Nexus Of CO2 Emissions Research Articles

Financial Market Development, Foreign Direct Investment and CO2 Emissions Nexus in Saudi Arabia: Asymmetrical Analysis

Financial Market Development, Foreign Direct Investment and CO2 Emissions Nexus in Saudi Arabia: Asymmetrical Analysis

Renewable Energy Transition, Trade Openness, and CO2 Emissions Nexus in the Middle East

Reducing pollutant emissions during the global energy transition from fossil fuels to renewables is a significant endeavor. Nonetheless, a significant portion of the Middle East (ME) economy continues to be based mostly on the extraction and use of fossil fuels, posing a threat to the environment in the area. Thus, the current study examined the impact of income growth, trade openness (TO), and the Renewable Energy Transition (RET) on CO2 emissions in 12 Middle East nations, from 2000 to 2019. The findings demonstrated that the ME area contains the Environmental Kuznets Curve (EKC). RET decreased emissions of CO2. Therefore, the transition to renewable energy reduced emissions in this ME region. On the other hand, TO enhances CO2 emissions. For the ME region, TO is concerned with the environment. The research recommends a quick RET to safeguard the environment from CO2 emissions.

The tapestry of green economics: mapping the nexus of CO2 emissions, economic growth, and renewable energy

ABSTRACT This study examines the relationships between CO2 emissions, GDP, renewable energy consumption, and trade openness across 37 OECD countries from 1995–2020. Using a Panel Vector Autoregressive (PVAR) model and Granger Causality tests, the research probes the causality among these factors. Key findings show a notable causality from GDP, renewable energy, and trade openness to CO2 emissions. Specifically, lags in renewable energy consumption and trade openness significantly decrease CO2 emissions. Surprisingly, GDP's influence on CO2 emissions is found to be negligible, challenging the typical belief linking economic growth to environmental degradation. These insights hold great value for policymakers in environmental governance and climate finance. The data underscores the importance of promoting renewable energy and trade openness for effective CO2 reduction. The study advocates a sustainable environmental governance model, emphasizing strong legal structures and clarity in execution. Since GDP doesn't significantly impact CO2 emissions, there's potential to pivot towards sustainable economic growth models. The research offers a foundational empirical groundwork, suggesting that expanding future studies to include diverse variables might yield a more comprehensive understanding of the relationships in question.

A Threshold Analysis of Internet Users and the CO2 Emissions Nexus

The study adopted threshold regression techniques to estimate the cross-section data spanning 2017 to 2021. It hypothesized that internet users affect CO2 emission between countries and this would vary depending on the level of population. Countries that have smaller populations may not have the same effect on CO2 emissions as compared to countries with larger populations. The empirical results show that internet users exert a significant influence on CO2 emissions, especially under high threshold regimes. Thus, the larger the population, the higher and more significant will be the impact on CO2 by internet users.

Innovations and the CO2 Emissions Nexus in the MENA Region: A Spatial Analysis

Patents support technological innovations in any economy and would also support a clean environment. We investigate the effects of economic growth, patents, industrialization, and urbanization on CO2 emissions in 17 Middle East and North Africa (MENA) economies by applying spatial econometrics. We substantiate the Environment Kuznets Curve (EKC) in the domestic economies and the whole MENA region as per direct and total estimates. Moreover, urbanization increases CO2 emissions in local economies and reduces neighboring nations’ emissions. The total effect of urbanization is found to be insignificant. Industrial value added increases CO2 emissions in domestic and neighboring countries, as well as in the whole MENA region. Patents increase CO2 emissions in domestic economies. However, patents reduce CO2 emissions in neighboring countries and the MENA region. Thus, patents have a pleasant effect on the environment in the whole MENA region. It is suggested that the MENA economies focus more on patents to reduce CO2 emissions. Moreover, urbanization and the industrial sector should be checked to protect the environment.

