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.     

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.     

Trade–finance complementarity and carbon emission intensity: panel evidence from middle-income countries

This paper examines the complementarity/substitutability of international trade and financial development in the mitigation of carbon emissions for a panel sample of 62 middle-income countries from 1991 to 2010. Applying the bias-corrected LSDV estimator, the paper yields interesting results. For the full sample, international trade and financial development play an interactive and complementary role in reducing CO₂ intensity of energy use. That is, the environmental benefit of international trade is materialized only if a country has a well-developed financial market. Likewise, financial development is beneficial to the environment only in a highly open economy. Having stated these, the analysis also uncovers evidence that these results may be different across levels of income or across regions. The results bear important policy implications for the abatement of the environmental problem in the middle-income countries.     

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.     

Toward a green economy: The nexus between economic and environmental factors in MENA countries,ARDL bounds approach

With the transition of the global economy toward a green economy, it is important to analyze the elements that can either support or impede this transformation. Therefore, in this study, we aimed to evaluate the potential of the green economy in the Middle East and North Africa (MENA) countries by analyzing the correlation between economic and environmental factors. The objective of this study is to explore the potential of the green economy in MENA countries by analyzing key factors such as access to clean fuel, GDP, and CO₂ emissions. The study aims to distinguish between long- and short-term effects, assess the presence of a long-run relationship or co-integration between the parameter estimates, and evaluate the progress of MENA countries toward a green economy based on the impact of economic, and environmental factors. Using quarterly and seasonally adjusted data from 2000 to 2018, the auto-regressive distributed lag (ARDL) technique was employed to examine the co-integration of the factors in the long and short terms. Multiple cointegration techniques were also used to determine the feasibility of a green economy by analyzing the relationship between access to clean fuel for technology and cooking, GDP, and CO₂ emissions. The study's findings indicate a clear long- and short-term relationship between the analyzed factors, as confirmed by the error correction model (ECM) which suggests that the variables are cointegrated and potentially relevant. Additionally, the result of the autoregressive distributed lag bound test shows that the green economy variables, GDP, CO₂ emissions, and access to clean fuel, are cointegrated in the long-term.     

对外经济贸易对中国碳排放的影响:基于省级面板数据的实证分析

改革开放以来,我国的对外经济贸易有了显著的发展,外商直接投资和进出口的快速增长有效地推动了经济的快速发展。然而在经济发展的同时,我国碳排放水平日益提高,已成为全球最大排放国。为了更好地管控碳排放,研究外商直接投资(FDI),对外贸易与碳排放的关系具有重要意义。本文通过对我国1995—2011年29个省(市、自治区)的FDI、对外贸易对碳排放的动态效应分析发现,FDI与进出口水平的提升均有利于降低我国碳排放的水平,“污染天堂”假说在我国并未得到证实。同时,本文验证了“环境库兹涅茨曲线”在我国的存在,证实了我国的碳排放水平与人均GDP存在倒“U”型关系。     

基于产业链分析的长三角地区CO2与大气污染物排放研究

长三角地区作为我国大气污染较为严重区域之一,如何在保持经济增长的同时减少CO₂与大气污染物的排放已成为一个重要挑战。本研究基于2007年与2012年长三角区域间投入产出表,定量分析了长三角地区省市间贸易引致的二氧化碳和大气污染物排放转移特征和变化趋势。同时,运用产业关联系数法,从前向关联与后向关联双重视角分析了长三角地区减缓CO₂和大气污染物排放的关键行业。研究结果表明,长三角的SO₂、PM_2.5排放总量表现为消费端大于生产端,CO₂、NO_x排放总量表现为生产端大于消费端。安徽省总体呈现为长三角地区贸易的SO₂、NO_x与PM_2.5排放净调出地,而上海与浙江表现为多数污染物排放净调入地。CO₂与大气污染物协同前向减排的关键行业为江苏省、浙江省和安徽省的电力、热力的生产和供应业,安徽省的煤炭开采和洗选业等,可以通过生产端技术革新和能源结构优化来促进减排;CO₂与大气污染物后向协同减排的关键行业为江苏省、浙江省和安徽省的建筑业等,对于这些行业,调整消费结构是有效的减排措施。为更好地制定长三角地区减排与污染防治政策,应当综合考虑行业减排、协同减排等,以确保经济持续增长的同时达到减排目标。     

Projections of highway vehicle population,energy demand,and CO2 emissions in India to 2040

This paper presents projections of motor vehicles, oil demand, and carbon dioxide (CO₂) emissions for India through the year 2040. The populations of highway vehicles and two‐wheelers are projected under three different scenarios on the basis of economic growth and average household size in India. The results show that by 2040, the number of highway vehicles in India would be 206‐309 million. The oil demand projections for the Indian transportation sector are based on a set of nine scenarios arising out of three vehicle‐growth and three fuel‐economy scenarios. The combined effects of vehicle‐growth and fuel‐economy scenarios, together with the change in annual vehicle usage, result in a projected demand in 2040 by the transportation sector in India of 404‐719 million metric tons (8.5‐15.1 million barrels per day). The corresponding annual CO₂ emissions are projected to be 1.2‐2.2 billion metric tons.     

