Cross-sectional Autoregressive Distributed Lag Research Articles

Promoting Environmental Sustainability: The Role of Renewable Energy Systems and Environmental Taxes

This study examines the effects of renewable energy consumption and environmental taxes on CO2 emissions in OECD countries from 1990 to 2022, employing the cross-sectional autoregressive distributed lag (CS-ARDL) approach. The findings reveal that both renewable energy consumption and environmental taxes significantly reduce CO2 emissions in both the short and the long term, emphasizing their crucial roles in climate change mitigation and sustainability promotion. Furthermore, this study identifies that industrialization and urbanization contribute to increased emissions, whereas foreign direct investment aids in emission reduction through the facilitation of green technology transfer. Economic growth is initially associated with higher emissions, but this trend reverses as economies mature and adopt sustainable practices. These results highlight the importance of continuous investment in renewable energy infrastructure and the implementation of robust environmental tax policies to achieve long-term sustainability goals. The integration of environmental considerations into economic and urban planning, along with leveraging foreign direct investment for technological advancements, is imperative for balancing economic growth with the necessity to reduce carbon emissions and effectively address climate change. This research provides a better understanding of the diverse factors influencing CO2 emissions and offers critical insights for policymakers.

Climate policy stringency and trade in energy transition minerals: An analysis of response patterns

Climate policies directly affect cleaner energy technology markets, affecting price signals for greener electricity production. In turn, the manufacturing of energy technologies relies heavily on mineral inputs, posing challenges in securing mineral ores and concentrates either from local mines or overseas. This paper contributes to the mineral-energy literature by examining the impact of climate change policies on the net import demand for five essential minerals used in cleaner energy technologies: copper, aluminium, nickel, cobalt, and manganese. We examined country-level panel data from 33 countries from 1992 to 2015 to understand patterns in net imports relative to renewable generation. This metric allows the examination of technological improvements that contribute to more efficient use of imported mineral inputs in renewable energy systems. Results suggest that while both net import volumes and renewable generation have increased over time, net imports per renewable generation have continuously declined on average, suggesting that nations may have efficiently utilized imported resources to generate more than proportionate increases in cleaner energy. Moreover, results from a cross-sectional autoregressive distributed lag model show that the stringency of environmental policies significantly affects net mineral imports per renewable generation, with marked variations across minerals and countries. Notably, with stricter policies, import reliance on cobalt and aluminium per renewable energy increases in the short run and eventually declines in the long run. Import reliance for copper declines per unit of renewable energy in the short run but increases in the long run. These findings emphasize the need for tailored policies to navigate mineral trade dynamics effectively. The research contributes valuable insights to the ongoing discussions surrounding sustainable energy transitions and global mineral trade patterns.

Exploring Economic Factors to Enhance the Performance of Real Estate Investment Trusts in the Eastern European Region

ABSTRACT This study explores the economic determinants that can improve the performance of real estate investment trusts (REITs) in Eastern European economies. Employing a cross-sectional autoregressive distributed lag (CS-ARDL) approach, the findings show that an improvement in dividend yield, net income, stock return, exchange rates, and size can improve the performance of REITs. However, leverage and interest rates adversely affect the performance of REITs. The study spotlights the crucial role standardized regulation can play in mitigating fragmentation in the real estate market, being capable of streamlining capital allocation and hence, offering notable advantages to REITs in smaller Eastern European states.

