Cross-sectional Autoregressive Distributed Lag Research Articles

Financial Development and Environmental Degradation: Promoting Low-Carbon Competitiveness in E7 Economies’ Industries

Emerging countries are approaching economic prosperity. However, the development process has enhanced their ecological footprints, thus promoting low-carbon competitiveness among E7 countries' industries. Therefore, it is essential to identify the factors that affect a country's ecological footprint (EF) in order to safeguard the environment. This study explored the effect of financial development, human capital, and institutional quality on the EF of emerging countries. Furthermore, we explored the effect of financial development on the EF of emerging countries through the human capital channel. In addition, we investigated the role of institutional quality in the financial development-EF nexus. Using panel data from 1990 to 2018, we employed the cross-sectional autoregressive distributed lag (CS-ARDL) technique to conduct a short-term and long-term empirical analysis. The empirical outcomes revealed that financial development degrades ecological quality by raising the EF. The findings further demonstrated that human capital and institutional quality reduce the EF. Moreover, financial development fosters environmental sustainability through the channel of human capital. Additionally, institutional quality reduces the negative ecological impacts of financial development. The causality analysis suggested that any policy related to financial development, human capital, and institutional quality will affect the EF. However, the inverse conclusion was not sustained. Based on these findings, emerging economies should increase their environmental sustainability by promoting human capital and effectively using financial resources.

Role of country risks and renewable energy consumption on environmental quality: Evidence from MINT countries

This study focuses on uncovering the effect of country risks and renewable energy consumption on environmental quality. In this context, the study examines Mexico, Indonesia, Nigeria, and Turkey (MINT) nations; takes economic growth, trade openness, and urbanization into account; includes data from 1990 to 2018; applies cross-sectional autoregressive distributed lag (CS-ARDL) as the main model while common correlated effects mean group (CCEMG) and augmented mean group (AMG) for robustness checks. The empirical results show that (i) economic growth, political risk, urbanization, and trade openness contribute to an increase in ecological footprint; (ii) economic and financial risks as well as renewable energy use have a positive influence on environmental quality; (iii) a unidirectional causality exists from economic risk, financial risk, political risk, economic growth, urbanization, and trade openness to the ecological footprint: (iv) the validity of the EKC hypothesis for the MINT economies is verified; (v) the robustness of CS-ARDL results are validated by CCEMG and AMG approaches. Based on these results, policymakers should promote a sustainable environment to lessen the ecological footprint. Additionally, governments should firmly support investments in green technology as well as economic and financial stability to boost energy efficiency and promote the adoption and usage of energy-saving products.

How Does Digitalization in the Economy Affect China’s CO2 Emissions: A Panel Data Analysis

Climate change is one of the most serious concerns confronting humanity today and is threatening the sustainability of life on Earth. Human activities over the years are responsible for rapidly degrading environmental sustainability, which has created unprecedented challenges. China's economic growth and carbon emissions have risen sharply during the past four decades. As part of the Paris Agreement, China has pledged to reduce emissions to combat global warming. In recent years, China's economic growth is trending in the direction of digitalization as a result of the rapid expansion of the internet and the rising prevalence of digital technologies. This paper examines whether digitalization can affect CO2 emissions and offers solutions for China's green economy. The cross-sectional autoregressive distributed lag (CS-ARDL) method is used to determine the impact of digitalization on CO2 emissions. The data on variables for 30 Chinese provinces were collected from the China Statistical Yearbook and China’s provincial statistics. Using the provincial data on China, we found that digitalization affects CO2 emissions in stages. In the beginning, digital technologies increase energy needs, which can impair ecological sustainability. In subsequent phases, digital finance may lower the threshold for financial services, making it easier for enterprises to secure financing, which affects production, technological progress, CO2 emissions, and the environment. Most of China's provinces are digitally modifying their economic structures and changing their company dynamics, which, in turn, affect the environment.

Do current and capital account liberalizations affect economic growth in the long run?

