Revisiting the impact of trade openness on environmental sustainability in Belt and Road countries: a heterogeneous panel approach

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.

Exploring the optimal threshold of FDI inflows for carbon-neutral growth in Africa

This study investigates the relationship between foreign direct investment (FDI) and CO2 emissions in Africa, primarily emphasizing carbon-neutral growth. Employing advanced econometric methods like the Generalized Method of Moments (GMM), fixed effect, and Two-Stage Least Squares (2SLS), we identify critical threshold values for key variables, including economic growth, trade openness, human capital, financial development, inflation, and population growth. Our findings indicate that GDP significantly influences the FDI-CO2 emissions relationship as economies expand, shifting from negative to positive, potentially leading to increased carbon emissions. Higher trade-to-GDP ratios are associated with reduced CO2 emissions due to cleaner technologies and greener production practices. Additionally, financial development plays a pivotal role, enabling investment in sustainable technologies. Nations with a more skilled workforce are more likely to adopt sustainable practices. The influence of population growth on CO2 emissions is complex, balancing increased demand with investments in clean technologies. The study recommends that African policymakers prioritize FDI aligned with carbon-neutral growth by promoting sustainability, investing in human capital, and carefully balancing population growth with sustainability.

How diversification of products impact emissions in China: a provincial perspective

Currently, global warming and air pollution are the world's most urgent issues partly caused by carbon dioxide (CO2) and sulfur dioxide (SO2) emissions, and prompt actions are needed to address these global concerns. Sustainable development cannot be attained until we reverse the negative impact of economic factors on the quality of the environment. It is noteworthy to offer a new indication on whether and how the empirical liaison between product diversification and environmental degradation evolved in China from 2008 to 2019. Product diversification (PD) is a remedy for reducing environmental degradation (ED). It is a crucial component of energy demand, which a significant impact on reducing energy consumption and ED. The purpose of this study is to investigate the impact of PD on ED in China using the provincial panel dataset. Employing the fixed effects-Driscoll-Kraay standard errors (FE-DKSE) and feasible generalized least squares (FGLS) methods, we discover an inverted U-shaped link between PD and ED. The control variable urbanization (URB) and technological innovation (TI) reduce ED significantly. However, industry value added (IVA) and energy consumption (EC) promote ED. Our results are robust with the addition of various controls in all models. The policy implication from our findings is that, to achieve a target of carbon neutrality, countries should adopt the product diversification strategy.

Powering sustainable growth in West Africa: exploring the role of environmental tax, economic development, and financial development in shaping renewable energy consumption patterns

Over time, the economy's growth, financial development, and environmental taxes have become vital tools in countering ecological degradation and promoting clean energy. However, there needs to be a research gap in assessing these policies' collective impact on renewable energy adoption, especially in developing West African countries. This study addresses this gap by evaluating the effectiveness of these policies from 1990 to 2020, using the Generalized Method of Moments (GMM), fixed effect, and pooled Ordinary Least Squares (OLS) models. The Dumitrescu-Hurlin panel causality test reveals bidirectional causality between economic growth and renewable energy consumption, as well as between financial development and renewable energy use. Unidirectional causality is found from environmental tax to renewable energy consumption. GMM results highlight the positive influences of economic growth and environmental taxes on renewable energy consumption, while financial development negatively affects it. These outcomes are consistent with fixed effect and pooled OLS models. Sectorial heterogeneity analysis indicates better results for countries with strong institutions, advanced technology, and strict regulations. In conclusion, this study's insights can guide policies for sustainability in West Africa, leveraging economic growth, environmental taxes, and technology for effective renewable energy integration.