Hurlin Panel Causality Test Research Articles

DO EDUCATION EXPENDITURES AFFECT ECONOMIC GROWTH? TESTING WITH PANEL DATA ANALYSIS METHOD

Abstract The study aimed to examine whether education expenditures, basic education expenditures, secondary education expenditures and advanced education expenditures affect economic growth. In the study covering the duration 1990-2023, 6 major economies with complete data were considered. The econometric analysis first started with the correlation test of the series, and in the presence of correlation, the second-generation unit root test was applied, and in the absence of correlation, the first generation unit root test was applied. The presence of a cointegrated relationship in our research model allowed us to make long-term coefficient estimation. According to long-term coefficients, education expenditures, advanced and secondary education expenditures negatively affect economic growth; basic education expenditures have a positive impact. According to Dumitrescu and Hurlin Panel causality test; While a one-way causality relationship was detected between education expenditures, basic education expenditures, secondary education expenditures and economic growth; A bidirectional causality relationship was found between further education expenditures and economic growth.

Green Technological Advances and Resource Rents as Levers for Carbon Reduction in BRICS: Implications for SDGs 7, 8, 9, 12, and 13

ABSTRACTIn recent decades, rapid development in emerging economies has heightened climate challenges, threatening environmental sustainability and quality. In response, green energy, technological innovation, and carbon pricing strategies have emerged as key tools for environmental mitigation and promoting green economic growth. These strategies are integral to the goals of COP 27, the 2030 SDGs, and the pledge to reach carbon neutrality by 2060. However, the BRICS economic bloc faces significant obstacles in balancing socio‐economic growth with environmental sustainability. This study intentions to inspect the impact of natural resource rents, research and development (R&D) expenditures, green energy, green technological innovation, and economic growth on carbon emissions in BRICS economies from 1995 to 2021. Using a cross‐sectional ARDL model, the study explores relationships between these variables, employing advanced panel methods to account for CSD and heterogeneity. The empirical findings reveal that research and development expenditure, green energy, and green technological innovation contribute to CO2 emission reductions by 0.329%, 0.211%, and 0.148%, respectively. In contrast, a 1% increase in economic growth and natural resource rents corresponds to a substantial 0.499% and 0.840% upsurge in CO2 emissions. The Dumitrescu and Hurlin panel causality test also highlights reciprocal causal relationships among the variables. Based on these findings, the study recommends policy actions to achieve SDG targets: enforce stricter CO2 emissions regulations for SDG‐13, increase renewable energy investment for SDG‐07, support green innovation for SDG‐08, enhance R&D for SDG‐09, and promote circular economy practices for SDG‐12.

Unraveling the Effects of Economic Growth and Unemployment on Tobacco Use: A Panel Data Approach.

The economic situation is recognized as a significant factor influencing tobacco consumption. Accordingly, this research aims to investigate the relationship between economic growth, unemployment, and tobacco use. This investigation employs data from 1985 to 2019 to elucidate the relationship between economic growth, unemployment, and tobacco consumption in a select group of OECD countries. Employing Pedroni and Johansen-Fisher Panel Co-Integration Tests, we assess the co-integrating relationships. Furthermore, FMOLS and DOLS techniques are applied, complemented by the Dumitrescu Hurlin Panel Causality Test. FMOLS and DOLS results suggest that a 1% increase in GDP leads to a 6.46% and 7.29% rise in tobacco consumption, respectively, while GDP squared results in a 0.39% and 0.43% decrease. However, both tests failed to establish a significant relationship between tobacco consumption and unemployment. Cointegration was confirmed by Johansen-Fisher and Pedroni tests. Dumitrescu-Hurlin causality tests revealed direction of granger causality from economic growth to tobacco consumption, but not with unemployment. Tobacco consumption declined across all countries studied. Economic growth shows a positive association, while GDP squared has a negative association, indicating an inverted U-shaped relationship. No significant relationship was found with unemployment in the employed tests. In addition to the measures implemented by countries to reduce tobacco consumption, economic factors also exert a significant relation with smoking behavior. The available results suggests that economic growth initially associated with increase in tobacco consumption but reduction in later stages indicating a long-term inverse relationship between economic growth and tobacco use.

