Unveiling the liaison between human capital,trade openness,and environmental sustainability for BRICS economies: Robust panel-data estimation

Global warming and greenhouse gas emissions pose severe threats to environmental sustainability. A sustainable environment is a prerequisite for long-term socioeconomic growth and human survival. Green technology is brought about by a country's economic and financial openness, and education provides knowledge to the public and labor, contributing to environmental sustainability. Thus, this research aims to unveil the liaison between human capital, trade openness, and environmental quality for Russia, Brazil, India, China, and South Africa (BRICS) countries from 1998 to 2018. Several econometric methods, including the Driscoll–Kraay standard errors and the Dumitrescu–Hurlin causality approaches, reveal long-run and causal relationships among the modelled indicators. The Driscoll–Kraay standard error results show that human capital is negatively related to carbon dioxide emissions (CO₂ emissions). Imposing high tariffs and excise duties, changing tax structures, discouraging the inflow of polluted commodities, and encouraging green trade can help BRICS combat high environmental pollution. The results show that a one-point increase in human capital in models 1 and 2 can reduce CO₂ emissions by 1.5279 and 0.1538 points, respectively. In contrast, a 1% growth in trade can lead to a rise in CO₂ emissions of 0.3731% and 0.2384%, respectively. Similarly, financial development and energy consumption result in high CO₂ emissions in the long run. Moreover, a feedback effect of the human capital index on CO₂ emissions is discovered. As a result of the findings, the government and responsible authorities should provide financial support and encourage investments in the region's energy-resourceful and sustainable green projects.     

How does economic complexity influence environmental degradation? New insights from African countries

This paper seeks to investigate the effect of economic complexity on environmental degradation in 20 selected African countries over the period 1991–2014. The Feasible Generalized Least Square (FGLS), and Driscoll-Kraay estimators (DK) are used to capture the objectives of the study. The results suggest that economic complexity and economic growth enhance environmental degradation. Also, natural resources rents and globalization improve environmental quality. Furthermore, the findings reject the U-shaped relationship between economic complexity and environmental degradation. In addition, the Dumitrescu-Hurlin panel causality test shows a bidirectional causal relation between economic complexity and environmental degradation. Taking into account the ecological deficit or ecological reserve status of country, it is shown that while the natural resource rents reduce environmental degradation in ecological reserve countries, they increase environmental degradation in ecological deficit countries. The results are robust when an alternative measure of economic complexity is used. Based on these findings, the paper suggests that the governments of African countries should take into account economic complexity when designing their environmental protection policies.     

Cogeneration in Developing Countries: Prospects and Problems

The analysis reveals that although cogeneration alone will not resolve power-shortage problems, it could produce more scheme in developing countries. The paper estimates the cogeneration potential in selected countries and identifies the technical, economic/financial and institutional issues of importance to cogeneration development in developing countries. The analysis reveals that although cogeneration alone will not resolve power-shortage problems, it could produce more than a 10% increase in the electricity-generation capacity in developing countries. Most of this potential is in the industrial sector and can be economically developed.     

The interest of OECD countries in ICAs and the Common Fund

This article explains that the nature of commodity price determination and the characteristics of the link between commodity prices and prices of manufactured goods are such that they have an inflationary and recessionary impact on the world economy. Subsequently, it argues that International Commodity Price Agreements (ICAs) and the Common Fund are not only in the interest of developing countries but are also in the vital interest of developed countries. They assist in stabilizing economic activities and sustaining recovery at a higher rate of growth of output and employment in these countries. Nevertheless, to be effective for these purposes, ICAs should cover a wide range of commodities and adequate financial resources should be available to the First Account of the Common Fund.     

Disaggregated energy consumption,environment, and economic growth nexus of emerging South and East Asian Countries: An ARDL approach

This study examines the nexus between disaggregated energy consumption (EC), CO₂ emissions, and economic growth in emerging South and East Asian countries over the period of 1994 to 2019. The long-run equilibrium relationship is determined by using the “Autoregressive distributed lag (ARDL) model” and the “Generalized least square (GLS) technique.” The panel causality test developed by “Dumitrescu and Hurlin, 2012” determines the direction of causation between variables. Disaggregated EC and CO₂ emissions positively affect economic growth in the research. The PMG estimate also validates the GLS findings, which produce the same results as the PMG estimation. To check the robustness, we also use FMOLS and DOLS estimators. The results confirm the feedback hypothesis for South and East Asian nations regarding energy uses, CO₂ emissions, and economic growth. In contrast, there is unidirectional causality between industrial development and economic growth. These findings will help governments in South and East Asia craft effective energy policy regulations for their financial institutions.     

