincoln, UK
| | - Darlington Akam
- Department of Economics, University of Lagos, Lagos, Nigeria
| | - Nasiru Inuwa
- Department of Economics, Gombe State University, Gombe, Nigeria
| | | | - Denis Basila
- Department of Accounting, Adamawa State University, Mubi, Nigeria
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9
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Abro AA, Alam N, Murshed M, Mahmood H, Musah M, Rahman AKMA. Drivers of green growth in the Kingdom of Saudi Arabia: can financial development promote environmentally sustainable economic growth? ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2023; 30:23764-23780. [PMID: 36327073 DOI: 10.1007/s11356-022-23867-z] [Citation(s) in RCA: 6] [Impact Index Per Article: 6.0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 02/15/2022] [Accepted: 10/22/2022] [Indexed: 06/16/2023]
Abstract
The Kingdom of Saudi Arabia has recently declared its vision of turning carbon neutral by 2060. This declaration has motivated policymakers in this Arab nation to design policies that can green economic activities in Saudi Arabia so that environmentally sustainable growth can be ensured. Against this backdrop, this study models the independent and joint effects of financial development, globalization, and energy efficiency rates on green growth of the Saudi Arabian economy. In this regard, green growth in the Kingdom of Saudi Arabia is proxied by the difference between the nation's annual per capita growth rates of gross domestic product and carbon dioxide emission. Utilizing data from 1972 to 2018 and controlling for structural break-induced problems found in the data, the findings from the regression and causality analyses confirm the green growth-inhibiting impacts of financial development and trade globalization. In contrast, greater financial globalization is evidenced to drive green growth in the Kingdom of Saudi Arabia. Furthermore, more efficient uses of energy resources are found to not only directly boost green growth but also partially neutralize the long-run green growth-dampening impacts associated with the development of the financial sector. In addition, financial development and trade globalization are observed to jointly inhibit green growth attainment both in the short and long run. In line with these important findings, it is recommended that the government of Saudi Arabia conceptualizes new green growth policies so that the nation's annual per capita economic growth rate outpaces its annual per capita growth rate of carbon dioxide emissions.
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Affiliation(s)
- Asif Ali Abro
- Department of Business Administration, Newports Institute of Communications and Economics, Karachi, Pakistan
| | - Naushad Alam
- Department of Finance and Economics, College of Commerce and Business Administration, Dhofar University, Salalah, Oman
| | - Muntasir Murshed
- School of Business and Economics, North South University, Dhaka, 1229, Bangladesh.
- Department of Journalism, Media and Communications, Daffodil International University, Dhaka, Bangladesh.
| | - Haider Mahmood
- Department of Finance, College of Business Administration, Prince Sattam Bin Abdulaziz University, 173, Alkharj, 11942, Saudi Arabia
| | - Mohammed Musah
- Department of Accounting, Banking, and Finance, School of Business, Ghana Communication Technology University, Accra, Ghana
| | - A K M Atiqur Rahman
- School of Business and Economics, North South University, Dhaka, 1229, Bangladesh.
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10
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Fang L, Tang H, Mou M. Innovation-driven development and urban carbon emission reduction: a quasi-natural experiment in China. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2023; 30:8002-8019. [PMID: 36045186 DOI: 10.1007/s11356-022-22712-7] [Citation(s) in RCA: 1] [Impact Index Per Article: 1.0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 04/04/2022] [Accepted: 08/21/2022] [Indexed: 06/15/2023]
Abstract
Constructing a quasi-natural experiment based on China's National Independent Innovation Demonstration Zone (NIDZ) pilot, this study applies the time-varying difference-in-differences (DID) model to estimate the impact of innovation-driven development on urban carbon emission reduction. We use panel data on 285 cities which covers 95.96% of Chinese cities during the period of 2003 to 2017. Compared with non-pilot cities, our results indicate that total carbon dioxide emissions and emission intensity of pilot cities decreased by 4.8% and 5.8%, respectively. The results suggest that the construction of NIDZs can significantly promote urban carbon emission reductions. Moreover, our mechanism tests indicate that this pilot policy can encourage technological innovation and optimize industrial structure, which in turn suppresses urban carbon dioxide emissions. Additionally, further analysis shows that the policy effect increases over years and is stronger in urban areas with higher levels of human capital, government finance, and information infrastructure. This study enriches the relevant research on carbon emission reduction.
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Affiliation(s)
- Lan Fang
- Northwest Institute of Historical Environment and Socio-Economic Development, Shaanxi Normal University, Xi'an, 710119, Shaanxi, China
- Leibniz Institute of Agricultural Development in Transition Economies (IAMO), Theodor-Lieser-Str. 2, 06120, Halle (Saale), Germany
| | - Heyan Tang
- Northwest Institute of Historical Environment and Socio-Economic Development, Shaanxi Normal University, Xi'an, 710119, Shaanxi, China.
| | - Muge Mou
- Northwest Institute of Historical Environment and Socio-Economic Development, Shaanxi Normal University, Xi'an, 710119, Shaanxi, China
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11
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Wang Z, Le Hoa Pham T, Wang B, Hashemizadeh A, Bui Q, Nawarathna CLK. The simultaneous impact of education and financial development on renewable energy consumption: an investigation of Next-11 countries. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2022; 29:85492-85509. [PMID: 35799003 PMCID: PMC9263043 DOI: 10.1007/s11356-022-21330-7] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Grants] [Track Full Text] [Subscribe] [Scholar Register] [Received: 12/05/2021] [Accepted: 06/02/2022] [Indexed: 05/04/2023]
Abstract
The use of fossil fuels is a primary source of global warming owing to the greenhouse effect. Renewable energy is the best alternative environment-friendly energy source. Previous studies have highlighted the significant influence of financial development and education on renewable energy. However, the simultaneous effects of these two factors on renewable energy have rarely been examined, especially in emerging economies. This study employed dynamic seemingly unrelated cointegrating regression and the Dumitrescu-Hurlin causality test to analyze the effect of education and financial development on renewable energy consumption in N-11 countries during 1990-2016. Empirical results show that financial development significantly increased renewable energy use; however, education failed to make a positive difference. Additionally, bidirectional- and unidirectional causality was observed for financial development and education, respectively, toward renewable energy. This suggests that policymakers should combine financial development policies with education to improve the efficiency of renewable energy use.