Examining the Influence of Renewable Energy Consumption, Technological Innovation, and Export Diversification on Economic Growth: Empirical Insights from E-7 Nations

The present research focuses on the endogenous development theory and investigates the relationships between economic growth (dependent variable) and renewable energy consumption, technological innovation, and export diversification (independent variables) in seven emerging economies known as the E-7. Previous studies have examined these factors individually but have not explored their combined impact on the E-7 economies. Therefore, this study contributes to the existing literature on the effects of renewable energy consumption, technological advancement, and export diversification on economic development. This study analyses the dynamic connections among these variables in seven selected emerging countries: Brazil, China, Indonesia, India, Mexico, Russia, and Turkey. Panel data from 1990 to 2022 are utilised, and various methodologies, including panel cointegration, the pooled mean group–autoregressive distributed lag (PMG-ARDL) estimator, and robustness tests, such as the fully modified ordinary least square and dynamic ordinary least square tests, are employed. Empirical inferences are drawn using the Dumitrescu–Hurlin panel causality (DHC) test, and the long-run relationships among the variables are validated using the Westerlund residual cointegration tests. The results from the PMG-ARDL estimator show that renewable energy consumption, technological advancement, and export diversification have a significant and positive impact on economic expansion, confirming the validity of the endogenous growth model in the E-7 countries. The control variable of the financial sector has a positive but insignificant effect on economic growth, while trade openness has a negative and significant effect. The DHC test results indicate a neutral feedback effect of renewable energy consumption on economic growth. The findings also reveal a unidirectional causal relationship between technological innovation and economic growth. Overall, these findings provide valuable insights for economic policymakers in the E-7 countries. By removing barriers to renewable energy consumption, technological innovation, and export diversification, policymakers can promote sustainable economic development.

RELATIONSHIP BETWEEN LOGISTICS SECTOR AND ECONOMIC GROWTH IN ASEAN COUNTRIES

In the modern economics, any manufacturing companies have increasingly relied on professional logistics firms, leading to rapid growth in the logistics sector as a service industry and its significant contribution to economic development. With increasing globalization and competition, countries have focused on enhancing their logistics systems to ensure stable economic growth and strengthen global trade competitiveness. In the ASEAN region, logistics plays a critical role, facilitating cross-border trade and regional connectivity. This study aims to investigate the relationship between the logistics sector, specifically air freight transportation, and economic growth in ASEAN countries, given the sector's central role in supporting supply chain management and trade activities. The primary objective of this study is to determine whether there is a causal relationship between air freight transportation (AFT), a key logistics activity, and gross domestic product (GDP) growth in six ASEAN countries. The study seeks to provide insights into how investment in logistics infrastructure, particularly in air freight, may influence economic growth in the region. The study uses panel data for six ASEAN countries from 1996 to 2021. Data on GDP growth and air freight transportation were sourced from the World Bank’s World Development Indicators database. A series of statistical tests, including the Cross-Sectional Augmented Dickey Fuller (CADF) test, Pesaran’s slope homogeneity test, and the Bootstrap Granger causality test, were performed to examine cross-sectional dependence and the causal relationship between GDP growth and air freight transportation. Descriptive statistics revealed significant disparities in air freight transportation capacity among the countries studied, with Indonesia and Thailand showing substantial air freight volumes compared to the Philippines. However, the results of the panel causality tests, including the Dumitrescu and Hurlin panel causality test, indicate that no causal relationship exists between air freight transportation and GDP growth in the six ASEAN countries.

Climate change and food security causality in ECOWAS region: Do countries interdependence matter?

