Does regional energy consumption disparities assist to control environmental degradation in OBOR: an entropy approach

China launched the One Belt & One Road (OBOR) initiative to minimize the energy resource shortage. The China’s nearby countries are rich in energy resources especially Middle East and North Africa (MENA) and Asian countries which make them ideal locations to cooperate with China in terms of energy resources, as 42.8% of world energy consumption belongs to OBOR countries. The present study elaborates the spatial distribution pattern of energy consumption disparities and its impact on environment. To do this, an entropy approach is utilized to compute the energy consumption inequalities in OBOR and its regions. The spatial and Pareto analysis show that MENA, East, and Southeast Asian economies have the highest degree of energy consumption inequalities, while European and Central Asian economies show the lowest energy consumption inequalities in OBOR region. The long-run estimates indicate that energy consumption inequalities enhance the CO₂ emission in OBOR and its region except South and Southeast Asia. Financial development also has a significantly positive impact on CO₂ emission in all models for OBOR and its regions except East Asia. Based on findings, the spatial distribution analysis is applicable to maintain balance in regional energy consumption inequality within OBOR and its regions.

     

Environmental quality vs economic growth in a developing economy: complements or conflicts

An increase in economic activities which leads to economic growth has been adduced as a possible factor for environmental degradation. While some other studies have argued that as economies keep growing, there are possibilities for resource redistribution which could engender environmental balance, thus engendering the argument on the conflicting-complementary position of the environment-growth nexus. In the light of this, this study uses previous activities between economic activities and the environment to determine the conflicting or complementary relationship that exists between economic growth and the environment. Also, using Nigeria as a case study, the design of environmental growth nexus to achieving sustainable development is assessed. Annual time series data between 1970 and 2014 were sourced from the World Development Indicators. Following the neoclassical perspective on ecological growth and the Kuznets inverted U-hypothesis on the environment-growth relations, stationarity test was performed, and the autoregressive distributed lag estimates were employed. From the study, it is seen that factors like rainfall that promotes environmental quality in the long run promote economic growth (per capita and GDP growth) in Nigeria. Similarly, factors like natural resource utilization, which depletes environmental quality, increases economic growth but reduces economic growth per capita; thus, with questions for development, the possibility of a complementary relationship for environmental quality and economic growth is spotted if the right policies are ensured. Also, the study found evidence of a growing conflicting relation between environmental quality (CO₂) and economic growth (per capita and GDP growth). Meanwhile, these conflicts to a great extent find expression in the Kuznets hypothesis; such that, if policies that promote income per capita reduces pollution and pursues eco-efficiency via economic growth are properly harnessed, there are the prospects of meeting up with the goals of environmental sustainability in developing economies.

     

Analysis of the mechanism of the impact of internet development on green economic growth: evidence from 269 prefecture cities in China

As the digital economy develops rapidly and the network information technology advances, new development models represented by the network economy have emerged, which have a crucial impact on green economic growth. However, the relevant previous studies lacked the role of analyzing the direct and indirect effects of internet development on green economic growth at the prefecture-level city level. For this purpose, this paper aims to examine the intrinsic mechanism of the impact of internet development on green economic growth and provide empirical support for cities and regions in China to increase internet construction. Furthermore, the mixed model (EBM), which includes both radial and non-radial distance functions, is applied to calculate the green economic growth index. Fixed effect model and mediation effect model are also employed to test influence mechanisms of the internet development on green economic growth using panel data of 269 prefecture-level cities in China from 2004 to 2019. The statistical results reveal that internet development has contributed significantly to green economic growth. When the internet development level increases by 1 unit, the green economic growth level increases by an average of 5.0372 units. However, regional heterogeneity is evident between internet development and green economic growth, that is, the promoting effect of internet development on green economic growth is gradually enhanced from the eastern region to the western region. We also find that internet development guides industrial structure upgrading improves environmental quality and accelerates enterprise innovation, which indirectly contributes to green economic growth. And internet development mainly achieves green economic growth through enterprise innovation. Based on the above findings, we concluded that policymakers should not only strengthen the guiding role of social actors to promote the stable development of the internet industry, but also foster the construction of the three models of “internet+industry integration,” “internet+environmental governance,” and “internet+enterprise innovation” to promote green economic growth.

