Does globalization and energy usage influence carbon emissions in South Asia? An empirical revisit of the debate

Reintroducing evidence of the role of energy usage dynamics on environmental management in E7 countries

This study examines the environmental impacts of per capita Gross Domestic Product (GDP) and energy consumption in E7 countries (Brazil, China, India, Indonesia, Mexico, Russia and Turkey). As an innovative contribution to the literature, this is one of the first studies to integrate the Environmental Kuznets Curve (EKC) and the Energy Kuznets Hypothesis (EKH). Using unbalanced panel data for 1988-2022, the effects of renewable and non-renewable energy sources on environmental degradation are analyzed. The findings show that economic growth initially increases environmental degradation, but this effect reverses after a certain threshold. When the model is extended with the EKH, it is found that renewable energy use promotes environmental sustainability, whereas non-renewable sources increase environmental damage. The results of the study provide generalizable policy recommendations not only for E7 countries but also for all emerging economies in the energy transition. In particular, it is suggested that differentiating energy policies and regulatory quality according to countries' income levels can accelerate environmental improvement. In this respect, the study provides a multidimensional roadmap for sustainable development strategies that applies to policymakers.

Balancing growth and sustainability: COP 28 policy implications of green energy, industrialization, foreign direct investment, and globalization in South Asia

This research investigates the intricate relationships between economic variables and how they affect South Asian nation's ability to develop sustainably. Given the growing concerns about climate change and global warming brought on by emissions of greenhouse gases, this study looks into the connection between emissions of CO2, green energy, industrialization, foreign direct investment, economic globalization, and financial development from 1995 to 2022. Second-generation panel techniques were employed in this study to look at the relationship between variables because of the potential of residual cross-sectional dependency and heterogeneity. The empirical outcomes display that green energy, economic globalization, and financial development reduce CO2 emissions by 1.839%, 1.223%, and 3.902% respectively. Industrialization and foreign direct investment degrade the environment by 4.302% and 1.893% respectively. A bidirectional causality link between green energy, industrialization, economic globalization, and CO2 emissions was found by Dumitrescu and Hurlin (D-H). Based on our findings, we recommend legislative support for renewable energy, cleaner technologies, and strict environmental regulations, aligning with the Sustainable Development Goals (SDGs). Encouraging FDI, sustainable practices, and financial development can drive economic growth while preserving the environment. As we approach COP28, this holistic approach to sustainable development becomes increasingly vital for South Asian countries to achieve their SDG targets and combat climate change.

The impact of green FDI on environmental quality in less developed countries: A case study of load capacity factor based on PCSE and FGLS techniques

This paper examines the effect of green foreign direct investment (GFDI) on environmental quality (EQ) in 34 less-developed countries (LDCs) from 2003 to 2021. We analyze balanced panel data using Feasible Generalized Least Squares (FGLS) and Panel-Corrected Standard Errors (PCSE). Our findings reveal several vital insights: (1) GFDI helps improve EQ. (2) Environmental costs associated with economic growth are negative. (3) Trade openness positively influences EQ. (4) EQ is enhanced by institutional quality, energy use, and population expansion in the chosen countries. (5) The existence of a U-shaped curve was established. This is valuable to the relatively scanty literature on GFDI, especially in LDCs. To the best of our awareness, this study simultaneously employs the Load Capacity Factor (LCF) and Total Value of Announced Greenfield projects as proxies for environmental sustainability and GFDI for the first time. Secondly, incorporating PCSE and FGLS models in this context is an innovative methodological strategy. The present research work provides to the existing theoretical and empirical discussions on GFDI and EQ and has practical implications that inform policy-making.

Does foreign direct investment influence carbon emission-related environmental problems? Contextual evidence from developing countries across Sub-Saharan Africa

Sub-Saharan African nations face multifaceted environmental problems, especially those associated with carbon discharges. Hence, this study calculates a composite carbon index in the context of 39 developing nations from this region and uses it as a proxy for the carbon emission-related environmental problems they have faced during the 2000-2020 period. This index is estimated by utilizing data regarding annual carbon dioxide discharges, output-based carbon productivity rates, and energy consumption-based carbon intensity levels in the concerned countries. Hence, policy takeaways from this study have critical relevance for the selected sub-Saharan African nations to help them achieve the objectives related to the Sustainable Development Goals agenda and the Paris Accord. Overall, the findings from the econometric analyses verify that more receipt of foreign direct investment initially raises but later on reduces environmental problems. Thus, the nexus concerning these variables depicts an inverse U-shape. Besides, the results endorse that greening the energy consumption structures of the sampled sub-Saharan African countries helps to abate their environmental problems in the long run while financial development aggravates the extent of environmental adversities that take place. Lastly, improving the quality of regulatory agencies enables the Sub-Saharan African nations to further mitigate their environmental problems. Moreover, these aforementioned findings are observed to be heterogeneous across low- and middle-income categories of the selected Sub-Saharan African countries. Furthermore, the heterogeneity of the findings is also confirmed by the outcomes derived from the country-specific analyses. Nevertheless, these nations should attract clean energy-embodying foreign direct investment, make their energy consumption structures greener by amplifying renewable energy adoption rates, introduce green funds to develop their financial sectors, and make their environmental regulatory agencies more transparent with their activities.