We investigate the long-run relationship between de jure trade openness and economic growth as well as between de jure financial openness and economic growth for a panel of 118 developed and developing countries in the period 1970–2017. We fit a cross-sectional autoregressive distributed lag model and unveil the positive association between both liberalizations and economic growth in the global panel and for the more developed countries. Conversely, only trade liberalization is linked with larger output growth in less developed nations. We complement these results with a long-run causality analysis, which reveals that for the whole sample and for the two subsamples both de jure trade and de jure financial openness jointly cause economic growth. These outcomes may be indicative that during the time span under scrutiny developing countries faced current account crises when they stuck to the early prescriptions of the Washington Consensus. Yet, they later adopted a more nuanced view of economic liberalism putting in place a number of capital controls, which protected them from sudden stops and capital reversals.

Green growth, governance, and green technology innovation. How effective towards SDGs in G7 countries?

In light of the technological advancement and green growth in G7 economies, this research investigates the trends in sustainable development goals (SDGs) as reflected through social and environmental dimensions. Data were collected from 2000 to 2019 with yearly observation for advanced panel estimations.The preliminary finding raises the issues of cross-sectional dependency and slope heterogeneity; thus, we have applied the cross-sectional autoregressive distributed lag(CS-ARDL) model.The long-run findings confirm that technological innovations and green growth encourage environmental sustainability. Moreover, economic growth, green technological innovations, and government effectiveness have significantly promoted social development through higher employment opportunities. Similar results are also observed in the short run; however, the influence is more substantial in the long run. These findings imply that green growth, eco-innovations, and institutional governance are core drivers of SDGs in the long run.

A Gender Differentiated Analysis of Healthy Life Expectancy in South Asia: The Role of Greenhouse Gas Emission.

The sluggish progress concerning SDG-9 and SDG 13 has made South Asia an epicentre of household and ambient greenhouse gases emissions. Furthermore, the regional progress concerning attainment of SDG-3 is considerably low. The major research objectives are twofold. First, to explore the impact of GHGs emissions from agriculture, transportation, and manufacturing sector on disaggregated life expectancy. Second, to examine the mitigating impact of renewable energy use, trade integration, and human capital development for practice policy recommendations. These research objectives are realized by employing recently advanced cross-sectional auto regressive distributed lag (CS-ARDL) model on panel data of five South Asian countries such as Bangladesh, India, Pakistan, Nepal, and Sri Lanka from 1990 to 2019. The estimation outcome reveals that the emissions from transportation, manufacturing, and agricultural sectors significantly deteriorate healthy life expectancy of male and female healthy life expectancy in South Asia with different intensity. Especially, we find that long-run impact of GHG is more profound on male healthy life expectancy than female life expectancy. The result further shows that renewable energy and human capital substantially improve healthy life expectancy, whereas the effects of trade integration are insignificant. The finding of moderating variables shows that renewable energy, human capital development, and trade integration have high potential to reduce GHGs emissions. The findings of this study urge South Asia for investments in human capital development and renewable energy along with fostering regional integration to decrease GHG and improve healthy life expectancy.

Environmental sustainability through renewable energy and banking sector development: policy implications for N-11 countries.

Climate change has become an alarming condition for developed and developing countries. The main reason for this is the use of non-renewable energy (RE) in economic sectors. Therefore, the world economies are now replacing non-renewable with RE. The role of BANKs is fundamental for this transition because they can fund clean energy projects. Several studies probed the economic growth andCO2e association and ignored the role of BANK development. Therefore, this work investigates the influences of banking sector development on CO2 emissions (CO2e) in the next eleven countries. This work included other factors of GDP, clean energy, and non-RE in the model by taking annual data from 1990 to 2020. Robust econometric techniques are used to highlight the empirical outcomes. The cross-sectional autoregressive distributed lag approach shows that BANK development is a coproduction factor toward CO2 production in the presence of economic development and renewable and nonrenewable energy. More credits from banks to the private sector are enhancing economic activity and increasing energy consumption. This means that a 1% increase in BANK development will increase CO2e by 0.01%. A 1% increase in RE is lowering CO2e by 0.31%. Therefore, this work highlights the importance of BANK development in creating sustainable development. The BANK can fund clean energy projects. Policymakers can utilize the BANK to encourage green investments in household and corporate sectors. The use of green technologies will ultimately bring a cleaner environment and sustainable development to N-11 countries. This work is helpful for policymakers in that they can utilize the banking sector to launch greener projects to attain sustainable development goals.