     

Quality of institution and the FEG (forest,energy intensity,and globalization) -environment relationships in sub-Saharan Africa

The current share of sub-Saharan Africa in global carbon dioxide emissions is negligible compared to major contributors like Asia, Americas, and Europe. This trend is, however, likely to change given that both economic growth and rate of urbanization in the region are projected to be robust in the future. The current study contributes to the literature by examining both the direct and the indirect impacts of quality of institution on the environment. Specifically, we investigate whether the institutional setting in the region provides some sort of a complementary role in the environment-FEG relationships. We use the panel two-step system generalized method of moments (GMM) technique to deal with the simultaneity problem. Data consists of 43 sub-Saharan African countries. The result shows that energy inefficiency compromises environmental standards. However, the quality of the institutional setting helps moderate this negative consequences; countries with good institutions show greater prospects than countries with poor institutions. On the other hand, globalization of the region and increased forest size generate positive environmental outcomes in the region. Their impacts are, however, independent of the quality of institution. Afforestation programs, promotion of other clean energy types, and investment in energy efficiency, basic city infrastructure, and regulatory and institutional structures, are desirable policies to pursue to safeguard the environment.     

The role of innovations and renewable energy consumption in reducing environmental degradation in OECD countries: an investigation for Innovation Claudia Curve

Rising economic growth in recent ages is the primary concern of most of the countries to enhance the living standard, but the ever-increasing production of economic activities consumes a lot of energy, which leads to a sharp increase in carbon dioxide emissions. Innovation may be a remedy that can help improve energy efficiency, obtain renewable energy, and promote economic growth, thereby protecting the quality of the environment. Therefore, this paper examines the role of innovation and renewable energy consumption in CO2 reduction in OECD countries from 2004 to 2019. By using the two-step system generalized of moment estimator, the results show that economic growth and innovation significantly increase carbon emissions, however the innovation Claudia Curve (ICC) is verified, and the environmental Kuznets curve does not exist. Foreign direct investment has a negative impact on carbon emissions, thus verifying the Pollution Hao hypothesis, whereas renewable energy also improves environmental quality, but the interaction between innovation and renewable energy consumption still increases carbon emissions. Financial development, industrialization, trade, and energy consumption have also been found to be harmful factors of environmental quality. Our findings have considerable policy implications for OECD countries on the improvement of innovation indicators and investment in renewable energy sources to rise environmental quality.

     

Evaluating pollution damage function through carbon pricing,renewable energy demand,and cleaner technologies in China: blue versus green economy

Climate change and increased greenhouse gas emissions boost the global average temperature to less than 2°C, which is the estimated breakeven point. The globe is moving into blue pollution economies as the environmental sustainability objective becomes more distorted. The study looked at three United Nations Sustainable Development Goals, namely (i) affordable and clean energy; (ii) industry, innovation, and infrastructure; and (iii) climate change, to see how far the Chinese economy has progressed toward green and clean development strategy. In the context of China, the “pollution damage function” was intended to refer to carbon damages related to carbon pricing, technological variables, sustained economic growth, incoming foreign investment, and green energy. The data was collected between 1975 and 2019 and analyzed using various statistical approaches. The results of the autoregressive distributed lag model suggest that carbon taxes on industrial emissions reduce carbon damages in the short and long run. Furthermore, a rise in inbound foreign investment and renewable energy demand reduces carbon damages in the short term, proving the “pollution halo” and “green energy” hypotheses; nonetheless, the results are insufficient to explain the stated results in the long run. In the long run, technology transfers and continued economic growth are beneficial in reducing carbon damages and confirming the potential of cleaner solutions in pollution mitigation. The causal inferences show the one-way relationship running from carbon pricing and technology transfer to carbon damages, and green energy to high-technology exports in a country. The impulse response estimates suggested that carbon tax, inbound foreign investment, and technology transfers likely decrease carbon damages for the next 10 years. On the other hand, continued economic growth and inadequate green energy sources are likely to increase carbon pollution in a country. The variance decomposition analysis suggested that carbon pricing and information and communication technology exports would likely significantly influence carbon damages over time. To keep the earth’s temperature within the set threshold, the true motivation to shift from a blue to a green economy required strict environmental legislation, the use of green energy sources, and the export of cleaner technologies.

