Modelling the economic and social issues related to environmental quality in Nigeria: the role of economic growth and internal conflict

Energy security-related risks and the quest to attain USA's net-zero emissions targets by 2050: a dynamic ARDL simulations modeling approach

The Russia-Ukraine war and other similar conflicts across the globe have heightened risks to the United States of America's (USA's) energy security. However, little is known about the severity of the effect of energy security risks on the USA's quest to attain net-zero emissions targets by 2050. To this end, we examine the effect of energy security risks on the load capacity factor (LCF) in the USA. Employing a time series dataset spinning from 1970 to 2018, the results of the Dynamic Autoregressive Distributed Lag (ARDL) simulations model suggest that energy security-related risk hampers the long-term net-zero emissions targets with its effect decreasing over time until it varnishes in about 5 years time. The results also show that foreign direct investment (FDI) inflows, renewable energy consumption, and green technology have long- and short-run positive effects on the LCF. Conversely, economic expansion and urbanization impede environmental quality by lowering the LCF both in the long run and short run. These findings are upheld by the outcomes of the multivariate quantile-on-quantile regression. Therefore, the study advocates for the consumption of renewable energy, investment in green technologies, and FDI inflows to mitigate energy security-related risks and attain the net-zero emissions targets by 2050 in the USA.

Moving towards the path of environmental sustainability in Developing-8 countries: investigating the role of country's reputation in mitigating environmental externalities

A country's reputation plays a crucial role in shaping public perceptions, attracting investment and promoting economic development. At the same time, good governance is essential for promoting environmental sustainability and addressing pressing environmental issues such as climate change, pollution and natural resource depletion. This study examines the impact of a country's reputation on environmental sustainability in Developing-8 countries using panel data obtained from the Worldwide Governance Indicators and World Development Indicators for the duration from 1996 to 2020. This panel study adopted the Method of Moment Quantile Regression with fixed effects and mean-based regressions. The results demonstrated that the impact of the country's reputation index on carbon dioxide (CO2) emissions is negative, yet significant. Also, all the country's reputation indicators negatively affect CO2 emissions, but the case of political stability is only significant in the mid-quantiles, while government effectiveness is albeit insignificant across quantiles. Furthermore, economic growth is observed to stimulate CO2 emissions, while renewable energy consumption decreases CO2 emissions. These results have an inherent heterogeneity, culminating in an asymmetric pattern of the distribution of CO2 emissions. The novelty of this study is, firstly, the construction of a country's composite reputation index for Developing-8 countries; and secondly, assessing the impact of this index in mitigating environmental externalities measured by CO2 emissions. Based on these findings, it is recommended, among other things, the need for the D-8 countries to improve their reputation policy to be able to attain the desired environmental sustainability.

The role of energy, political stability, and real income on achieving carbon neutrality: asymmetric evidence

Apart from business considerations stemming from the marketplace, businesses, individuals, and the economy at large, political decisions also play a role on environmental quality. Governments make a series of policies that impact private businesses, sectors, the environment, and the economy at large. In this paper, we test the asymmetric role of political risk on CO₂ emissions, while controlling for renewable energy, non-renewable energy, and real income: policy toward environmental sustainability objectives in the context of Turkey. To realize the motive of this study, we capture the asymmetric effect of the regressors by adopting the nonlinear autoregressive distributed lag method (NARDL). This research adds to the environmental literature in terms of methodological and empirical. Methodologically, the study shows that a nonlinear relationship exists among the variables, and it has a significant impact on environmental sustainability targets. The outcome of the NARDL indicates that the increasing political risk, non-renewable energy, and economic growth follow a trajectory trend on carbon emissions, which is unsustainable in Turkey, but renewable energy is sustainable. Moreover, decreasing real income and non-renewable energy decreases carbon emissions. This research also deployed the frequency domain test to capture the causal association of the concerned variables and the outcome indicates political risk, renewable energy, non-renewable energy use, and real income are predictors of CO₂ in Turkey. From this result, policies geared toward promoting a sustainable environment were formulated.

Reconsidering the environmental Kuznets curve, pollution haven, and pollution halo hypotheses with carbon efficiency in China: A dynamic ARDL simulations approach

Given a new perspective on the environmental hypothesis, this paper systematically investigates the validity of the environmental Kuznets curve (EKC), pollution haven, and pollution halo hypotheses using carbon efficiency as the dependent variable. Applying the dynamic autoregressive distributed lag simulations based on the annual time series data over the period 1990-2019, the study found that real GDP per capita has negative effects on China's environmental quality both in the short and long run, whereas the square of real GDP per capita has positive impacts. This validates the EKC hypothesis for China. Furthermore, foreign direct investment has negative effects on environmental quality in China, implying that the case of China exemplifies the pollution haven hypothesis and not the pollution halo hypothesis. The empirical results also demonstrate that energy efficiency and trade openness improve China's environmental quality both in the short run and long run. These findings, therefore, provide insights into achieving the ambitious climate goals in China by 2050.

