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Caglar AE, Avci SB, Ahmed Z, Gökçe N. Assessing the role of green investments and green innovation in ecological sustainability: From a climate action perspective on European countries. THE SCIENCE OF THE TOTAL ENVIRONMENT 2024; 928:172527. [PMID: 38631639 DOI: 10.1016/j.scitotenv.2024.172527] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Subscribe] [Scholar Register] [Received: 02/13/2024] [Revised: 04/05/2024] [Accepted: 04/14/2024] [Indexed: 04/19/2024]
Abstract
In recent years, economies have been increasingly focused on achieving the United Nations' Sustainable Development Goals, recognizing that their achievement is vital to ecological sustainability and green growth. In this context, this paper focuses on investigating the impact of green innovation, green investment, economic growth, and natural resources on ecological sustainability in the five best-performing European Union countries in terms of the Climate Change Performance Index. This study uses the load capacity factor as a comprehensive proxy of ecological sustainability and also assesses the load capacity curve hypothesis in sample nations. Continuously updated fully modified and continuously updated bias-corrected estimators are used to analyze the data from 1995 to 2020 in the context of climate action perspective. The econometric analysis revealed that the load capacity curve hypothesis is invalid in the sample countries. Natural resources decrease environmental sustainability. However, green investments and green innovations contribute to environmental quality and thereby, can be used for effective climate action. Based on these findings, the study recommends specific policies to achieve the Sustainable Development Goals, with a particular focus on target 13.
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Affiliation(s)
| | | | - Zahoor Ahmed
- Adnan Kassar School of Business, Lebanese American University, Beirut 1102-2801, Lebanon; Department of Business Administration, Faculty of Economics, Administrative and Social Sciences, Bahçeşehir Cyprus University, Nicosia, Turkiye
| | - Nazlı Gökçe
- Atatürk University, Department of Economics, Turkiye.
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2
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Ahmad M, Ahmed Z, Alvarado R, Hussain N, Khan SA. Financial development, resource richness, eco-innovation, and sustainable development: Does geopolitical risk matter? JOURNAL OF ENVIRONMENTAL MANAGEMENT 2024; 351:119824. [PMID: 38118347 DOI: 10.1016/j.jenvman.2023.119824] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 03/29/2023] [Revised: 11/18/2023] [Accepted: 11/24/2023] [Indexed: 12/22/2023]
Abstract
Financial development and geopolitical risks can significantly affect sustainable development. However, the roles of these factors in sustainable development are rarely investigated. Thus, this study takes into account the role of geopolitical risk while exploring the effects of financial development, natural resource rents, and eco-innovation on sustainable development in the Organization for Economic Co-operation and Development (OECD) countries. To this end, yearly data from 1990 to 2019 is analyzed using advanced econometric tests. The Common Correlated Effects Mean Group (CCEMG) results indicate that financial development and eco-innovation are significantly and positively related to sustainable development. Natural resource rents have a detrimental impact on sustainable development which confirms the presence of the resource curse hypothesis in OECD countries. Furthermore, the results revealed that controlling geopolitical risk is useful in fostering sustainable development. Lastly, the panel Granger causality test unveiled one-way causality from financial development, eco-innovation, natural resource rents, and geopolitical risk to sustainable development. Moreover, causalities are found from geopolitical risk to financial development, eco-innovation and natural resources. These findings suggest that OECD countries should prioritize financial development and eco-innovation policies for sustainable development while mitigating the negative effects of natural resource rents. The geopolitical risk can harm sustainable development, so policymakers should promote international cooperation and risk-sharing.
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Affiliation(s)
- Mahmood Ahmad
- Business School, Shandong University of Technology, Zibo, 255000, China.
| | - Zahoor Ahmed
- Adnan Kassar School of Business, Lebanese American University, Beirut, 1102-2801, Lebanon; Department of Business Administration, Faculty of Economics, Administrative and Social Sciences, Bahçeşehir Cyprus University, Nicosia, Türkiye; UNEC Research Methods Application Center, Azerbaijan State University of Economics (UNEC), Istiqlaliyyat Str. 6, Baku 1001, Azerbaijan.
| | - Rafael Alvarado
- Esai Business School, Universidad Espíritu Santo, Samborondon, 091650, Ecuador.
| | - Nazim Hussain
- Faculty of Economics and Business, University of Groningen, Groningen, the Netherlands; Faculty of Finance and Accounting, Prague University of Economics and Business, Praha, Czech Republic.
| | - Sana Akbar Khan
- Lyon Catholic University, ESDES, 10, Place des Archives, Lyon 2, France.