Graphical abstract

Source: Authors’ self-extract

     

Measurement of China’s green GDP and its dynamic variation based on industrial perspective

Over the previous two decades, Chinese economic development presented a rapid growth. However, with continuous industrialization and urbanization, China is confronted with great challenges of energy security and environmental issues. These problems are closely related to the current accounting method of economic growth to a certain extent. In order to meet these challenges, it is imperative to establish a green accounting system of economic growth and measure China’s green GDP and its changing trend based on the industrial perspective. Using the System of Environmental Economic Accounting (SEEA) and industry data, this paper estimates China’s green GDP and green value added by industry sectors in 2005, 2007, 2010, 2012, 2015, and 2017. The results reveal the following: First, the ratio of green GDP to traditional GDP gradually increases from 89.85 to 95.83% during 2005–2017, which means that the negative externalities of economic growth of the resource and environment are gradually weakened. Second, the difference between traditional GDP and green GDP during 2005–2017 is about 6.96%, with the carbon emissions accounting for 70.71% of environmental impact. Third, due to more than 80% of the environmental impact coming from three sectors: manufacturing (49.99%), electricity industry (22.63%), and other services (11.37%), these three sectors should be key sectors for energy conservation and emission reduction; fourth, the green GDP of the mining, electricity industries, and manufacturing accounts for the lowest proportion of GDP, which means that the development patterns of these three industries in recent years should be adjusted and optimized step by step.

     

Do renewable energies contribute to enhancing environmental quality in Eastern Africa?

East Africa has enormous renewable energy potential, but only a small portion of it has been exploited, and little is known on its role in improving environmental quality. Thus, this study empirically examines the impact of renewable energy on the environment using ecological footprint (EF; positive indicator) and CO₂ emissions (negative indicator) as proxy indicators for environmental quality in a panel of ten East African countries from 1990 to 2015. These indicators were chosen due to their potential impact in the environment. The work used the pooled mean group (PMG) as the main panel estimator to determine the impact while controlling non-renewable energy consumption, GDP per capita, and foreign direct investment (FDI). PMG has been used as it forces the long-run coefficients to be equal across all panel groups. The findings show that in the long run, there is a significant negative relationship between CO₂ emissions and renewable energy consumption, as well as a significant positive relationship (with a low impact) between EF and renewable energy consumption, suggesting that renewable energy use enhances the area’s environmental quality. Also, results indicate that non-renewable energy use degrades environmental quality in both metrics, whereas GDP degrades environmental quality through CO₂ emissions and improves environmental quality through EF. This requires East African countries to focus a higher emphasis on accessible renewable energy sources to achieve quick and sustainable economic growth and minimize environmental effects. To accomplish this, strategic policies and legislation, as well as the promotion of green technology, are required.

     

Effects of urbanization and nonrenewable energy on carbon emission in Africa

This study investigates the impact of urbanization and nonrenewable energy consumption on carbon emissions. The context of the analysis is 54 African Union countries from 1996 to 2019. For estimation, we use panel quantile regression (PQR) and fully modified ordinary least squares (FMOLS). Our regression results demonstrate that there is a positive correlation between urbanization and CO₂ emission. Further, our empirical results confirmed that nonrenewable energy consumption increases environmental pollution in African Union countries. The outcomes demonstrate the EKC hypothesis because at the initial stage of development, when economic growth increases, environmental pollution increases; after a threshold point, environmental pollution decreases as economic growth increases. It can find an inverted U-shaped relationship between economic growth and CO₂ emission. The findings also show that urbanization should be planned; otherwise, it can lead to environmental degradation in the long run. Africa continent takes strict action and builds a blueprint for efficient and effective energy production and consumption. The only solution to achieve green growth in Africa is to shift from fossil fuel energy supply to renewable energy supply.

