Fiscal and Budgetary Policy Efforts towards Climate Change Mitigation in Romania

One of the European Union’s (EU) objectives regarding climate change is a 40% reduction in greenhouse gas emissions by 2030, ensuring that member states focus on sustainable development. The aim of this study was the comparison of a three-dimensional relationship between green taxation, environmental performance and economic growth for the time period between 1995 and 2017 in Romania and Sweden. The novelty consists of simultaneously using the double dividend theory and environmental Kuznets curve theory for Romania. The autoregressive distributed lag (ARDL) method was used for testing the cointegration relationship. The Granger causality estimation based on the ARDL-error correction model was applied to identify the causality relationship between the variables and the pairwise Granger causality test to detect the direction of causality. The implementation of the tests led to the conclusion that environmental taxes will have a significant influence on the reduction of greenhouse gas emissions in the long run in both Romania and Sweden, while in the short run, no such influence will be noticed. Also, in Romania, in the long term, there was a bidirectional causality relationship between economic growth and greenhouse gas emissions, while in Sweden, the causality relationship was from economic growth to greenhouse gas emissions.

Climate-smart livestock production at landscape level in Kenya

This article analyzes the relationship between exports and non-export GDP in the context of the Indian economy during 1981–2012. We address several overlooked aspects in the previous studies that tested the ELG hypothesis in India. The OLS-based Autoregressive Distributed Lag (ARDL) model is employed to analyze the potential long-run equilibrium relationship. Further, the Error Correction Model within the ARDL framework is applied to examine the short-run and long-run causal relationship between non-export GDP, export, and other variables. Our study indicates that (1) at the aggregate level, exports do not have any significant impact on output of the non-export sector, thereby nullifying the popular export-led growth hypothesis at the aggregate level in India; (2) When we disaggregate exports into merchandise and services exports, the latter has positive spillover effects on the non-export sector of the economy. However, the association between merchandise export and non-export GDP is statistically insignificant. Our results support the internally generated growth hypothesis whereby economic growth in India appears to have been the outcome of non-export factors such as accumulation of capital, employment, and technical progress.

Based on the importance of government expenditure in supporting economic growth in the country, the main objective of this study is to investigate the determinants of government expenditure in Cote d’Ivoire over the period 1980-2020. To achieve the objective, this study examines the effect of external debt, national income, inflation, and population on government expenditure, by using the ADF unit root test, Johansen cointegration test, Granger causality test, and CUSUM test. Results from the Johansen cointegration test indicated that there are long-run relationships among the variables. Government expenditure is positively related to external debt, national income, and population, but it is negatively related to inflation. The population has the biggest effect on government expenditure. The Granger causality test shows that there is a unidirectional short-run causality relationship running from external debt to government expenditure, but there is no evidence of any short-run causality relationship between national income, inflation, population, and government expenditure. On the other hand, there are bidirectional long-run causality relationships between inflation, population, and government expenditure, and unidirectional long-run causality relationships running from external debt and national income to government expenditure in Côte d’Ivoire. Lastly, the CUSUM test indicated that there are no structural changes in the model. The study recommends that the government should use government expenditure more efficiently in improving the infrastructure and creating an attractive investment climate, as well as upgrading the quality of human capital by improving the education system, health services, and the standard of living.

The bounds test developed by Pesaran et al. (2001) is applied to examine the existence of a long-run relationship between foreign direct investment (FDI) inflows, pollution and output of Malaysia. Granger causality tests are also utilized to test for the presence of the short-run and long-run causal relationship between these variables. Both FDI inflows and pollution have short-run causal relationship on output. Output only has long-run causal relationship on FDI inflows.