Real exchange rate undervaluation, regional integration and services sector performance: evidence from the East African Community

We undertake to estimate the effects of real exchange rate misalignment and regional integration on the service sector performance in selected countries from East Africa during the period of 1991–2017. The main findings, based on the traditional Pooled Mean Group ARDL technique as well as the alternative panel Cross-Sectional Autoregressive distributed lag (CS-ARDL) approach render support for an undervaluation-led services sector performance as well as the importance of regional integration in the observed linkage. Additional evidence reveals that both the monetary policy and the fiscal policy are key channels via which currency undervaluation impacts on the services sector output. The existence of non-linearities in an inverted U-shaped curve is equally confirmed in the data, where small and moderate undervaluations spur service sector performance just as large undervaluations after some threshold hinder it. Exchange rate volatility is found detrimental to the services sector in the long run. Policies that would help promote the underlying catalysts of undervaluation, curtail exchange rate volatility as well as those that promote deeper regional integration should be strengthened. Likewise, undervaluation policies would yield optimal benefits to the services sector once they are accompanied by well-calculated monetary and fiscal policies.

Sustainable Energy Supply, Finance, and Domestic Investment Nexus in West Africa

This study examines the impact of financial deepening and sustainable energy supply on domestic investment in West African countries. The data for the study range from 1990 to 2020 and were sourced from the World Development Indicator database. We used the cross-sectional autoregressive distributed lag (CS-ARDL) estimator for the analysis. Empirical findings showed that credit to the private sector significantly impacts domestic investment in West Africa. It was also revealed that access to electricity significantly impacts domestic investment in West Africa. This demonstrates that funding for the private sector and adequate power generation improve the investment in any economy. The study concludes that financial deepening has a significant impact on domestic investment. The study therefore recommends that the management of banks should be encouraged to pursue policies that will deepen the efficient allocation of financial services for domestic investment in the region.

Exploring the Impacts of Renewable Energy, Environmental Regulations, and Democracy on Ecological Footprints in the Next Eleven Nations

Economies are making environmental regulations to achieve sustainable development and mitigate environmental pollution. However, these regulations cannot provide effective results unless implemented properly. The role of the government is fundamental in this regard. In this context, this research probes the impacts of democracy, environmental regulations, renewable energy, globalization, and economic growth on ecological footprints in N-11 countries from 1990 to 2018. For statistical analysis, this work applies the cross-sectional autoregressive distributed lags (CS-ARDL) methods. This method efficiently provides robust findings for panel time series data because they counter the cross-sectional dependence and slope heterogeneity while providing the results. Moreover, augmented mean group (AMG) and fully modified ordinary least squares (FMOLS) are used to check the robustness of the findings. The results show that environmental regulation significantly mitigates ecological footprint, while economic growth escalates footprints in N-11 countries. In addition, democratic quality, renewable energy consumption, and globalization are contributing factors to environmental quality. Hence, this research presents important policy implications for the N-11 countries in that they need to enhance democratic accountability. This will assist them to launch an effective environmental policy. Effective environmental policy will assist in increasing renewable energy, which will ultimately enhance the environmental quality.