     

“Green” economic development in China: quantile regression evidence from the Yangtze River Economic Belt

As China’s economy began transitioning from one focused on high-speed growth to one focusing on high-quality development, sustainable green development has become the main goal pursued by the government. This study empirically measures the marginal impact of per capita GDP, technological innovation level, industrial structure, openness, fiscal decentralization, and urbanization level on per capita wastewater discharge in 11 provinces (cities) along the Yangtze River Economic Belt (YREB) from 2008 to 2018 using a quantile model. The key findings were as follows: (1) factors such as the per capita GDP, industrial structure, foreign direct investment, and urbanization in the YREB significantly increased water resource pollution; (2) the quantile model regression results showed that the relationship between economic growth and ecological pollution followed the so-called environmental Kuznets inverted U-curve. Wastewater discharge per capita was low in areas with low per capita GDP, meaning that the ecological environment in these areas was more fragile and that the environmental pollution costs due to economic growth were therefore relatively much higher in these areas; (3) fiscal decentralization significantly reduced water resource pollution in relatively developed areas although the effects in the relatively developing areas were not significant; and (4) the effects of technological innovation on reducing water resource pollution in the YREB were positive but not very significant. The results also confirmed that traditional patterns of economic growth increased water pollution in the YREB. For this reason, the government needs to urgently improve policies—for example, upgrading economic structures, preventing over-urbanization, speeding up technological innovation, introducing environmentally friendly foreign investment, and providing more rewards to best practitioners of environmental governance—that is conducive to the achievement of green ecological development.

     

Does the level of renewable energy matter in the effect of economic growth on environmental pollution? New evidence from PSTR analysis

This study investigates the relationship between environmental pollution and economic growth in the context of renewable energy in OECD countries using the panel smooth transition regression (PSTR) model for 1995–2018. The study finds the value of the threshold variable, calculated as the share of renewable energy use in total energy consumption, to be 7.825%. In this context, economic growth affects the environment negatively and increases environmental pollution when the share of renewable energy use in energy consumption is below the threshold. When this share is above the threshold, it reduces environmental pollution by affecting the environment positively. In addition, the findings reveal a non-linear inverted U-shaped relationship between the environment and economic growth in the context of renewable energy, and the Environmental Kuznets Curve (EKC) hypothesis is valid. Therefore, the widespread use of renewable energy is a solution to reducing environmental pollution. Accordingly, it is very important for policymakers to both highlight and encourage renewable energy use. Furthermore, countries need to both invest in this area and focus on R&D to increase renewable energy production.

     

An analysis between financial development,institutions, and the environment: a global view

Financial development is important for the growth of a country which indirectly affects the environment adversely through industrialization. However, in the presence of strong institutions, this adverse effect can be reduced. The main concern of the present study is to estimate the relation between CO₂ and financial development (FD) in the presence of economic institutions as an interactive term. A sample of 101 countries has been selected for econometric analysis for the period from 1995 to 2017. The cross-section dependence test statistics for dependency, CIPS and CADF for panel unit root test, Westerlund test to ascertain the long-run affiliations, and FMOLS to extract the long-run coefficients have been applied. Dumitrescu and Hurlin test is also employed to know about the causal nature of the panel series. The findings show that financial development has a positive relationship with CO₂. However, after inclusion of economic intuitions, the adverse impact of financial development on the environment is reduced. The study also confirms the presence of environmental Kuznets curve in the context of income and financial development. The findings imply that financial development can help to improve environment quality if it is accompanied with strong institutional framework such as assurance of property rights, government integrity, and liberalization in financial sector.

     

Policy insight from renewable energy,foreign direct investment (FDI), and urbanization towards climate goal: insight from Indonesia

This study is premised on Indonesia’s climate goal amidst good economic performance. To test the environmental implication of this macroeconomic performance of Indonesia, we adopt Indonesian quarterly data of 1990Q1–2018Q4 for empirical analysis. Relevant instruments in the economic performance of Indonesia such as urbanization, foreign direct investment (FDI), and renewable energy source are all adopted for accurate estimations and analysis of this topic. Different approaches (structural break test, autoregressive distributed lag (ARDL)-bounds testing and Granger causality) are all adopted in this study. Our analysis and policy recommendations are based on the short-run and long-run ARDL dynamics and Granger causality. Findings from ARDL confirmed negative relationship between carbon emission and renewable energy source, FDI, and urbanization. Also, a U-shape instead of inverted U-shaped EKC is found confirming the impeding implication of Indonesian economic growth to its environmental performance if not checkmate. From Granger causality analysis, all the variables are seen transmitting to urbanization in a one-way causal relationship. Also, FDI and renewable energy prove to be essential determinants of the country’s environment development; hence, FDI is seen transmitting to both energy sources (fossil fuels and renewables) in a one-way causal relationship. Renewable energy is as well seen having two ways causal relationship with both carbon emission and fossil fuels. This result has equally exposed the significant position of the three instruments (urbanization, FDI, and renewable energy source) in Indonesian environment development.

