Steel consumption and economic growth in Korea: Long-term and short-term evidence

This paper examines the long-term and short-term causal relationships between steel consumption and economic activity in Korea between 1975 and 2008 using vector error correction and vector autoregression models. This study disaggregates steel products and steel-consuming industries because the consumption of a specific steel product is closely linked to the output of the corresponding industry. This approach can provide a clear and reliable causal relationship between variable pairs. The results show that total steel consumption and GDP have a long-term equilibrium relationship, running from GDP to total steel consumption. However, a long-term bi-directional causal relationship exists between flat products consumption and the manufacturing GDP. Flat products consumption also demonstrates the long-term relationships between steel-consuming industries, such as automobile, shipbuilding, and fabricated metal product, but causal directions are mixed, depending on variable pairs. These results imply that the reciprocal growth between these industries has contributed to the robust competitiveness of Korean manufacturing. Because Korea has maintained its export-oriented industrial policy based on manufacturing, the steel and steel-consuming industries are expected to play a significant role in economic growth far into the future.     

Steel consumption and economic activity in the UK: The integration and cointegration debate

This research examines whether a long-run stationary equilibrium relationship holds between economic activity and the consumption of crude steel within the UK. Using the theory of fractionally integrated and cointegrated processes, and allowing for the possibility that the equilibrium path changes abruptly at occasional points in time, it is possible to determine if steel consumption and economic activity follow a common stochastic trend or whether the two series randomly drift apart over time. Evidence is found to support such a long term relationship. This result is at odds with the conclusions drawn by previous researchers in the area. The reason for this difference may be due to these researchers concentrating only on I(0) and I(1) specifications, without consideration of fractional possibilities and also to a failure to account for structural breaks in the equilibrium relationship. Such conclusions are made within the framework of the ARFIMA methodology that yields reliable inferences on the degree of fractional integration and cointegration. Critical values for fractional contegration with an ARFIMA model in the presence of structural breaks are also derived in this paper.     

A cointegration and causality analysis of copper consumption and economic growth in rich countries

The paper examines the copper consumption-economic growth nexus for 16 rich economies from the period 1966 to 2010. Various generations of panel unit root and cointegration tests are applied. Both series are found to be integrated of order one. Evidence of cointegration is found especially when controlling for breaks and long-run cross-sectional dependence. Causality is investigated using a vector error-correction mechanism (VECM) framework. At individual level, unidirectional causality running from economic growth to copper consumption is unraveled for Finland, France and UK in the long-run. Unidirectional causality is also found running from copper consumption to economic growth for Spain. Long-run bi-directionality between economic growth and copper consumption is found for Belgium, Greece, Italy, Japan and South Korea. The neutrality hypothesis holds for Australia, Austria, Canada, Netherlands, Portugal, Sweden and USA in the long-run. Taken as a whole, panel causality test reveals a long-run unidirectional causality running from economic growth to copper consumption.     

Resource exploitation and cross-region growth trajectories: nonparametric estimates for Chile

As a sector of primary concern for national development strategies, mining keeps stimulating an intensive debate in Chile, regarding its role for long-term growth. Partly drawn on theoretical contributions to growth and mineral resource accounting, this analysis assesses patterns of economic growth across Chilean regions. The theoretical and methodological rationale for focusing on weak sustainability, by testing convergence across regions in a distribution dynamics perspective, is first discussed. This is followed by a brief review of policy issues and previous empirical findings of concern to Chile's mining and regional growth. Panel data over the period 1960-2001 are analysed, with growth measured in terms of both income per capita as such, and sustainable measures of this variable. Kernel density and quantile regression estimates indicate persistent bimodal (if not possibly trimodal) distribution of nationally standardised regional incomes per capita, whereby conditions for cross-region convergence are matched only within the inner range of this distribution.     