The decline of environmental degradation by renewable energy consumption in the MERCOSUR countries: an approach with ARDL modeling

The impact of consumption of renewable energy on CO₂ emissions was investigated, in five MERCOSUR’s countries from 1980 to 2014. The autoregressive distributed lag (ARDL) in the form of Unrestricted Error Correction Model to decompose the total effect of variables into it is the short- and long-run components. The results of preliminary tests showed the presence of cross-sectional dependence between the variables, the stationarity of all variables in the first differences, and the homogeneity in panel data. Moreover, the specification tests pointed to the presence of cross-sectional dependence, non-correlation between the crosses, serial correlation in the panel data model, and the existence of heteroskedasticity. The results of semi-elasticities (short run) and elasticities (long run) of ARDL model pointed that the economic growth and consumption of fossil fuels increase the CO₂ emissions in the short and long run, while the consumption of renewable energy reduces them. Despite the consumption of renewable energy reducing the environmental degradation in the MERCOSUR countries, its impact is small. Finally, this study proved that the consumption of renewable energy is able to reduce the CO₂ emissions, which is responsible for the environmental degradation in the MERCOSUR countries, and that the economic growth of these same countries increases the CO₂ emissions, along with the fact that all MERCOSUR countries are highly dependent of fossil fuels.     

Impacts of foreign investment on sustainable development in a Chilean mining region

The desert mining region of Antofagasta, Chile, enjoyed spectacular economic growth in the 1990s as a result of foreign direct investment (FDI), mainly in the exploitation of the region's rich copper deposits. In a country considered by international financial institutions to be a good example of economic performance, Antofagasta has been termed a model region,and Chile's economic and social development in the 1990s has been considered a suitable model for other Latin American countries. However, development indices based on statistical data must be examined with caution, as human welfare does not necessarily keep pace with economic growth. This article analyses the Antofagasta Region in terms of problems that may occur in conjunction with accelerated economic growth, and how these can affect the environment, as well as the regional labour market. The article also examines a regional economic strategy for Antofagasta recently proposed by the local government, and suggests new alternatives for the sustainable economic development of the region.     

Taking Venezuela back to the sustainability path: The role of financial development and economic integration in low‐carbon transition

Environmental protection and sustainable development are connected. Such connection is considered highly important for Venezuela, where fossil fuel abundance has created economic and environmental challenges. Surprisingly, only limited attention has been directed to identifying policy options for charting the path to sustainable development in the economy. Contributing to filling this gap in the literature, this study examines whether financial development, de facto and de jure conditions in trade and financial integration can trigger long‐term economic shifts that will change the trajectory of carbon dioxide (CO₂) emissions in the economy using a novel estimation approach—dynamic simulations of autoregressive distributed lag (ARDL) models. The empirical modelling framework incorporates the impact of population, economic growth, energy intensity and government consumption expenditure. ARDL‐bounds test provides evidence that the variables are cointegrated. Long‐run estimates from the dynamic ARDL analysis show that de facto and de jure conditions in trade and financial components of economic integration offer varied policy options for carbon mitigation in Venezuela. Population size, energy intensity, government consumption expenditure and de facto condition in financial integration have increasing impact on CO₂ emissions, exacerbating suitability challenges in the economy. On the other hand, positive shocks in financial development, de facto condition in trade integration and de jure condition in financial integration have a mitigation effect on CO₂ emissions. Overall, financial development, trade integration and the control of cross‐border financial flows are needed economic conditions that can accelerate a quick transition to a low‐carbon develpoment in Venezuela.     

Integrated water resources planning

A water resources plan should consider the missions of various governmental units and the interests of those affected beneficially or adversely by the plan. Its development should involve many professional disciplines and should take account of institutional, economic, environmental, social and other effects. For developing countries, water resources development and management should contribute as much as possible to the amelioration of the basic problems of the human condition, while avoiding serious damage to ecological populations and environmental quality. This paper outlines what has and has not worked in the planning of water resources, based on published literature and the unpublished views of United Nations and World Bank staff, and discusses the characteristics of effective integrated water resources planning.     