Asymmetric effect of environmental cost of forest rents in the Guinean forest-savanna mosaic: The Nigerian experience

Several studies have identified deforestation as a major cause of environmental degradation, but little is known about the asymmetric effect of the environmental cost of forest rents. To fill this gap, our study uses the nonlinear autoregressive distributed lag (NARDL) model and asymmetric causality test to examine the environmental implication of forest rents in the Guinean Forest-Savanna Mosaic of Nigeria over the period 1990:Q1 to 2016:Q4. The empirical results show that forest rents increase CO₂ emissions when the shock to forest rents is positive and decreases CO₂ emissions when the shock to forest rents is negative. The results further show evidence of asymmetric effects of crop production, fossil fuel energy consumption, and economic growth on CO₂ emissions. Moreover, the effects of both positive and negative shocks in economic growth are elastic, suggesting that CO₂ emissions respond in a larger magnitude to a 1% positive or negative shock in economic growth. While the positive shock to crop production and economic growth stimulates CO₂ emissions, their negative shocks dampen CO₂ emissions. In addition, the positive (negative) shocks to fossil energy consumption exert upward (downward) pressure on CO₂ emissions. Furthermore, the asymmetric causality test divulges that a positive change in forest rents causes a negative change in CO₂ emissions and a negative change in forest rents causes a positive change in CO₂ emissions. Based on these findings, the study recommends the need for policymakers to formulate sound policies to protect the forests and transit toward clean energy consumption to minimize energy-related CO₂ emissions in the country.

The impact of democracy and income on CO2 emissions in MINT countries: evidence from quantile regression model

This study analyses the relationship between democracy and environmental pollution in the MINT countries using a panel data spanning 1971-2016. It also investigates the interactive effect of income and democracy on CO2 emissions. We used various estimation techniques for the analysis, ranging from the quantile regression, OLS-fixed effect and GLS-random effect regressions with Driscoll-Kraay standard errors to control for cross-sectional dependence while a panel threshold regression is used for robustness check. The results showed existence of long-run relationship between CO2 emissions and the explanatory variables. The quantile regression results for interaction model indicate that economic growth, democracy and trade openness promote environmental pollution via their positive effects on CO2 emissions. Primary energy however reduces pollution across the lower and middle quantiles but enhances it in higher quantiles. The interaction effect is negative and statistically significant across all quantiles. This implies that democracy has a significant role in moderating the impact of income on CO2 emission in the MINT countries. It thus follows that if the MINT countries radically strengthen democracy and enhance income, it would be possible for them to achieve greater economic development and reduce CO2. In addition, a single threshold model is used to identify the asymmetry in response to CO2 emissions at lower and upper levels of democratic regimes. The results showed that once the degree of democracy is above the threshold level, an increase in income would reduce CO2 emissions but once it is below the threshold level, the effect of income becomes insignificant. Based on these results, the MINT countries need to strengthen democracy, enhance income level and relax trade barriers.

The role of alternative energy and globalization in decarbonization prospects of the oil-producing African economies

This study assesses the environmental impacts of the energy mix of mainly oil-producing African nations. The economic aspects of decarbonization prospects were also viewed from the perspectives of fossil energy dependence among the countries. More insights on the impacts of energy mix on decarbonization prospects were also provided on a country-specific analysis basis via the application of second-generation econometric techniques in assessing carbon emission levels across the countries between 1990 and 2015. From the results, only renewable resources proved to be a significant decarbonization tool among the understudied oil-rich economies. Moreover, the consequences of the trio of fossil fuel consumption, income growth, and globalization are diametrically opposed to achieving decarbonization as the rise in their usage significantly acts as pollutant-inducing tools. The validity of the environmental Kuznets curve (EKC) conjecture was also upheld for the combined analysis of the panel countries. The study thus opined that the reduction in conventional energy dependence will enhance environmental quality. Consequently, given the advantages of the geographical locations of these countries in Africa, concerted strategies for more investment in clean renewable energy sources like solar and wind were suggested to policymakers among other recommendations.