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Guo X, Shahbaz M. The existence of environmental Kuznets curve: Critical look and future implications for environmental management. JOURNAL OF ENVIRONMENTAL MANAGEMENT 2024; 351:119648. [PMID: 38056331 DOI: 10.1016/j.jenvman.2023.119648] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 10/23/2023] [Revised: 11/07/2023] [Accepted: 11/16/2023] [Indexed: 12/08/2023]
Abstract
Against the backdrop of the great challenge of climate change and growing global environmental concerns, this study deals a systematic literature review of research related to Environmental Kuznets Curve (EKC) from 1991 to 2023, details the background, definition, significance, critiques, theoretical foundations and model specifications of EKC, and summarizes the data, variables, econometric methods and findings used in over 100 EKC studies. This study focuses on EKC studies that examine the relationship between energy consumption, economic growth and environmental degradation, with most of the studies reviewed using global pollutants (carbon emissions) to measure the level of environmental degradation. This study found that EKC still has great research potential, and with the development of energy diversification, energy consumption in EKC studies have been further subdivided into renewable or non-renewable energy consumption; innovative EKC studies in the last few years have favoured the use of novel environmental and economic indicators and econometric method, and have validated the existence of EKC at the sectoral level rather than the national level. Finally, the present study summarizes the development and innovations of EKC and provides suggestions for future research aimed at advancing the development of EKC and environmental management.
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Affiliation(s)
- Xu Guo
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, China.
| | - Muhammad Shahbaz
- Department of International Trade and Finance, School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, China; Center for Sustainable Energy and Economic Development, Gulf University for Science and Technology, Hawally, Kuwait.
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Yuhuan Z, Rasheed MQ, Saud S. Environmental deterioration in the age of industrialization and production: do industrial competition and renewable energy reduce the ecological burden? ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2024; 31:2258-2278. [PMID: 38055171 DOI: 10.1007/s11356-023-31191-3] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 08/17/2023] [Accepted: 11/19/2023] [Indexed: 12/07/2023]
Abstract
The modern era of globalization, economic development, and increase in manufacturing activity pose severe risks to the natural environment. In this context, industries must prioritize sustainable economic growth and development. Thus, the purpose of this study is to provide insight into industrial competition, renewable energy, economic freedom, manufacturing value added, economic growth, and carbon dioxide emissions (CO2 emissions) in the top ten high-income countries from 1997 to 2019. The results from panel cross-sectional autoregressive distributed lag (CS-ARDL), augmented mean group (AMG), and common correlated effects mean group (CCEMG) techniques revealed that economic growth and industrial production have a harmful influence on CO2 emissions. Meanwhile, industrial competitiveness, renewable energy, and economic freedom are all negatively associated with CO2 emissions. This specifies that industrial competitiveness, renewable energy, and economic freedom are favorably related to environmental sustainability by limiting CO2 emissions in the top ten high-income countries. These findings imply that governments and responsible authorities/policymakers develop strategies to reduce the environmental impact of manufacturing value addition and economic growth in the top ten high-income countries and allocate more financial resources to renewable energy and promote industrial competition.
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Affiliation(s)
- Zhao Yuhuan
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, People's Republic of China
| | - Muhammad Qamar Rasheed
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, People's Republic of China.