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Affiliation(s)
- Zhaohua Wang
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081 China
- Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing, 100081 China
- Collaborative Innovation Center of Electric Vehicles in Beijing, Beijing, 100081 China
- Sustainable Development Research Institute for Economy and Society of Beijing, Beijing, 100081 China
| | - Thi Le Hoa Pham
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081 China
- Faculty of Economics, Namdinh University of Technology Education, Namdinh, 07113 Vietnam
| | - Bo Wang
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081 China
- Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing, 100081 China
| | - Ali Hashemizadeh
- College of Management, Shenzhen University, Guangdong, 518060 People’s Republic of China
| | - Quocviet Bui
- Faculty of Economics, Namdinh University of Technology Education, Namdinh, 07113 Vietnam
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12
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Remote Sensing Monitoring of Ecological-Economic Impacts in the Belt and Road Initiatives Mining Project: A Case Study in Sino Iron and Taldybulak Levoberezhny. REMOTE SENSING 2022. [DOI: 10.3390/rs14143308] [Citation(s) in RCA: 2] [Impact Index Per Article: 1.0] [Reference Citation Analysis] [Abstract] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 01/26/2023]
Abstract
Under the Belt and Road Initiatives, China’s overseas cooperation in constructing mining projects has developed rapidly. The development and utilization of mining resources are essential requirements for socio-economic development. At the same time, the ecological impacts of the exploitation and utilization of mining resources have increasingly aroused the widespread concern of the international community. This paper uses Landsat images, high-resolution images, and nighttime light (NTL) data to remotely monitor Sino Iron in Australia and Taldybulak Levoberezhny in Kyrgyzstan in different development periods to provide a reference for the rational development of mineral resources and environmental management. The results show that the Chinese enterprises have achieved good results in the ecological protection of the mining area during the construction period. The development of the mine has caused minor damage to the surrounding environment and has not destroyed the local natural ecological pattern. The different NTL indices show an overall rising trend, indicating that the construction of mines has dramatically promoted the socio-economic development of countries along the Belt and Road in both time and space. Therefore, relevant departments should practice green development in overseas projects, establish a scientific mine governance system, and promote a win-win economic growth and environmental governance situation.
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13
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Ansari MA, Akram V, Haider S. A link between productivity, globalisation and carbon emissions: evidence from emissions by coal, oil and gas. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2022; 29:33826-33843. [PMID: 35032259 DOI: 10.1007/s11356-022-18557-9] [Citation(s) in RCA: 4] [Impact Index Per Article: 2.0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 06/08/2021] [Accepted: 01/04/2022] [Indexed: 06/14/2023]
Abstract
Although much has been discussed about the link between renewable energy, globalisation and carbon dioxide (CO2) emissions, yet the impact of total factor productivity (TFP) on CO2 emissions is less known in the existing literature. Therefore, the present study considers TFP as one of the determinants of CO2 as it is believed that technological enhancement plays an essential role in improving the environmental quality by raising efficiency in energy use and pollution treatment. In contrast, it may also have unfavourable impacts. In particular, this study analyses how TFP along with renewable energy and globalisation affect the aggregate and source of CO2 emissions (oil, coal and gas) in the case of top ten carbon emitters from the developing economies over the period 1980-2018. To achieve the above objective, we use the second-generation panel unit root, cointegration and causality tests. We also implement a cross-sectional autoregressive distributed lag model (CS-ARDL) to find the long-run and short-run coefficients. Findings from panel cointegration tests show that there exists a significant long-run relationship between renewable energy, non-renewable energy, globalisation, total factor productivity and CO2. Moreover, findings show that renewable energy consumption has a negative and significant impact on CO2 emissions while non-renewable energy consumption significantly increases the CO2 at aggregate and disaggregated levels. Further, our results confirm that TFP increases the CO2 emissions whereas globalisation decreases CO2. From the policy point of view, TFP growth needs to be accelerated to a higher level so that it enables low carbon growth. The slower TFP growth may enhance output which requires more energy and produces more emissions. Thus, there should be a promotion of emissions' reducing technology along with better TFP growth. Also, our findings recommend that CO2 in sample countries can be reduced through promoting low carbon technology, and globalisation.
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Affiliation(s)
- Mohd Arshad Ansari
- Department of Economics, Akal University, Talwandi Sabo, Bathinda, 151302, Punjab, India.
| | - Vaseem Akram
- Economics & Business Environment Area, Indian Institute of Management Jammu, Old University Campus, Canal Road Nawabad, Cantonment, Jammu, Jammu and Kashmir, 180016, India
| | - Salman Haider
- School of Economics, University of Hyderabad, Hyderabad, Telangana, 500046, India
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14
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Batool Z, Raza SMF, Ali S, Abidin SZU. ICT, renewable energy, financial development, and CO 2 emissions in developing countries of East and South Asia. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2022; 29:35025-35035. [PMID: 35044610 DOI: 10.1007/s11356-022-18664-7] [Citation(s) in RCA: 25] [Impact Index Per Article: 12.5] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 11/01/2021] [Accepted: 01/11/2022] [Indexed: 06/14/2023]
Abstract
This study aims to analyze the impact of ICT, renewable energy consumption, and financial development on CO2 emissions in selected developing countries of East and South Asia. Using panel data spanning 1985-2020, Pooled Mean Group (PMG) estimator is used to analyze the short-run and long-run effects. Results suggest that ICT and financial development positively contribute to the degradation of the environment in the long run, while their impact on CO2 emissions is insignificant in the short run. On the other hand, renewable energy consumption affects environmental quality positively in both the long run and short run. It is also examined that economic growth affects CO2 emissions positively but the squared economic growth reduces CO2 emissions which validates inverted U-shaped EKC hypothesis. The empirical findings of the Granger Causality test suggest unidirectional causality from ICT and financial development to CO2 emissions, while a bi-directional relationship is found among renewable energy and CO2 emissions. Results imply that governments in these countries need to invest in renewable energy to control environmental degradation.
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Affiliation(s)
- Zakia Batool
- National University of Modern Languages (NUML), Islamabad, Pakistan
| | - Syed Muhammad Faraz Raza
- Institute for Region and Urban-Rural Development, Wuhan University, Wuhan, 430072, Hubei Province, China
| | - Sajjad Ali
- Quaid-E-Azam University, Islamabad, Pakistan
| | - Syed Zain Ul Abidin
- Institute for Region and Urban-Rural Development, Wuhan University, Wuhan, 430072, Hubei Province, China.
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15
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Yang X, Khan I. Dynamics among economic growth, urbanization, and environmental sustainability in IEA countries: the role of industry value-added. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2022; 29:4116-4127. [PMID: 34402019 DOI: 10.1007/s11356-021-16000-z] [Citation(s) in RCA: 5] [Impact Index Per Article: 2.5] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 06/11/2021] [Accepted: 08/12/2021] [Indexed: 05/28/2023]
Abstract
As an indicator of environmental degradation, the ecological footprint has seen a terrific focus in the literature. We explore the dynamics among economic growth, urbanization, and environmental sustainability in the presence of population growth and industry value-added in the thirty International Energy Agency (IEA) member countries. We apply advanced econometric modeling for empirical analysis over the period 1992 to 2016. This study's short-run results suggest that capital formation and biocapacity increase ecological footprint in the short run. The findings of long-run estimates demonstrate that industrial value-added and capital formation improve environmental sustainability. However, economic growth, urbanization, biocapacity, and population growth deteriorate environmental sustainability in the long run. Policymakers in the IEA countries are encouraged to establish policies that promote a sustained lifestyle, ecological awareness, clean technological innovations, efficient production and consumption measures, and enlarge cities to limit the adverse effects of urbanization on environmental sustainability. Finally, study limitations and future research directions are discussed.
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Affiliation(s)
- Xiaotian Yang
- School of Finance and Public Administration, Hubei University of Economics, Wuhan, China
| | - Irfan Khan
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, China.