Inflation and Reinforced Concrete Materials: An Investigation of Economic and Environmental Effects

Focusing on Reinforced Concrete (RC), the main building material worldwide, inflation and CO2 emissions negatively impact the economic and environmental sustainability of the construction industry and the environment, respectively. Therefore, it is important to investigate the economic and environmental correlations and effects of RC in view of the inflation–CO2 emissions nexus. Previous literature did not sufficiently scrutinize this issue, leaving behind huge knowledge gaps for understanding (1) the inflation–RC material prices nexus, (2) the inflation–RC cost relationship, and (3) the inflation–RC material CO2 emissions correlation. The knowledge body, additionally, suffers from the controversial conclusion of prior literature that countering inflation reduces building material prices; however, it does not reduce their associated CO2 emissions. To address these loopholes, Spearman correlation test was employed to analyze data from Egypt’s construction market on inflation, RC material prices, RC cost, and RC material CO2 emissions from 2011 to 2019. Spearman test yielded that RC material prices and RC cost are directly correlated with inflation. In addition, steel reinforcement prices are more sensitive to inflation than the prices of other RC materials. By analyzing these outputs, using the Deviation Percentage approach, it has been found that 1% increase in inflation drives up the prices of steel reinforcement and RC cost by 1.568% and 1.548%, respectively. Further, increasing inflation by 1% increases RC material CO2 emissions, particularly steel reinforcement by 15.968%. This implies that the inflation–construction material CO2 emissions nexus has a direct correlation, not an inverse relationship, as mentioned in the archival literature. These results guide contractors to define an accurate percentage-based risk margin against the effects of inflation on overrunning their projects budgets. Importantly, they add to the knowledge body the precise description of the inflation–building materials nexus, whether economically in terms of construction material prices, or environmentally in light of building material CO2 emissions.

Agricultural Economic Growth, Renewable Energy Supply and CO2 Emissions Nexus

International trade has created more economic growth opportunities in the agriculture sector. The agricultural sector remains key to the South African economy, with a vibrant international market becoming available as the country’s agriculture exports grow. However, the impacts of human-caused global warming have intensified as a result of increased greenhouse gas emissions, notably carbon dioxide (CO2), which negatively affects agricultural productivity and the economy. Considering the future energy resource demands for agricultural productivity due to the expected population growth and the emphasis on environmental remedial actions, the following question presents itself: what impact will a clean energy supply have on the agricultural economy and the environment, notwithstanding that agriculture, as a sector, also has a huge potential to contribute to renewable energy production? This study examines the effect of the nexus of South Africa’s renewable energy supply, CO2 emissions and trade openness on agricultural economic growth from 1990 to 2021. The nexus provides crucial insights into policies targeted at promoting renewable energy in the agricultural sector by isolating key areas of priority. An autoregressive distributed lag (ARDL) bounds test, fully modified ordinary least square (FMOLS) test, a dynamic ordinary least square (DOLS) test and a canonical cointegrating regression (CCR) econometric analysis were used to estimate the nexus. The results showed that growth in the agricultural sector leads to deterioration in the environment, while international trade benefits the sector. The scale of renewable energy supply slowed down the agricultural economy. The study makes a new contribution in providing empirical evidence for the links between renewable energy supply and agricultural GDP, which can drive policy on renewable energy use in the agricultural sector in South Africa. The paper recommends intentional renewable energy production research and development (R&D) finance focusing on renewable energy human development planning and investments in vocational programmes in higher learning institutes, agricultural renewable energy policy and the creation of green incentive schemes for feedstock producers, especially in rural areas in the agricultural sector.

Financial Development, Foreign Direct Investment, and CO2 Emissions Nexus: Evidence from Sub-Saharan Africa

Financial Development, Foreign Direct Investment, and CO2 Emissions Nexus: Evidence from Sub-Saharan Africa

The tapestry of green economics: mapping the nexus of CO2 emissions, economic growth, and renewable energy

The tapestry of green economics: mapping the nexus of CO2 emissions, economic growth, and renewable energy

Economic policy uncertainty and environmental degradation: the moderating role of political stability.

The sustainability of the natural environment has become a serious policy agenda across the world. In this essence, the literature has discerned many macroeconomic factors that are causing environmental degradation. Among others, the economic policy uncertainty (EPU) is another factor that can uplift CO2 emissions but was ignored in contemporary literature. Given that, the current analysis tends to uncover the role of EPU in CO2 emissions and how political stability moderates this relationship. The empirical analysis was arranged on 20years of financial data (2000-2019) of BRICS economies, and fully modified least square (FMOLS) and dynamic least square (DOLS) models were utilized to establish the empirical relationship. The empirical results reveal the significant positive impact of EPU while the negative impact of political stability on CO2 emissions. Furthermore, the moderating impact of political stability was observed in the relationship of EPU-CO2 emissions. In long run, the higher economic policy uncertainty intensifies the emissions of CO2 which can be reduced by promoting political stability. The empirical analysis further advocates the dynamic impact of financial development, foreign investment, economic growth, and resource rent on pollution emissions. The moderating role of political stability implies that policy officials should certainly improve the stability of political conditions within a country. Moreover, they should ensure the overall consistency in economic policies. This study allures existing literature by exploring the moderating role of political stability in EPU and CO2 emissions nexus.

