Influence of tourism,governance, and foreign direct investment on energy consumption and CO2 emissions: a panel analysis of Muslim countries

The empirical linkages from tourism, governance, and FDI have been quantified on CO₂ emission and energy use over 2002–2014 for a panel of 13 Muslim countries. To this end, we have examined the data for cross-sectional dependence (CD) and panel heterogeneity and employed panel algorithms, which account for both CD and panel heterogeneity. The results from Pedroni, Westerlund, and Kao tests supported the existence of a cointegration association between the chosen variables. In the CO₂ model, we observed that tourism positively, and governance negatively, influences the CO₂ emission. However, in the case of the energy model, the results of tourism pose a negative relationship, and governance indicates a positive relationship with energy use. The results supported the pollution haven phenomenon, finance, and energy triggered pollution in the study area. Further, the research supported a two-way causality between tourism and CO₂, where there is a unilateral causality from governance to CO₂. Similarly, a unidirectional causality was obtained from energy towards tourism. Lastly, the key policy recommendations based on the outcomes of the study are encouraging clean energy investment, enhancing good governance, and sustainable tourism development for improving environmental quality.

     

Does agriculture-induced environmental Kuznets curve exist in developing countries?

Even though the economic growth and the increased agricultural production bring welfare increment, they could also load significant environmental costs to society. This study aims to investigate the existence of agriculture-induced EKC hypothesis in 47 developing countries during 1976–2017 by using dynamic panel data estimators. According to the long-run findings of the DOLS and the FMOLS estimators, there is an inverted U-shaped relationship that exists between income and the CO₂ emissions, while agricultural production has a negative impact on environmental quality. In addition, the PMG estimator is also employed for robustness check. Likewise the DOLS and the FMOLS findings, the long-run results of the PMG estimator also support the existence of agriculture-induced EKC for developing countries. The empirical findings of this study provide stimulus results of policy makers to re-consider their current production infrastructure of agricultural sector to achieve sustainable development.

     

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.

     

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.

     

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.

     

How to bend down the environmental Kuznets curve: the significance of biomass energy

Sources of renewable energy have received wide attention in the literature because of serious threats to the environment. However, some renewable resources, including biomass energy role is debatable in the energy economics literature. This empirical work focuses to analyze the role of biomass energy in carbon dioxide (CO₂) emissions using the framework of the environmental Kuznets curve (EKC) in Pakistan over the period from 1980 to 2015. The bound testing approach suggests there is cointegration among study variables. The study uses an auto-regressive distributed lag model (ARDL) with a structural break in the series. To summarize the findings of the study, it can be inferred that biomass energy increase CO₂ emissions. In addition, biomass energy helps to form a U-shaped relationship between income and CO₂ emissions that support the EKC hypothesis. Also, the feedback hypothesis is found between biomass energy and CO₂ emissions. The findings would guide policymaker with practical guidelines to formulate policies to utilize a high amount of biomass energy in a sustainable manner.

     

Testing the relationship between globalization and carbon dioxide emissions in Pakistan: does environmental Kuznets curve exist?

Over the last few decades, the atmospheric carbon dioxide emission has been amplified to a great extent in Pakistan. This amplification may cause global warming, climate change, and environmental degradation in Pakistan. Consequently, ecological condition and human life may suffer in the near future from these indicated threats. Therefore, an attempt was made to test the relationship between globalization and carbon dioxide emissions in case of Pakistan. The study covers the time series data over the period of 1975–2014. We employed modern econometric techniques such as Johansen co-integration, ARDL bound testing approach, and variance decomposition analysis. Results of the Johansen co-integration test show that there is a significant long-run relationship between carbon dioxide emissions and globalization. The long-run elasticities of the ARDL model show that a 1% increase in economic globalization, political globalization, and social globalization will increase carbon dioxide emissions by 0.38, 0.19, and 0.11%, respectively. Further, our findings reveal that the environmental Kuznets curve (EKC) hypothesis prevails an inverted U-shaped relationship between carbon dioxide emission and economic growth. Therefore, the EKC hypothesis is valid in the presence of globalization. The diagnostic test results show that the parameters of the ARDL model are credible, stable, and reliable in the current form. Finally, variance decomposition analysis displays that economic, political, and social globalization are contributing significantly to carbon dioxide emissions in Pakistan.

