Linkage of natural resources, economic policies, urbanization, and the environmental Kuznets curve

Examining substitution and income effects of oil prices through the Environmental Kuznets Curve framework

This paper focuses on the decomposition of the substitution effect (SE) and income effect (IE) of oil prices within the framework of the EKC hypothesis. The objective is to analyze the contemporaneous impact of oil price shocks on other panel variables. Using panel data for G20 countries covering the period 1985-2022, the paper employs the PSVAR method for empirical analysis. Our results show that the EKC hypothesis is confirmed in G20 countries. Moreover, the SE is estimated to be negative and significant in the model where income is held constant, and oil price changes are allowed. In the model where oil prices are held constant and income changes are allowed, oil behaves as an inferior good at the beginning of economic growth. However, as economic growth progresses and income reaches a critical threshold, oil becomes a normal good. Substitution and income effects can foster sustainable growth by mitigating the environmental consequences of oil price fluctuations.

Does FDI mitigate CO2 emissions intensity? Not when institutional quality is weak

Foreign direct investment benefits developing countries. However, concerns have arisen that the influx of FDI potentially exacerbates environmental pollution. While this debate continues, growing attention has recently emerged on the role of institutions in mitigating FDI's potential damages, although the empirical findings remain inconclusive. This paper examines how institutional quality shapes the relationship between FDI and CO2, both at the aggregate level and across different income groupings, using a reduced-form CO2 emissions model, panel data from 2000 to 2018 and the IVGMM techniques. Three key conclusions emerge. First, the findings show that FDI reduces CO2 emissions, but its magnitude depends on the measure used. Second, institutional quality is directly associated with higher emissions across income groups, suggesting current regulations inadequately ameliorate environmental pollution. Third, we find a positive interaction effect between CO2 emissions and institutional quality. We argue that, for FDI to consistently curb CO2 emissions, the quality of institutions must improve to better regulate foreign investors' activities, especially in low and high-income nations. Enhancing the quality of institutions will help translate FDI into improved environmental outcomes across income groups.

Renewable energy and natural resource protection: Unveiling the nexus in developing economies

Natural Resource Protection (NRP) has been on the agenda of the Sustainable Development Goals (SDGs) and is considered a pathway to sustainable development. The analysis of the determinants of NRP has received the attention of policymakers in framing evidence-based policies and strategies. Renewable energy (RE) is a major contributor to natural resource protection. However, existing studies have provided inconclusive evidence on the role of renewable energy in the NRP. This study primarily focuses on the assessment of how RE influences NRP in 22 developing economies. This study considers the nonlinear association between RE and NRP. Moreover, the role of governance effectiveness, financial technology, urbanization, and FDI in the NRP were also assessed. Furthermore, the analyses also explore the NRP-Kuznets curve by examining the role of economic growth in the NRP. The study, which detected cross-sectional dependence (CSD), heterogeneity, autocorrelation, and heteroskedasticity in the data, uses pooled regression with Driscoll-Kraay Standard Errors (DKSEs) and GLS for the econometric analysis. The results revealed a U-shaped relationship between renewable energy and NRP. Moreover, governance effectiveness, FINTECH, and FDI contribute to NRP, but urbanization has a negative impact on NRP. The analysis concludes an inverted U-shaped association between GDP per capita and NRP. A Bayesian regression analysis was also performed to validate the robustness of the results. Based on these findings, this study makes policy recommendations for improving NRP. Policymakers should prioritize renewable energy and sustainable resource exploitation through incentives and investments. Improving governance, adopting environmental rules, and involving stakeholders are critical. Financial technology can facilitate long-term investment in sustainability. Sustainable urban design should reduce the adverse effects of urbanization. FDI should be aligned with long-term development goals and appropriate resource management. Balancing economic growth with environmental protection requires multifaceted measures that promote green development and resource efficiency. Policy coherence and stakeholder participation are also critical.

Revisiting the environmental Kuznetz curve and pollution haven hypothesis in N-11 economies: Fresh evidence from panel quantile regression

Human activities in recent decades have severely affected environmental quality, and CO₂ emissions have irreparable consequences on human health and the survival of the earth. Moreover, achieving sustainable development goals requires the expansion of environmental literature to accelerate the performing of critical actions. With this in mind, this study evaluates the impact of foreign direct investment, economic complexity, and the utilization of renewable energy on CO₂ emission in N-11 countries from 1995 to 2019 by Panel Quantile Regression. As a novelty, the interaction between economic complexity and foreign direct investment is considered to get a better comprehension. Given the results, Environmental Kuznetz Curve is validated in N-11 countries through economic complexity. Notably, the impact of economic complexity is more substantial and robust in the incipient stages of industrialization. Furthermore, foreign direct investment is a destructive factor for environmental quality, and Pollution Haven Hypothesis is not rejected. Interestingly, the interaction of economic complexity and foreign direct investment mitigates the trend of CO₂ emissions. Eventually, the utilization of renewable energy reduces CO₂ emissions. Thereby, applying more strict environmental regulations and standards, developing green energy infrastructure and technologies, improving institutional quality, and supporting knowledge-based and technology-intensive exports are the main policy recommendations of this study.

Nexus between environmental disclosures and top management team characteristics: a systematic review

Voluntary nature of sustainability disclosures in most of the countries shifts focus of academicians towards discretion of top executives as a major determining force for firms to make their operations environmentally and socially sustainable. Based on two decade literature on the topic available at Scopus database this study aims to present a comprehensive knowledge map of intellectual structure on the relationship of top management characteristics on sustainability spending and disclosures. A bibliometric systematic review of 164 articles from 2002 to 2022 has been conducted with the help of VOSviewer and identified most influential journals, articles, and the countries whose corresponding authors have contributed in the field and influential research clusters in the literature. These research clusters are first, red cluster with 94 articles has discussed the upper echelon's personal and professional characteristics in relation to sustainability disclosures. Second, green cluster with 60 articles has discussed particularly the gender diversity in top executives and board of directors in relationship with sustainability disclosures. Third, blue cluster with 10 articles has elaborated the influence of independent directors on sustainability disclosures of corporate sector. The findings of this study will particularly help the regulators to make regulations regarding critical mass of female on boards and top management, family-owned firms, and politically connected directors. Moreover it will also help consultants, analysts, and investment bankers to differentiate firms with pressure-resistant and pressure-sensitive institutional investors. From this review shareholders can be very much clear in the selection of their representatives and ultimately the appointment of top management team. This study also provides an insight for future direction so that unexplored dimension of this field may further be discovered by upcoming researchers.