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16
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Green Technology Innovation, Globalization, and CO2 Emissions: Recent Insights from the OBOR Economies. SUSTAINABILITY 2021. [DOI: 10.3390/su14010236] [Citation(s) in RCA: 15] [Impact Index Per Article: 5.0] [Reference Citation Analysis] [Abstract] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 12/11/2022]
Abstract
This study explores the connection between technological innovation, globalization, and CO2 emissions by controlling the critical influence of information and communication technology (ICT) and economic growth in a panel of One Belt One Road (OBOR) countries from 1991 to 2019, utilizing advanced and robust econometric strategies (second generation). In addition, this study also uses an interaction variable (TI*GLOB) to check the interaction role of technological innovation on the linkage between globalization and CO2 emission, besides their direct effect on CO2 emissions in OBOR countries. The outcomes revealed that the linkage between technological innovation and CO2 emissions is negative, and statically significant in all the regions (e.g., OBOR, South Asia, East and Southeast Asia, MENA, Europe, and Central Asia). Moreover, the results of globalization show a significant positive relationship with CO2 emissions in OBOR and South Asia region. Nevertheless, it significantly negatively affects environmental pollution in East and Southeast Asia, MENA, Europe, and Central Asia. The results of TI*GLOB indicate that, for the OBOR sample, East and Southeast Asia, and Central Asia, the moderation effects of technological innovation with globalization are significantly negatively associated with CO2 emissions. However, in MENA and Europe, the interaction effect is a significant positive. The coefficient of ICT for OBOR, Europe, and Central Asia are positive and statistically significant; however, for East, Southeast Asia, and MENA regions, these results are statistically negative. Furthermore, the findings are robust, according to various robustness checks that we have performed for checking the reliability of our main findings. The study establishes numerous polities and makes various recommendations, in light of relevant conclusions.
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17
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Adom PK. Energy efficiency and financial depth nexus revisited: does the choice of instrumental variable and measure of financial depth matter? ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2021; 28:60080-60094. [PMID: 34155587 DOI: 10.1007/s11356-021-14902-6] [Citation(s) in RCA: 1] [Impact Index Per Article: 0.3] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 04/16/2021] [Accepted: 06/10/2021] [Indexed: 06/13/2023]
Abstract
This study examines the effect of finance on energy efficiency in Africa, addressing two fundamental empirical issues in the energy-finance literature: (1) simultaneous modelling of efficiency estimates and determinants of efficiency and (2) two-way endogeneity problem with income and financial depth. I apply the endogenous stochastic frontier method. Life expectancy at birth instruments for income while religion, latitude of capital city and legal system origin instrument for financial depth. Estimated efficiency in electricity consumption is between 9 and 16%, which is quite low, suggesting greater potential to improve electricity consumption efficiency. Without considering the level of development, the result shows that finding a statistically significant negative effect of financial depth on energy inefficiency depends on the choice of instrument and not the indicator of financial depth. Using country latitude and legal system origin as instruments produce robust statistically significant negative effect for all the indicators of financial depth, but high monetisation of the economy and supply of loanable funds exert the greatest effect, recommending between 0.069 and 0.096% reduction in inefficiency for every 1% increase in these indicators. However, both the choice of instruments and indicator of financial depth matter, when I consider income level. I discuss the policy implications.
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Affiliation(s)
- Philip Kofi Adom
- School of Public Service and Governance, Department of Development Policy, Ghana Institute of Management and Public Administration, Accra, Ghana.
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18
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Rehman A, Ma H, Ahmad M, Ozturk I, Işık C. An asymmetrical analysis to explore the dynamic impacts of CO 2 emission to renewable energy, expenditures, foreign direct investment, and trade in Pakistan. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2021; 28:53520-53532. [PMID: 34031838 DOI: 10.1007/s11356-021-14537-7] [Citation(s) in RCA: 32] [Impact Index Per Article: 10.7] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 04/08/2021] [Accepted: 05/18/2021] [Indexed: 06/12/2023]
Abstract
Carbon dioxide emission and GHGs are associated with fossil fuels which have adverse effects on the environment. The key intention of this paper was to determine the asymmetric effect of CO2 emission on expenditures, trade, FDI, and renewable energy consumption in Pakistan. An asymmetrical technique (nonlinear autoregressive distributed lag) was employed to validate the constructive and adverse relation among variables. Furthermore, the Granger causality test was also used to verify the unidirectional association amid variables. Study outcomes revealed that the adverse shocks of renewable energy consumption exposed expressively to upsurge CO2 emission in the short-run dynamics. Conversely, constructive shocks of renewable energy consumption display an adversative association with CO2 emission. Furthermore, the decreasing trend in foreign direct investment tends to impede the detrimental effects of CO2 emission. Additionally, the variable expenditures also create the non-eco-friendly impacts and manifest the positive linkage through CO2 emission. Trade possesses statistically insignificant linkage with environmental degradation. The results also disclose that positive as well as negative variations in the foreign direct investment expose to degrade the environmental eminence. Long-run results suggest the direct association between downward trend in renewable energy consumption and CO2 emission signifying that the pollution level decreases, and the upward trend in renewable energy consumption, however, demonstrates insignificantly positive effects. The results also disclose that positive as well as negative variations in the FDI lead to degrade the CO2 emission. Moreover, it is found that the expenditures soar the issue of pollution again in the long run. Finally, the consequence of trade on CO2 emission is adverse, as the outcome suggests. In order to improve the environmental policies for sustainable growth, the study provides direction toward a sustainable environment by reducing carbon dioxide emission.
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Affiliation(s)
- Abdul Rehman
- College of Economics and Management, Henan Agricultural University, Zhengzhou, 450002, China.
| | - Hengyun Ma
- College of Economics and Management, Henan Agricultural University, Zhengzhou, 450002, China
| | - Munir Ahmad
- School of Economics, Zhejiang University, Hangzhou, 310027, China
| | - Ilhan Ozturk
- Faculty of Economics and Administrative Sciences, Cag University, 33800, Mersin, Turkey
- Department of Medical Research, China Medical University Hospital, China Medical University, Taichung, Taiwan
- Department of Finance, Asia University, 500, Liufeng Rd., Wufeng, Taichung, 41354, Taiwan
| | - Cem Işık
- Faculty of Tourism, Anadolu University, Eskişehir, Turkey
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19
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Kihombo S, Saud S, Ahmed Z, Chen S. The effects of research and development and financial development on CO 2 emissions: evidence from selected WAME economies. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2021; 28:51149-51159. [PMID: 33977430 DOI: 10.1007/s11356-021-14288-5] [Citation(s) in RCA: 9] [Impact Index Per Article: 3.0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 12/05/2020] [Accepted: 05/03/2021] [Indexed: 06/12/2023]
Abstract
Earth is in the Anthropocene era and humankind deteriorates the global environment; thus, there is a dire need for sustainable policies at all levels. This study investigates the causal and long-run association between financial development, research and development expenditures, and carbon dioxide emission including energy intensity and income level for selected West Asia and Middle East (WAME) economies along the belt and road. The long-run panel estimation findings reveal that the research and development expenditures (R&D) are negatively associated with environmental degradation, as they significantly mitigate carbon emissions. In contrast, financial development contributes to environmental degradation. The findings validated the environmental Kuznets curve (EKC) phenomenon for the WAME economies considering R&D and financial development. Further, energy intensity exacerbates environmental quality. Additionally, the findings from Dumitrescu-Hurlin (DH) causal approach reveal bidirectional causal associations between financial development and carbon emissions and between R&D and emissions. The findings have implications for policy and practice to attain environmental sustainability in the selected WAME countries.