| | - Shah Saud
- School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, People's Republic of China
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Shi C, Murshed M, Alam MM, Ghardallou W, Balsalobre-Lorente D, Khudoykulov K. Can minimizing risk exposures help in inhibiting carbon footprints? The environmental repercussions of international trade and clean energy. JOURNAL OF ENVIRONMENTAL MANAGEMENT 2023; 347:119195. [PMID: 37797519 DOI: 10.1016/j.jenvman.2023.119195] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 02/12/2023] [Revised: 08/28/2023] [Accepted: 09/29/2023] [Indexed: 10/07/2023]
Abstract
Since bettering environmental conditions has acquired significant interest globally, discovering factors that may facilitate the establishment of environmental sustainability is currently of foremost importance. Hence, this study considers a sample of 33 members of the Organization for Economic Cooperation and Development and checks whether reducing exposure to different forms of country risks, in the presence of international trade and clean energy consumption, can reduce their respective carbon footprint levels. Utilizing annual data from 2000 to 2018 and employing methods that handle problems related to dependence across cross-sectional units and heterogeneity of slope coefficients, the findings endorse that (a) reducing financial and political risks abate carbon footprints, (b) economic risk exposure does not influence carbon footprints, (c) international trade exerts carbon footprint-boosting effects, and (d) undergoing unclean to clean energy transition curbs carbon footprints. Accordingly, the concerned governments should these findings into account while conceptualizing green environmental policies in the future.
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Affiliation(s)
- Chengqi Shi
- School of Economics and Management, Shaanxi University of Science & Technology, Xi'an, Shaanxi Province, 710021, China.
| | - Muntasir Murshed
- School of Business and Economics, North South University, Dhaka, 1229, Bangladesh; Department of Journalism, Media and Communications, Daffodil International University, Dhaka, Bangladesh.
| | - Mohammad Mahtab Alam
- Department of Basic Medical Sciences, College of Applied Medical Science, King Khalid University, Abha, 61421, Saudi Arabia.
| | - Wafa Ghardallou
- Department of Accounting, College of Business Administration, Princess Nourah bint Abdulrahman University, P.O. Box 84428, Riyadh, 11671, Saudi Arabia.
| | - Daniel Balsalobre-Lorente
- Department of Applied Economics I, University of Castilla-La Mancha, Spain; Department of Management, Faculty of Economics and Management, Czech University of Life Sciences, Prague, 16500, Prague, Czech Republic.
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Mohamed H, Saâdaoui F. Exploring sustainable energy consumption and social conflict risks in Turkey: Insights from a novel multiresolution ARDL approach. RISK ANALYSIS : AN OFFICIAL PUBLICATION OF THE SOCIETY FOR RISK ANALYSIS 2023. [PMID: 37939400 DOI: 10.1111/risa.14251] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Subscribe] [Scholar Register] [Received: 04/25/2023] [Revised: 10/10/2023] [Accepted: 10/19/2023] [Indexed: 11/10/2023]
Abstract
Nonrenewable energy sources have been shown to be a cause of conflict and terrorism, highlighting the global conflict aspect, but little is known about the causal relationship between the energy system and terrorism in Turkey. This study aims to fill this gap by examining the causal links among renewable energy consumption, fossil fuels, terrorist attacks, education, trade opening, and geopolitical risks in Turkey from 1980 to 2016. Using the autoregressive distributed lag (ARDL) approach and Granger causality tests, the study analyzes the short and long-term relationships between the variables. Additionally, robustness tests are conducted using a powerful multiresolution ARDL approach to ensure the stability of the statistical findings. The results reveal the existence of long-term relationships between all the variables, particularly among terrorism, renewable energy, and education. In the short term, a one-way relationship exists between terrorism and education to renewable energies and from trade openness to terrorism. The study demonstrates that nonrenewable energy increases terrorism in the long term, whereas renewable energy and trade openness reduce terrorism, highlighting the potential impact of global conflicts on Turkey's sustainable development. Therefore, renewable energy is a powerful tool to fight against terrorism, and Turkey has encouraged its use and deployment of diplomatic efforts to resolve political and military conflicts, particularly in the Middle East. This study provides insights into the complex relationship among sustainable energy consumption, terrorism, education, and trade opening, contributing to the understanding of the geopolitical risks and economics in Turkey. It has implications for policymakers in the region, highlighting the importance of renewable energy and trade openness as tools for conflict resolution and sustainable development in the face of global conflicts.