Electricity consumption and economic growth nexus in Zimbabwe revisited: fresh evidence from Maki cointegration

This study explores the relationship between electricity consumption, real gross domestic product per capita and carbon dioxide emissions in Zimbabwe. To achieve this, the study set off by examining the stationarity properties of the variables under review with the Zivot-Andrews (1992 Zivot, E., and D.W.K. Andrews. 1992. Further evidence on the great crash, the oil-price shock, and the unit-root hypothesis. Journal Of Business and Economic Statistics 10:251-270. doi: http://dx.doi.org/10.2307/1391541.[Taylor &; Francis Online], [Web of Science ®] , [Google Scholar]) unit root test that accounts for a single structural break. Subsequently, Maki (2012 Maki, Daiki. 2012. “Tests for Cointegration Allowing for an Unknown Number of Breaks.” Economic Modelling 29 (5): 2011–15. https://doi.org/10.1016/J.ECONMOD.2012.04.022 [Google Scholar]) cointegration test, which accounts for multiple structural breaks, is applied for equilibrium relationship between the variables under review while the long run regression of dynamic ordinary least square (DOLS) is employed for long-run coefficients as estimation procedures. In order to account for the direction of causality flow, the Toda-Yamamoto (1995 Toda, H Y.., and Taku Yamamoto. 1995. Statistical inference in vector autoregressions with possibly integrated processes. Journal Of Econometrics 66 (1–2):225–50. doi: 10.1016/0304-4076(94)01616-8.[Crossref], [Web of Science ®] , [Google Scholar]) causality test is used for annual frequency data set spanning from 1971–2014. Empirical evidence from the Maki cointegration test shows that there exists a long-run equilibrium relationship between electricity consumption, carbon dioxide emissions and real gross domestic product per capita over the sampled period. The long-run regression suggests that there exist a positive statistically significant relationship between real income and electricity consumption. Thus, corroborating the electricity-led growth hypothesis. This result is supported by the causality test, as one-way causality is observed running from electricity consumption to real gross domestic product. Thus, this is suggestive to government administrators and policymakers that the Zimbabwean economy is electricity dependent. However, there is a tradeoff for environmental quality. As the increase in electricity consumption increases carbon dioxide emissions. The need for diversification of Zimbabwe energy portfolio to cleaner and environmentally friendly energy sources is recommended, given the world global consciousness for cleaner energy consumption.     

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.     

Nexus between renewable energy consumption,economic growth,and CO2 emissions in Algeria: New evidence from the Fourier-Bootstrap ARDL approach

Governments often impose new energy strategies to support new CO₂ emission-reducing technologies without affecting economic growth. Hence, this study aims to re-investigate the relationship between economic growth, renewable energy use, and CO₂ emissions in Algeria from 1990 to 2018. Motivated by the mixed findings of the existing literature, which ignore the Fourier function and bootstrap test and apply the newly developed Fourier bootstrap autoregressive distributed lag model (FARDL). Our findings indicate that renewable energy use and growth have a long-run relationship with CO₂ emissions and do not accept the existence of the Environmental Kuznets Curve (EKC) hypothesis for CO₂ emissions in Algeria. In the long term, the results show that renewable energy use has a negative and significant impact, and growth has a positive and statistically significant effect on CO₂ emissions. In the short run, the findings indicate that renewable energy use reduces CO₂ emissions, while both the growth and squared growth had positive and statistically insignificant impacts on CO₂ emissions, confirming the lack of evidence supporting the EKC hypothesis. Moreover, the causality test indicates a one-way causation from growth to renewable energy use, confirming the conservation hypothesis for Algeria and from growth to CO₂ emissions. Interestingly, we found one-way causality from CO₂ emissions to renewable energy use, attributing this to the fact that renewable energy usage has yet to reach a point that it can significantly cause a CO₂ emissions reduction. Based on the results, we recommend that policymakers design appropriate policies to decarbonize energy consumption, e.g., increasing fossil fuel costs and implementing a carbon tax. In contrast, Algeria should promote new CO₂ emission-reducing technologies without affecting economic growth, e.g., tax exemptions and reductions for enterprise owners in the renewable energy industry.     

Informal coal mining in Eastern India: Evidence from the Raniganj Coalbelt

Unauthorized mines are not uncommon in mineral-rich regions of poorer countries, and India is no exception. Whether they constitute merely a law and order problem including safety issues, or there are important social and economic questions involved has yet to be thrashed out. The mining industry, at regional, national and international levels, is ambivalent towards such mining, tending to draw attention away from their informal nature to the size factor.
This article looks into the problem of such informal mining in the light of empirical surveys in eastern Indian collieries. These are called peoples' mines and they serve a significant purpose in local economies. The article's thesis is that peasant communities are trying to claim back a portion of the local resources lost to them through appropriation by mining companies thus re-asserting their traditional rights to local mineral resources. In conclusion, the need for a new moral economy for mining regions is stressed: an economy in which local communities will play a powerful role.     