Female parliamentarians and environment nexus: The neglected role of governance quality

Despite the consensus that women are more likely than men to express support for environmental protection, the extant empirical evidence on this relationship at the political level is much disputed. We posit that the relationship between female political representation in national parliaments and CO2 emissions is conditioned by the level of governance quality. Using annual data from 119 countries between 2002 and 2012, we find strong evidence that female participation in politics decreases CO2 emissions in high government quality settings, but, worryingly, it leads to increases in CO2 emissions in countries with poor governance. This study highlights the important roles of governance quality in female parliamentarians - CO2 emissions nexus and sheds light on why the existing literature on this relationship has been so inconclusive.

A Nexus of CO2, Tourism Industry, GDP Growth, and Fossil Fuels

The study investigates the nexus of CO2 emissions, tourism, fossil fuels, and GDP growth using China’s data from 1970 to 2019. The research applied the upset U-molded EKC and the ARDL -models to calculate the time series stationarity variables. The results showed that in the initial enlargement phases, a sophisticated GDP adversely impacts CO2 emissions, then a higher GDP positively influences CO2 emissions. The development of tourism, use of fossil fuels (coal and oil), and population growth show an important influence on CO2 emissions but the use of gas and electricity has little effect on CO2 emissions. In contrast, foreign direct investment besides population development had little effect on increasing CO2 emissions. Retreating foreign direct investment, strengthening the use of sustainable electricity, and improving transportation for explorers, especially the green tourism business, are excellent ways to reduce environmental degradation in China.

Re-Examining the Income–CO2 Emissions Nexus Using the New Kink Regression Model: Does the Kuznets Curve Exist in G7 Countries?

More countries have made carbon neutral or net zero emission commitments since 2019. Within this context, re-examining the environmental Kuznets curve (EKC) hypothesis plays an essential role in sizing up the global economic development situation and realizing the global carbon emission reduction target. A methodological challenge in testing the EKC hypothesis, which states that increasing income makes CO2 emissions begin to decline beyond a turning point, lies in determining if this benchmark point exists. The EKC hypothesis between income and CO2 emissions is reassessed by applying a new kink regression model for the G7 countries from 1890 to 2015. Results reveal the inverted U-shaped nexus does not exist for US, Germany, Italy, Canada and Japan. For these five countries, the EKC curve has a turning point, but the positive impact of incomes on CO2 emissions becomes significantly smaller after the turning point. We describe this relationship as a pseudo-EKC. K.U.K. and France are the only exceptions, fitting the EKC hypothesis. Further analysis indicates that the relationship between income and SO2 emissions presents an inverted U-shaped curve. Moreover, we observe that the turning point occurs at different points in time for the different G7 countries. Therefore, environmental policies targeting pollutant emission reduction should consider the different characteristics of different pollutants and regions.

How solar-based renewable energy contributes to CO2 emissions abatement? Sustainable environment policy implications for solar industry

Renewable energy sources are gaining popularity because they are less expensive and more efficient than traditional energy sources. Using data from 1991 to 2018, we examined the asymmetric impact of solar energy consumption on CO2 emissions in the top-ten solar energy-consumer economies (China, the United States, Japan, Germany, India, Italy, Australia, Vietnam, South Korea, and Spain). Earlier research has used a panel data technique, which has produced consistent conclusions on the solar power–CO2 emissions association, despite the fact that some economies have no evidence of such a linkage. The current study, on the other hand, employs a unique methodology known as “quantile-on-quantile,” which can evaluate time-series dependence in each economy separately to give world yet country-related information for the association among the variables. The findings investigate how quantiles of solar energy consumption quantiles influence CO2 emissions quantiles asymmetrically by giving an appropriate structure to apprehend the whole dependency pattern. The results suggest that, except in Spain and India, solar energy consumption minimizes carbon dioxide emissions at various quantiles. However, the strength of nonlinear association in solar energy–CO2 emissions nexus varies from country to country that needs individual attention and caution for governments in developing the policies related to the solar industry and the sustainable environment.

