Military spending, financial development, and ecological footprint in a developing country: insights from bootstrap causality and Maki cointegration

Nexus of green energy, financial inclusion, militarization, and environmental sustainability: A global perspective

This article investigates the dynamic impact of green energy consumption (GE), financial inclusion (FI), and military spending (MS) on environmental sustainability (ES) by utilizing a sample of 121 countries from 2003 to 2022. The dataset is divided into high-income, upper-middle income and low and lower-middle-income countries. We employed a two-step system GMM approach, which was further robust through panel Quantile and Driscoll-Kraay (D-K) regressions. The findings divulged that green energy resources benefit ES at global and all income levels because of having a significant negative impact of 5.9% on ecological footprints. At the same time, FI and MS significantly enhance ecological footprints by 7% and 6.9%, respectively, proving these factors detrimental to ES. Moreover, conflicts (CON), terrorism (TM), institutional quality (IQ), and socioeconomic conditions (SEC) also have a significantly positive association with global ecological footprints and most of the income level groups. Dissimilarly, financial inclusion and armed conflicts have a non-significant influence on ecological footprints in low-income and high-income countries, respectively. Furthermore, institutional quality enhances ES in upper-middle and low and lower-middle-income countries by negatively affecting ecological footprints. At the same time, terrorism significantly reduces ecological footprints in high-income countries. This research also provides the imperative policy inferences to accomplish various SDGs.

Linking clean energy consumption, globalization, and financial development to the ecological footprint in a developing country: Insights from the novel dynamic ARDL simulation techniques

Developing countries have been facing economic difficulties for over three and a half decades due to numerous factors, including fossil fuel consumption and dwindling biocapacity. It is necessary to pinpoint the factors that may be culpable for poor environmental quality leading to a rising ecological footprint (EFP). This study explores the effect of clean energy, financial development (FDV), and globalization on the EFP in a developing country using the novel dynamic ARDL simulation techniques and the bootstrap causality test. The findings suggest that green energy has no meaningful impact on the EFP. Globalization and FDV significantly reduce the EFP by 0.25% and 0.08%, respectively. Besides, the findings confirm the existence of the EKC hypothesis. Furthermore, the causality results affirm a unidirectional causality from globalization and FDV to EFP, while economic growth drives globalization. Also, a one-way causality flows from globalization to FDV, just as FDV Granger causes green energy. In line with the findings, the study recommends that public policies focus on funding environmental-friendly technologies and green innovations. The funding must be on recently developed energy-saving technologies that can ensure complementarity between increased economic growth and environmental deterioration.

The relationships between renewable energy, net energy imports, arms exports, military expenditures, and CO2 emissions in the USA

We evaluate the relationships between renewable energy consumption, net energy imports, military expenditures, arms exports, gross domestic product, and carbon dioxide emissions by using annual data about the USA. The autoregressive distributed lag approach and the vector error correction model are used. There are both long-run and strong causalities running from all considered variables to renewable energy consumption. In addition, we have a short-run causality running from net energy imports to renewable energy consumption. We show that arms exports have a positive long-run effect on both renewable energy consumption and net energy imports. Military expenditures have a positive long-term effect on renewable energy consumption, but they have a negative long-term effect on both net energy imports and CO₂ emissions. This study shows that the military sector is contributing to using renewable energy and combatting global warming in the USA. We recommend increasing the R&D budget of the US Department of Defense allocated to innovations in renewable energies.

Technological innovations, renewable energy, globalization, financial development, and carbon emissions: role of inward remittances for top ten remittances receiving countries

Asides from renewable energy consumption, technological innovation and remittances are mostly ignored as critical tools and resources that can be adopted to ameliorate environmental worries, even when remittances have more considerable resource inflow than official development aids. Based on this information, the current research investigates the implications of technological innovation, remittances, globalization, financial development, and renewable energy on CO₂ emissions in top remittances-receiving countries from 1990 to 2021. To obtain reliable estimates, we use a battery of advanced econometric techniques and method of moments quantile regression (MMQR) method. The AMG results suggest that innovation, remittances, renewable energy, and financial development alleviate CO₂ emanations, whereas globalization and economic growth worsen environmental sustainability by increasing CO₂ emissions. Besides, the MMQR results confirm that renewable energy, innovation, and remittances decrease CO₂ emissions across all quantiles. A bidirectional causality exists amid financial development and CO₂ emanations, and across remittances and CO₂ emissions. However, one-way causality flows from economic growth, renewable energy and innovation to CO₂. This study suggests some essential measures for ecological sustainability in light of the findings.