The legal environmental risk analysis (LERA) sample of mining and the environment in Turkish legislation

As advancing technology and increasing demands for natural resources continue to mount pressure on the environment, environmental conservation and sustainable management have become ever more important. Individual countries have been increasingly taking action to reduce environmental destruction caused by human activities in an attempt to find a balance in between the necessary exploitation of resources and environmental conservation. In Turkey, the struggle between environmental conservation and mining activities is set within the legal context, with the requisite legal regulations (which describe various procedures) in the midst of being updated or renewed. The legal environmental risk analysis (LERA), beginning by discussing the main legal regulations of environmental conservation in relation to mining activities, defines basic environmental components which form the basis of environmental conservation in relation to mining, and analyzes the impact of mining on each component. The analysis (LERA) finishes with an evaluation of the components as they currently stand and makes some suggestions for the improvement of insufficient regulations.     

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.     

A decade of economic reforms in India: the mining sector

The aim of this paper is to review the progress made so far in liberalizing the mining sector in India and to flag important aspects that still need attention. It is argued that successful liberalisation of the mining sector is contingent upon the liberalisation of the coal sector, which is the largest mining sector and is still being effectively controlled. Only after the liberalisation of the coal sector, larger private participation could be feasible, which in turn would reduce the cost of production and improve efficiency by introducing the state of the art technologies. The liberalisation of the coal sector is also important from the point of view of growing energy needs of India.     

Clean air with economic growth: Optimization modeling

Conflicts between the goals of having clean air and economic development are widespread. This paper discusses the conceptual and mathematical development of a linear programming optimization model and an interative solution procedure to determine optimal economic development strategies to promote employment subject to various contexts which limit air pollution carrying capacity. Three cases are formulated: (1) maximizing employment subject to ambient concentration constraints, (2) maximizing employment subject to emissions constraints, and (3) minimizing emissions subject to employment constraints. Empirical relationships using Census and pollutant inventory data describe a conceptual urban system, so that indirect and induced impacts of development strategies are also included. The modeling incorporates both point and nonpoint sources, and is shown to be adaptable for nonreactive emissions.     

Commodity currencies and currency commodities

There is a large literature on the influence of commodity prices on the currencies of countries with a large commodity-based export sector, such as Australia, New Zealand, and Canada (“commodity currencies”). There is also the idea that because of pricing power, the value of currencies of certain commodity-producing countries affects commodity prices, such as metals, energy, and agricultural-based products (“currency commodities”). This paper merges these two strands of the literature to analyze the simultaneous workings of commodity and currency markets. We implement the approach by using the Kalman filter to estimate jointly the determinants of the prices of these currencies and commodities. Included in the specification is an allowance for spillovers between the two asset types. The methodology is able to determine the extent that currencies are indeed driven by commodities, or that commodities are driven by currencies, over the period 1975–2005.     

Duration and characteristics of metal price cycles

This paper addresses the fluctuations in real metal prices: are they simply random variations or do they display some degree of cyclicality? This study identifies peaks and troughs in the inflation adjusted prices for 14 metals, using monthly average data from January 1947 through December 2007. Duration dependence testing, which is performed on the expansions, contractions, and full cycles, finds many cases in which the duration of these phases are not purely random and have some degree of cyclicality. Additional characterization show that contractions generally persist longer than expansions (in contrast to macroeconomic cycles) that long-term real prices have been trendless, and that the amplitude of price changes over the phases has little regularity. For those performing this type of analysis, the appendices explain the procedures for dating turning points and assessing duration dependence.     

The crude oil market and the gold market: Evidence for cointegration,causality and price discovery

Given that the gold market and the crude oil market are the main representatives of the large commodity markets, it is of crucial practical significance to analyze their cointegration relationship and causality, and investigate their respective contribution, from the perspective of price discovery, to the common price trend so as to interpret the dynamics of the whole large commodity market and forecast the fluctuation of crude oil and gold prices.     