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Affiliation(s)
- Hassen Mohamed
- University of Manouba, ESCT, QUARG UR17ES26, Campus Universitaire de Manouba, Tunis, Tunisia
| | - Foued Saâdaoui
- Rabat Business School, International University of Rabat, Rabat, Morocco
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7
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Dauda L, Long X, Mensah CN, Ampon-Wireko S. The impact of agriculture production and renewable energy consumption on CO 2 emissions in developing countries: the role of governance. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2023; 30:113804-113819. [PMID: 37853212 DOI: 10.1007/s11356-023-30266-5] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 06/14/2023] [Accepted: 10/01/2023] [Indexed: 10/20/2023]
Abstract
Environmental pollution has aggravated the climate change issues posing unusual challenges to the survival and growth of humanity, including extreme weather, loss of species, and sustainability of the ecosystem in developing countries. Unlike previous studies, this paper adds new dimension to the literature by incorporating corruption into agriculture production-environment nexus. This study adds new dimension to the literature by examining corruption, agriculture, and renewable energy on CO2 emissions. The study therefore examines the effects of governance (corruption) and agriculture production on CO2 emissions in 20 countries in Africa from 1990 to 2019. The study employed recent panel econometric approach which accounts for cross-sectional dependence in the variables. The findings of the fixed effect model and panel dynamic ordinary least squares (PDOLS) show that forest and renewable energy consumption decrease CO2 emissions. However, corruption, agriculture production, export, and urbanization escalate CO2 emissions in African countries covered in the paper. Moreover, the Dumitrescu-Hurlin Granger causality indicates a bidirectional causality between agriculture production and CO2 emissions, renewable energy use, agricultural output, and forest. Also, unidirectional Granger causality runs from corruption to forest and agriculture production. On these premises, consented efforts by governments should be made to support good institutions in order to promote good governance to avert pervasive consequences of corruption on the environment.
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Affiliation(s)
- Lamini Dauda
- Faculty of Business Administration, KAAF University College, Accra, Ghana.
| | - Xingle Long
- School of Management, Jiangsu University, Zhenjiang, 212013, China
| | - Claudia Nyarko Mensah
- Department of Management Studies, Akenten Appiah-Menka University of Skills Training and Entrepreneurial Development, Kumasi, Ghana
| | - Sabina Ampon-Wireko
- School of Public Health and Allied Sciences, Catholic University of Ghana, Fiapre, Ghana
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Çetin M, Sarıgül SS, Topcu BA, Alvarado R, Karataser B. Does globalization mitigate environmental degradation in selected emerging economies? assessment of the role of financial development, economic growth, renewable energy consumption and urbanization. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2023; 30:100340-100359. [PMID: 37651012 DOI: 10.1007/s11356-023-29467-9] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 02/21/2023] [Accepted: 08/19/2023] [Indexed: 09/01/2023]
Abstract
While the acceleration of globalization in newly developing (emerging) economies contributes positively to economic developments on the one hand, it is a research topic that can have an impact on environmental pollution on the other hand. Therefore, this study analyzes the impact of globalization on environmental pollution for 14 emerging economies in the 1991-2018 period by including economic growth, financial development, renewable energy consumption, and urbanization in the ecological footprint model. In addition to the AMG forecaster, Driscoll-Kraay, PCSE, and FGLS estimation techniques are used for long-term forecasting. Causal linkages among variables are analyzed by the Dumitrescu-Hurlin panel bootstrap causality test. The findings show that the series are cointegrated, that is, a long-term relationship between the variables. In the long term, globalization and renewable energy consumption reduce environmental pollution, while economic growth and financial development play a role in encouraging environmental pollution. Causality analysis enumerates a causality from economic growth and financial development to environmental pollution, as well as a two-way causality between globalization and environmental pollution and renewable energy consumption and environmental pollution. Empirical findings can offer important implications for policies that will reduce environmental pollution in these countries.
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Affiliation(s)
- Murat Çetin
- Faculty of Economics and Administrative Sciences, Department of Economics, Tekirdag Namik Kemal University, Tekirdağ, Turkey
| | - Sevgi Sümerli Sarıgül
- Vocational School of Social Sciences, Department of International Trade, Kayseri University, Kayseri, Turkey.