Studies abound on the causal relationship between climate change and food security; however, the ECOWAS sub-region, despite its unique climatic, agricultural, and socioeconomic characteristics, remains insufficiently explored. Utilizing data from 14 ECOWAS countries spanning 1986 to 2022, this study departs from earlier studies by incorporating the Dumitrescu–Hurlin Panel Causality test, the Pooled Mean Group (PMG), Common Correlated Effect Mean Group (CCEMG), Augmented Mean Group (AMG) and the Cross-Sectional Augmented Autoregressive Distributed Lag (CS-ARDL) technique to analyze the complex relationship between climate change and food security in the ECOWAS sub-region. Unlike the prior empirical studies, the findings reveal a robust mutual influence of climate change and food security in the ECOWAS sub-region. Furthermore, the findings reported a positive impact of climate change on food security, aided by increased cropland area and population growth. At the same time, drought incidence and erratic rainfall between July and September annually remained a severe concern in the region. However, while the conversion of forests and natural habitats into cropland in the sub-region can lead to heightened carbon emissions and reduced ecosystem services, policy recommendations advocate the need for ECOWAS sub-regional policymakers to carefully balance the benefits of food security through sustainable practices and environmental considerations to ensure long-term food security benefits.

Unveiling the synergy: How natural resources, energy prices and financial development drive the energy transition in N‐11 countries

AbstractThe energy transition (ET) is one of the major components of achieving the Sustainable Development Goal (SDG) 7. Based on the growing recognition of the need for sustainable energy, this study aims to investigate the influence of natural resource rent, energy prices (EPs), financial development (FD), trade and economic growth on the ET from 1990 to 2021 in N‐11 countries. The study employed the Fully Modified Ordinary Least Squares and Dynamic Ordinary Least Squares techniques for the panel data analysis. These test findings revealed that natural resources rent, EPs, trade and economic growth are positively and significantly associated with ET. It indicates that these factors' are essential in promoting the shift towards renewable and sustainable energy sources. Whereas FD has a negative relationship with the ET, which underscores the need for targeted interventions and policy measures to address the challenges faced by financial systems. Moreover, the Pairwise Dumitrescu Hurlin panel causality test results declared the bidirectional association between natural resources and FD, economic growth and EPs and trade with all other variables. The study's outcomes suggest policy implications to promote and accelerate the ET process towards a greener and more sustainable future.

Catalyzing the carbon emission: the interplay of financial development and foreign investment in Asia-Pacific and Oceanian region

Purpose This study aims to explore the interplay between CO2 emissions, financial development (FD) and foreign direct investment (FDI) in Asia-Pacific and Oceania. It also aims to understand short- and long-term impacts, emphasizing the role of FDI, FD and FD’s moderating effect on the FDI–CO2 relationship. Design/methodology/approach Using a 21-year panel data set (2000–2020) from 44 countries, the study employs the pooled mean group-autoregressive distributed lag (PMG-ARDL) model supplemented by the Dumitrescu–Hurlin panel causality test. This method assesses the complex dynamics and offers a robust analysis of short- and long-term effects in the Asia-Pacific and Oceanian context. Findings Long-term results indicate that FDI coupled with FD and FD’s moderating effect on FDI significantly contributes to CO2 emissions. Short-term relationships are more complex and lack statistical significance. FD positively moderates the FDI–CO2 relationship in the long run. Practical implications For investors, policymakers and stakeholders in Asia-Pacific and Oceania, the study highlights the importance of considering environmental impacts in investment decisions. The insights into the role of FDI and FD help craft policies and strategies for environmental sustainability. Social implications Socially, this research emphasizes the necessity of a balanced approach to economic development, considering the potential long-term environmental consequences. Policymakers and stakeholders may use these findings to guide discussions and actions to achieve sustainable and socially responsible development in this dynamic region. Originality/value The findings contribute original insights into the essential relationships among FDI, FD and CO2 emissions in a diverse region like Asia-Pacific, enhancing the understanding of environmental implications in regions experiencing rapid economic growth.