Foreign investments and load capacity factor in BRICS: the moderating role of environmental policy stringency

This research examines whether environmental regulations have a moderating effect on the link between foreign direct investment and the environment, as well as the effect of foreign capital investments on environmental quality for BRICS nations. In this approach, using second-generation panel data methodologies for the period 1992-2020, the impacts of foreign direct investments, real national income, consumption of renewable energy, and environmental stringency index on the load capacity factor are explored in the base empirical model. In order to test if there is any evidence of a potential parabolic link between economic growth and environmental quality, the model also includes the square of real national income. In addition, in the robustness model, the moderating role of environmental policy on foreign investment and environmental quality is checked. Empirical results show a U-shaped association between environmental quality and economic development. The usage of renewable energy and the environmental stringency index is also shown to improve environmental quality, although foreign direct investments decrease it. Finally, it is determined that environmental regulations are effective in undoing the negative impacts of foreign capital investments on environmental quality, demonstrating the validity of their moderating function.

Investigating the impact of ICT on transport-based CO2 emissions: empirical evidence from a quantile cointegration regression analysis

In the global initiative to leverage information and communication technologies (ICT) for reducing emissions, sub-Saharan Africa (SSA), a region of unique significance, has exhibited a delay in adopting ICT. This study aims to investigate the intricate relationship between ICT and carbon dioxide (CO2) emissions from transport in SSA. Employing the panel quantile autoregressive distributed lag (PQARDL) technique, the study analyzes panel data from 24 SSA nations spanning from 2000 to 2021. The results indicate that internet usage and fixed telephone subscriptions have a mitigating effect on CO2 emissions from transport across all quantiles in both the short and long run. However, mobile phone subscriptions contribute to CO2 emissions from transport across all quantiles. Additionally, the middle-income groups demonstrate negative relationships between ICT variables and emissions from transport, while the low-income group exhibits significant positive associations. These findings imply that ICT plays a pivotal role in mitigating transport-based emissions and reveal pronounced disparities in ICT adoption across various income groups within SSA, highlighting overarching underdevelopment in ICT infrastructure. Robustness checks employing a two-step system generalized method of moment (GMM) model reinforce our findings. The study provides policy recommendations, including the promotion of ICT infrastructure development, implementation of smart transportation solutions, and fostering public-private partnerships to address these challenges, shedding light on the path toward a greener and more sustainable transport ecosystem in SSA.

Effect of economic growth, energy use, trade openness and foreign direct investments on carbon dioxide emissions. Evidence from G8 countries

The problem of climate change, which causes various negativities in the global sense, is one of the important research topics. It is necessary to determine the factors affecting carbon dioxide (CO2) emissions, which are the main determinants of climate change, and to take measures for this. In this study, based on the hypothesis that economic growth, energy usage, trade openness, and foreign direct investment affect CO2 emissions, it was aimed to examine the effects of economic growth, energy usage, trade openness, and foreign direct investment on CO2 emissions for G8 countries using annual data for the period 1990-2018. For this purpose, first, a literature review was done in the study. Then, cross-section dependency and heterogeneity tests were performed as empirical analyses. Afterward, unit root tests, cointegration analyses, and causality analyses were performed in the study. Finally, in the study, short-term parameters and long-term parameters were estimated to capture possible dynamic relationships between variables. The Westerlund Error Correction Model (ECM) panel test for cointegration showed that there is a cointegration relationship between these variables for both the entire panel and the cross-section units. The results of the Augmented Mean Group (AMG) estimator method showed that (i) economic growth has no effect on CO2 emissions in 7 of 8 countries, (ii) energy usage increases CO2 emissions in 4 of the countries studied but decreases it in one of them, and (iii) foreign direct investments and trade openness do not affect CO2 emissions in 4 countries but positively affects in 2 countries and negatively in 2 countries. According to the results obtained from the Pooled Mean Group (PMG) analysis, while economic growth, energy usage, and trade openness affect CO2 emissions in the long run, economic growth, energy use, and trade openness affect CO2 emissions in the short run too. According to Dumitrescu-Hurlin panel causality results, it was seen that there is no causal relationship between CO2 emissions, economic growth, and energy use. While there is a unidirectional causality from CO2 emissions to foreign direct investments, it was determined that there is a bidirectional causality between trade openness and CO2 emissions. When the results were examined in general, it was understood that the variables of economic growth, trade openness, foreign direct investment, and energy usage are effective on CO2 emissions in the G8 countries. It would be beneficial for countries to include the objectives of making production with clean production technologies, ensuring efficient use of energy, and expanding the use of renewable energies among their main targets.

The asymmetric effect of ICT on CO2 emissions in the context of an EKC framework in GCC countries: the role of energy consumption, energy intensity, trade, and financial development

This study examines how "information and communication technology (ICT)" affects carbon dioxide (CO₂) emissions in Gulf Cooperation Council (GCC) nations asymmetrically, controlling energy consumption, its intensity, trade, and financial development following an environmental Kuznets curve (EKC) approach. It employs panel data covering 1995-2019, 2^nd generation unit root, Westerlund cointegration tests, nonlinear pooled mean group (PMG) estimate, and Dumitrescu-Hurlin causality check. The Westerlund test validates a long-run association among variables. The study confirms the EKC proposition for the GCC countries. It reveals that a decrease in CO₂ emissions is associated with both positive and negative parts of ICT and the expansion of financial development. While per capita GDP increases pollution, squared GDP per capita reduces it; energy consumption, intensity, and trade amplify carbon emissions. D-H causality check yields several bidirectional and one-way causalities and verifies the robustness of PMG outcomes. Our findings suggest that promoting ICT becomes one of the critical techniques to decrease CO₂ emissions in GCC nations due to its significant negative influence on CO₂ emissions.