The Climate Value of Cycling

The reduction of CO₂ emissions constitutes one of the largest challenges of the current era. Sustainable transportation, and especially cycling, can contribute to the mitigation of CO₂ emissions since cycling possesses an intrinsic zero‐emission value. Few studies have been conducted that appraise the CO₂ reduction potential of cycling. Opportunity costs enable the estimation of avoided CO₂ emissions resulting from bicycle trips. The methodology developed in this research allows the attribution of a climate value to cycling by substituting bicycle trips with their most likely alternative transportation modes and calculating the resulting additional CO₂ emissions. The methodology uses data on the current modal shares of cycling mobility, the competition of cycling with other transportation modes, and CO₂ emission factors to calculate the climate value of cycling. When it is assumed that the avoided CO₂ emissions of cycling mobility could be traded on financial carbon markets, the climate value of cycling represents a monetary value. Application of the methodology to the case of Bogotá, Colombia — a city with a current bicycle modal share of 3.3% on a total of 10 million daily trips — results in a climate value of cycling of 55,115 tons of CO₂ per year, corresponding to an economic value of between 1 and 7 million US dollars when traded on the carbon market.     

Panel heterogeneous distribution analysis of trade and modernized agriculture on CO2 emissions: The role of renewable and fossil fuel energy consumption

In line with the global target of reducing climate change and its impact, this study explored the causal relationship between CO₂ emissions, modernized agriculture, trade openness, aggregate and disaggregate energy consumption in 14 African countries from 1990–2013 using a panel quantile estimation procedure. The empirical results showed that value addition to agricultural commodities declines CO₂ emissions in countries with high pollution levels. The study revealed a positive nexus between CO₂ emissions and energy consumption homogeneously distributed across quantiles. Trade openness was found to lower CO₂ emissions in countries with lower and higher levels of environmental pollution. While fossil fuel energy consumption was found to exacerbate CO₂ emissions, renewable energy consumption confirmed its mitigating effect on environmental pollution. The institution of climate‐smart agricultural options will sustainably increase productivity and income while adapting to climate change by reducing greenhouse gas emissions. Diversification of energy technologies with clean and modern energy sources like renewables avoid the over‐dependence on fossil fuels for agricultural purposes. Trade policies can stimulate flows of technology and investment opportunities for specialization in production and economies of scale. Hence, the consideration of policies that boost agricultural sector productivity and create an efficient market for international trade in Africa will help in improving livelihoods.     

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.     

The environmental life cycle assessment of agricultural sector in Thailand: EIO‐LCA approach

Agriculture is one of the major sectors in Thailand, with more than half of the population employed in agriculture‐related occupations. This study evaluated energy consumption and greenhouse gas (GHG) emissions of the Thai agricultural sector by applying the economic input–output life cycle assessment (EIO‐LCA) approach. The model evaluates the entire agricultural sector supply chain. Based on one million Thai baht (approximately $27,800 U.S. dollars) final demand of the rice paddy sector, the carbon dioxide (CO₂) emissions from the electricity sector are responsible for 27% (1,246 kilograms [kg] CO₂) of the total CO₂ emissions, whereas the emissions from paddy activities associated with the fertilizers and pesticides sector account for 16% (760 kg CO₂) and 11% (513 kg CO₂), respectively. The top three largest GHG emissions from the total agricultural sector supply chain are associated with the oil palm, the coffee and tea, and the fruit sectors. The government should promote and encourage sustainable agriculture by reducing the use of fertilizers and pesticides and by utilizing energy‐saving technologies.     