     

Role of financial inclusion and export diversification in determining green growth: evidence from SAARC economies

This study quantifies the impact of financial inclusion and export diversification in attaining the target of green growth for SAARC economies during the period 2000 to 2019. For the analysis purpose, this study employed second-generation econometric techniques that deal with heterogeneity and cross-sectional dependence issues. To this end, CUP-FM and CUP-BC are used to investigate the long-run dynamic equilibrium relationship among the variables of interest. The outcomes show that financial inclusion and institutional quality are eco-friendly variables and play a vital role in attaining green growth. In contrast, export diversification and FDI are inversely related with green growth in SAARC economies. Furthermore, a unidirectional causality running from financial inclusion to green growth and financial inclusion to export diversification is observed. On the basis of investigated outcomes, this research suggests essential policy recommendations to attain green growth.

     

Combined role of industrialization and urbanization in determining carbon neutrality: empirical story of Pakistan

A rapid process of industrialization, on the one hand, transformed the economies from agrarian to industrial societies to improve the living standards and welfare of people. On the other hand, the urbanized and industrialized economies have posed challenging threats to environmental sustainability. The query at hand is whether the growing environmental emissions are driven by industrialization and urbanization or not. This research aims to empirically examine the combined role of industrialization and urbanization in achieving carbon neutrality in Pakistan by considering foreign direct investment and economic growth as control variables in the model. The core empirical results are the following: firstly, industrialization and economic growth exhibit negative but statistically insignificant impacts on CO₂ emissions, imparting a neutral role in determining the environmental degradation in Pakistan. Secondly, urbanization and foreign direct investment disclose positive and statistically significant (at 1% level of significance) impacts on CO₂ emissions, manifesting an environmental degradation driving impact in the country. Thirdly, given the slope coefficients of urbanization and foreign direct investment (0.058 and 0.035), urbanization proved to be a stronger driver than foreign direct investment. Finally, foreign direct investment is revealed to make the Pakistani economy a “Pollution Haven” for the foreign enterprises in the country. Based on empirical results, none of the variables predicted the support for carbon neutrality in Pakistan.

     

The application of Industry 4.0 technologies in sustainable logistics: a systematic literature review (2012–2020) to explore future research opportunities

Nowadays, the market competition becomes increasingly fierce due to diversified customer needs, stringent environmental requirements, and global competitors. One of the most important factors for companies to not only survive but also thrive in today’s competitive market is their logistics performance. This paper aims, through a systematic literature analysis of 115 papers from 2012 to 2020, at presenting quantitative insights and comprehensive overviews of the current and future research landscapes of sustainable logistics in the Industry 4.0 era. The results show that Industry 4.0 technologies provide opportunities for improving the economic efficiency, environmental performance, and social impact of logistics sectors. However, several challenges arise with this technological transformation, i.e., trade-offs among different sustainability indicators, unclear benefits, lifecycle environmental impact, inequity issues, and technology maturity. Thus, to better tackle the current research gaps, future suggestions are given to focus on the balance among different sustainability indicators through the entire lifecycle, human-centric technological transformation, system integration and digital twin, semi-autonomous transportation solutions, smart reverse logistics, and so forth.

     

Intellectual capital,financial resources,and green supply chain management as predictors of financial and environmental performance

This research examines the influence of intellectual capital on financial and environmental performance with a mediating role of green supply chain management and a moderating role of financial resources. Structural model estimation was conducted on the data set of 324 Pakistani manufacturing SMEs and showed that intellectual capital significantly encourages green supply chain management as well as significantly contributes to financial and environmental performance. Green supply chain management partially mediates the relationship between intellectual capital and performance both the financial and environmental. Financial resources significantly strengthen the relationship between intellectual capital and green supply chain management. In light of the results, we suggest that firms should encourage intellectuality among their managers and employees to adopt green practices that can improve their financial and environmental performance. In addition, it is also suggested for managers and CEOs to effectively manage financial resources that are necessary for green practices.