Evaluation of post COVID-19 energy poverty and global trading impact on energy affordability

Energy poverty become a serious global problem after COVID-19 among the developing and developed countries that must have to be addressed to meet United Nations Sustainable Development Goals (SDGs). Moreover, the factors contributes to energy poverty have given little attention. The study aims to overlooked on the energy affordability and accessibility among the Europeans living in Energy poverty. Therefore, study mainly concerning on the effecting factors such as bilateral commerce, globalization, and the quality of bureaucracy that possibly affect energy poverty. The influence of bilateral commerce on energy poverty was investigated using many robust panel data approaches, including cross-sectional autoregressive distributed lag (CS-ARDL), common correlated effects generalized method of moments (CCE-GMM), and instrumental variable regression. Annual data utilizes from European nations (from 2000 to 2019). According to the econometric findings, bilateral commerce enhances energy accessibility while raising energy prices. Economic globalization was meant to raise energy costs and restrict fuel access for Europe’s poorest citizens. Study suggested that bilateral trade should be assessed to ensure energy demand and supply conditions meet to keep the energy pricing in the afforadbale range especially among the low income families in the Europen countries. Across models, these results are consistent, allowing us to propose fresh energy accessibility and affordability conclusions in line with the SDGs.

The human well-being and environmental degradation nexus in Africa.

Environmental degradation continues to attract interest from academics, policymakers, and other stakeholders. However, empirical studies have been limited in the choice of human well-being indicators. Therefore, this study extends the literature by broadening the nexus between human well-being and environmental degradation in 29 African countries from 1970 to 2019. Preliminary tests adaptable to effects of cross-sectional dependency and heterogeneity in panel dataset were adopted, alongside the cross-sectional auto-regressive distributed lag model. Findings from the study showed that the adopted human well-being indicators such as globalisation, life expectancy, and human capital development were environmentally enhancing both in the short and long terms. In contrast, income growth was environmentally degrading in the short and long terms. At the same time, urbanisation was only environmentally detrimental in the long term with no significant short-term effect. Natural resource rent which served as a control variable was environmentally degrading both in the short and long terms. Consequently, this study confirms the synergy approach between the environment and human well-being and the trade-off hypothesis in African countries. Thus, African countries' general resource management policy significantly determines the impact their path to human well-being enhancement has on the environment.

RETRACTED: Natural resources environmental quality and economic development: Fresh analysis

Natural resources influence ecosystem elements that lead to environmental degradation. The introduction of the Sustainable Development Goal (SGD) has focused attention on environmental issues. As a result, this study aims to determine whether or not natural resources have a significant role in influencing ecological protection and emissions of glasshouse gases. Using a cross-sectional autoregressive distributed lags model, this study aims to determine the impact of economic recovery, natural resources, and renewable and non-renewable energy use on carbon dioxide emissions in ten European countries (Austria, France, Hungary, Ireland, Iceland, UK, Germany, Finland, Italy, Spain and Switzerland) from 2000 to 2020. These countries were selected because of their high GDPs in Europe (CS-ARDL). All countries' long-term elasticities were estimated. According to the study, using non-renewable and renewable energy leads to economic recovery in these nations. Even though natural resources constrain economic growth in countries, they also drive economic activity in such countries. Economic recovery and non-renewable energy sources increase carbon emissions, but renewable energy lowers emissions. Carbon dioxide (CO 2 ) emissions from natural resources were also factors in each panel. These locations might benefit from policies that encourage renewable energy to minimize CO 2 emissions and enhance educational systems to increase economic development. • Natural resources influence ecosystem elements that lead to environmental degradation. • The introduction of the Sustainable Development Goal (SGD) has focused attention on environmental issues. • This study aims to determine whether or not natural resources have a significant role in influencing ecological protection and emissions of glasshouse gases. • Using a cross-sectional autoregressive distributed lags model, this study aims to determine the impact of economic recovery, natural resources, and renewable and non-renewable energy use on carbon dioxide emissions in ten European countries) from 2000 to 2020. • These countries were selected because of their high GDPs in Europe (CS-ARDL). All countries' long-term elasticities were estimated. • According to the study, using non-renewable and renewable energy leads to economic recovery in these nations. • Carbon dioxide (CO 2 ) emissions from natural resources were also factors in each panel. • These locations might benefit from policies that encourage renewable energy to minimize CO 2 emissions and enhance educational systems to increase economic development.

