Nexus between disaggregated energy sources, institutional quality, and environmental degradation in BRI countries: a penal quantile regression analysis

Do circular economy, renewable energy, industrialization, and globalization influence environmental indicators in belt and road initiative countries?

This paper is the first comprehensive research to examine the effect of circular economy on environment employing two environmental degradation indicators (CO2 emissions, ecological footprint) and one environmental quality indicator (load capacity factor) for 57 Belt and Road Initiative (BRI) countries during 2000-2019. The effect of other variables such as renewable energy, industrialization, and globalization was also controlled. The study applied the cross-sectional autoregressive distributed lag method (CS-ARDL), the augmented mean group (AMG), and common correlated effects mean group (CCEMG) methods as a robustness checks. The empirical findings reveal that circular economy and renewable energy have pro-environmental effects by decreasing carbon emissions and ecological footprint and increasing the load capacity factor in BRI countries. However, industrialization and globalization have detrimental effects on the environment. The result of causality shows a bidirectional causality between renewable energy, circular economy, industrialization, and three environmental indicators, but the relationship of globalization with CO2 emissions and the load capacity factor is unidirectional and with the ecological footprint is bidirectional. All the results are confirmed by the robustness tests. The study suggests policy implications for the BRI government.

Do institutions contribute to environmental sustainability? A global analysis using the dynamic spatial Durbin and threshold models

There has been a recent surge in attention to the potential involvement of institutions in enhancing environmental quality. This research contributes to the ongoing debate by analyzing the spillover and nonlinear effects of institutions on the load capacity factor (LCF) in a sample of 100 countries between 2000 and 2019. The spillover effects are analyzed using the dynamic spatial Durbin model (DSDM), while the dynamic threshold model is implemented to estimate the nonlinear impacts of institutions. The Moran's I and Geary's C tests reveal a positive spatial autocorrelation for the LCF. The DSDM indicates the existence of positive direct and indirect (spillover) effects of political stability, control of corruption, and the rule of law on the LCF. Moreover, control of corruption has the highest positive influence on the environment. When conducting the threshold analysis, the locally weighted scatterplot smoothing curve indicates a nonlinear relationship between institutions and LCF, while the threshold test suggests a single threshold and two regimes. The dynamic panel threshold model reveals that government effectiveness and the rule of law positively affect the environment under both regimes. On the contrary, the positive effects of control of corruption, regulatory quality, and political stability are only observed under the upper regime. Furthermore, control of corruption has the highest positive environmental impact, albeit it needs more time to be achieved. The research emphasizes the importance of international collaboration and the design of both short- and long-term strategies to enhance institutional quality and, consequently, safeguard the environment.

Revisiting the environmental Kuznets curve: assessing the impact of climate policy uncertainty in the Belt and Road Initiative

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.

Urbanization, rural energy-poverty, and carbon emission: unveiling the pollution halo effect in 48 BRI countries

The Belt and Road Initiative (BRI) is a significant economic development strategy directed by China. Its primary objective is to establish connectivity across a vast region encompassing over 70 countries in Asia, Europe, and Africa. This endeavor significantly impacts worldwide development, economic advancement, and environmental sustainability. Nevertheless, insufficient pertinent evidence exists when exploring the correlation between urbanization, rural energy poverty (Rural_EP), and carbon emissions (CO2_Em) in the BRI region. The present study examines panel data encompassing 48 countries participating in BRI from 2001 to 2020. This research addresses existing gaps by employing the System-GMM and Driscoll and Kraay Standard Error (DKSE) models to investigate factors influencing CO2_Em. The findings indicate that the presence of energy poverty in rural areas is associated with higher levels of CO2_Em, while urbanization has a mitigating effect on such emissions. Furthermore, adopting production methods and environmentally sustainable technologies by foreign corporations leads to a decrease in CO2_Em, thereby providing evidence of a pollution halo effect in BRI. Moreover, economic growth and industrialization have detrimental environmental consequences, primarily through the amplification of CO2_Em. Based on the empirical evidence, the study proposes policy measures that advocate for promoting renewable energy sources, adopting sustainable urban development practices, implementing energy conservation strategies, and establishing carbon pricing mechanisms.