Achieving sustainable development in ECOWAS countries: the impact of trade openness, poverty and human capital

This study investigates the relationship among trade openness, poverty, and human capital development in the pursuit of sustainable development across a panel of ten ECOWAS economies over a 34-year period (1987–2020). Specifically, it examines the roles of trade openness, poverty, and human capital development in sustainable development, while also exploring the moderating role of trade openness on the poverty-sustainable development relationship within the ECOWAS region. To conduct this analysis, the study employs panel autoregressive distributed lag (ARDL) using both the Pool Mean Group (PMG) estimator and Cross-Sectional Autoregressive Distributed Lag (CS-ARDL) techniques, taking into account cross-sectional dependence, cointegration, and other relevant diagnostic tests. The findings indicate that poverty has a consistent negative long-run impact on sustainable development, while human capital is positively associated with sustainability over the long term. Trade openness lacks a significant relationship with sustainability in both the short and long run. Inflation is insignificantly related to sustainability. Exchange rates demonstrate mixed effects. In terms of moderation, trade openness positively and significantly moderates the poverty-sustainability relationship in the long run but not the short run. Robustness testing using the AMG and P-OLS models further validates the significant positive impact of human capital and the insignificant effect of trade openness on sustainable development. Given poverty’s significant negative association and human capital’s positive link with sustainable development, the findings suggest the need for integrated policy mixes prioritizing multidimensional poverty reduction and human capability enhancement to promote sustainability objectives across both short- and long-term horizons in ECOWAS countries. Furthermore, prudent management of exchange rates and well-designed trade policies should complement these efforts to mitigate potential risks and harness any benefits for sustainability.

Economic Growth Through Tourism: A Global Analysis Using CS-ARDL Approach

This paper examines the effects of tourism receipts and governance on economic growth in a panel of 103 countries. The short-run results of the Cross-Sectional Autoregressive Distributed Lag (CS-ARDL) model, indicate that labour force and fixed capital positively impact on economic growth, highlighting the significance of investing in infrastructure and maintaining a vibrant workforce. The validity of the Tourism-Led Growth (TLG) theory in the short and as well as in the long-run has been proved by a robust and significant positive connection between tourism receipts and GDP growth. Surprisingly, the presence of mobile cellular subscriptions (ICT) in the model does not affect economic growth significantly, indicating the possibility of reaching a point of technical saturation. Trade has a substantial influence on short-term GDP growth, while the role of governance in economic development is complex and might depend on contextual settings. The results indicate that attraction of worldwide tourists can substantially impact economic growth. Further research should investigate the time-based and regional aspects of these connections to improve our comprehension of the dynamics of economic growth.

Do circular economy, renewable energy, industrialization, and globalization influence environmental indicators in belt and road initiative countries?

This paper is the first comprehensive research to examine the effect of circular economy on environment employing two environmental degradation indicators (CO2 emissions, ecological footprint) and one environmental quality indicator (load capacity factor) for 57 Belt and Road Initiative (BRI) countries during 2000-2019. The effect of other variables such as renewable energy, industrialization, and globalization was also controlled. The study applied the cross-sectional autoregressive distributed lag method (CS-ARDL), the augmented mean group (AMG), and common correlated effects mean group (CCEMG) methods as a robustness checks. The empirical findings reveal that circular economy and renewable energy have pro-environmental effects by decreasing carbon emissions and ecological footprint and increasing the load capacity factor in BRI countries. However, industrialization and globalization have detrimental effects on the environment. The result of causality shows a bidirectional causality between renewable energy, circular economy, industrialization, and three environmental indicators, but the relationship of globalization with CO2 emissions and the load capacity factor is unidirectional and with the ecological footprint is bidirectional. All the results are confirmed by the robustness tests. The study suggests policy implications for the BRI government.

Effects of Women Education on Child Labor in South Asia

Lack of education and poverty are major factors contributing to child labor. A crucial component of economic and social growth is education of the society. This study contribution looks at how educating women affect child labor in South Asia. It used yearly data from 1990 to 2020. The Cross-Sectional Autoregressive Distributed Lag (CS-ARDL) model use for short run and long run predictions. The significant impact of female education on reducing child labor, emphasizes the significance of participating in girls' education. Policies aimed at enhancing access to and quality of education for girls can help mitigate child labor by authorizing women and breaking poverty cycle. Development of Urban strategies must rank the providing of education, health and social security facilities to the residents of urban areas.