The nexus between economic growth and conditional exchange rate volatility: evidence from emerging economies

PurposeThe purpose of this paper was to examine the nexus between conditional exchange rate volatility and economic growth in BRICS countries. Further, the dynamic causation between economic growth and exchange rate volatility is also examined.Design/methodology/approachWe employed three techniques, namely, dynamic panel models, static panel models and Dumitrescu and Hurlin (DH) panel causality test to examine the economic growth–conditional exchange rate volatility nexus in BRICS countries.FindingsThe overall results showed that conditional exchange rate volatility has a negative and significant effect on economic growth. Interestingly, the results showed that whenever the exchange rate volatility exceeds the 0–1.54 range, the economic growth of BRICS is reduced, on average, by 5%. Further, the results of the causality test reconciled with that of ARDL wherein unidirectional causality from exchange rate volatility, exports, labour force and gross capital formation to economic growth was found.Research limitations/implicationsThe urgent recommendation is to develop and align fiscal, monetary, trade and exchange rate policies, either through creating a common currency region or through coordinated measures to offset volatility and trade risks in the long run. Further, to offset the impact of excessive exchange rate changes, BRICS economies can set up currency hedging systems, implement temporary capital controls during periods of extreme volatility or create currency swap agreements with other nations or regions. Last, but not least, investment and labour policies that are coherent and well-coordinated can support market stabilisation, promote investment and increase worker productivity and job prospects.Originality/valueResearchers hold contrasting views regarding the effect of exchange rate volatility on economic growth. Some researchers claim that exchange rate volatility reduces growth, and several shreds of empirical evidence claim that lower exchange rate volatility is linked with an increase in economic growth, at least in the short run. However, the challenge lies in establishing the optimal range beyond which exchange rate volatility becomes detrimental to economic growth. The present study contributes to this aspect by seeking to identify the optimal spectrum beyond which excessive shifts in exchange rate volatility negatively affect economic growth, or endeavors to define the acceptable spectrum within which these fluctuations actually boost growth. To the best of our knowledge, this study is the first to analyse the given research area. The present study used a dummy variable technique to capture the impact of permissible exchange rate band on the economic growth.

Symbioza kreatywności i zrównoważonego rozwoju: modelowanie dynamicznych relacji pomiędzy zrównoważonym rozwojem a kulturą i przemysłem kreatywnym w krajach UE, Wielkiej Brytanii i Ukrainie

This study aims to examine the impacts of energy consumption and economic growth on the human development index of seven emerging countries (E-7) with high economic performance for yearly observations from 1992 to 2021. The analyses were carried out with second-generation panel data analyses: (i) Panel cointegration test with structural breaks proposed by Westerlund (2006), (ii) augmented mean group estimator recommended by Eberhardt and Bond (2009), and (iii) Dumitrescu and Hurlin (2012) panel causality test. The empirical model also included trade openness and urbanization parameters as control variables. The panel cointegration test outcomes reveal the presence of a long-run relation among the human development index and energy consumption, economic growth, urbanization, and trade openness for all countries. Augmented mean group test outcomes signify that energy consumption, economic growth, and trade openness have positive and statistically significant impacts on the human development index, whereas urbanization does not have any statistically significant impact in the long-run. Finally, panel causality test results signify that there is a bidirectional relation between the human development index and energy consumption, economic growth, and trade openness and also a unidirectional relation from urbanization to the human development index in E-7 countries. All these findings indicate that the main macroeconomic indicators have an important role on the human development index in E-7 countries. In this context, these countries should implement a more effective and innovative economic policy for Sustainable development goals.

Financial Development, ICT Use, Renewable Energy Consumption and Foreign Direct Investment Impacts on Environmental Degradation in OIC Countries

This article examines the influence of financial development, ICT use, FDI and renewable energy on environmental degradation in 38 OIC countries using panel data from 2003 to 2021. For data estimation, the authors employed the CD test, slope homogeneity test, CIPS and CADF test, FGLS model, PCSE model and Dumitrescu Hurlin panel causality test. It is found that the variables have cross-sectional dependence, slope heterogeneity, heteroskedasticity, and autocorrelation in a model. The Westerlund test of cointegration also ensures the cointegration among variables in a model while panel unit root tests found the mixed integration order of variables. The FGLS model shows that FD and renewable energy consumption negatively and significantly influence CO2 emissions in OIC countries. The outcomes also show that the use of ICT and FDI inflows in OIC countries are positively related to CO2 emissions. The PCSEs model is used as a robustness estimation technique which also confirms the estimates of the FGLS model. The authors suggested that financial development should be promoted to finance green energy projects, design regulatory policies to prevent polluted technology from the FDI inflows and to prevent the harmful effects of ICT on the environment, the use of green energy resources in ICT use should be promoted.