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Affiliation(s)
- Shauku Kihombo
- School of Management and Economics, Beijing Institute of Technology, South-Zhongguancun Street, Beijing, 100081, People's Republic of China
| | - Shah Saud
- School of Management and Economics, Beijing Institute of Technology, South-Zhongguancun Street, Beijing, 100081, People's Republic of China.
- Institute of Business Studies, Kohat University of Science & Technology, Kohat, Kyber Pakhtunkhwa, 26000, Pakistan.
| | - Zahoor Ahmed
- School of Management and Economics, Beijing Institute of Technology, South-Zhongguancun Street, Beijing, 100081, People's Republic of China
| | - Songsheng Chen
- School of Management and Economics, Beijing Institute of Technology, South-Zhongguancun Street, Beijing, 100081, People's Republic of China.
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20
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Muhammad B, Khan MK. Foreign direct investment inflow, economic growth, energy consumption, globalization, and carbon dioxide emission around the world. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2021; 28:55643-55654. [PMID: 34138430 DOI: 10.1007/s11356-021-14857-8] [Citation(s) in RCA: 7] [Impact Index Per Article: 2.3] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 04/29/2021] [Accepted: 06/08/2021] [Indexed: 06/12/2023]
Abstract
This study for the first time examined the link of foreign direct investment inflow, globalization, energy consumption, economic growth, export of fuel resources, and export of ore and metal resources with carbon dioxide emission in 170 countries around the world by using panel data from 1990 to 2018. The examined results of GMM and fixed effect model show that greenhouse gas emissions reduce due to exports of natural resources, export of fuel resources and export of ore and metal resources, urbanization, economic globalization, and political globalization, but the use of energy, social globalization, foreign direct investment, and economic growth have boosted the carbon dioxide emissions. This study suggests that policy makers should focus to implement environment-friendly equipment to reduce carbon dioxide emissions.
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Affiliation(s)
| | - Muhammad Kamran Khan
- Management Studies Department, Bahria Business School, Bahria University, Islamabad, Pakistan.
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21
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Nexus between Natural Resources and Environmental Degradation: Analysing the Role of Income Inequality and Renewable Energy. SUSTAINABILITY 2021. [DOI: 10.3390/su13158364] [Citation(s) in RCA: 3] [Impact Index Per Article: 1.0] [Reference Citation Analysis] [Abstract] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 11/16/2022]
Abstract
Globally, as the environment deteriorates, use of renewable energy is increasing. The discrepancy between inequalities, sustainable sources, and natural resources, on the other hand, is enormous. As a consequence, the current research simulated the link between income inequality, renewable energy, and carbon emissions from 1990 to 2018. The long run and short run interaction were estimated using an autoregressive distribution lag (ARDL) model. According to the study’s findings, improvements in sustainable power, as well as income inequality, are producing a rise in environmental quality. Natural resources seem to have a significantly positive influence on the environment’s quality. Furthermore, the study found that financial development and environmental quality have a bidirectional causal link. According to the conclusions of this study, government authorities should support the use of renewable energy, i.e., sources to optimize carbon release.
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22
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The role of financial systems in energy demand: A comparison of developed and developing countries. Heliyon 2021; 7:e07323. [PMID: 34195428 PMCID: PMC8225962 DOI: 10.1016/j.heliyon.2021.e07323] [Citation(s) in RCA: 3] [Impact Index Per Article: 1.0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Download PDF] [Journal Information] [Subscribe] [Scholar Register] [Received: 09/30/2020] [Revised: 04/25/2021] [Accepted: 06/11/2021] [Indexed: 11/21/2022] Open
Abstract
This study investigates the role of the financial system in energy demand in the cases of developed and developing countries. Time-series analyses are carried out using the annual data period from 2000 to 2015. Results indicate that the financial system and financial markets are long-term catalysts for energy consumption in both groups under consideration. Results show that domestic credits by banks positively impact energy demand in developing countries, while this is money supply impacting positively on energy demand in the case of developed nations. The results of this study reveal important policy implications.
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23
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Godil DI, Sharif A, Ali MI, Ozturk I, Usman R. The role of financial development, R&D expenditure, globalization and institutional quality in energy consumption in India: New evidence from the QARDL approach. JOURNAL OF ENVIRONMENTAL MANAGEMENT 2021; 285:112208. [PMID: 33618139 DOI: 10.1016/j.jenvman.2021.112208] [Citation(s) in RCA: 37] [Impact Index Per Article: 12.3] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 05/07/2020] [Revised: 10/18/2020] [Accepted: 02/14/2021] [Indexed: 06/12/2023]
Abstract
The aim of this research is to explore the association between financial development, research and development (R&D) expenditures, globalization, institutional quality, and energy consumption in India by using the quarterly data of 1995-2018. Quantile Autoregressive Distributed Lag (QARDL) approach is employed to examine the relationship. An application of the QARDL approach suggests that the R&D, financial development, globalization, and institutional quality significantly influence energy utilization in India. R&D and institutional quality have a negative effect on energy utilization which shows that due to the increase in the quality of institutions and R&D in the country, energy utilization is likely to decrease. However, globalization and financial performance have a positive influence on energy which depicts that due to the increase in financial performance and globalization in India the energy consumption is likely to increase. According to the outcomes of this research, India should make a policy to ease the penalties of energy utilization by monitoring resource transfer by means of globalization and by implementing energy conversation procedures through the advancement of the financial sector.
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Affiliation(s)
| | - Arshian Sharif
- Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia, Sintok, Malaysia; Faculty of Management Sciences, Department of Business Administration, Ilma University Karachi, Pakistan, Karachi, Pakistan.
| | | | - Ilhan Ozturk
- Faculty of Economics and Administrative Sciences, Cag University, Mersin, Turkey; Department of Medical Research, China Medical University Hospital, China Medical University, Taichung, Taiwan; Department of Finance, Asia University 500, Lioufeng Rd., Wufeng, Taichung 41354, Taiwan.
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24
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Mehmood U. Globalization-driven CO 2 emissions in Singapore: an application of ARDL approach. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2021; 28:11317-11322. [PMID: 33118067 DOI: 10.1007/s11356-020-11368-w] [Citation(s) in RCA: 10] [Impact Index Per Article: 3.3] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 06/25/2020] [Accepted: 10/21/2020] [Indexed: 05/22/2023]
Abstract
This study explores the linkage between globalization and CO2 emissions in Singapore by using long-term data obtained during 1970-2014. The Zivot-Andrew unit root test corroborates that gross domestic production, economic globalization, political globalization, social globalization, square of economic growth, and carbon dioxide emissions have a unit root at I(0) and stationary at I(1). In this study, the application of auto-regressive distributed lag model finds a significant linkage between the estimated variables. Short- and long-run coefficients confirm that social globalization and economic globalization will be responsible for reduction in carbon dioxide emissions in the future for Singapore. Moreover, this research confirms the presence of environmental Kuznets curve in Singapore. It is proved that a 1% increase in political globalization will increase 2.06% emissions in the long term. The stability of the model is confirmed by diagnostic tests. In addition, policy implications to reduce air pollution are presented in this study.
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Affiliation(s)
- Usman Mehmood
- Department of Political Science, University of Management and Technology, Lahore, Pakistan.