Over the last decades, all countries have pursued an ambitious climate policy, thus showing a growing concern about climate change, global warming, greenhouse gas (GHG) emissions, or environmental taxes. Water, air, and soil pollution caused by gas emissions directly affect human health, but also the economies of states. As people’s ability to adapt to novel changes becomes increasingly difficult, globally, they are constantly trying to reduce their greenhouse gas emissions in a variety of ways. Environmental taxes, in general, and energy taxes, in particular, are considered effective tools, being recommended by specialists, among other instruments used in environmental policy. The aim of this research is to assess, empirically, the influence of environmental taxes levels on greenhouse gas emissions in 28 European countries, with a time span between 1995 and 2019. Regarding the empirical research, the proposed methods are related to Autoregressive Distributed Lag (ARDL) models in panel data and also at country level. At panel level, we used the estimation of non-stationary heterogeneous panels and also the dynamic common-correlated effects model with heterogeneous coefficients over cross-sectional units and time periods. The results obtained show that the increase in environmental taxes leads, in most countries, to a decrease in greenhouse gas emissions. To test the robustness of our results, we have included supplementary economic and social control variables in the model, such as gross domestic product (GDP), population density, exports, or imports. Overall, our paper focuses on the role of environmental policy decisions on greenhouse gas emissions, the results of the study showing, in most cases, an inverse impact of the taxation level on the reduction of gas emissions.

This study investigates the determinants of agricultural output in Syria, 1980-2010. The Johansen cointegration test results indicate that agricultural outputs are positively related to the capital, food exports, expenditure and arable land, and negatively related to the oil price. Arable land has the biggest effect on agricultural outputs. The Granger causality test indicates bidirectional short-run causality relationships between capital, food exports, expenditure, arable land and agricultural outputs, and unidirectional short-run causality relationship running from oil price to agricultural outputs. There are also unidirectional long-run causality relationships moving from agricultural outputs to gross fixed capital formation of agriculture, oil price, food exports and arable land. However, there is no long-run causality relationships between final consumption expenditure and agricultural outputs. The result indicates that it is important to speed up the land reclamation process and encourage the investment in the agricultural sector.

This study attempts to investigate the effect of trade liberalization on exports and imports in Syria over the period 1980–2010. Trade openness is used as an indicator of trade liberalization. The cointegration test shows that trade openness has a positive effect on exports and imports. The Granger causality test indicates that there are bidirectional short-run causality relationships between trade openness and exports, and unidirectional short-run causality relationship running from trade openness to imports. In the long run, there is unidirectional long-run causality relationship running from exports to trade openness, and no long-run causality relationship between trade openness and imports. However, trade openness tends to have a greater effect on imports than exports.

PurposeThe objective of this study is to examine the long-run relationship between workers' remittances and economic growth in Sri Lanka using time series data spanning 1975–2021.Design/methodology/approachThis study employed both exploratory data analysis (EDA) and inferential data analysis (IDA) tools. EDA includes the scatter plots, confidence ellipse with Kernel fit, whereas IDA covers unit root test, the autoregressive distributed lag (ARDL) bounds technique, the Granger's causality test, and impulse response function (IRF) analysis.FindingsEDA confirms that workers' remittances have a positive relationship with per-capita gross domestic product (GDP). All variables used in this study are I(1). This study is exhibited that workers' remittances have a positive long-run relationship with per-capita GDP. The estimated coefficient of the error correction term shows that the dependent variable moves towards the long-run equilibrium path. Workers' remittances have a short-run and long-run causal relationship with per-capita GDP. The IRF analysis indicates that a one standard deviation shock to workers' remittances has initially an immediate significant positive impact on economic growth.Practical implicationsThis study provides insights into workers' remittances in economic growth in Sri Lanka. Further, the findings of this study also provide evidence that workers' remittances increase economic growth.Originality/valueUsing ARDL bounds test, Granger's Causality test and IRF analysis for examining the relationship between workers' remittances and economic growth are the originality of this study.

This paper examines the short and long-run relationships between Foreign Direct Investment (FDI), Trade Openness and GDP in China, India and Mexico from 1980 to 2011. Based on the properties of individual time series data, the paper estimates the VAR or VECM of the three variables to determine short and long-run causal relationships. The results confirm the existence of long-run causal relationships between the three variables for China and Mexico. The results also point to sharp differences in short-run causal relationships in the three countries and several plausible explanations consistent with the findings are offered.

