An assessment of bilateral debt swap financing indispensable for economic growth and environment sustainability: a policy implication for heavily indebted countries

Bilateral debt swap is an innovative global financing mechanism designed to support heavily indebted countries (HICs). It is a debt-restructuring process involving donor countries forgiving debt owed by HICs in exchange for commitments to undertake projects on environment and socio-economic development. It is a unique approach designed to help heavily indebted countries get back on their feet. Effective debt swap financing can lead to both economic growth and environment sustainability, but they are challenging to implement. This study examines the impact of bilateral debt swap financing on economic growth and environment sustainability. For the purpose, we have used debt swap index developed with Kaiser-Meyer-Olkin (KMO) methodology. KMO widely used approach of Principle Component Analysis (PCA) to solve the problem of "over-identification" and make strong correlation among endogenous variables of interest. In order to validate the nexus empirically between bilateral debt swap financing with economic growth and environment sustainability, we have employed the Two-Step System Generalized Method of Moments (SYS-GMM) approach in 25 countries for the period of 2002 to 2021. This modern econometric method addresses endogeneity issues and controls for unobserved heterogeneity in panel data. At the same time, the technique addresses the simultaneity problem, reverse causality, and remove selection bias. Findings of the study shows that effective bilateral debt swap financing can boost economic growth and environment sustainability by investing domestic resources for targeted activities along with reduced debt burden. Empirical results reveal that 1% change in debt swap financing can lead to a maximum of 0.23% growth in the economy and 0.28% improvement in environment sustainability. However, it is important to note that in most empirical specifications, results are inconclusive. One possible reason for this is often ineffective debt swap practices coupled with inadequate monitoring and evaluation in HICs. Policymakers should focus on enhancing debt swap policies to promote economic growth and environment sustainability.

Determinants of renewable energy sources in Pakistan: An overview

For successive economic growth of any society, sustainable energy plays a pivotal role. Considering this view, developing countries are facing serious challenges of energy at the present time. However, policymakers have outlined numerous policies to satisfy energy demand but still remain incapable to fill the gap between demand and supply. At a halt, 11% of the world population lacks access to different formulae of energy supply and access. Additionally, in different time periods, distinct policies have erupted for the progress of renewable energy. It includes especially those households of the far-flung areas having no gas and electricity availability. However, the basis of this research study is to determine the significant renewable energy source for Pakistan's economy with the economic benefits such as job creation in energy sector. This research study aims in finding ways to secure energy supplies and achieving economic benefits. The research study concludes by engaging renewable energy technologies with the least operational and externality cost that is the utmost choice in the future. In policy perspective, Pakistani government should take actions in favor of renewable energy and technological innovation that necessitates biomass resources to be tied to non-sustainable prolonged investments.

Correction to: Environmental efficiency and the role of energy innovation in emissions reduction

The correct affiliation of the 1^st Author is shown in this paper.

Environmental efficiency and the role of energy innovation in emissions reduction

Environmental problems, including extreme weather phenomena, unprecedented global warming, and environmental disasters caused by increasing levels of CO₂ and other toxic emissions, along with rapidly increasing economic development and energy consumption, require global development and policies to meet sustainable development goals. The traditional data envelopment analysis (DEA) model has limited practical applicability for measuring environmental performance, as it lacks the computational capacity to deal with undesirable outputs. The current study employs "radial" and "non-radial" DEA technology, and acknowledges the associations of a mathematical foundation to increase the analytical capability of the environmental performance of DEA. Results show that in the measurement of environmental performance analysis, the non-radial DEA model has a higher discriminating power compared to radial DEA. Results show that the average values of radial and non-radial environmental performance are highest for Latin America and the Caribbean, at 0.99 and 0.96, respectively, while the former USSR has the lowest values of 0.22 and 0.32, respectively. The South Asian region shows relatively stable values of about 0.58 to 0.65, and Latin America & Caribbean countries and sub-Saharan Africa also show a stable radial environmental performance ranging from 0.82 to 1.00. These results indicate a considerable difference among the eight world regions.