Environmental policy stringency and ecological footprint linkage: Mitigation measures of renewable energy and innovation

We scrutinize the environmental policies' efficacy in reducing ecological footprint by interweaving two other vibrant parameters of environmental degradation mitigation, i.e., renewable energy sources and innovation. To this end, we apply a Cross-Sectional Autoregressive Distributed Lags (CS-ARDL) approach to analyze panel time-series data (1990–2018) in the context of OECD countries. Our analysis shows that environmental policy significantly reduces ecological footprint through renewable energy and innovation channels. Our findings also support the idea that environmental policy's effectiveness is conditional on countries' bio-capacity surplus/deficit and the level of industrialization. The overall findings hold up well in the presence of cross-sectional dependence, short-run heterogeneity, and long-run homogeneity under the respective sample. Our findings underscore the need for more stringent environmental policies, supported by technological advancements and clean energy initiatives, to mitigate the impact of human economic activities on natural resources.

Role of collaborative governance in unlocking private investment in sustainable projects

This scholarly investigation scrutinizes the involvement of the private sector in environmentally sustainable projects, employing the cross-sectional autoregressive distributed lag methodology on yearly data spanning from 2000 to 2020 across 11 low and lower-middle-income Asian nations. It specifically assesses the influence of the good governance index. Findings indicate a notable correlation, where a 1% enhancement in the index corresponds to a 0.34% increase in private engagement in green projects in the short term and a 0.64% increase in the long term. The study underscores the significance of economic stability; a 1% escalation in uncertainty leads to a 0.56% short term and 0.73% long-term reduction in private participation. It underscores the driving role of gross domestic product growth and the proliferation of small and medium-sized enterprises, emphasizing the necessity for tailored financial instruments to stimulate private investment in green projects. Moreover, it explores practical policy avenues such as e-government services, information and communication technology-driven digital transformation, sustainable corporate governance, and issuance of state-backed green bonds to foster private-sector participation in eco-friendly initiatives. Future research avenues encompass examining the repercussions of the pandemic on private green investments and evaluating the efficacy of the public-private partnership model in green projects across these economies.

Improving household well‐being through entrepreneurship and inclusive finance in the context of the Next‐11 countries

AbstractScholarship brainstorming on household welfare enablers abounds in academic literature. Nonetheless, the perspective of entrepreneurship, particularly for the Next‐11 countries, is underreported. Likewise, prior literature failed to investigate the influence of categorical (gender‐specific) entrepreneurship on household welfare. Thus, this investigation covers this lacuna by examining the predictive effects of aggregate, male and female entrepreneurship and financial inclusiveness on household welfare. With panel series spanning 2004–2021, both the Westerlund and Banerjee & Carrion‐i‐Silvestre cointegration procedures confirmed long‐term convergence among the series. The estimates of the augmented mean group (AMG) and the cross‐sectional autoregressive distributed lag (CSARDL) techniques revealed that entrepreneurship enhances household well‐being. This outcome validates the self‐determination theory since entrepreneurial engagements enhance household welfare. By extension, policies targeting entrepreneurship empowerment are critical for economic prosperity in these countries. In terms of gender variations, it is established that female entrepreneurship, much more than male, enhances household well‐being significantly. Furthermore, although automated teller machine availability promotes subjective well‐being, the number of commercial bank branches enhances only objective well‐being. Meanwhile, commercial bank loans failed to enhance both aspects of welfare at all times. Hence, we have provided relevant policy options that would ensure the maximization of households’ well‐being in these countries and other emerging economies.