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25
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Faisal F, Khan MN, Pervaiz R, Muhamad PM, Rashdan MOJ. Exploring the role of fossil fuels, hydroelectricity consumption, and financial sector in ensuring sustainable economic development in the emerging economy. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2021; 28:5953-5965. [PMID: 32981018 DOI: 10.1007/s11356-020-10608-3] [Citation(s) in RCA: 1] [Impact Index Per Article: 0.3] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 12/10/2019] [Accepted: 08/23/2020] [Indexed: 06/11/2023]
Abstract
This study is conducted to address the research question of whether hydroelectricity and fossil fuels contribute to sustainable economic development in an emerging economy in this era of globalization? Further, this study applies the novel approach of Harvey unit root test which is a linearity test to predict the possible existence of non-linearity. The results confirmed that the majority of the series in this study are linear. Furthermore, the two break test is applied to investigate the integration sequence of the series. The bounds test approach confirms the existence of a long-run association among the variables. Additionally, the long-run relationship is analysed within the framework of the ARDL approach. Financial development, fossil fuel, and capital positively contribute to economic development, while the effect of hydroelectricity is insignificant. Moreover, globalization effects GDP negatively. The symmetric causality suggests a uni-directional causal movement from hydroelectricity consumption and globalization towards GDP. The outcome of the study emphasizes the importance of renewable sources such as hydropower energy for ensuring sustainable development in the presence of globalization.
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Affiliation(s)
- Faisal Faisal
- Institute of Business Studies and Leadership, Faculty of Business and Economics, Abdul Wali Khan University, Mardan, Pakistan.
| | - Muhammad Numan Khan
- Institute of Business Studies and Leadership, Faculty of Business and Economics, Abdul Wali Khan University, Mardan, Pakistan
| | - Ruqiya Pervaiz
- Department of Zoology, Faculty of Life and Chemical Sciences, Abdul Wali Khan University, Mardan, Pakistan
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26
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Uzuner G, Akadiri SS, Lasisi TT. The asymmetric relationship between globalization, tourism, CO 2 emissions, and economic growth in Turkey: implications for environmental policy making. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2020; 27:32742-32753. [PMID: 32519095 DOI: 10.1007/s11356-020-09190-5] [Citation(s) in RCA: 16] [Impact Index Per Article: 4.0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 04/15/2020] [Accepted: 05/05/2020] [Indexed: 05/26/2023]
Abstract
The current study examines the importance of asymmetric modelling of tourism-CO2 emissions relationship by incorporating real income per capita and the newly developed globalization index in a multivariate time series model between 1970 and 2014 for Turkey. We used a non-linear autoregressive distributed lag model in analyzing the asymmetric cointegration association between the selected variables. Using Hatemi-J (2012) asymmetric causality testing method, we examined the asymmetric causal relationship among the variables. The empirical outcomes provide evidence for the existence of asymmetric long-run cointegration nexus among the variables. Asymmetric causality results show that both the positive and negative shock of tourism influence the CO2 emissions in the long-term, while in the short-term, only the negative shock of tourism contributes to CO2 emissions. Also discussed are the policy implications with regard to Turkey's environmental and economic policies.
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Affiliation(s)
- Gizem Uzuner
- Faculty of Business and Economics, Department of Economics, Eastern Mediterranean University, Famagusta, North Cyprus, via Mersin 10, Turkey.
| | | | - Taiwo Temitope Lasisi
- Institute of Graduate Studies and Research Faculty of Tourism Management, Department of Tourism, Eastern Mediterranean University, Famagusta, North Cyprus, Turkey
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27
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Ullah S, Chishti MZ, Majeed MT. The asymmetric effects of oil price changes on environmental pollution: evidence from the top ten carbon emitters. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2020; 27:29623-29635. [PMID: 32445150 DOI: 10.1007/s11356-020-09264-4] [Citation(s) in RCA: 7] [Impact Index Per Article: 1.8] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 03/26/2020] [Accepted: 05/11/2020] [Indexed: 06/11/2023]
Abstract
The basic purpose of this study is to scrutinize the asymmetric effect of oil price changes on environmental pollution in Canada, China, India, Iran, Germany, Japan, Russia, South Korea, Saudi Arabia, and the USA. The study uses time series annual data of selected courtiers from 1981 to 2018 and applies non-linear ARDL (NARDL) model to examine the long- and short-run asymmetries. The results show that positive shocks in diesel prices in the USA, India, Japan, Germany, South Korea, Iran, and Canada, while negative shocks in China and India reduce carbon emissions in the long run. However, an increase in gasoline prices in Russia and Iran while the decrease in gasoline prices in the USA, Russia, Japan, and Canada decreases in carbon emissions in the long run. Asymmetric findings also suggest that positive and negative changes in oil prices affect carbon emissions differently in China, the USA, India, Russia, Japan, Germany, South Korea, Iran, Saudi Arabia, and Canada in the short and long run. However, sign and magnitude of positive and negative shocks of oil prices are more important in environmental economics polices. Therefore, based on sign and magnitude, more taxation of fossil fuel and clean energy subsidies are recommended for the top carbon-emitting economies.
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Affiliation(s)
- Sana Ullah
- School of Economics, Quaid-i-Azam University, Islamabad, Pakistan.
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28
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Ahmad M, Jiang P, Majeed A, Raza MY. Does financial development and foreign direct investment improve environmental quality? Evidence from belt and road countries. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2020; 27:23586-23601. [PMID: 32297108 DOI: 10.1007/s11356-020-08748-7] [Citation(s) in RCA: 40] [Impact Index Per Article: 10.0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 02/10/2020] [Accepted: 04/03/2020] [Indexed: 06/11/2023]
Abstract
This study examines the effect of financial development (FD) and foreign direct investment (FDI) on the environmental quality for the panel of 90 belt and road countries from 1990 to 2017. This study advances the knowledge of financial development by using the new comprehensive index, which is based on access, depth, and efficiency of financial markets and financial institutions and incorporated foreign direct investment as an important determinant of environmental quality. By applying the Driscoll-Kraay standard error pooled ordinary least square method, the empirical findings reveal that FD deteriorates the environmental quality by increasing the CO2 emissions, while FDI improves environmental quality and the relationship between economic growth (EG) and CO2 emissions is inverted U-shaped, i.e., presence of EKC hypothesis. The energy consumption and urbanization pollute the environment, while trade openness enhances the quality of the environment. Furthermore, the Dumitrescu-Hurlin (DH) panel causality test result confirms that the bidirectional causality exists among FD, trade openness, energy consumption, and urbanization with CO2 emissions. The empirical results provide new insights for policymakers and also have several implications for the betterment of environmental quality.