     

Nexus among electricity consumption,foreign direct investment and aggregate economic activity towards Nigeria’s economic performance: evidence from a trivariate causality model

It is evident that there is nexus among electricity consumption, foreign direct investment and aggregate economic activity. Unfortunately, the causal relationship among the three variables in Nigeria based on modern econometric methods, recent time-series data and ways that sufficiently cater for inflation and population growth has not been adequately investigated. This study, among other things, used a trivariate vector error correction model, autoregressive distributed lag bounds test for cointegration and Granger causality test to analyse the causal relationship among electricity consumption, foreign direct investment and aggregate economic activity based on time-series data from 1970 to 2018. The study found the presence of neutral causality between electricity consumption and aggregate economic activity in the short run as well as unidirectional causality from aggregate economic activity to electricity consumption in the long run. The study also found the presence of unidirectional causality from foreign direct investment to electricity consumption as well as neutral causality between foreign direct investment and aggregate economic activity in both the short run and the long run. It is therefore recommended that steps should be taken to adequately increase foreign direct investment and aggregate economic activity in ways that will guarantee an optimal increase in electricity consumption in Nigeria.

     

Roadmap for climate alliance economies to vision 2030: retrospect and lessons

The United Nations Climate Conference 25, held in December 2019, reached a significant agreement against implementing the Paris agreement come 2020. Bound by the contract, 189 countries who are party to the deal agreed to constrain worldwide temperature to ascend to 1.5° Celsius. To this end, the present study attempts to investigate the readiness of selected countries in the European Union to implement the agreement, which will better the quality of the global environment. In line with this, this study appraises the connection between economic growth, renewable and non-renewable energy consumption, on emissions in 11 countries in the European Union from 1990 to 2016. The study utilises the Pooled Mean Group-Auto Regressive Distributed Lag (PMG-ARDL) model estimator and Dumitrescu and Hurlin Panel Causality analysis to analyse the long-run and short-run impact and direction of causality among these factors, respectively. The long-run study's empirical results show a U-shaped Environmental Kuznets Curve (EKC) and a negative connection between renewable energy use and emissions in the EU-11 countries. In the short-run, non-renewable energy use worsens CO₂ emissions while renewable energy use leads to a fall in emissions. Similarly, causality tests show a feedback mechanism between emissions and renewable energy use and between non-renewable energy and renewable use. Also, there is unidirectional causality from income to CO₂ emissions, non-renewable energy use to CO₂ emissions. The investigation recommends an expanded proportion of renewable energy sources in the EU countries’ energy mix to cut down on emissions.

     

Testing the EKC hypothesis by considering trade openness,urbanization, and financial development: the case of Turkey

This study investigates the environmental Kuznets curve (EKC) hypothesis for the case of Turkey from 1960 to 2013 by considering energy consumption, trade, urbanization, and financial development variables. Although previous literature examines various aspects of the EKC hypothesis for the case of Turkey, our model augments the basic model with several covariates to develop a better understanding of the relationship among the variables and to refrain from omitted variable bias. The results of the bounds test and the error correction model under autoregressive distributed lag mechanism suggest long-run relationships among the variables as well as proof of the EKC and the scale effect in Turkey. A conditional Granger causality test reveals that there are causal relationships among the variables. Our findings can have policy implications including the imposition of a “polluter pays” mechanism, such as the implementation of a carbon tax for pollution trading, to raise the urban population’s awareness about the importance of adopting renewable energy and to support clean, environmentally friendly technology.     