Impact of green technology and energy on green economic growth: role of FDI and globalization in G7 economies

With the increase in economic growth, the world is facing serious challenges concerning environmental sustainability. Hence, the green economic growth is imperative for sustainable and inclusive development. The objective of this study is to contribute to the existing literature about the factors that influence green economic growth. The study investigates the role of green technology, green energy, foreign direct investment, and globalization on green economic growth in G7 countries. The data of the study is collected from WDI, KOF Swiss Economic Institute, and OECD database and the data period ranges from 1995 to 2020. The existence of cointegration between the variables of the study was tested by Westerlund’s (Oxford Bull Econ Stat 69(6):709–748) cointegration test. Due to the presence of cross-sectional dependency, the study employed the cross-sectional autoregressive distributed lag (CS-ARDL) method to estimate the coefficients in the long and short run. The study also used a common correlated effect—mean group (CCEMG) estimator for robustness check. The findings of the study reveal that green energy and FDI positively contribute to green economic growth in the long and short run. The green technology also contributes positively to enhance green economic growth but only in long run. To accelerate green economic growth, G7 countries should incorporate policies promoting green energy and technology, while acquiring more foreign investments to ensure a sustainable development.

How natural resources and technological advancements affect environmental quality: Evidence from load capacity factor in N‐11 nations

AbstractThe pressing issues of global climate change and environmental degradation necessitate the development of novel sustainable growth models by humanity. The efficacy of growth policy is strongly contingent upon the fundamental principles of productivity, such as efficient resource management. This study contributes to the investigation of the influence of natural resources (NRs) and several indices measuring productive capacity index (CI) on the environment of developing N‐11 countries (Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, the Philippines, South Korea, Pakistan, Turkey, and Vietnam) during 2000–2022. The research employed the cross‐sectional Autoregressive Distributed Lag (CS‐ARDL) model to examine the relationship between the variables. The empirical evidence indicates that there is a positive relationship between CI, technical innovation (TEC), NR, and gross domestic product (GDP) with the load capacity factor (LCF). Evidently, the sub‐indicators of CI present diverse results. The enhancement of productive CI in human capital, information, and communication technology (ICT), structural change, and governance has been found to foster ecological sustainability. Conversely, the domains of transport, private sector development, and energy utilization have been observed to contribute to the reduction of environmental pollution. This study posits that enhancing operational efficiencies and productive CI is associated with improved ecological outcomes.

Revisiting the EKC framework concerning COP-28 carbon neutrality management: Evidence from Top-5 carbon embittering countries

In the aftermath of the 28th Conference of the Parties (CoP) climate summit in the UAE, the majority of developing countries encounter challenges in attaining their objectives of carbon neutrality for a sustainable economy. The association of economic factors such as economic growth, governance structures, forest area, renewable energy consumption, technological innovation, and urbanization with environmental elements (carbon footprint) is vital for sustainable economic development and environmental management strategies. Therefore, this research reveals this association in five selected high-emitting countries spanning from 1990 to 2022. This research utilizes the Environmental Kuznets Curve (EKC) framework to investigate the interrelationship between these variables. To do so, this study employs the cross-sectional autoregressive distributed lags (CS-ARDL) statistical technique to determine the short- and long-term impacts of the variables under investigation on carbon footprint. In contrast, the mean group (MG) and common correlated effect mean group (CCEMG) have been applied for robustness. The findings revealed that GDP, urbanization, and forest area have positive associations with carbon footprints, whereas GDP square, renewable energy consumption, technological innovation, and governance effectiveness have inverse relationships with carbon footprints. These findings provide all stakeholders with valuable policy recommendations and management advice for accelerating the transition of renewable energy to low-carbon and green growth.

The role of financial and trade globalization in enhancing environmental sustainability: Evaluating the effectiveness of carbon taxation and renewable energy in EU member countries

The study addresses the pressing issue of environmental degradation, pinpointing carbon dioxide (CO2) emissions as its primary driver, posing a threat to global environmental sustainability, including the member countries of the European Union (EU). Global warming problems persist, but previous studies have not adequately explored the factors that contribute to a reduction in carbon emissions in EU countries. The paper fills the gap by assessing the efficacy of carbon tax and eco-innovation in mitigating CO2 levels from 1994 to 2019, considering the influence of renewable energy and various aspects of globalization. The study establishes long-term associations among the indicators examined using advanced methodologies, including the cross-sectional autoregressive distributed lag approach and the Westerlund cointegration method. Notably, the results highlight that carbon taxes, eco-innovation, renewable energy, and globalization contribute to slowing environmental deterioration, and economic progress plays a role in mitigating environmental sustainability challenges in EU member states. These findings reinforce the importance of robust strategies for reducing CO2 emissions and minimizing adverse environmental impacts.