This study examines the cointegration and short- and long-run causal relationships between economic growth and CO2 emissions, fuel consumption and the amount of freight transported by road transport in the Visegrad Group countries between 1990 and 2019. The autoregressive distributed lag (ARDL) bound testing methodology was used to develop the results for each tested dependent variable. The results confirmed a long-run cointegration between economic growth and fuel consumption by road transport in the Czech Republic and Slovakia. In addition, a long-run relationship between economic growth and freight volume and CO2 emissions by transport was demonstrated for Slovakia. For Poland, there was only a long-run relationship between energy consumption by road freight transport and CO2 emissions. In the short run, relationships were shown between the volume of freight transported by the road freight transport sector and CO2 emissions for Hungary and Poland. Short-run relationships between economic growth and the volume of freight transported in Poland, the Czech Republic and Hungary are also interesting observations. The obtained results expand the information resources needed to make decisions on the direction of change in road transport. Additionally, the results can be used to prepare a proper environmental policy for road freight transport within the framework of the European Green Deal.

Major US electric utility climate pledges have the potential to collectively reduce power sector emissions by one-third

ABSTRACTThe purpose of this study is to examine the dynamic relationships between foreign investments in agriculture, domestic investments in agriculture, agricultural output, and greenhouse gases emissions from agriculture for a panel of countries over the period of 1990–2007. The panel cointegration and panel causality tests are applied in this study. The results show that there is a long-run causal relationship among all variables. The short-run dynamics suggest that there is a bidirectional causality relationship between agricultural output and greenhouse gases emissions from agriculture while there is no causal relationship between foreign investments in agriculture and domestic investments in agriculture as well as foreign investments in agriculture and greenhouse gases emissions from agriculture. It is also found that there is unidirectional short-run causal relationship from agricultural output to domestic investments in agriculture. The results provide some important implications for policy-makers.

This study aims to investigate the short- and long-run relationship between the inflation rate, which has come to the fore after a long break all over the world, and the unemployment rate for the Turkish economy. For this purpose, the relationship between the two variables is analyzed using a causality test in the frequency domain, with monthly data for the period 2005:01-2023:03. The symmetric findings of the test indicate the existence of a unidirectional and short-run causal relationship from unemployment to inflation. The asymmetric findings of the test provide two important pieces of evidence. The first of these is the existence of a unidirectional and long-run causal relationship from the positive component of unemployment to the negative component of inflation. The second is the existence of a unidirectional, short- and long-run causal relationship from the negative component of unemployment to the positive component of inflation. These findings confirm the trade-off predicted by the Phillips Curve. It is also important for policymakers to try to increase productivity by making structural and institutional reforms in the labor market, as far as settling for a moderate inflation rate while struggling with inflation and unemployment problems.

It has now been more significant than ever to understand the consequences of environmental policies given the unsustainability of enduring environmental challenges. This study aims to examine the nexus between economic growth, industrialisation and the environment in the United Kingdom, using time series data for the period 1948–2018. Gross Domestic Per Capita (GDPC) is used as a proxy for economic growth, energy consumption as measures for industrialisation and carbon dioxide emissions (Co2) or environmental pollution to test if the Environmental Kuznets Curve (EKC) holds for the UK. Autoregressive distributed lag (ARDL) and vector error correction model (VECM) have been employed to investigate the long-run and short-run causal relationships among variables, respectively. The paper concludes that the EKC hypothesis holds for the UK as the long-run relationship between CO2 emissions and GDPC is found. Further, energy consumption and imports of goods are found to have insignificant effects on the environment in both the short-run and long-run. The paper further concludes that environmental policies such as limiting energy consumption and controlling carbon emissions have no unfavourable effect on the real output growth in the UK.