The effects of economic growth and innovation on CO2 emissions in different regions

Economic growth and economic energy consumption have received greater attention due to its contribution to global CO₂ emissions in recent decades. The literature on CO₂ emissions and innovation for regional differences is very scanty as there is not enough study that considered different regions in a single analysis. We adopt a holistic approach by incorporating different regions so as to assess how innovation contributes to emission reduction. The study, therefore, examined the effects of innovation and economic growth on CO₂ emissions for 18 developed and developing countries over the period of 1990 to 2016. The study used panel technique capable of dealing with cross-section dependence effects: panel cross-sectional augmented Dickey-Fuller (CADF) unit root to determine the order of integration, Westerlund cointegration tests confirmed that the variables are co-integrated. We employed panel fully modified ordinary least square (FMOLS) and panel dynamic ordinary least square (DOLS) to estimate the long-run relationship. The results show that energy consumption increases CO₂ emissions at all panel levels. However, innovation reduces CO₂ emissions in G6 while it increases emissions in the MENA and the BRICS countries. Environmental Kuznets curve (EKC) hypothesis is valid for the BRICS. The pollution haven hypothesis (PHH) and pollution halo effect were confirmed at different panel levels. Based on the findings different policy recommendations are proposed.

     

The spatial spillover and threshold effect of green finance on environmental quality: evidence from China

Environmental Science and Pollution Research - Green finance is a priority for alleviating environmental degradation pressures. Based on panel data of 30 provinces in China from 2009 to 2017, this...     

Conditional effect of governance quality on the finance-environment nexus in a multivariate EKC framework: evidence from the method of moments-quantile regression with fixed-effects models

This paper investigates the mitigating effect of governance quality on the finance-environment nexus in a multivariate EKC framework in 123 selected countries during the 1990–2017 period. We mainly employ the method of moments-quantile regression (MM-QR) with the fixed-effects model, among others. First, the MM-QR estimator reveals that financial development reduces environmental quality more significantly in countries with initially higher levels (the 75^th and 90^th quantiles) of CO₂ emissions than in other countries (the 25^th and 10^th quantiles). Second, the attenuating effect of governance quality on the finance-environment nexus is more remarkable in nations with low initial levels (the 25^th and 10^th quantiles) of CO₂ emissions. Third, we find that the marginal positive effect of financial development on CO₂ emissions is smaller under a good regulatory framework than under corruption control and the rule of law, especially in the top emitters (the 75^th and 90^th quantiles). Fourth, unlike oil, which has a considerable negative impact on the environmental quality of the major emitters, renewable energy usage reduces CO₂ emissions in countries in all quantiles, primarily in the lowest quantiles. Fifth, the findings also show that urbanization dramatically worsens environmental quality in all economies, particularly those in the lowest quantiles. Finally, we confirm that the EKC hypothesis holds in all countries across different quantiles. The study’s final section discusses policy implications for sustainable development in all countries.

     

Biofuel consumption,biodiversity, and the environmental Kuznets curve: trivariate analysis in a panel of biofuel consuming countries

This study examined the relationship between biofuel consumption, forest biodiversity, and a set of national scale indicators of per capita income, foreign direct investment (FDI) inflows, trade openness, and population density with a panel data of 12 biofuels consuming countries for a period of 2000 to 2013. The study used Global Environmental Facility (GEF) biodiversity benefits index and forest biodiversity index in an environmental Kuznets curve (EKC) framework. The results confirmed an inverted U-shaped relationship between GEF biodiversity index and per capita income, while there is flat/no relationship between carbon emissions and economic growth, and between forest biodiversity and economic growth models. FDI inflows and trade openness both reduce carbon emissions while population density and biofuel consumption increase carbon emissions and decrease GEF biodiversity index. Trade openness supports to increases GEF biodiversity index while it decreases forest biodiversity index and biofuel consumption in a region.

     

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.