The role of environmental degradation in macroeconomic instability: panel evidence from emerging economies

This study examines the role of environmental degradation in macroeconomic instability for a balanced panel sample of 22 emerging market economies from 1996 to 2019. Governance is included in the macroeconomic instability function as a moderating factor. Besides, bank credit and government spending are also included in the estimated function as control variables. The long-run results from using the PMG-ARDL method show that environmental degradation and bank credit induce macroeconomic instability, whereas governance and government spending reduce it. Interestingly, environmental degradation creates greater macroeconomic instability than the bank credit. We also find that governance being a moderating factor weakens the adverse impact of environmental degradation on macroeconomic instability. These findings are robust to the FGLS technique, suggesting that governments in emerging economies should prioritize environmental degradation and governance in mitigating climate change and ensuring macroeconomic stability in the long run.

A step towards achieving SDG 2030 agenda: Analyzing the predictive power of information globalization amidst technological innovation-environmental stewardship nexus in the greenest economies

Through the transition of novel ideas, products, technologies, and business models, info-globalization facilitates the flow and expansion of cross-border information and resources. In the meantime, this stimulates the potential of informational globalization and the internet for environmental and other technological advancements, and assists to the realization of cleaner and greener production and consumption. However, prior studies have completely disregarded this facet of globalization. Thus, this novel study evaluates the role of technological innovation (TIN) and information globalization (ING) in predicting ecological footprints (EFP) and carbon emissions (CO2) in the world's top ten greenest economies. Besides, this study also unveils the moderating role of TIN and ING for environmental sustainability. The novel research employs non-parametric causality-in-quantiles approaches on quarterly data from 1994Q1 to 2019Q4 in order to quantify for causality-in-mean and causality-in-variance, since there may be no causation at first moment, but higher-order interdependencies may exist. The findings revealed that TIN and ING possess significant predictive potential for both ecological footprint and carbon emissions, indicating asymmetric predictability over environmental sustainability. Moreover, TIN and ING asserted a significant interaction role when it comes to predicting pollution levels in chosen countries. Overall, it is essential to note that natural resource conservation and pollution mitigation via green and technical innovation become a dilemma since pollution has no boundaries and will always stoke fires beyond them. The provision of financial and R&D assistance, as well as the use of mass and social media to raise awareness not only in their own regions but also in neighboring countries, might contribute to the achievement of SDG 13 and Cope26's ambition of cutting pollution by 2030.

Environmental quality and energy transition prospects for G-7 economies: The prominence of environment-related ICT innovations, financial and human development

Energy transition and reducing greenhouse gas emissions are fundamental to achieving sustainable development and ensuring a bright and healthy future. To contribute to the empirical literature on these objectives, this study explores the long-term influence of environment-related ICT innovations (EICT) on energy transition and greenhouse gas emissions (GHGE) in G-7 economies for the first time, while considering financial development (FD) and human development (HD). Additionally, the study investigates the moderating role of FD with EICT and HD in energy transition and GHGE. Using a Cross-Sectional Augmented Distributed Lag (CS-ARDL) technique to tackle the issues of cross-sectional dependency and slope heterogeneity, the study evaluated data from 1990 to 2020. The results indicate that EICT, FD, and HD have a significant positive effect on long-term energy transition, and mitigate GHGE in G-7 economies. Furthermore, the influence of EICT and HD on energy transition and GHGE is amplified in the presence of financial development, as evidenced by the moderating effect of FD. Based on these facts, the study suggests various policy measures, such as investing in clean technologies and education, to promote the energy transition and environmental quality in G-7 economies to achieve sustainable development goals.

Unveiling the nexus between marine energy consumption, seaborne trade, and greenhouse gases emissions from international shipping

As a result of the globalization of production processes and the expansion of international trade, both water-based trade and the use of marine energy are expanding quickly. Marine energy consumption is rapidly increasing as a result of globalization. Despite being ignored for many decades, reducing marine emissions is today a top priority among European nations. Thus, the present study contributes to the existing literature by investigating the nexus between marine energy consumption, seaborne trade, and GHG emissions by employing time series data for eight Northern European nations from 2005 to 2017. The extended EKC model and three proxy variables for seaborne trade (i.e., container throughput, liner shipping connectivity index, and trade openness) are used to investigate the nexus between these variables. FMOLS and DOLS methods have been employed to control the problems of endogeneity and serial correlation. Only in Denmark, Norway, and Sweden did the data corroborate an inverted U-shaped relationship (the EKC curve) between maritime GHG emissions and economic development. The increase in energy utilization across all nations directly increased marine GHG emissions; however, the adverse effect of energy consumption on the environment is severe in Denmark, Norway, and Sweden. Container throughput, linear shipping connectivity index, and trade openness exhibit a positive impact on marine GHG emissions. The impact of seaborne proxy variables is severe in Denmark and Sweden. In order to have a robust assessment and to confirm the validity and uniformity of the results, Driscoll-Kraay standard errors (DKSE) and robust standard error (RSE) regression techniques are being employed.