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Affiliation(s)
- Mahmood Ahmad
- School of International Trade and Economics, University of International Business and Economics, Beijing, 100029, China.
| | - Ping Jiang
- School of International Trade and Economics, University of International Business and Economics, Beijing, 100029, China
| | - Abdul Majeed
- School of International Trade and Economics, University of International Business and Economics, Beijing, 100029, China
| | - Muhammad Yousaf Raza
- School of Management, China Institute for Studies in Energy Policy, Collaborative Innovation Center for Energy Economics and Energy Policy, Xiamen University, Fujian, 361005, China
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29
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Le HP, Ozturk I. The impacts of globalization, financial development, government expenditures, and institutional quality on CO 2 emissions in the presence of environmental Kuznets curve. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2020; 27:22680-22697. [PMID: 32323231 DOI: 10.1007/s11356-020-08812-2] [Citation(s) in RCA: 128] [Impact Index Per Article: 32.0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 03/04/2020] [Accepted: 04/07/2020] [Indexed: 05/06/2023]
Abstract
The main objective of this study is to examine the impacts of globalization, financial development, government expenditures, and institutional quality on CO2 emissions, incorporating energy consumption, and GDP per capita in the Environmental Kuznets Curve (EKC) model for 47 Emerging Market and Developing Economies (EMDEs) between 1990 and 2014. Owing to the presence of cross-sectional dependence and slope heterogeneity in the panel data, CADF and CIPS unit root tests are employed to validate the stationarity of the variables. Westerlund (Oxf Bull Econ Stat 69:709-748, 2007) and Banerjee and Carrion-i-Silvestre (J Time Ser Anal 38:610-636, 2017) cointegration tests denote the occurrence of cointegration among the variables. We employed CCEMG, AMG, and DCCE estimators to estimate heterogeneous parameters. The findings demonstrate that globalization, financial development, and energy consumption increase CO2 emissions. Besides, the EKC hypothesis is affirmed in EMDEs. The accrual of governments' financial and governance activities also boosts carbon dioxide emissions. Moreover, the analysis of Dumitrescu and Hurlin causality provides evidences for the feedbacks among the variables and CO2 emissions. From the aforementioned results, there exists the trade-off effect between economic growth and environmental quality in EMDE countries. Finally, the empirical findings of this study indicate profound implications for policy makers, which recommend governments to consider the role of finance and governance in order to ensure that energy consumption, financial development, and sustainable economic growth are in harmony with the environment in the globalization era.
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Affiliation(s)
- Hoang Phong Le
- School of Public Finance, University of Economics Ho Chi Minh City, 59C Nguyen Dinh Chieu, District 3, Ho Chi Minh City, Vietnam
- Department of Finance and Accounting Management, Ho Chi Minh City University of Law, 02 Nguyen Tat Thanh Street, District 4, Ho Chi Minh City, Vietnam
| | - Ilhan Ozturk
- Faculty of Economics and Administrative Sciences, Cag University, 33800, Mersin, Turkey.
- Department of Medical Research, China Medical University Hospital, China Medical University, Taichung, Taiwan.
- Department of Finance, Asia University, 500, Lioufeng Rd., Wufeng, Taichung, 41354, Taiwan.
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30
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An Investigation of an Adaptive Neuro-Fuzzy Inference System to Predict the Relationship among Energy Intensity, Globalization, and Financial Development in Major ASEAN Economies. ENERGIES 2020. [DOI: 10.3390/en13040850] [Citation(s) in RCA: 29] [Impact Index Per Article: 7.3] [Reference Citation Analysis] [Abstract] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 11/17/2022]
Abstract
The enhancement of the financial sector significantly drives a nation’s economy and thereby increase energy intensity. Considering this situation, the current study aims to examine the link between globalization and financial advancements with the energy intensity of the top 5 ASEAN (Association of Southeast Asian Nations) economies. The development structure of the ASEAN region is considered significant for having stable growth. The authors used the annual data from 1990 to 2018 for five of the largest ASEAN economies: Singapore, Malaysia, Thailand, Indonesia, and the Philippines. The present study used novel methodology, the Adaptive Neuro-Fuzzy Inference System (ANFIS), to examine the nonlinear behaviour among globalization, financial development, and energy intensity in the top 5 ASEAN countries. The study results using ANFIS confirm that globalization and financial development are positively correlated and have a significant impact on the energy intensity level in the top ASEAN countries. The results further suggest that globalization and financial development increase the level of energy intensity more in the countries that are developed relative to their peers in the top ASEAN countries. Moreover, the outcomes of ANFIS also suggest that those countries, which are more globalized and financially developed, have more potential to increase the level of energy intensity. Therefore, the government needs to focus more on projects that involve renewable energy and are environmentally friendly.
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31
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Energy–Finance–Growth Nexus in ASEAN-5 Countries: An ARDL Bounds Test Approach. SUSTAINABILITY 2019. [DOI: 10.3390/su12010005] [Citation(s) in RCA: 12] [Impact Index Per Article: 2.4] [Reference Citation Analysis] [Abstract] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 11/16/2022]
Abstract
This study examines the relationship between energy consumption, financial development and economic growth for ASEAN-5 countries, namely Malaysia, Indonesia, the Philippines, Singapore and Thailand, over the period from 1980 to 2017. Finance–growth and energy–growth relationships have been well researched; however, the energy–finance–growth nexus is an equally important but less explored area. Our Auto Regressive Distributed Lags (ARDL) bounds test for cointegration results suggests that the variables tend to move together in the long run for all countries, apart from Indonesia. Our study also considers the effect of a structural break due to financial crisis and confirms that the break does not affect the long-term relationship among the variables; in other words, the financial crisis does not affect the energy–finance–growth nexus. Hence, considering the consistency of energy consumption, the importance of the energy sector must not be undermined, and appropriate energy policies are instrumental in maintaining a well-managed financial sector for sustainable economic growth.
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Wang Z, Rasool Y, Asghar MM, Wang B. Dynamic linkages among CO 2 emissions, human development, financial development, and globalization: empirical evidence based on PMG long-run panel estimation. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2019; 26:36248-36263. [PMID: 31713133 DOI: 10.1007/s11356-019-06556-2] [Citation(s) in RCA: 6] [Impact Index Per Article: 1.2] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 05/11/2019] [Accepted: 09/23/2019] [Indexed: 06/10/2023]
Abstract
This study investigates the impact of the human capital index, globalization, and financial development on carbon dioxide of grouping OECD countries using pool mean group estimation technique from 1990 to 2015. This study also applies the second-generation cross-sectional augmented Dickey-Fuller and cross-sectional Im, Pesaran, Shin panel (CIPS) unit root, and the latest (Westerlund 2008) cointegration tests for further investigations. The result shows that both the human development index and financial development stimulate environmental improvement by using PMG long-run panel estimation approach. Furthermore, the pairwise Dumitrescu-Hurlin panel causality results prove the two-way causal association between financial development and carbon emissions. The unidirectional causality running from globalization and human development index towards carbon emission is also supported. Based on the aforementioned results, we provide a set of recommendations for policy implication. Graphical abstract.
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Affiliation(s)
- Zhaohua Wang
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, China
- Energy & Environmental Policy Research, Beijing Institute of Technology, Beijing, 100081, China
- Collaborative Innovation Center of Electric Vehicles in Beijing, Beijing, 100081, China
- Beijing Key Lab of Energy Economics and Environmental Management, Beijing, 100081, China
- Sustainable Development Research Institute for Economy and Society of Beijing, Beijing, 100081, China
| | - Yasir Rasool
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, China
- Energy & Environmental Policy Research, Beijing Institute of Technology, Beijing, 100081, China
| | - Muhammad Mansoor Asghar
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, China
- Energy & Environmental Policy Research, Beijing Institute of Technology, Beijing, 100081, China
| | - Bo Wang
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, China.
- Energy & Environmental Policy Research, Beijing Institute of Technology, Beijing, 100081, China.