Exploring the Dynamic Relationships between Agricultural Production and Environmental Pollution: Evidence from a GMM-SYS Model in the Three Seas Initiative (3SI)

The Three Seas Initiative (3SI) is still an under-researched area and is particularly important due to historical circumstances and economic backwardness. A study was carried out to assess the impact of renewable energy and production made by the agricultural sector on CO2 emissions in 3SI countries between 2008 and 2020. The study used panel data analysis based on the two-step system’s generalized method of moments (GMM) and the Dumitrescu–Hurlin panel causality test. The results show that a 1% increase in the value added generated by agriculture increased CO2 emissions in the countries studied by 0.11%. In contrast, a 1% increase in GDP led to a 0.29% increase in CO2 emissions. Conversely, when renewable energy consumption increased by 1%, CO2 emissions fell by 0.25% in the countries studied. One way to reduce CO2 emissions from agricultural production in the short term is to increase the share of renewables, which incidentally is in line with EU action.

Determinant on Economic Growth in Developing Country: A Special Case Regarding Turkey and Bangladesh

AbstractThis study delves into the complex interplay between gross domestic product (GDP) and key macroeconomic indicators in the contexts of Turkey and Bangladesh. By examining panel data spanning from 1981 to 2020 sourced from the World Bank, we investigate the causal relationships between GDP growth and various factors including population growth, inflation, literacy rate, natural resource utilization, investment, and foreign direct investment (FDI). Our research aims to address critical questions regarding the economic trajectories of these two emerging economies. Specifically, we seek to understand how different macroeconomic variables influence GDP growth in Bangladesh and Turkey, while also exploring the unique socio-economic landscapes of these nations. Methodologically, we employ the Dumitrescu–Hurlin panel causality test to analyze the causal relationships between GDP growth and the aforementioned macroeconomic indicators. Our findings reveal direct, statistically significant associations between GDP growth and these variables, with population growth emerging as a particularly influential factor. The implications of our study extend beyond empirical observations, offering valuable insights for policymakers and stakeholders seeking to foster sustainable economic development in both Bangladesh and Turkey. By identifying the key drivers of GDP growth and their impact on economic performance, our research contributes to the existing body of literature on economic development in emerging economies. In conclusion, this study sheds light on the intricate dynamics of GDP growth in Turkey and Bangladesh, highlighting the importance of understanding and leveraging macroeconomic indicators to promote inclusive and sustainable economic growth in these nations.

Higher Education and Unemployment in Turkey: Regional Panel Analysis with Undergraduate, Master's, and PhD Perspectives

In the past two decades, Turkey has experienced a noteworthy increase in the establishment of universities and enrollment of students across various degree programs. However, this surge in higher education has been accompanied by a growing number of unemployed higher education graduates. To address this phenomenon, this research conducts a comprehensive analysis of the relationship between different levels of tertiary education, undergraduate, master's, and Ph.D. (Doctorate) and unemployment. The study utilizes TurkStat's regional database, covering data from 26 provinces in Turkey spanning the years 2008 to 2021. Prior to delving into coefficient analysis, the Dumitrescu and Hurlin (2012) panel causality test was applied to identify the direction of potential causality and to establish an accurate model. The findings suggest a potential causal relationship running from being a higher education graduate, at all levels (bachelor's, master's, and PhD ), to unemployment rate. Subsequently, to further scrutinize this relationship in light of causality findings, the Panel Augmented Mean Group estimator (AMG) was employed. The results indicate that a 1% increase in the total number of Bachelor's degree graduates is associated with a 1.16% increase in unemployment rate. Based on these findings, it can be argued that, instead of further investing in higher education, a policy approach targeting middle-skilled jobs through advanced investment in vocational high schools may be more cost-effective.