| | - Betül Altay Topcu
- Vocational School of Social Sciences, Department of International Trade, Kayseri University, Kayseri, Turkey
| | - Rafael Alvarado
- Esai Business School, Universidad Espíritu Santo, Samborondon, 091650, Ecuador
| | - Büşra Karataser
- Faculty of Economics and Administrative Sciences, Department of Economics, Tekirdag Namik Kemal University, Tekirdağ, Turkey
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Zaman U, Chishti MZ, Hameed T, Akhtar MS. Exploring the nexus between green innovations and green growth in G-7 economies: evidence from wavelet quantile correlation and continuous wavelet transform causality methods. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2023:10.1007/s11356-023-28982-z. [PMID: 37526825 DOI: 10.1007/s11356-023-28982-z] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [Subscribe] [Scholar Register] [Received: 01/18/2023] [Accepted: 07/21/2023] [Indexed: 08/02/2023]
Abstract
There are numerous studies on the nexus between technology and economic growth. However, the recent paradigm shift toward achieving green economic growth calls for divulging the important drivers of green growth to derive the salient policies for triggering the green growth process. In this context, the recent study claims green technologies (GT) as the crucial determinant of green economic growth (GG) and extends the prior literature by examining the dynamic effects of GT on GG for G-7 nations. To do so, the recent study relies on the two novel econometric methods of wavelet quantile correlation (WQC) and continuous wavelet transform causality (CWC) for robust findings. The WQC's results determine that the rise in the GT significantly triggers the GG of G7 economies. More specifically, with the exception of a few quantiles that show no significant effects of GT, Canada, Germany, Italy, and the United Kingdom enjoy significant benefits from GT across all quantiles. The remaining G-7 countries also benefit from GT, but a few quantiles show that GT has negative effects. Interestingly, the application of the CWC test supports the QWC's outcome, such that the CWC test confirms the causal nexus that runs from GT to GG for each economy. Based on the results, the study derives some salient policies for local and global authorities.
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Affiliation(s)
- Umer Zaman
- Endicott College of International Studies, Woosong University, Daejeon, Republic of Korea
| | - Muhammad Zubair Chishti
- Business School, Zhengzhou University, Zhengzhou, Henan, China.
- Department of Economics, University of Chakwal, Chakwal, Punjab, Pakistan.
- School of Economics, Quaid I Azam University, Islamabad, Pakistan.
| | - Touseef Hameed
- Business School, Inland Norway University of Applied Sciences, Lillehammer, Norway
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Kirikkaleli D, Addai K, Karmoh JS. Environmental innovation and environmental sustainability in a Nordic country: evidence from nonlinear approaches. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2023:10.1007/s11356-023-27726-3. [PMID: 37237117 DOI: 10.1007/s11356-023-27726-3] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Subscribe] [Scholar Register] [Received: 02/17/2023] [Accepted: 05/14/2023] [Indexed: 05/28/2023]
Abstract
Environmental sustainability has been a priority of energy study experts, yet, until recently, the approaches largely ignored innovation issues. This paper investigates the relationship between environmental innovation and environmental sustainability in a Nordic country, Norway, from 1990:Q1 to 2019:Q4. In Norway, climate change, protection of the ozone layer, biodiversity, urbanization, acidification, eutrophication, persistently high toxic waste, and increased fragility have injected volatility and uncertainty into the Norwegians-a reality that may continue for a while. This study is unique in that it uses the nonlinear ARDL approach to analyze in depth how environmental innovation affects environmental sustainability in Norway while controlling for economic growth, renewable energy, and financial development. In particular, the findings reveal that (i) environmental innovation improves the environment in Norway over long-term horizons; (ii) strengthening patents on environmental innovations can foster clean living, green growth, and zero CO2 emissions; (iii) investing in renewable energy sources benefits the Norwegian environment by reducing carbon emission growth; and (iv) economic growth and financial development promote CO2 emission growth. The policy consequence is that Norway's policymakers should continue to invest in cleaner technologies and encourage environmental education and training of employees, suppliers, and consumers.
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Affiliation(s)
- Dervis Kirikkaleli
- Department of Banking and Finance, Faculty of Economics and Administrative Sciences, European University of Lefke, Lefke, TR-10, Mersin, Northern Cyprus, Turkey.