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Chen S, Saud S, Bano S, Haseeb A. The nexus between financial development, globalization, and environmental degradation: Fresh evidence from Central and Eastern European Countries. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2019; 26:24733-24747. [PMID: 31240660 DOI: 10.1007/s11356-019-05714-w] [Citation(s) in RCA: 6] [Impact Index Per Article: 1.2] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 02/13/2019] [Accepted: 06/07/2019] [Indexed: 05/06/2023]
Abstract
Global warming and greenhouse gas emissions have become a severe threat to our ecosystem. Prior studies on environment posit that ample exhaustion of fossil fuels for energy is one of the fundamental causes of environmental degradation and naturally replenished energy sources are affordable over fossil fuels. This study set out to examine the role of financial sectors and globalization (in the presence of energy and renewable energy consumption) for a sustainable environment in the panel of Central and Eastern European (CEE) countries in One Belt and One Road initiative perspective. The current study uses annual data of 16 CEE countries covering the period of 1980 to 2016. After confirmation of cross-sectional dependency and co-integration among variables, we applied the Dynamic Seemingly Unrelated Regression and Dumitrescu-Hurlin causality approach for long-run estimations and to check the causal relationship, respectively. The empirical findings of the study certify the existence of an environmental Kuznets curve for the selected panel countries. Globalization is enhancing the environmental quality of the CEE economies. It is important to note that energy consumption and renewable energy consumption have a positive and statistically significant whack on carbon emission. In addition, we do not find a significant link between financial development and carbon emission. Granger casualty test confirms a two-way causal relationship between economic growth and carbon emission, globalization and environmental degradation, globalization and renewable energy consumption, economic growth and renewable energy consumption, and between financial development and energy consumption. Moreover, we found one-way causality from energy consumption (renewable and non-renewable) to carbon emissions. Based on the findings, a number of appropriate policy suggestions are presented in the perspective of Central and Eastern European Countries.
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Affiliation(s)
- Songsheng Chen
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, China.
| | - Shah Saud
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, China
| | - Sadia Bano
- Department of Economics, Government College Women University Sialkot, Sialkot, Pakistan
| | - Abdul Haseeb
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, China
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Shah WUH, Yasmeen R, Padda IUH. An analysis between financial development, institutions, and the environment: a global view. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2019; 26:21437-21449. [PMID: 31124066 DOI: 10.1007/s11356-019-05450-1] [Citation(s) in RCA: 9] [Impact Index Per Article: 1.8] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 02/08/2019] [Accepted: 05/10/2019] [Indexed: 05/28/2023]
Abstract
Financial development is important for the growth of a country which indirectly affects the environment adversely through industrialization. However, in the presence of strong institutions, this adverse effect can be reduced. The main concern of the present study is to estimate the relation between CO2 and financial development (FD) in the presence of economic institutions as an interactive term. A sample of 101 countries has been selected for econometric analysis for the period from 1995 to 2017. The cross-section dependence test statistics for dependency, CIPS and CADF for panel unit root test, Westerlund test to ascertain the long-run affiliations, and FMOLS to extract the long-run coefficients have been applied. Dumitrescu and Hurlin test is also employed to know about the causal nature of the panel series. The findings show that financial development has a positive relationship with CO2. However, after inclusion of economic intuitions, the adverse impact of financial development on the environment is reduced. The study also confirms the presence of environmental Kuznets curve in the context of income and financial development. The findings imply that financial development can help to improve environment quality if it is accompanied with strong institutional framework such as assurance of property rights, government integrity, and liberalization in financial sector.
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Affiliation(s)
- Wasi Ul Hassan Shah
- School of Statistics, Southwestern University of Finance and Economics, Chengdu, China
| | - Rizwana Yasmeen
- School of International Business, Southwestern University of Finance and Economics, Chengdu, China
| | - Ihtsham Ul Haq Padda
- Department of Economics, Federal Urdu University of Arts, Science and Technology, Islamabad, Pakistan.
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Saud S, Chen S, Haseeb A, Khan K, Imran M. The nexus between financial development, income level, and environment in Central and Eastern European Countries: a perspective on Belt and Road Initiative. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2019; 26:16053-16075. [PMID: 30968296 DOI: 10.1007/s11356-019-05004-5] [Citation(s) in RCA: 37] [Impact Index Per Article: 7.4] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 10/15/2018] [Accepted: 03/26/2019] [Indexed: 06/09/2023]
Abstract
A plethora of empirical work explored finance-income-environment nexus, aims to investigate high CO2 emissions determinants, over the last few couples of decades. The prior empirical work assist the idea that finance and income have diverse impacts on the environment. The lack of consensus on finance-income-environment nexus in the Central and Eastern European Countries in the perspective of Belt and Road Initiative need to be examined. Therefore, the present study explores the nexus between financial development, income level, and environmental quality for a panel of eighteen Central and Eastern European Countries, over the period of 1980-2016. The Dynamic Seemingly Unrelated Regression, the Fully Modified Ordinary Least Squares, and the Dumitrescu-Hurlin panel casualty approaches are employed. The environmental Kuznets curve hypothesis also investigated for both time series panel and country-wise. The Dynamic Seemingly Unrelated Regression long-run panel results reveal that (i) financial development index and income negatively impact on environmental quality; (ii) energy consumption is the key determinant of CO2 emissions and reduces environmental quality; (iii) urbanization and trade both enhance environmental quality via reduction of carbon emissions; and (iv) the environmental Kuznets curve hypothesis supported for the selected panel countries. The country-wise results depict that increase in environmental quality occurs due to increase in financial development (in four countries), income level (in five countries), trade (in five countries), and urbanization (in eight countries). However, the environmental quality decreases due to the increase in financial development (in six countries), income level (in eight countries), energy consumption (in twelve countries), trade (in six countries), and urbanization (in five countries). The environmental Kuznets curve hypothesis supported for five Central and Eastern European Countries. Additionally, the causality results confirmed the presence of feedback relationships among income and environmental quality, and financial development and energy consumption. Thus, we conclude that income level and financial development are the main drivers behind high carbon dioxide emissions in CEECs. The finding of the study opens up new insight for appropriate policymaking.
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Affiliation(s)
- Shah Saud
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, People's Republic of China.
| | - Songsheng Chen
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, People's Republic of China.
| | - Abdul Haseeb
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, People's Republic of China
| | - Khalid Khan
- Institute of Management Studies, University of Peshawar, Peshawar, KPK, 25120, Pakistan
| | - Muhammad Imran
- School of Finance and Economics, Jiangsu University, Zhenjiang, 212013, People's Republic of China
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Salahuddin M, Gow J. Effects of energy consumption and economic growth on environmental quality: evidence from Qatar. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2019; 26:18124-18142. [PMID: 31037536 DOI: 10.1007/s11356-019-05188-w] [Citation(s) in RCA: 24] [Impact Index Per Article: 4.8] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 03/05/2019] [Accepted: 04/15/2019] [Indexed: 05/21/2023]
Abstract
This study examines the empirical effects of four variables: economic growth, energy consumption, foreign direct investment, and financial development on environmental quality in Qatar. Three environmental quality indicators, namely, per capita CO2 emissions, energy intensity (EI), and Adjusted National Savings (ANS) are used to examine the interactions between the variables using a time series dataset for the period 1980-2016. Following an appropriate multiple structural breaks unit root and cointegration tests, short- and long-run coefficients were estimated through the application of Autoregressive Distributive Lag (ARDL) model. The Toda-Yamamoto (TY) causality test was conducted to determine the causal link, if any, among the variables. Estimated results suggest a detrimental long-run effect of energy consumption on all three indicators of environmental quality. FDI has a negative long-run effect on environmental quality when it is measured by EI only. Financial development has no significant effect on any of the indicators. Bidirectional causality are noted between three variables: economic growth, energy consumption, and financial development and all three indicators of environmental quality. Policy implications are discussed.