The role of renewable energy consumption on environmental degradation in EU countries: do institutional quality, technological innovation, and GDP matter?

In the face of climate change and environmental degradation, reducing emission of greenhouse gases has become a key factor for environmental sustainability. Therefore, the present research is intended to explore the roles of renewable energy consumption, institutional quality, technological innovation, and GDP on carbon dioxide emissions in the 14 EU countries. In doing so, this study employed novel method of moments quantile regression (MMQR) using annual data from 2000 to 2019. Also, a number of other estimators were applied for robustness check including the fully modified ordinary least square (FMOLS), the dynamic ordinary least squares (DOLS), and the fixed effect ordinary least square (FE-OLS). The empirical findings indicate that renewable energy consumption significantly reduces CO₂ emissions across all quantiles (0.1-0.9). Furthermore, institutional quality and technological innovation improve environmental quality in 0.1-0.7 quantiles, although GDP enhances carbon emissions significantly in all quantiles. In addition, the FMOLS, DOLS, and FE-OLS results confirmed the MMQR results. The outcomes of this study suggest insights for the policymakers to mitigate carbon emissions through promoting innovative technologies for environmental protection and investing more in the development of renewable energy.

Ecological risks and innovative-investment projects

Market competition is becoming fiercer all around the world and countries pay considerable attention to their innovative-investment environment. Rapid global economic development and infinite resource extraction have damaged the environment and the harmful environmental effect has become increasingly significant. Thus, technological innovation occupies an important place in the discussion of developmental issues. Previous studies on innovative projects were focused largely on how technological innovations allow us to prevent financial risks and enter the market. However, it is necessary to pay attention to environmental risks arising from successful technological innovations. Thus, this study focused on the nexus between ecological risks and innovative investment. Specifically, the study considers the environmental risks of innovation. The findings reveal that investment in innovations and environmental protection measures can be carried out simultaneously for both ecological and economic targets. To control and prevent environmental risks of technological innovations, there should be a shift from industrial technological innovations to environmental technological innovations to achieve the unity of economic benefits and environmental interests. Such an approach preserves social and public interests and ensures sustainable development.

Are impacts of renewable energy and globalization on carbon neutrality targets asymmetric in South Africa? A reconsideration using nonlinear ARDL approach

In this paper, we deviate from the existing literature by disentangling the independent variables into their positive and negative changes to capture asymmetric and dynamic multiplier effects of renewable energy and globalization on carbon neutrality targets within the framework of the autoregressive distributed lag (ARDL) model. In doing this, the paper uses South African data for the period 1990 to 2018 and the results show that CO₂ emissions respond differently to the positive and negative shocks in renewable energy, globalization, and economic growth. The effect of a positive shock in economic growth is inelastic and positively related to CO₂ emissions while a negative shock in economic growth has an elastic and negative effect on CO₂ emissions. These results hold for both long-run and short-run periods. In the case of globalization, the positive shock increases CO₂ emissions while the negative shock decreases CO₂ emissions; although the long-run effect of a negative shock is elastic and insignificant while the short-run negative shock exerts an inelastic and significant effect on CO₂ emissions. Furthermore, both the upward and downward shocks in renewable energy consumption transmit a negative effect on CO₂ emissions in the long-run and short-run periods. Therefore, the paper suggests among others that to effectively decarbonize the South African economy, the use of subsidies, tax credits, tax holidays, and a host of others on green energy activities need to be enhanced as incentives for promoting cleaner energy production and consumption.

Renewable energy and CO2 emissions in G7 countries: does the level of expenditure on green energy technologies matter?

Promoting green energy is generally considered a crucial way to mitigate energy-related CO₂ emissions. However, the level at which a country's expenditure on green energy technologies interacts with renewable energy consumption to save the planet has been ignored in the literature. Within the context of the Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) model, this study investigates the interaction effect of renewable energy and expenditure on green energy technologies in mitigating CO₂ emissions in G7 countries over the period 1990-2017. The empirical results based on the Method of Moments-Quantile Regression (MM-QR) with fixed effects suggest that renewable energy and expenditure on green energy technologies have a negative and heterogeneous effect on CO₂ emissions. The interaction term has a stronger negative and heterogeneous effect across quantiles distribution of CO₂ emissions. This suggests that the extent to which renewable energy exerts downward pressure on CO₂ emissions is dependent on countries' expenditures on green energy technologies. In addition, the effect of the interaction term is stronger in countries with lower levels of CO₂ emissions. Given these findings, the study suggests the need to promote investment in green energy technologies as a catalytic converter to mitigate CO₂ emissions.