     

The nexus between remittances,natural resources,technological innovation,economic growth,and environmental sustainability in Pakistan

Globally, the issues about sustainable development are on the increase. Moreover, these issues are rising every day in Pakistan, as remittances are increasing, technology innovation is ambiguous, natural resources are degraded, and economic expansion might pose serious challenges to the environment. Thus, this research looks at how remittances, natural resources, technological innovation, and economic growth affect carbon dioxide (CO₂₎ emissions in Pakistan by controlling energy consumption and urbanization from 1990 to 2019. The Bayer and Hanck test of combined cointegration discloses a cointegration between remittances, natural resources, technological innovations, economic growth, and CO₂ emissions. Moreover, the autoregressive distributive lag model (ARDL) proposes a significant positive association between remittances and CO₂ emissions in the long run, indicating that the increase in remittances distresses the environmental performance of Pakistan. Our study confirms that natural resources decrease CO₂ emissions while technological advancement, economic progress, energy use, and urbanization increase CO₂ emissions. In addition, the results of robustness checks by employing fully modified ordinary least squares and dynamic ordinary least squares are parallel to the conclusions of ARDL estimations. Furthermore, the frequency causality test results show that remittances, natural resources, technological innovation, economic growth, energy use, and urbanization cause CO₂ emissions at different frequencies. Therefore, to achieve the sustainable development goals, appropriate policy repercussions can be developed toward advanced and environmentally sustainable sources of energy.

     

Do transportation taxes promote pro-environmental behaviour? An empirical investigation

The transportation sector is a crucial driver of energy intensity and environmental degradation. Therefore, we aim to explore the nexus of transportation taxes, energy intensity, and CO₂ emissions for the BICS economies. The econometric approaches, CS-ARDL and PMG-ARDL, have been employed to compute the estimates. The long-run estimates of the green transportation tax variable are negatively significant in both energy intensity and CO₂ emissions models irrespective of the estimation technique. These findings imply that green transportation taxes help reduce energy intensity and CO₂ emissions in BICS economies. Conversely, in the short-run, the effects of transportation taxes on energy intensity and CO₂ emissions are mixed and inconclusive. Hence, transportation taxes are necessary to keep the polluters under control not only from the transport sector but also serve as a deterrent for other sectors as well.

     

Promoting green economy efficiency through fiscal decentralization and environmental regulation

The paper selects the data of 30 regions in China from 2008 to 2020 as the basis to construct a theoretical analysis framework between fiscal decentralization, environmental regulation, and green economy efficiency (GEE). For empirical analysis, the study adopts super-slacks-based measure (SBM) method to measure GEE, and Tobit model is adopted to study the relationships between key constructs under investigation. The key findings of the study are as follows: (1) GEE level is at the upper middle level, and the green economic efficiency varies greatly among regions. The GEE value of the eastern region is the highest and lowest in the west, and the central region is in between. (2) From a national perspective, fiscal decentralization, environmental regulation, per capita gross domestic product (GDP), and urbanization all have a significant negative coefficient on the national GEE, inhibiting local GEE improvement. Foreign direct investment impact on GEE is not significant, but green credit has a significant positive coefficient. (3) From a regional perspective, the effects of fiscal decentralization on the green economic efficiency of western region were not significant, but the sign of coefficient found to be negative. However, in the other two regions, fiscal decentralization has a significant positive impact on GEE. Moreover, environmental regulation impact on GEE is positive in eastern region and negative in western part, and not significant in the central region; economic development can promote GEE in the central region and negative in west, but not significant in eastern region. Foreign direct investment (FDI) shows no significant impact in the eastern region but exists a significant negative impact in the other two regions. Finally, green credit has no significant impact in the central region but exists significant positive effect in the other two regions. This paper studies the green economic efficiency of undesired output, which is of great significance to my country’s future green development and the formulation of environmental regulation policies.