Economic viability of packaging waste recycling systems: A comparison between Belgium and Portugal

The Packaging and Packaging Waste Directive has had an undeniable impact on waste management throughout the European Union. Whereas recycling and recovery targets are the same, member states still enjoy a considerable degree of freedom with respect to the practical organization and management strategies adopted. Nevertheless, in all cases, the industry (which brings packaging material onto the market) should be responsible for the costs associated with packaging waste recycling/recovery (following the extended producer responsibility principle). The current paper compares and contrasts the institutional frameworks and financial costs and benefits of waste management operators for Belgium and Portugal. The unit costs of selective collection and sorting of packaging waste are provided for both countries. In Belgium, the costs of recycling seem to be fully supported by the industry (through Fost Plus, the national Green Dot agency). In Portugal the fairness of the recycling system depends on the perspective adopted (economic or strictly financial). Adopting a strictly financial perspective, it seems that Sociedade Ponto Verde (SPV, the Portuguese Green Dot agency) should increase the transfers to local authorities. However, the conclusions differ for this country if the avoided costs with refuse collection and other treatment are taken into account.     

Drivers of agricultural sustainability in developing countries: a review

Agricultural development has been an effective instrument for poverty alleviation and economic development in developing countries over the latter half of the twentieth century, and over 80 % of rural people globally still depend on agriculture for their living. However, issues such as water availability, land degradation and an increasing dependence on chemical fertilisers and pesticides continue to be on-going threats to sustainable agricultural development. These threats are being driven by the pressing need to ensure food security in the face of rapidly growing and urbanising populations. Developing countries will therefore continue to need improved methods for planning sustainable agricultural development. This paper presents a review of agricultural sustainability assessment in developing countries. The review highlights some of the key weaknesses that persist in sustainability assessment and the need to consider not only indicators of sustainability but also the drivers that influence indicator behaviour. We argue that without a good understanding of the drivers of sustainability and their systemic relationships to indicators, sustainability assessments run the risk of focusing on symptoms without addressing underlying causes of adverse indicator trends. Drivers of agricultural sustainability in developing countries encompass a range of demographic, natural, socio-economic, political, institutional and management factors. Understanding these and their relationships to sustainability indicators is needed in order to develop agricultural development policy that supports sustainability. The paper presents a conceptual framework for guiding systemic agricultural sustainability assessment and agricultural development planning in developing countries that includes both sustainability indicators and drives, and considers the broad relationships between them.     

The channels of the effect of government expenditure on the environment: evidence using dynamic panel data

This paper explores the relationship between government spending and environmental quality using panel data for 94 countries for the period 1970–2008. We identify and estimate three distinct channels that comprise the total direct effect of government expenditure on air pollution, namely a marginal effect, an effect conditional on economic growth and an effect conditional on institutional quality. Since adjustment rate of emissions to their equilibrium level is slow due to technological and institutional reasons, we explicitly take into account dynamics by applying appropriate econometric methods. The results demonstrate that there is a significant alleviating direct effect of government expenditure on SO₂ and NO_x emissions, which increases with the level of economic growth and democracy. However, there is no evidence of a significant effect on pollutants with more global impact on the environment and human health, like N₂O and CO₂, implying that the adoption of international environmental treaties is required in this case.     

The development and application of water management sustainability indicators in Brazil and Scotland

This paper reports the formulation and application of a framework of catchment-level water resource management indicators designed to integrate environmental, economic and social aspects of sustainability. The framework of nine indicators was applied to the River Dee and River Sinos catchments in Scotland and Brazil, respectively, following an indicator selection process that involved inputs from water management professionals in both countries, and a pilot exercise in Scotland. The framework was found to capture a number of key sustainability concerns, and was broadly welcomed by water resource managers and experts as a means of better understanding sustainable water resource management. Issues relating to poor water quality and public water supply were particularly prominent in the findings for the Sinos, while findings for the Dee suggested that more attention might be focused on building institutional capacity and public participation in catchment management. The use of some proxy indicators was required in both catchments due to poor data availability, and this problem may hinder the further development of indicator frameworks that attempt to better integrate environmental, economic and social dimensions of sustainability.     

Does foreign direct investment impede forest area in Sub‐Saharan Africa?

Foreign direct investment is an engine of economic growth. However, it may affect environmental quality (improve or deteriorate it), depending on the context. Under a multivariate framework, this paper aims to investigate the relationship between foreign direct investment and deforestation for Sub‐Sahara African countries with economic growth, trade openness and urbanization as additional determinants of deforestation. The analyses reveal that all variables are non‐stationary and cointegrated based on recent panel data techniques. On applying dynamic ordinary least squares, the long‐run results suggest the validity of the pollution haven hypothesis for some countries, and that of the pollution halo hypothesis for other countries. The findings are also mixed across Sub‐Sahara African countries for trade openness and urbanization. The results from this study suggest that Sub‐Sahara African countries should continue attracting foreign direct investment, while a certain number of them should put more emphasis on controlling deforestation associated with foreign direct investment inflows to limit greenhouse gas concentrations in the atmosphere.     