Renewable energy intensity and efficiency of fossil energy fuels in the nordics: How environmentally efficient is the energy mix?

In recent years, energy intensity-efficiency has improved in the Nordic states and largely among the European Union member states, thus accounting for the region's impressive performance in terms of environmental sustainability. Clearly, there is paucity of literature on the criticality of renewable energy efficiency/intensity as compared with disaggregated fossil fuel efficiency. To offer more novelty, environmental sustainability (de) merit of renewable energy intensity is compared with fossil (oil, natural gas, and coal) fuel efficiency in the panel of Nordic states over the period 1990–2020 by employing relevant econometric approaches such as the cross-sectional autoregressive distributed lag (CS-ARDL). Importantly, the result shows that a percentage increase in renewable energy intensity mitigates greenhouse gas (GHG) emissions by ∼0.45% against ∼0.29% by oil energy efficiency in the long run, thus suggesting that environmental performance of renewable energy intensity outweighs the efficient use of oil fuel. Additionally, renewable energy intensity also outperforms efficient use of natural gas and coal energy by ∼0.51%–∼0.37% and ∼0.43%–∼0.17% respectively. However, economic growth and environmental-related innovations spur GHG emissions, implying that the Nordic countries are decoupling economic performance from environmental setbacks amidst structural shift via technological innovations. The results are considered formidable for the specificity of energy mix policy especially in Denmark, Finland, Norway, and Sweden.

Pathway toward sustainable blue economy: Consideration of greenhouse gas emissions, trade, and economic growth in 25 nations bordering the Indian ocean

The sustainability of the blue economy (BE) may be impeded by the adverse consequences of human activities, such as greenhouse gas (GHG) emissions, unsustainable economic expansion, and engagement in environmentally harmful trading practices. Therefore, this study aims to determine the impact of GHG emissions, trade, and economic growth on the BE. To achieve this, we used a panel dataset of 25 selected countries surrounding the Indian Ocean, covering the period 2002–2019. As a process of estimation, we employed the Westerlund error correction model to detect cointegration. To determine the long-term relationship among the variables, we adopted the cross-sectional autoregressive distributed lag (CS-ARDL) approach, which revealed a significant outcome in the long run but an insignificant outcome in the short run. In response to this divergence, the panel corrected standard error (PCSE) model was applied to correct the autocorrelation problem. Subsequently, a two-step generalized methods of moment (GMM) test was conducted to check robustness. Based on the results of PCSE and GMM, this study reveals that trade has a negative effect on the BE, while GHG emissions and economic growth have a positive ascendance. From a policy standpoint, all governments must integrate ocean-based solutions into their national climate pledges to fulfill the objectives outlined in the Sustainable Development Goals (SDGs), particularly SDG 14 (Life Below Water).

Exploring the Criticality of Natural Resources Management and Technological Innovations for Ecological Footprint in the OECD Countries

ABSTRACT: The urgent imperative to confront the complex interplay between managing natural resources and fostering technological innovation, particularly in OECD countries, has become a focal point in global conversations. It is abundantly clear that critical issues such as the rampant overexploitation of our natural resources, insufficient embrace of sustainable practices, and the profound repercussions of technological advancements on our ecological footprint demand meticulous scrutiny and comprehensive action. This scrutiny is vital to guide the formulation of judicious policies and strategies capable of addressing these complex challenges. The challenges faced by OECD countries, distinguished by their advanced industrialization, and elevated standards of living, are further compounded by the depletion of natural resources resulting from extensive economic activities. The extraction and utilization of resources, encompassing water, minerals, and energy, emerge as significant contributors to ecological degradation. The heightened demand for raw materials to sustain technological industries has precipitated the overexploitation and depletion of natural resources, manifesting in activities such as mining, deforestation, and other extraction processes, leading to habitat destruction and biodiversity loss. Furthermore, the manufacturing and utilization of technology, particularly within industries heavily reliant on non-renewable energy sources, have been substantial contributors to pollution and greenhouse gas emissions. The study assesses the dynamic relationship between natural resources, economic growth, and technological innovation with respect to ecological footprints. It analyses the annual data series of a panel of 20 organisation for economic cooperation and development countries using the second-generation cointegration panel and cross-sectional autoregressive distributed lag methodology. The results of the slope coefficient confirm the existence of slope heterogeneity among countries. Furthermore, it affirms the long-term relationship among variables. Overall, the findings highlight the importance of effective utilisation of resources while investing in technological innovation to attain sustainable development goals.