A disaggregated emissions inventory for Taiwan with uses in hybrid input‐output life cycle analysis (IO‐LCA)

This paper reports on a life‐cycle analysis (LCA) of Taiwan's “agriculture and forestry”, “crude petroleum, coal and natural gas extraction” and “electricity generation” sectors, revealing for the first time Taiwan's CO₂ and CH₄ emissions inventories and matching Taiwan's input‐output sectors. Integrated hybrid input‐output life cycle analysis is used to disaggregate the electricity generation sector into nuclear, hydro, gas, oil and coal, and cogeneration. Results show that the fossil‐fuel‐related electricity sub‐sectors have higher CO₂ emissions intensity than the remaining sectors in the economy and that the “paddy rice” sector is Taiwan's most CH₄‐intensive sector, making rice cultivation an important source of CH₄ emissions. This work is vital to sound policy decisions concerning power generation, coal, and agriculture and forestry at the national level.     

Toward sustainable use of natural resources: Nexus between resource rents,affluence, energy intensity and carbon emissions in developing and transition economies

Sustainable use of natural resources would entail ensuring that derived economic benefits today do not undermine the welfare of generations to come. On this basis, this study examines the nexus between natural resource rents and carbon dioxide (CO₂) emissions disaggregated into production and consumption-based (i.e., trade-adjusted) CO₂ emissions for a selected panel of 45 developing and transition economies over the period 1995–2017. The empirical model also incorporates the impacts of population, affluence, and energy intensity. The results show that affluence increases production-based CO₂ emissions by 1.407%, with the EKC's predicted inverted U-shaped curve only explaining consumption-based CO₂ emissions. Economic reliance on natural resource rents and energy intensification contribute 0.022% and 0.766%, respectively, to CO₂ emissions embedded in territorial production inventories and 0.035% and 0.583%, respectively, to CO₂ emissions embedded in consumption inventories. The bootstrap non-causality test shows that historical data on each variable has significant predictive power for future CO₂ emissions from both sources. The historical information about natural resource rents has significant predictive power over the future levels of affluence and energy intensity. Clearly, the results show that the environmental impact of natural resource rents is stronger when CO₂ emissions are adjusted for trade and varies among the countries, with Bangladesh, Guinea, India, Malaysia, Mexico, Nigeria, Pakistan, Saudi Arabia, Vietnam, and Zimbabwe among the most affected countries. Overall, this study provides motivation for policies to keep the use of natural resources within sustainable limits.     

The Environmental “Risky” Region: Identifying Land Degradation Processes Through Integration of Socio-Economic and Ecological Indicators in a Multivariate Regionalization Model

The economic policy needs to pay increasingly more attention to the environmental issues, which requires the development of methodologies able to incorporate environmental, as well as macroeconomic, goals in the design of public policies. Starting from this observation, this article proposes a methodology based upon a Simonian satisficing logic made operational with the help of goal programming (GP) models, to address the joint design of macroeconomic and environmental policies. The methodology is applied to the Spanish economy, where a joint policy is elicited, taking into consideration macroeconomic goals (economic growth, inflation, unemployment, public deficit) and environmental goals (CO₂, NO _x and SO _x emissions) within the context of a computable general equilibrium model. The results show how the government can “fine-tune” its policy according to different criteria using GP models. The resulting policies aggregate the environmental and the economic goals in different ways: maximum aggregate performance, maximum balance and a lexicographic hierarchy of the goals.     

Energy technology modelling of major carbon abatement options

The International Energy Agency Energy Technologies Perspectives (ETP) model is used to assess the prospects for carbon abatement options, including carbon capture and storage, up to 2050. Three main scenarios are considered: a Baseline scenario with current energy policies, an accelerated technology scenario that seeks to return energy-related CO₂ emissions in 2050 to their level in 2005, and a scenario for which CO₂ emissions are reduced at 50% of current levels by 2050. To reach these emissions reduction targets, annual global CO₂ emissions in the year 2050 must be reduced by 35 GtCO₂ to 48 GtCO₂ compared to the Baseline scenario. The analysis presented here shows that a broad portfolio of emissions reducing technologies will need to be deployed across all economic sectors of the global economy to reach these targets. Carbon dioxide capture and storage (CCS) is one of the suite of technologies employed across the globe to reach these targets. CCS adoption occurs in many aspects of the global economy and accounts for 14–19% of all emissions reductions. The total amount of CO₂ captured and stored in deep geologic reservoirs up to 2050 ranges between 5.1 GtCO₂ and 10.4 GtCO₂ in these two climate policy scenarios. Up to 2030, more than half of total CCS deployment takes place in OECD countries. After 2035, emerging economies account for more than half of total CCS use. This paper also demonstrates that as the climate policy becomes more stringent it will be necessary for CCS to deploy more extensively in many different industries outside of the electric power sector which often receives the most attention in discussions of CCS's role in addressing climate change.     

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.     

