Environmental Impact of Tanzania’s Economic Transition Shaped by Industrialisation, Urbanisation, Energy Consumption, and Investment

Purpose Climate change, driven by global warming, poses a significant threat to humanity and disrupts the ecological balance. In Europe, concentrations of air pollutants remain very high, and problems related to air quality and the acceleration of the phenomenon of global warming persist. As a result, carbon taxation has emerged as a key strategy to mitigate climate change. In Romania, environmental taxes are an important instrument of environmental policy as an economic instrument for environmental protection and natural resource management. Using 1990–2021 time series data and an Autoregressive Distributed Lag (ARDL) Bounds cointegration for long-run analysis and the Toda–Yamamoto test for causality analysis, we investigated whether environmental taxes, renewable energy consumption, urbanization and economic growth significantly impact CO2 emissions in Romania.Design/methodology/approachThis paper differs from the assessment of the Environmental Kuznets Curve (EKC) hypothesis (Grossman and Krueger 1991) and instead aims to determine the impact of environmental taxes, renewable energy consumption, per capita GDP and urbanization on CO2 emissions in Romania. The study investigates both short- and long-term effects, as well as Toda–Yamamoto causality linkages (Toda and Yamamoto 1995) between these variables. We adopt an ARDL estimation technique with Bound cointegration test and error correction models (Pesaran et al., 2001) to examine the short- and long-term effects.Findings The findings revealed that environmental taxes positively and significantly reduce CO2 emissions, while urbanization induces CO2 emissions, in the long run. Moreover, in the short run, environmental taxes and renewable energy consumption significantly reduce CO2 emissions while per capita GDP and urbanization significantly increase CO2 emissions. A unidirectional causality exists between renewable energy consumption and CO2 emissions. Thus, to realize its 34% target of renewable energy consumption in 2030, Romania should prioritize the implementation of the Casa Verde Plus program and enforce sustainable urban planning to meet near-zero energy standards. Consequently, the government should continue to enforce carbon taxes to promote environmental sustainability.Originality/value Empirical evidence supports the cointegration relationship between environmental taxes and CO2 emissions, with carbon taxes effectively reducing CO2 emissions and improving environmental quality (Allan et al., 2014; Polat and Polat, 2018; Kiuila et al., 2019, etc.). While existing research (Floros and Vlachou, 2005; Wissema and Dellink, 2007; Aydin and Esen, 2018; Lin and Li, 2011) primarily focuses on country-specific or regional analyses, limited research has been conducted on the impact of carbon taxation on CO2 emissions in Romania. However, to the best of our knowledge, limited research on this phenomenon in Romania exists in response to recommendations for climate change mitigation. Furthermore, urbanization has significantly contributed to rising atmospheric carbon levels and subsequent global warming and climate change (Woldu, 2021). As economic growth, particularly in countries like Romania, drives urbanization, it leads to increased energy demand, expanding urban areas and mounting environmental concerns. This process involves industrial restructuring, and the development of new infrastructure, all of which exert pressure on energy consumption and CO2 emissions (Niu and Lekse, 2018). While economic growth is a primary objective, industrialization and urbanization inevitably generate unintended consequences, including CO2 emissions. However, limited research exists on the impact of urbanization patterns on CO2 emissions in Romania. This study investigates the dynamic causal relationships among urbanization, per capita GDP, carbon taxes, renewable energy consumption and CO2 emissions, considering both short-run and long-run effects in Romania.

The role of renewable energy, fossil fuel consumption, urbanization and economic growth on CO2 emissions in China

Saudi Arabia’s Vision 2030 is closely tied to CO2 emissions and energy consumption issues. This initiative aims to modernize the country’s economy, diversify its energy sources, and enhance sustainability. This paper examines the relationships among CO2 emissions, Renewable Energy Consumption (REC), and Non-Renewable Energy Consumption (NREC) in Saudi Arabia, from 1990 to 2019. To assess the stationarity of the panel time-series data, the Augmented Dickey–Fuller (ADF) and Phillips–Perron (PP) tests were initially used. Given that the data exhibited a mixed order of integration, the Autoregressive Distributed Lag (ARDL) framework was employed. Three different lag selection criteria were applied for cointegration, using CO2 emissions as the dependent variable. Additionally, the direction and significance of causality were analyzed within the ARDL framework. Robust tests were conducted to evaluate the generalizability of the study’s findings. We demonstrated a significant long-term relationship between climate change and both REC and NREC in Saudi Arabia. The findings indicate that in the long run, a 1% increase in REC leads to a 0.21% decrease in CO2 emissions. Furthermore, a 1% increase in NREC corresponds to a substantial 53.4% reduction in CO2 emissions. Finally, policy recommendations were proposed in alignment with Saudi Arabia’s Vision 2030.