Achieving energy security amidst the world uncertainty in newly industrialized economies: The role of technological advancement

The primary objective of this study is to scrutinize the linkage between technological advancement and energy security in the presence of global uncertainty, financial development, globalization, international cooperation in the form of trade and infrastructure for the panel set of the newly industrialized countries. This paper contributes to the empirical literatures by using robust econometric techniques and the main estimation technique employed is cross sectional autoregressive distributed lag model (CS-ARDL). A battery of robustness tests is further put to use to test the underlying model specifications. To explore the causality nexus, the [1] panel causality test is also employed. The long-run estimation results reveal that technological advancement reduces the risk associated with energy security. But world uncertainty induces energy security risk. Furthermore, financial development and globalization affect energy security risk negatively. The causality test results demonstrate bidirectional causality between financial development and energy security, international cooperation and energy security, uncertainty and financial development, international cooperation and financial development, infrastructure and financial development. The empirical outcomes from this study offer salient aspects for designing policy strategy on energy security in the newly industrialized countries against the backdrop of attainment of the sustainability goals.

Role of climate technologies, financial development, and renewable energy in the facilitation of social, economic, and environmental goals

Sustainable Development Goals are formed based on social, economic, and environmental factors, which are primarily driven by technical and financial progression. However, little is known regarding the impact of climate technologies in realizing socio-economic and environmental factors in a multivariate framework of renewable energy. Therefore, this study examines the role of climate technologies, financial development, and renewable energy in determining the social, economic, and environmental goals for top-ten developed economies in terms of human development during 2000–2019. This study adopts advanced panel estimation techniques such as cross-sectional dependence, slope heterogeneity, and cross-sectional autoregressive distributed lag (CS-ARDL) model. The findings confirm that climate technologies, financial development, and renewable energy significantly and positively contribute to human development and economic growth. Moreover, climate technologies and renewable energy help achieve environmental sustainability by reducing ecological footprints in the targeted economies. In contrast, more ecological damages have been recorded due to financial development during the study period. These findings implied that renewable energy and climate technologies are imperative to achieve social, economic, and ecological goals.

Effect of mineral resource complexity and fossil fuel consumption on economic growth: A new study based on the product complexity index from emerging Asian economies

Mineral resources can contribute to economic, energy, and climate goals by expanding critical minerals used in advanced technology. However, mineral complexity influences the sustainability of achieving these goals. In this study, we investigate the mineral complexity and fossil fuel impact on economic growth, examining 21 emerging Asian economies from 2000 to 2018 using the panel cross-sectional autoregressive distributed lag and vector autoregressive causality. The findings indicate that mineral complexity impedes economic growth in the long and short run. In contrast, foreign direct investment and capital are positively associated with long-term economic growth. The empirical outcomes showed a unidirectional causality between fossil fuels and economic growth, suggesting that fossil fuels are essential for sustainable economic growth. This study also investigates a unidirectional causality between economic growth and the exogenous variables, running from mineral complexity, foreign direct investment, and capital to economic growth. The findings suggest that mineral complexity, including supporting factors, contributes to sustainable economic growth. The findings illustrate the significance of understanding the critical minerals, global value chain, and capital for sustainable growth policies.

The eco-innovative technologies, human capital, and energy pricing: Evidence of sustainable energy transition in developed economies

A sustainable energy transition is crucial in attaining sustainable development goals (SDGs-2030). Human capital, technological innovation, and energy pricing have been used to make sustainable energy transitions in highly developed economies like the Organization of Economic Cooperation and Development (OECD). This study attempted to probe the impact of these factors on aggregated and disaggregated energy sources. For this purpose, this research work employed a dataset of all OECD nations between 1991 and 2019. The study applied to mean group (MG), dynamic fixed effect (DFE), and pooled mean group (PMG) to evaluate the short and long-run factors of these variables. In addition, the augmented mean group (AMG) and Dynamic Common Correlated Effects (DCCE) with cross-sectional Auto-Regressive Distributed Lag (CS-ARDL) were utilized to validate the long-run results' robustness. Finally, we applied panel quantiles regression (PQR). The outcomes of the empirical investigation confirm that the GDP growth rate in OECD contributes positively to renewable energy factors and negatively to non-renewable energy factors. Energy pricing, human capital, and technological innovations are the leading tools for the OECD to discourage fossil energy intake and motivate to increase green and clean energy consumption.