     

Exploring the nexus between natural resource depletion,renewable energy use,and environmental degradation in sub-Saharan Africa

Environmental Science and Pollution Research - This study explores the nexus between natural resource depletion, renewable energy use, and environmental degradation in 48 sub-Saharan...     

The role of partisan conflict in environmental sustainability targets of the United States

The prevailing political atmosphere and partisanship in the United States depict the degree of polarization between the two major political parties of the country. Evidently, the polarization between the Democratic Party (DP) and the Republican Party will expectedly drive the partisan conflict to the higher levels. Considering this motivation, this paper examined the role of partisan conflict in the pollutant emissions in the case of the United States. For sound empirical analysis, the impacts of other environmental quality determinants are being examined over the period 1960–2015. In order to present a decent argument that is viable for policy implementation, the study adopts the combined methodologies of Johansen cointegration; the autoregressive distributed lag (ARDL) of Pesaran et al. J Am Stat Assoc 94(446):621–634 (1999); and the Toda and Yamamoto J Econ 66(1–2):225–250 (1995) Granger causality. Empirical outcomes show (i) the kg oil equivalent per capita energy consumed exercise positive and significant impacts on metric tons of per capita CO2 emissions, and it is the principal determinant of environmental degradation in both the short-run and the long-run (ii) renewable energy consumption and economic growth also exercise negative and significant impacts on metric tons of per capita CO2 emissions. Based on our empirical findings, we conclude that partisan conflict indirectly plays a significant role in environmental sustainability targets of the United States. Thus, we are of the opinion that the government should avoid heightened partisan conflict among the political parties in order to promote sustainable environmental policies that would enhance sound and clean environment for both the immediate and the future generation.     

Gasoline prices and economic policy uncertainty: what causes what,and why does it matter? Evidence from 18 selected countries

In this paper, we examine asymmetric causal relationships between gasoline prices and economic policy uncertainty in a panel of 18 countries over the period 1998–2017, using the recently introduced panel causality approach of Hatemi et al (Appl Econ, 48:2301–2308, 2016) that accounts for asymmetric dynamics and is robust to both cross-sectional dependence and slope heterogeneity. Empirical findings reveal asymmetric causal relationships between gasoline prices and economic policy uncertainty in the sampled countries. Specifically, results show that economic policy uncertainty and gasoline prices have positive and negative asymmetric bidirectional causal relations in 13 countries. No feedback causality was detected between gasoline prices and economic policy uncertainty in 5 countries. Based on the results, we infer that positive and negative asymmetric causal relations exist between economic policy uncertainty and gasoline price, with attendant policy implications in sampled regions.

     

解决中国农村环境保护信息非对称性的方法探索

基于对世界银行项目——“中国乡镇工业企业环境行为研究”的子项目“乡镇工业企业污染控制报告制度研究”在江苏省丹阳市的实施过程的研究，发现污染控制报告会在乡镇环境管理中有着良好的社会效益、经济效益和环境效益，不失为一种解决农村环境保护信息非对称性的优选方法。     

Polycentric agglomeration and haze pollution: evidence from China

Polycentric agglomeration has gradually become a salient feature of rapid growth in urbanization in China. Using province-level balanced panel data over the period 2000–18, we examine the impact of polycentric agglomeration on haze pollution and its mechanism of action. The results show that the impact of polycentric agglomeration on haze pollution exhibits a significant inverted U-shaped feature. Nevertheless, except for a few provinces where polycentric agglomeration exceeds the turning point, the degree of polycentric concentration in most provinces lies to the left of the turning point. Further, a mediating effect model illustrates that industrial structure rationalization and technological progress are effective paths through which polycentric agglomeration affects haze pollution. Finally, we demonstrate that the effect of polycentric agglomeration on haze pollution is influenced by transportation and communication infrastructure; improved transportation and communication infrastructure contributes to the haze control effect of polycentric agglomeration.