Comprising eight nations and over one-fifth of the world’s population, the South Asian Association for Regional Cooperation (SAARC) is an important bloc. Its green-economy transition relies on coordinated efforts by national and local governments, private firms, community groups, and international agencies, and is supported by renewable-energy incentives, carbon-pricing mechanisms, sustainable land-use policies, and green-finance initiatives. This study aims to identify effective strategies and policy recommendations that support economic sustainability and carbon neutrality in the SAARC region through a thorough analysis of the causal relationships between economic indicators and carbon emissions. The study utilizes the Panel cointegration tests (the Kao test and the Pedroni tests), and the Panel Autoregressive Distributed Lag (ARDL) approach to examine the interconnections between economic growth, use of renewable energy, social entrepreneurship, and carbon emission in SAARC countries. The current study aims to examine the short-term dynamics and long-term equilibrium between important variables like Gross Domestic Product (GDP), natural resources (NR), globalization index (GI), industrial structure (IS), renewable energy consumption (REC), and carbon dioxide emissions (CO₂). Our results show that a 1 percent increase in globalization raises GDP by 2.61 percent, a 1 percent increase in the sustainable development index raises GDP by 0.10 percent, and a 1 percent increase in industrial structure raises GDP by 0.56 percent. Also, a 1percent increase in natural resources causes CO₂ emissions to go up by 0.057 percent in the long term, while a 1 percent rise in globalization and industrial structure causes CO₂ emissions to go up by 0.278 percent and 0.222 percent, respectively. The results show that REC and carbon emissions are inversely related to each other, suggesting that a 1 percent increase in REC may lead to a long-term reduction in CO₂ emissions of 0.316 percent. Our findings imply that SAARC policymakers should boost REC, realign industrial structures, and implement carbon‐pricing mechanisms to drive economic growth while achieving carbon neutrality. With the help of these findings, policymakers can make informed choices that will advance sustainable development and help the SAARC nations become carbon neutral. Graphical Abstract

PurposeThis study aims to examine the impact of renewable energy consumption on agricultural productivity while accounting for the effect of financial inclusion and foreign direct investment in Brazil, Russia, India, China and South Africa (BRICS) countries during 2000–2020.Design/methodology/approachThe study has used the latest data from World Bank and International Monetary Fund databases. The dependent variable in the study is agricultural productivity. Renewable energy consumption, carbon emissions, financial inclusion and foreign direct investment are independent variables. Autoregressive distributed lag (ARDL) approach was used to examine the short-run and long-run impact of renewable energy consumption, carbon emissions, foreign direct investment and financial inclusion on agricultural productivity.FindingsThe findings imply that consumption of renewable energy, carbon emissions and foreign direct investment have a positive impact on agricultural productivity while financial inclusion in terms of access does not seem to have any significant impact on agricultural productivity. Providing farmers, access to financial services can be beneficial, but its usage holds more importance in impacting rural outcomes. The problem lies in the fact that there is still a gap between access and usage of financial services.Research limitations/implicationsPolicymakers should encourage the increase in the usage of renewable energy and become less reliant on non-renewable energy sources which will eventually help in tackling the problems associated with climate change as well as enhance agricultural productivity.Originality/valueMost of the earlier studies were based on tabular analysis without any empirical base to establish the causal relationship between determinants of agricultural productivity and renewable energy consumption. These studies were also limited to a few regions. The study is one of its kind in exploring the severity of various factors that determine agricultural productivity in the context of emerging economies like BRICS while accounting for the effect of financial inclusion and foreign direct investment.

The Environmental Kuznets Curve posits that as economies develop, environmental pressures initially increase but subsequently decrease as incomes rise and societies adopt stricter environmental policies. This study explores the impact of CO2 emissions, renewable energy consumption, employment in the agricultural sector, and trade openness on agricultural GDP in Morocco. We utilized annual data from 1990 to 2022 and employed an ARDL (Autoregressive Distributed Lag) model. The analysis reveals a significant positive long-run relationship between CO₂ emissions and agricultural GDP, indicating that higher emissions are associated with increased agricultural output. In contrast, employment does not exhibit a statistically significant long-term impact on agricultural GDP. Interestingly, renewable energy consumption shows a significant negative effect, suggesting that its current use in agriculture may not be fully efficient or adequately integrated into productive activities. In the short term, the results confirm dynamic interactions among the variables, with positive effects from both CO₂ emissions and renewable energy consumption, while employment fluctuations present mixed outcomes. These conclusions underscore the importance of policies aimed at reducing CO2 emissions, optimizing the use of renewable energies, and promoting trade to foster sustainable growth in Morocco's agricultural sector.