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Affiliation(s)
- Mohammad Salahuddin
- Trent University, Peterborough, Ontario, Canada.
- University of Southern Queensland, Toowoomba, Australia.
| | - Jeff Gow
- University of Southern Queensland, Toowoomba, Australia
- Stellenbosch University, Stellenbosch, South Africa
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37
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Zafar MW, Saud S, Hou F. The impact of globalization and financial development on environmental quality: evidence from selected countries in the Organization for Economic Co-operation and Development (OECD). ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2019; 26:13246-13262. [PMID: 30900127 DOI: 10.1007/s11356-019-04761-7] [Citation(s) in RCA: 91] [Impact Index Per Article: 18.2] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 11/07/2018] [Accepted: 03/04/2019] [Indexed: 04/15/2023]
Abstract
This study investigates the impacts of globalization and financial development on environmental quality by incorporating energy consumption in the framework of the Environmental Kuznets Curve (EKC) hypothesis for selected countries in the Organization for Economic Co-operation and Development (OECD) over the 1990-2014 time spans. The cross-sectional dependence is determined by using the cross-sectional dependence and Lagrange Multiplier (LM) methods. This study employs second-generation panel unit root tests to check the unit root properties and the Westerlund panel cointegration test to examine the long-run equilibrium relationship among the variables. The results confirm the presence of cointegration in the long run. The Continuously Updated Fully Modified Ordinary Least Square (CUP-FM) and Continuously Updated Bias-Corrected (CUP-BC) approaches are applied to investigate long-term output elasticities of the variables. The results show the stimulating role of energy consumption on Carbon dioxide (CO2) emissions. This study finds support for the EKC hypothesis as it relates to selected OECD countries. Globalization and financial development increase environmental quality by reducing CO2 emissions. The causal relationship reveals the presence of a bidirectional relationship between energy consumption and CO2 emissions. The feedback causal effect runs between economic growth and CO2 emissions and between globalization and economic growth, while unidirectional causality runs from CO2 emissions to financial development, from economic growth to energy consumption, from energy consumption to financial development, from globalization to energy consumption, and from globalization to financial development. Policies that support green technology transfer among OECD countries, foreign direct investment in the renewable energy sector, financial development to support green infrastructure, and energy generation using renewable energy sources are recommended.
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Affiliation(s)
- Muhammad Wasif Zafar
- School of Management and Economics, Beijing Institute of Technology, South-Zhongguancun Street, Beijing, 100081, People's Republic of China
| | - Shah Saud
- School of Management and Economics, Beijing Institute of Technology, South-Zhongguancun Street, Beijing, 100081, People's Republic of China
| | - Fujun Hou
- School of Management and Economics, Beijing Institute of Technology, South-Zhongguancun Street, Beijing, 100081, People's Republic of China.
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38
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Haseeb A, Xia E, Saud S, Ahmad A, Khurshid H. Does information and communication technologies improve environmental quality in the era of globalization? An empirical analysis. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2019; 26:8594-8608. [PMID: 30710332 DOI: 10.1007/s11356-019-04296-x] [Citation(s) in RCA: 71] [Impact Index Per Article: 14.2] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 10/01/2018] [Accepted: 01/18/2019] [Indexed: 06/09/2023]
Abstract
This study intends to examine the impact of ICTs (i.e., internet usage and mobile cellular subscriptions), globalization, electricity consumption, financial development, and economic growth on environmental quality by using 1994-2014 panel data of BRICS economies. This study employed a second-generation panel unit root test accounting for the presence of cross-sectional dependence and indicated that carbon dioxide emissions, electricity consumption, financial development, internet usage, mobile usage, globalization, and economic growth have integration of order one. The results from Westerlund panel co-integration test confirms that the variables are co-integrated and revealed that ICT-finance-globalization-electricity-GDP-CO2 nexus has long-run equilibrium relationship. The results from dynamic seemingly unrelated regression (DSUR) indicate that internet usage and mobile cellular subscriptions (ICTs) have significant, adverse impact on carbon dioxide emissions. To put it simply, ICT positively contributes towards environmental quality. Similarly, economic growth also has an adverse effect on carbon dioxide emissions. On the other hand, electricity consumption, globalization, and financial development have a significant positive effect on carbon emissions. In addition, Granger causality test results show the presence of a bidirectional causal relationship between internet usage and environmental quality, financial development and electricity consumption, ICT and financial development, mobile cellular subscription and globalization, economic growth and environmental quality, and internet usage and economic growth. A unidirectional causal link is detected running from mobile cellular subscriptions towards environmental quality, ICT towards electricity consumption, financial development towards environmental quality, globalization towards environmental quality, and globalization towards economic growth. Moreover, time series analysis has also been done in this study to analyze the findings for each of BRICS countries which are directed towards important policy implications. For instance, ICT policy can play an integral part in improving environmental quality policy.
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Affiliation(s)
- Abdul Haseeb
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, China.
| | - Enjun Xia
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, China
| | - Shah Saud
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, China
| | - Ashfaq Ahmad
- Department of Economics, Government College Women University, Sialkot, Pakistan
| | - Hamid Khurshid
- Department of Management, Lingnan University, Tuen Mun, Hong Kong
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Saud S, Chen S, Haseeb A. Impact of financial development and economic growth on environmental quality: an empirical analysis from Belt and Road Initiative (BRI) countries. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2019; 26:2253-2269. [PMID: 30456608 DOI: 10.1007/s11356-018-3688-1] [Citation(s) in RCA: 74] [Impact Index Per Article: 14.8] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 05/09/2018] [Accepted: 11/05/2018] [Indexed: 06/09/2023]
Abstract
This study aims to analyze the impact of financial development, foreign direct investment, economic growth, electricity consumption, and trade openness on environmental quality for a panel of 59 Belt and Road Initiative (BRI) countries, over the period of 1980-2016. The presence of the environmental Kuznets curve (EKC) hypothesis is investigated. The cross-sectional augmented Dickey-Fuller (CADF) and cross-sectional Im, Pesaran, and Shin panel unit root test; the Westerlund cointegration test, the dynamic seemingly unrelated regression (DSUR) approach; and the Dumitrescu and Hurlin (Econ Model 29:1450-1460, 2012) panel causality approach are employed. It is found that the analyzed variables are stationary at first differences and are cointegrated. It is also found that an increase in financial development, foreign direct investment, and trade openness enhance environmental quality, while the increase in economic growth and electricity consumption degrade environmental quality. The presence of the EKC hypothesis for the selected panel countries is validated. Furthermore, the Dumitrescu-Hurlin (DH) panel causality test result confirmed the presence of bidirectional causality among economic growth, foreign direct investment, financial development, electricity consumption, and trade openness with environmental quality.
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Affiliation(s)
- Shah Saud
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, China.
| | - Songsheng Chen
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, China
| | - Abdul Haseeb
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, China
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