Environmental Sustainability and Coal: The Role of Financial Development and Globalization in South Africa

Nima Norouzi ,Maryam Fani

doi:10.5829/ijee.2021.12.01.09

Abstract

Coal is one of the main primary energy resources in South Africa. This energy carrier is also one of the primary indicators in the energy security of the country. This paper is aimed to examine coal consumption and environmental sustainability in South Africa by examining the role of financial development and globalization phenomena using a data set gathered from 1980 to 2017. Based on this paper’s scope, ARDL Bounds, Bavaria, and the combined Hank, FMOLS, DOLS, and frequency domain tests of the causality test are used. Bayer and Hank integration tests and ARDL constraints (with Kripfganz and Schneider’s approximations) showed a common integration between this set. Findings based on ARDL short-term and long-term estimates present that economic development improves environment preservation, while economic growth and coal consumption increased environmental degradation. The frequency-domain causality test results showed that coal consumption and financial development significantly determine the environment’s stability at different frequencies.

Highlights

Coal is one of the main primary energy resources in South Africa
Findings based on ARDL short-term and long-term estimates present that economic development improves environment preservation, while economic growth and coal consumption increased environmental degradation
Model and data collection This paper examines the impact of coal demand, GDP growth, economic development, and globalization on carbon dioxide contamination in South Africa

Summary

Introduction

Coal is one of the main primary energy resources in South Africa. This energy carrier is alsoone of the primary indicators in the energy security of the country. Environmental Sustainability and Coal: The Role of Financial Development and Globalization in South Africa, Iranian (Iranica) Journal of Energy and Environment, 12(1), pp.. A s a result, South Africa’s financial development, which depends solely on South Africa’s use of financial resources to improve the country’s economic and economic growth: increase energy efficiency, improve business performance, business opportunities, investment efficiency, trade in goods and services, reducing CO2 emissions and developing technology and energy. Considering financial development, globalization, and economic growth, it remains the most important export product for its economic and economic development [11] These characteristics of South Africa’s energy sector are a compelling reason to take a new approach that examin es ARDL testing in the country and assesses GDP growth, globalization, economic improvements, and coal demand. It is important to study the role of economic growth, globalization and financial development, and coal consumption in CO2 emissions in South Africa. This study serves as a mechanism for South African stakeholders and policymakers to develop policies that maximize coal consumption and its impact on environmental sustainability in South Africa [13]

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