| | - Kwaku Addai
- Department of Banking and Finance, Faculty of Economics and Administrative Sciences, European University of Lefke, Lefke, TR-10, Mersin, Northern Cyprus, Turkey
| | - James Sowah Karmoh
- Department of Banking and Finance, Faculty of Economics and Administrative Sciences, European University of Lefke, Lefke, TR-10, Mersin, Northern Cyprus, Turkey
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Pata UK, Samour A. Assessing the role of the insurance market and renewable energy in the load capacity factor of OECD countries. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2023; 30:48604-48616. [PMID: 36764988 DOI: 10.1007/s11356-023-25747-6] [Citation(s) in RCA: 3] [Impact Index Per Article: 3.0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 11/23/2022] [Accepted: 02/01/2023] [Indexed: 06/18/2023]
Abstract
In the empirical literature, few studies assessed the influence of the insurance market on carbon emissions. However, the effects of insurance markets on the load capacity factor (LCF) have been ignored. In this regard, the objective of the current work is to assess the potential impact of the insurance market on environmental sustainability in 27 OECD countries from 1990 to 2018 based on the LCF, which implies the strength of a state to enhance the population based on the current lifestyle. The present work employed the novel Method of Moments Quantile Regression (MMQR). This model is the prime and correct technique to better understand the association between the insurance market and the LCF across heterogeneous quantiles and to yield more robust empirical outcomes. The MMQR findings indicate a negative interaction between the insurance market and the LCF. In other words, the insurance sector has a powerful influence on economic activities and investments, such that insurance activities lead to an increase in the level of energy utilization, and thus have a negative influence on ecological sustainability. In contrast, the findings illustrate a positive and considerable association between renewable energy consumption and LCF. Based on the overall outcomes, it is suggested that OECD countries should focus on policies that encourage the use of renewable energy rather than incentivizing the insurance market. OECD country governments should also support green insurance activities to minimize the environmental damage of the insurance market.
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Affiliation(s)
- Ugur Korkut Pata
- Faculty of Economics and Administrative Sciences, Department of Economics, Osmaniye Korkut Ata University, 80000, Merkez Osmaniye, Turkey.
| | - Ahmed Samour
- Department of Accounting, Dhofar University, Salalah, Sultanate of Oman
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Muoneke OB, Okere KI, Egbo OP. Does political conflict tilt finance-renewable energy dynamics in Africa? Accounting for the multi-dimensional approach to financial development and threshold effect of political conflict. Heliyon 2023; 9:e14155. [PMID: 36938454 PMCID: PMC10015195 DOI: 10.1016/j.heliyon.2023.e14155] [Citation(s) in RCA: 3] [Impact Index Per Article: 3.0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Received: 05/31/2022] [Revised: 02/15/2023] [Accepted: 02/22/2023] [Indexed: 03/04/2023] Open
Abstract
In order to shed empirical light on the impact of the multi-dimensional decomposition of financial development indicators on renewable energy usage, this study investigates the threshold effect of political conflict on finance-energy dynamics in Africa. The research output relies on a panel of 46 African nations from 2010 to 2020, using IV-GMM estimators that are robust to cross-sectional dependence and allow for heterogeneous slope coefficients. The results of direct, indirect, and threshold equations show that i.) Financial development indicators spur renewable energy consumption, while political conflict drags it. ii.) There is a threshold at which financial development could spur renewable energy in some regions of Africa, and the tendency of financial development to maintain such capacity is conditioned on the accessibility of financial facilities and political conflict/stability within a specific range of threshold values. iii.) the threshold level assessment shows that 11 countries in the panel, including Botswana, Mauritius, Cape Verde, Namibia, Seychelles, Zambia, Sao Tome and Principe, Gabon, Ghana and Benin Rep., are above the threshold level of political conflict in Africa. From a policy angle, driving up renewable energy consumption in Africa requires the government to provide enabling safety net environment for the diversification of finance options targeting innovative shifts away from traditional energy sources to the expansion of alternative renewable energy ventures.
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Affiliation(s)
- Obumneke Bob Muoneke
- FITC Nigeria, Murtala Muhammed Way, Ebute-Metta, Lagos, Nigeria
- Department of Finance, University of Lagos, Akoka-Yaba, Lagos State, Nigeria
| | - Kingsley Ikechukwu Okere
- Department of Economics, Banking and Finance, Gregory University, Uturu, Abia State, Nigeria
- Entrepreneurial /Skills Development Centre/Enterprise Venture, Gregory University, Uturu, Abia State, Nigeria
- Corresponding author. Department of Economics, Banking and Finance, Gregory University, Uturu, Abia State, Nigeria.
| | - Obiamaka Priscilla Egbo
- Department of Banking and Finance, University of Nigeria, Enugu Campus, Enugu State, Nigeria
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