Indicators for sustainable energy development in Thailand

This article examines energy priorities for Thailand from the economic, social and environmental perspectives of sustainable development. The article uses a set of indicators devised by the International Atomic Energy Agency in partnership with other international agencies and research institutes in seven countries. Thailand's energy efficiency in the 1980s and 1990s are analysed using energy intensity indicators, and possible impacts on sustainable energy development are highlighted. The early 1990s in particular was an important period for Thailand, as the country was at the height of its economic growth, and a number of energy efficiency and conservation programmes were launched. Energy intensity indicators show continuing and faster growth in energy consumption relative to economic activity. The financial crisis in the late 1990s did halt growth in energy consumption, with positive consequences on environmental emissions, but only temporarily as Thailand's economy quickly started to recover in 2000. Notwithstanding the financial crisis, the other indicators show significant progress in economic and social dimensions.     

How multilateral financial institutions promote sustainable water infrastructure planning through economic appraisal: case studies from coastal cities of China

Sustainable urban water infrastructure planning is vital for all cities in developing countries, where rapid urbanization has exacerbated the increasingly burdened environment. Water sustainability is a prerequisite for economic growth, social equity, and living quality in urban areas. This paper documents the current challenges and summarizes the solutions adopted in water infrastructure planning and management. Then, case studies of how multilateral financial institutions have promoted sustainable water infrastructure planning through economic appraisal and the novel approaches adopted for sustainable water infrastructure planning and asset management, are presented for the three cities of Jiaozhou, Cixi, and Fangchenggang. Conclusions are made based on the comparison and analysis of the experiences drawn from the case studies of how economic analysis could help promote sustainable water infrastructure planning and management. It is illustrated that economic analysis that considers ecosystem services supply should be employed more in water infrastructure planning, operation, and management in China.     

Resource abundance and financial development: Evidence from China

In this paper, we extend the debate on the resource curse by focusing on a new mechanism. Theoretically, resource abundance may have a negative influence on financial development by impacting trade openness, the demand for financial reforms, social capital accumulation and productive investments. Using provincial panel data of China, the empirical analysis confirms such a negative link between mineral resource abundance and financial development. The resource-rich regions tend to have a slower pace of financial development than resource-poor ones. Since the positive relationship between financial development and long-run growth is also confirmed by the analysis, our findings suggest that financial development constitutes an important mechanism through which resource abundance can impact economic performance.     

Developing river and lake basins for sustained economic growth and social progress

It is evident that river basin development in Africa can do much to provide environmental stability to wildly erratic hydrologic and climatic cycles, to produce more food and to contribute to economic growth. The experience to date of river basin development in Africa has not proven as positive as in many developing countries. There are too many examples of ill-conceived and ill-suited schemes that contribute to further environmental degradation, social dislocation and hardship, and weaken already stressed national economies. The experience in Africa suggests that the real challenge for Africans to achieve environmentally self-sustaining water resources development lies in establishing the appropriate social and environmental context for physical development to take place. Attention needs to focus on regional development, multi-objective planning, community participation, environmental resiliency, the institutional arrangements for regional development, and the political and economic conditions within the basin states.     

An Environmental Kuznets Curve for N2O emissions in Germany: an ARDL approach

This paper analyses the relationship between nitrous oxide (N₂O) emissions, economic growth, agricultural land used and exports in Germany. We use time‐series data between 1970 and 2012 and the Autoregressive Distributed Lag (ARDL) methodology to test for cointegration in the long run. Results show that there is a quadratic long run relationship between N₂O emissions and economic growth, confirming the existence of an Environmental Kuznets Curve (EKC) for Germany. Agricultural land area affects N₂O emissions positively, whereas exports affect emissions negatively. The turning point is $27,880, which is within the sample and implies that Germany is in the decreasing part of the curve of environmental degradation. The paper shows that, contrary to testing the EKC in less developed countries, mitigation of N₂O emissions does not negatively affect growth in Germany. As such, it is feasible to undertake any conservative policy in order to reduce emissions without major consequences on economic sectors.