Energy efficiency, cleaner energy and energy related prices: evidence from dynamic generalised method of moments

Environmental degradation is one of the main concerns for the countries across the globe, where energy efficiency (E.N.E.F.) is regarded as one of the substantial remedial measures. Still, the factors affecting E.N.E.F. is not extensively explored in the empirical literature. In this sense, the current study tends to analyse the influencing factors of E.N.E.F. in case of the G7 economies throughout 1990–2020. Since this study is dealing with the panel data, therefore, various panel data specifications are used, which validates the slope heterogeneity, panel cross-section dependence (C.D.), and the existence of cointegration between E.N.E.F., economic growth, renewable energy, energy related inflation, and political risk index (P.R.I.). Due to mixed integrating order, this study employed Cross-Sectional Autoregressive Distributed Lag (C.S.-A.R.D.L.) approach, which reveals that all the variables are significant and positive factors of E.N.E.F. in both short and long-run. Also, the results reveals the convergence of model towards the equilibrium with 83.7% speed of adjustment. To tackle the panel data issues such as slope heterogeneity and C.D., this study employed Dynamic Common Correlated Effects–Generalised Method of Moment (D.C.C.E.–G.M.M.), which also indicates the positive and significance influence of the selected variables on E.N.E.F. The estimated results are validated by Augmented Mean Group (A.M.G.) estimator. Moreover, bidirectional causal nexus is found between E.N.E.F. and regressors (economic growth, renewable energy, energy related inflation, and P.R.I.). This study also provides relevant policy measures at the end.

Nexus between environmental innovation, energy efficiency and environmental sustainability in the lower-income economy

Every major event on a national or global scale influences the environment, and scientists are always looking for new solutions to decrease ecological destruction. Throughout the preceding decade, professionals offered and executed policy ideas for energy adaptation and integration, such as the use of renewable energy. Between 1980 and 2021, the study looks at the relationship between environmental innovation, energy efficiency, and institutional quality in low-income nations. Autoregressive distributed lag (ARDL), cross-sectional ARDL, and Dumitrescu-hurling models were used to investigate the empirical connection. Following the identification of the initial difference, the stationary variables were combined due to commonalities in their dynamics. The panel counteraction test revealed that long-term relationships between variables exist. Including renewable energy sources and environmental innovation improves the long-term sustainability of low-income economies. The ARLD and CS-ARDL variable coefficients have a greater effect on environmental policy when their institutions are strong, ecologically aware, and resourceful. A well-established feedback loop connects renewable energy with environmental sustainability. Institutional excellence and environmental sustainability are inextricably linked. According to the report, governments and policymakers should increase the usage of renewable energy sources and invest in environmental innovation to attain environmental sustainability.

Minerals import demands and clean energy transitions: A disaggregated analysis

Global energy transitions entangled with a paradigm shift from fossil fuel to renewable energy consumption elevates the demand for clean energy technologies, such as solar photovoltaics (PV), wind turbines, electric vehicles (EV) and power storage systems etc., which require significant volumes of minerals as raw materials. We measure the import-demand function of minerals by incorporating the role of renewable energy production capacity for selected OECD countries. We apply the cross-sectional autoregressive distributed lag (CS-ARDL) approach to analyse the panel time-series data due to common correlation, country heterogeneity, non-stationarity and potential endogeneity over the period 1990–2020. Our findings confirm that the overall renewable energy production, including installed solar and wind capacities, fosters the import demands for both the aggregate and disaggregate minerals (copper and nickel) in the long run. We also observe that the copper price elasticity of demand holds the Marshallian demand hypothesis, while the nickel price violates it in the long run. Besides, we find a heterogeneous effect of the income factor on the mineral import demand. Therefore, our findings recommend optimizing mineral resources to reinforce the global agenda of energy transitions toward a decarbonized or a net-zero emissions trajectory by the 21st century.