Computer and mobile phone waste in urban India: an analysis from the perspectives of public perception,consumption and disposal behaviour

Sustainable management of Electronic waste (E-waste) is a major challenge for contemporary India, an emerging economy burdened with both the domestic generation and illegal import of E-waste. Considering the ever-increasing complexities of E-waste in Indian cities, this paper aims to evaluate the current trends, opportunities and challenges associated with consumption of electronic items (with respect to computers and mobile phones) and disposal of E-waste in urban India. Bangalore, a city popularly known as the ‘Silicon Valley of India’, is considered as a case study in order to evaluate public awareness, household consumption and E-waste disposal behaviours. The city profile of Bangalore indicates that it has a rapidly emerging market for electronics and thus, has the potential to act as a ‘model’ for evaluating the issues concerning E-waste in metropolitan India. Questionnaires were distributed originally among 300 households with an effective response rate of 63.3%. The results indicate that the majority of households (59.3%) still retain their obsolete electronics due to lack of knowledge about proper E-waste management. High awareness about E-waste and high willingness to recycle/repair their E-waste (above 80% in both cases) are yet to be translated into responsible disposal/recycling behaviour as 95.8% of households have no knowledge about the presence of any formal recycling centre. Income, education, age and gender dimensions associated with E-waste disposal behaviour and awareness were also evaluated. Although we found no gender differences for most of the parameters, there have been some interesting correlations in age and income-wise segregation of disposal behaviour. We noted that the city of Bangalore still possesses some typical Indian socio-cultural characteristics, such as considering E-waste as ‘valuables’, changing several hands before final disposal, defying ‘brand’ or ‘looks’ consciousness, etc., which could be directed towards responsible E-waste disposal behaviours. We suggest that establishing appropriate and convenient E-waste collection/recycling facilities, ensuring responsible household disposal behaviour, implementing effective laws and legislation, and organizing mass E-waste awareness campaigns would aid in addressing the current E-waste concerns in the city.     

Environmental sustainability: Balancing pollution control with economic growth

This article will discuss in some detail how prescribed command-and-control pollution abatement and economic growth must work together rather than in opposition. How a balanced environment can and must tolerate acceptable levels of pollution and how economic growth from added value pollution prevention in unity with pollution control technology can and does work.© 1999 John Wiley & Sons, Inc.     

Non-ferrous metals and economic growth: The future demand for lead

As national economies grow, requirements for physical resources increase. This paper attempts to forecast future world demand for lead, by deriving a relationship between the amount consumed per capita and the level of economic development, and then using this to generate world demand figures based on some predictions of future economic growth. Although the rate of increase in demand for lead may decline as high levels of GDP are reached, it is nevertheless predicted that world annual demand could continue rising exponentially over the next 50 or 60 years, in the absence of constraints due to lack of physical resources or very high differential prices. This is essentially because large areas of the world will still be increasing their GDP per capita over the range where the rate of increase in demand for lead is increasing steeply.     

How renewable energy and service growth influence environmental quality: Evidence from a sustainable development perspective

The present study inspects the relationships between the carbon dioxide (CO₂) emissions, real GDP, renewable and non-renewable energy consumption, as well as the service growth for top ten countries (TTC) in service activities. The empirical modeling used in the study involves the procedures of cointegration and tests of Granger causality to inspect the dynamic interaction between the variables during the period from 1980 to 2018. The results of the present study suggest that the variables are cross-sectionally dependent. In addition, the variables appear to be cointegrated based on several tests. The long-run outcomes revealed an inversed U-shaped form between emissions-GDP proving the validity of the environmental Kuznets curve assumption. The fully modified ordinary least squares and dynamic OLS estimates show that the non-renewable energy and economic growth contribute to the increase of CO₂ emissions, while service value-added leads to decrease emissions. Furthermore, the renewable energy coefficient comes through as negative but insignificant for the selected panel. The TTC in service should stimulate the usage of renewable energy in various service events for following the path of sustainable development. Devising the investment plans associated with the use of renewable energies is quite essential for the advancement of the service sector leading to mitigating emissions portion.