The balance between economic and ecological well-being has become one of the primary concerns of the governments in the world. The need to achieve sustainable growth is emphasized in the contemporary world economies and especially those that are underdeveloped. This paper investigates the dynamic impacts of the Foreign Direct Investment (FDI), economic growth (EG), the consumption of renewable energy (RE) and trade openness (TO) on the environmental degradation (CO2 emissions) in the BRICS countries (Brazil, Russia, India, China, South Africa). The analysis that will be conducted utilizes annual panel data covering the years 1995 to 2023 to implement the Panel Autoregressive Distributed Lag (ARDL) methodology to analyse the short and long-term correlation. We are all paying the opportunity cost of economic development by accelerated environmental degradation all over the world. In order to curb the devastating realities of climate change and save nature, countries need to reshape their energy usage policies through renewable energy technologies and research, thus creating sustainable development in the world. The findings show that economic growth has a significant positive impact on the increase in CO2 emissions in the long-run and the use of renewable energy has significant positive impact on the reduction of the CO2 emissions in short and long-term. The effect of Foreign Direct Investment (FDI) is dynamic, increasing emissions over the short term and decreasing them significantly over time, therefore, supporting the Pollution Halo Hypothesis in the long term. The openness to trade showed a statistically significant yet insignificant positive impact on the long-term emissions. These findings bring about the need to develop renewable energy and wisely utilize foreign direct investment coupled with green growth strategies to reduce environmental degradation as well as develop the economy of the BRICS countries.

This research investigates the relationships between CO2 emissions, the economy, renewable energy consumption, green financing, and foreign direct investment in BRICS nations from 2000 to 2019 under the effect of higher education. The stationarity of the data was evaluated using three unit root tests: ADF-Fisher, Levin, Lin, and Chin and Im, Pesaran, and Shin. The panel autoregressive distributed lag approach identified the long-run and short-run elasticities. The empirical findings demonstrate that variables cointegrate. In the long run, renewable energy, economic growth, green finance, foreign direct investment, and higher education all influence CO2 emissions; however, in the short run, only economic growth, renewable energy, and higher education influence CO2 emissions. The findings also indicate that higher education increases dramatically at the individual and societal levels, reducing CO2 emissions in the short and long term. The overall empirical study of group and economy is supported by the results of robust statistics. In light of the results, the BRICS economies are advised to collaborate for sustainable growth while preserving environmental quality. Moreover, the BRICS countries should prioritize investing in the growth of higher education and enhancing the use of renewable energy for sustainable development.

The objective of this paper is to ascertain the impact of Chinese FDI on economic growth in Pakistan. This study documents the exploration of the determinants of economic growth in Pakistan by emphasizing the significant role played by Chinese FDI and investments in renewable energy in particular. This paper employs time series data analysis to examine the relationship between GDP and Chinese FDI, inflation, trade openness, exchange rates, interest rates, remittances, and renewable energy consumption from 1990 to 2019. The study involved performing the ARDL bounds test, and it was determined that the dependent and independent variables are linked in the long term. Furthermore, the error correction model is negative and noteworthy, which checks the long-run relationship between variables. According to the findings of the autoregressive distributed lag (ARDL) model, Chinese FDI has a substantial favorable effect on Pakistan’s economic growth. Furthermore, renewable energy usage has a long-term favorable and significant association with Pakistan’s economic growth. This study established that FDI, and particularly renewable energy, will stimulate the economic growth of Pakistan. Our research has substantial policy implications, especially when it comes to the relationship between FDI and renewable energy.