Do mineral imports increase in response to decarbonization indicators other than renewable energy?

While previous studies examine the impact of renewable energy generation capacity on mineral imports where minerals are broadly defined, this study examines the role of three decarbonization indicators (energy efficiency, energy's carbon footprint, and renewable generation) in driving import demand for four specific minerals used in multiple decarbonization technologies: copper, aluminum, nickel, and manganese. Our results, based on the cross-sectional autoregressive distributed lag modeling approach applied to panel data from 33 countries, suggest that imports for some minerals increase in response to (1) investments in energy efficiency (aluminum and manganese), (2) reducing energy's carbon footprint (copper), and (3) investments in renewable energy generation (copper and manganese). Nickel imports were found to increase with higher levels of energy use per GDP suggesting their role in cleaner vehicles, which heavily rely on electrification, higher electricity use, and urbanization. When imports are broadly defined to include all types of mineral groups, import values were found to be responsive to higher renewable generation but not the other decarbonization indicators. Our findings provide insights into developing mineral-specific strategies and policy frameworks to ensure supply chain resilience.

Does ICT diffusion validate skill-biased technological change hypothesis? Evidence from the post-Soviet countries

This study scrutinizes the impact of ICT diffusion on decomposed measures of income inequality in post-Soviet countries. We apply the Cross-Sectional Autoregressive Distributed Lags (CS-ARDL) approach to examine the dynamics of our panel time series data from 1991 to 2019. Empirical evidence suggests that ICT diffusion is negatively associated with the income of the top segments (the top 1 % and 10 %) of the population in the long term, while its impact is insignificant in the short term. Moreover, the ICT diffusion de facto (policy-implementation spectrum) primarily promotes the income share of the bottom class, probably by providing new market opportunities. The spread of ICT, in terms of policy decisions, leads to a notable decrease in the income proportion held by the top 10 % of earners, exhibiting the most significant level of responsiveness. Furthermore, our findings infer that government expenditure can also play a crucial role in reducing income inequality by decreasing the income portion of the top segment. The implications of our findings have direct relevance for policymakers in formulating effective strategies regarding ICT diffusion-income inequality nexus.

Investigating the simultaneous impact of infrastructure and geographical factors on international trade: Evidence from asian economies

Infrastructure and geography are the most important components of international trade. They provide trade-oriented amenities for the trade volume among trading partners. Thus, this study assesses the simultaneous impact of infrastructure and geographic factors on trade in Asian economies from 2004 to 2020. This work contributes to the existing literature by exploring the significance of infrastructure and geography in international trade. Furthermore, this research seeks to determine whether these factors have complementary or simultaneous effects. To examine these aspects, the augmented gravity model and cross-sectional autoregressive distributed lags are used in the current model. Then, the multilateral resistance terms are corrected. Results reveal that infrastructure has a significant and positive impact on trade. More precisely, transport infrastructure, communication infrastructure, financial infrastructure, and border-transport efficiency are productive influencers for trade over a certain period. Notably, the simultaneous impacts of infrastructure and geographic factors can lead to the deterioration of trade volume. The policy implications and future research direction of this study suggest that economies should improve infrastructure and geographic factors through gross domestic product.