The impact of electric passenger transport technology under an economy-wide climate policy in the United States: Carbon dioxide emissions,coal use,and carbon dioxide capture and storage

Plug-in hybrid electric vehicles (PHEVs) have the potential to be an economic means of reducing direct (or tailpipe) carbon dioxide (CO₂) emissions from the transportation sector. However, without a climate policy that places a limit on CO₂ emissions from the electric generation sector, the net impact of widespread deployment of PHEVs on overall U.S. CO₂ emissions is not as clear. A comprehensive analysis must consider jointly the transportation and electricity sectors, along with feedbacks to the rest of the energy system. In this paper, we use the Pacific Northwest National Laboratory's MiniCAM model to perform an integrated economic analysis of the penetration of PHEVs and the resulting impact on total U.S. CO₂ emissions. In MiniCAM, the deployment of PHEVs (or any technology) is determined based on its relative economics compared to all other methods of providing fuels and energy carriers to serve passenger transportation demands. Under the assumptions used in this analysis where PHEVs obtain 50–60% of the market for passenger automobiles and light-duty trucks, the ability to deploy PHEVs under the two climate policies modelled here results in over 400 million tons (MT) CO₂ per year of additional cost-effective emissions reductions from the U.S. economy by 2050. In addition to investments in nuclear and renewables, one of the key technology options for mitigating emissions in the electric sector is CO₂ capture and storage (CCS). The additional demand for geologic CO₂ storage created by the introduction of the PHEVs is relatively modest: approximately equal to the cumulative geologic CO₂ storage demanded by two to three large 1000 megawatt (MW) coal-fired power plants using CCS over a 50-year period. The introduction of PHEVs into the U.S. transportation sector, coupled with climate policies such as those examined here, could also reduce U.S. demand for oil by 20–30% by 2050 compared to today's levels.     

Greenhouse gas emission reductions in the post-Kyoto period: Emission intensity changes required under the 'contraction and convergence' approach

Various approaches have been proposed for allocating commitments to countries regarding the mitigation of greenhouse gas emissions. One of these methods is the ‘contraction and convergence’ approach, which defines emission permits on the basis of converging per capita emissions under a contracting global emission profile. The approach is unique in its simplicity. Only two major issues need to be negotiated and agreed upon: the target atmospheric concentration of CO₂ and the date when the entitlements are to converge at equal per capita allocations. According to the contraction and convergence approach, developing countries can continue their current emission trends, whereas industrialized countries should reduce their emissions quite dramatically. This regime represents a shift away from the current approach towards defining commitments for all parties and their evolution over the long term. This article analyses how allocation schemes determined by the contraction and convergence approach might affect certain OECD and non‐OECD countries. Results for eleven countries selected for analysis (United States, United Kingdom, Germany, France, Japan, China, Venezuela, Thailand, Brazil, India and Indonesia) reveal that trends observed in the past few decades in most industrialized countries will lead to the contraction and convergence target.     

Grey relation analysis of carbon dioxide emissions from industrial production and energy uses in Taiwan

This study aims to identify key factors affecting energy-induced CO₂emission changes from 34 industries in Taiwan, in order to have an integrated understanding of the industrial environmental-economic-energy performance and to provide insights for relevant policy making in Taiwan. Grey relation analysis was used in this paper to analyse how energy-induced CO₂emissions from 34 industries in Taiwan are affected by the factors: production, total energy consumption, coal, oil, gas and electricity uses. The methodology was modified by taking account of the evolutionary direction among relevant factors. Furthermore, tests of sensitivity and stability, which are seldom discussed in most grey relation analyses, were conducted to ensure the reliability of outcomes. We found that values ranging from 0·3 to 0·5 are appropriate, and the analytical results with value of 0·5 offer moderate distinguishing effects and good stability. Results indicate that industrial production has the closest relationship with aggregate CO₂emission changes; electricity consumption the second in importance. It reveals that the economy in Taiwan relied heavily on CO₂intensive industries, and that electricity consumption had become more important for economic growth. The relational order of fuels is electricity, coal, oil then gas, accordant with their CO₂emission coefficients in Taiwan. The positive relational grade of aggregate production implies that the aggregate industrial CO₂intensity tended to decline. The total energy consumption had a smaller and negative relational grade with CO₂emissions, and implies an improvement on aggregate energy intensity, while the CO₂emission coefficient increased. For industries with significant influence on CO₂emissions, the total energy consumption had the largest relational grades. It is important to reduce the energy intensity of these industries. Nevertheless, it is also critical to decouple energy consumption and production to reduce the impacts of CO₂mitigation on economic growth.