This study explores the long-run relationship among the environmental footprint (EnF), renewable energy consumption, energy use, industrial growth, and urbanization in Saudi Arabia from 1990 to 2023, employing the Autoregressive Distributed Lag (ARDL) model, alongside Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), and Canonical Cointegrating Regression (CCR) for robustness checks. Results indicate a significant long-term relationship among the variables, with renewable energy adoption emerging as a crucial factor in reducing carbon emissions. The ARDL bounds test confirms the existence of cointegration, revealing the dynamic interplay among renewable energy, economic growth, and environmental sustainability. The findings show that renewable energy consumption significantly reduces the environmental footprint (CO2 emissions), supporting Saudi Arabia’s Vision 2030 goals for economic diversification and sustainable development. However, industrial expansion, while critical for economic growth, still contributes to increased emissions, underscoring the need for further investment in clean technologies. The study also highlights the role of urbanization, which, while essential for development, poses challenges for environmental sustainability. Short-term dynamics, represented by the Error Correction Model, indicate a fast adjustment speed toward equilibrium, with deviations corrected by approximately 52% each period. The study offers valuable insights for policymakers aiming to balance industrial growth with environmental protection, emphasizing the need for strategic investments in renewable energy and energy efficiency. This research contributes to the understanding of energy–economy–environment interactions in oil-rich economies, providing a foundation for future studies to explore the impact of advanced technologies and policy interventions on sustainable development

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.

An investigation into the primary causes of carbon dioxide releases in Kenya: Does renewable energy matter to reduce carbon emission?

This research examines the correlation between foreign direct investment (FDI), gross capital formation (GCF), financial development, and renewable energy consumption (REC). The research utilizes the CS-ARDL and NARDL estimates to identify a strong and statistically significant connection, both in the long-term and short-term, between Foreign Direct Investment (FDI), Gross Capital Formation (GCF), financial development, and Regional Economic Cooperation (REC). More precisely, a 10% alteration in Foreign Direct Investment (FDI) leads to a 1.545% augmentation in Research and Development Expenditure (REC) over an extended period of time, and a 0.735% boost in the immediate term. Likewise, favorable (unfavorable) advancements in foreign direct investment (FDI) hasten (diminish) the pace of economic growth in the long term. The analysis also demonstrates a strong and statistically significant relationship between GCF and REC, highlighting the advantageous impact of domestic capital creation on the integration of clean energy. Moreover, it reveals a favorable correlation between financial development and REC, indicating that the financial incentives enabled by financial development have a crucial impact on encouraging the use of renewable energy. These results are consistent with previous research and have important consequences for the connection between foreign direct investment (FDI), gross capital formation (GCF), financial development, and sustainable energy. Nonetheless, the study highlights the importance of taking into account the nature and caliber of foreign direct investment (FDI) inflows, the influence of fair and sustainable growth in the renewable energy sector on the environment and society, and the possible environmental and social consequences of renewable energy projects fueled by domestic capital expansion. Furthermore, it emphasizes the need of well-rounded policy frameworks and governance mechanisms to guarantee that foreign direct investment (FDI), green climate fund (GCF), and financial development effectively contribute to equitable and sustainable growth in the consumption of renewable energy. The study's findings offer valuable insights on how to effectively use foreign direct investment (FDI), global climate finance (GCF), and financial development to increase the use of renewable energy. However, it also emphasizes the importance of carefully evaluating the wider consequences and related factors in order to develop sustainable strategies for promoting renewable energy consumption.

The effects of stock market growth and renewable energy use on CO2 emissions: Evidence from G20 countries

This paper investigates the nexus between renewable energy use, CO2 emissions, exchange rate, and economic development within emerging South Asian nations, namely Bangladesh, India, Pakistan, and Sri Lanka, employing the Autoregressive Distributed Lag (ARDL) framework. It examines annual data spanning from 1990 to 2019, examining key indicators of renewable energy consumption, CO2 emissions, exchange rate, and economic development. The ARDL bounds test results demonstrate the existence of co-integration among the variables in the long run. The empirical result finds that the renewable energy consumption, CO2 emissions, and exchange rate have a significant impact on economic growth in Bangladesh, Pakistan, and Sri Lanka in the long run. In India no significant relationship found in the long run. In short run assessment, Bangladesh, India, and Sri Lanka also found same relationship with economic growth and renewable energy consumption, CO2 emissions, and exchange rate. Interestingly, In Pakistan no significant relationship has found in short run estimation analysis. Furthermore, study tried to determine the causality direction by using the Toda Yamamoto granger causality approach, which reveals bidirectional causation between exchange rate and CO2 emission in India. In Pakistan, study also found bi-directional causality among the variables renewable energy consumption, CO2 emissions, and economic growth. Finally, this paper emphasizes developing the policy as well as making a concrete decision regarding the renewable energy consumption, CO2 emissions, exchange rate, and economic development for ensuring sustainable economic growth in South Asian region. Future research could extend this work by including different dimensional data, additional countries, or using alternative or supplementary modeling techniques.