Financial efficiency and CO2 emission in BRICS. Dose digital economy development matter?

When it comes to the environmental costs, environmental economists have tried to study the effects of the foreign direct investment-growth nexus, but they have ignored the crucial role that financial development and technical innovation play. Massive increases in energy consumption have contributed to environmental degradation in the BRICS nations, which have experienced rapid IND due to their robust economies. This study uses data from 1990 to 2021 to examine the relationship between carbon emissions in BRICS member nations and factors such as FDI, technological innovation, and economic growth. Within the panel nations, the results confirm a high cross-sectional reliance. The BRICS countries' financial development, technological innovation, and foreign direct investment all have a negative and statistically significant long-run association with CO2 emissions, according to the Augmented Mean Group (AMG) estimator. On the other hand, economic growth, TI, IND, and energy use all have positive and statistically significant associations with carbon emissions. This study's researchers choose to use the Dumitrescu and Hurlin panel causality test to look at the other way around. Economic growth (EG), Digital economic growth (DEG), Financial efficiency (FE), CO2 emissions (CO2), Industrialization (IND), Technological Innovation (TI), Foreign direct investment (FDI) and Inflation are all identified as having a bidirectional long-run causative relationship. In contrast, a unidirectional causal relationship is observed between FDI and CO2 emissions. To entice high-quality FDI, the BRICS member nations must advance their industries, financial institutions, and technological innovation. In addition, these nations need immediate legislative solutions because IND is a major cause of environmental damage.

The Symmetric and Asymmetric Impacts of Energy Consumption and Economic Growth on Environmental Sustainability

Climate change has emerged as a global challenge because of its threat to sustainable development goals. Fossil fuels and economic growth are responsible for pollution and, thus, for climate change. In this context, this study explored the environmental Kuznets curve hypothesis for the case of 17 MENA countries over the period of 1990–2020. It investigated the symmetric and asymmetric impact of energy consumption and economic growth on CO2 emissions by controlling for population density, trade openness, and FDI inflows using panel linear and nonlinear ARDL models. The robustness of the results was checked using the fully modified OLS and dynamic OLS methods. Moreover, the Dumitrescu–Hurlin panel causality test was employed to determine the directions of causality between the variables. Overall, the empirical results of both panel linear and nonlinear ARDL models validate the environmental Kuznets curve hypothesis for the selected sample of MENA countries. Economic growth leads to environmental degradation only in the long run, whereas a rise in energy consumption leads to an increase in pollution in both the short and long run. These results are confirmed by the fully modified OLS and dynamic OLS methods. The findings of the Dumitrescu–Hurlin panel causality test also indicate the existence of bidirectional causality between energy consumption and CO2 emissions and between economic growth and CO2 emissions. Therefore, policy makers in the MENA region should invest in clean technologies and accelerate the transition to renewable energies such solar energy, wind power, and hydropower to align with sustainable development goals.

Investigating the nexus among resource curse, energy transition and sustainable development: Evidence from a global panel data

This study is interested in modeling the nexus among resource curse, energy transition and sustainable development in 137 economies around the world using multi-variate panel data analysis over the period 1995 to 2018. We employ the autoregressive distributed lag (ARDL) dynamic panel technique to estimate the long-run and short-run relationships among the variables. In the empirical tests, a variety of panel data estimators are utilized. In addition, Dumitrescu and Hurlin panel causality test is conducted to test the direction of causality. The findings suggest that in the long run, an increase in natural resources significantly contributes to the energy transition, while in the short run, it significantly inhibits it. Thus, natural resources are an effective stimulus for the energy transition, but most economies have not yet reached the turning point and are in a period of resource curse due to the lack of effective ways to achieve this shift. Under the global sample, natural resources have a significant long-run positive impact on sustainable development. Also, Granger causality tests report a two-way causal relationship between the two. This finding enhances the confidence of policymakers in natural resources. Moreover, the positive impact of the energy transition on sustainable development encourages the surveyed economies to increase the adoption of renewable energy. On this basis, some pertinent policy recommendations are proposed.