Insights from Poland on the long-run effect of energy productivity on environmental degradation: a Fourier ARDL-based approach

The globally increasing trend of fossil fuel consumption has culminated in a historical degradation of the environment and the rising threat of global warming. Researchers and policymakers aim at examining critical relationships between energy productivity and environmental degradation to make recommendations for global policy action. This paper aims to capture the effect of energy productivity on environmental degradation in Poland from 1990Q1 to 2019Q4, using novel Fourier-bases ADF unit root and Fourier-based ARDL approaches. First, outcomes of the Fourier ARDL bounds test indicate that variables are integrated; second, outcomes of the Fourier ARDL long-run estimates indicate that (i) energy productivity has long-run negative effects on CO₂ emissions; and (ii) economic growth, globalization, and primary energy consumption have positive effects on CO₂ emissions. Among the options available to Polish policymakers are (i) liberalizing domestic energy markets to offer an opportunity for electricity consumers to switch companies and (ii) continuing to pursue a policy of decarbonizing energy supply by investing heavily in renewable energy, nuclear power, e-mobility, and energy productivity.

An empirical analysis of the nexus between digital financial inclusion, industrial structure distortion, and China's energy intensity

Stimulating the shift to low-carbon energy and decreasing energy intensity are crucial strategies for green growth. Reducing energy intensity is an important measure to achieve the goal of "double carbon" and building a beautiful new China. Based on the provincial panel data of China from 2011 to 2020, this paper empirically tests the relationship among digital financial inclusion, industrial structure distortion, and energy intensity by using the spatial Durbin model and the intermediary effect method. The results show that the development of digital financial inclusion can promote the decline of energy intensity, and industrial structure distortion has a partial intermediary effect in the relationship between digital financial inclusion and energy intensity. Because of this, it is important to speed up the development of digital financial inclusion, increase the innovation of digital financial inclusion products and services, strengthen the supervision of digital financial inclusion, and reduce the distortion of the industrial structure so that digital finance can play its full role in reducing energy intensity.

Environmental sustainability and green technologies across BRICS countries: the role of institutional quality

In recent years, a growing body of research has focused on the environment and economic growth nexus. However, there has not been much research done on how environmentally friendly technologies and institutional quality affect pollution levels. It is found that in developed countries, the rate of environmental deterioration has slowed thanks to more sustainable environmental regulations, advances in technology, and improvements in the quality of institutions. In contrast, limited modern technology in developing nations has resulted in havens of high carbon emissions. Therefore, the current research tried to analyze the environmental quality by using green technologies (GT), institutional quality (IQ), and energy efficiency (EE) as independent variables. In this study, we utilized data from 1995 to 2019 from BRICS countries to estimate long-term and short-term relationships. Used second-generation econometric techniques indicated that IQ, GT, and EE repair reduced environmental damage. The EKC does not exist, which means pollution in selected countries will improve with an expansion in economic activities. In the long term, a reform in institutions and more spending are required on green technologies to secure a sustainable future in BRICS countries. Results hold up when it comes to policy implications.

Indicators From China's Listed Corporations on Corporate Financing Behavior and Policy-Related Risk

This study explores corporate financing behavior regarding the company and country-level factors and risks associated with policy-related regulations. The study considers all three categories of risk: geopolitical risk, economic policy uncertainty, and political risk. In addition to this, we investigated how the links between diverse types of financing activities and the policy-related risks associated with them change depending on the type of financing strategy utilized (debt vs. equity). The study examined quarterly data from 2016Q1 to 2020Q3. EViews 12 is used for data analysis. Findings show financial restrictions, as well as inequities within the sector, have an impact on corporate investment while policy-related risks might impact a company's financing selections. Compared to equity financing, debt financing is more susceptible to policy-related risk. According to the available information, features at the company and nation levels also impact corporate finance choices. Finally, firms that have little financial resources are more susceptible to the adverse effects of policy-related risk than industrial companies are. Managers, as well as governments, should utilize these insights to design economic strategies that are more successful in the future.