Healthcare Expenditure and Human Development Index as Determinants of Environmental Quality: A Panel Study on Selected Asian Countries

This study explores how healthcare expenditure and human development index impact environmental quality in 26 Asian countries during the period 2000–2018. Both aggregate and disaggregate (public and private) variables of healthcare expenditure are used. The dynamic ordinary least squares and augmented mean group estimation techniques are employed to assess the impact of selected variables on environmental quality captured using carbon dioxide (CO2) emissions as a proxy. The causality among the variables is tested using the Dumitrescu–Hurlin panel causality test. The outcome of the study showed that scaling aggregate healthcare expenditure, disaggregate healthcare expenditure (public and private) and human development index deteriorates environmental quality. The causality tests confirm a bidirectional association between aggregate healthcare expenditure and CO2 emissions, disaggregate healthcare expenditure and CO2 emission and a one-way connection from human development index to CO2 emission. The study finds that the significant positive impact of healthcare expenditure and human development index on CO2 emission is a concern, as rising emissions have adverse effects on the environment, public health and global economy. The study highlights the need for policies to promote sustainable development in a way that balances the needs of healthcare, human development and the environment.

Analyzing the nexus between tourism and CO2 emissions: the role of renewable energy and R&D

This study aims to investigate the relationship between tourism development, renewable energy consumption (REN), research and development (R&D) expenditure, and CO2 emissions in 12 emerging markets and middle-income Europe spanning 1999–2020. We applied the panel autoregressive distributed lag and the Driscoll–Kraay estimator to determine the relationship between variables. According to both estimators’ results, a U-shaped relationship exists between economic growth and CO2 emissions. This result indicates that the environmental Kuznets curve hypothesis is invalid in these countries. Furthermore, REN and R&D contribute to decreasing CO2 emissions and stimulating sustainable development. However, the impact of tourism development on CO2 emissions is found to be negative in panel autoregressive distributed lag but positive in the Driscoll and Kraay estimator for fixed and random effects. Moreover, the Dumitrescu and Hurlin panel causality test reveals a two-way causal relationship between R&D and CO2 emissions and a one-way causal linkage running from economic growth, the square of economic growth, and tourist arrival to CO2 emissions. Overall, our results prove the existence of a relationship between international tourism and CO2 emissions. Furthermore, our results suggest some policy recommendations for policymakers to reduce CO2 emissions through REN, R&D, green economic development, and establishing an ecologically friendly tourism policy.

On the nexus between real income, renewable energy consumption, and environmental sustainability on life expectancy for BRICS‐T countries: Accessing evidence from quantile regression

AbstractThis study is aimed at establishing the impact of real income, renewable energy consumption, and carbon dioxide (CO2) emission on life expectancy for annual frequency data from 1990 to 2019 for BRICS‐T (Brazil, Russia, India, China, South Africa, and Turkiye) economies. In addition, the effects of real income, renewable energy consumption, and life expectancy on CO2 emissions are given by establishing a second model. To this end, different econometric approaches such as fixed effects model, random effects model, panel quantile regression, and the Dumitrescu and Hurlin panel causality test were used. We found in our empirical evidence that renewable energy consumption and real income positively affect life expectancy. At the same time, it was seen that real income has a positive effect on CO2 emissions, but renewable energy consumption has a negative effect. According to the panel quantile regression analysis results, while the effect of income on life expectancy is similar to other estimation results, that of renewable energy consumption is different. However, the effect of renewable energy consumption and real income on CO2 emissions is similar to other estimation results. The findings of the study show that policy makers need to promote renewable energy in order to extend life expectancy which is an important determinant of economic growth.