The role of technological innovation in environmental pollution, energy consumption and sustainable economic growth: Evidence from South Asian economies

This study examines the causal relationship among technological innovation (TI), environment pollution (EP), energy consumption (EC) and sustainable economic growth (SEG) from selected South Asian economies. In order to identify the causal association between energy growth and nexus of CO2 emissions, this study is employed the premises of the EKC framework. This study has used annual time series data set from world development indicator (WDI), start from 1990 to 2019. The result of a fully modified ordinary least square (FMOLS) method describes a significantly worsen the quality environment in the south Asian region. The individual country as Bangladesh shows a positively significant impact on the CO2 emissions and destroying the level of environment regarding non-renewable and renewable energy and technological innovation index. However, negative and positive values of growth (GDP) and square of GDP respectively confirm the EKC hypothesis in this region. This study has identified the causality between GDP growth and carbon emission and found bidirectional causality between economic growth and energy use.

Pathway towards Sustainability in Selected Asian Countries: Influence of Green Investment, Technology Innovations, and Economic Growth on CO2 Emission

Green investment and technology innovations are generally considered as an effective factor to mitigate CO2 emissions as these enhance cleaner production and energy efficacy. Thus, this study investigated the influence of green investment, technology innovations, and economic growth on CO2 emissions in selected Asian countries for the period 2001 to 2019. The Cross-Section dependency (CSD) signified the cross-section dependence in the panel countries, whereas CIPS and CADF testing affirmed the stationarity of all variables at the first difference. Consequently, the Westerlund cointegration method recognized a long-term association among variables. The outcomes of Panel Fully Modified OLS and Panel Dynamic OLS results indicated that green investment and technology innovations are helpful in mitigating CO2 emissions in selected Asian countries. In addition, the Environmental Kuznets Curve (EKC) postulate is validated for the given time period and indicated inverted U-shaped linkages between the economic growth and CO2 emission. The outcomes of the remaining variables, including population growth, energy consumption, FDI inflow, and trade, are estimated to have an augmenting influence on CO2 emission. Our results regarding the FDI–CO2 emissions nexus support the presence of the pollution-haven hypothesis. Moreover, the estimated results from PFMOLS and PDOLS are validated by Granger Causality, and AMG and CCEMG tests. The study suggests the adoption of renewable sources as energy input and the promotion of innovations for energy efficiencies to reduce CO2 emissions in Asian economies.

Does structural labor change affect CO2 emissions? Theoretical and empirical evidence from China

Since 2010, a severe lack of migrant workers has occurred in some provinces in China, indicating a sharp decline in labor force transfer in the primary industry during the economic transition. This decline is believed to have resulted in a decrease in carbon emissions. A neoclassical framework was built to estimate the labor force mitigation effect on CO2 emissions theoretically. The specific features of the nexus of CO2 emissions, economic development, and rural-urban transfer were investigated and evaluated within this framework. Two important propositions were derived from the theoretical model. First, the higher the ratio of the labor force working in the non-agricultural sector, the higher the emissions. Second, the speed of labor force transfer from the agricultural to non-agricultural sectors impacts peak emission levels. In the empirical study, data from China's 29 provinces for 1995-2012 were utilized to examine the two propositions. The GMM method was employed to control the possible endogeneity problem and introduce dynamics to the model. The empirical results verified the theoretical propositions. In addition, we concluded that the impact of labor transfer on CO2 emissions is subject to socioeconomic development levels in the long run.

Does globalization affect the green economy and environment? The relationship between energy consumption, carbon dioxide emissions, and economic growth.

This study analyzes the relationship between globalization, energy consumption, and economic growth among selected South Asian countries to promote the green economy and environment. This study also finds causal association between energy growth and nexus of CO2 emissions and employed the premises of the EKC framework. The study used annual time series analysis, starting from 1985 to 2019. The data set has been collected from the World Development Indicator (WDI). The result of a fully modified ordinary least square (FMOLS) method describes a significantly worse quality environment in the South Asian region. The individual country as Bangladesh shows a positively significant impact on the CO2 emissions and destroys the level of environment regarding non-renewable energy and globalization index. However, negative and positive growth levels (GDP) and square of GDP confirm the EKC hypothesis in this region. This study has identified the causality between GDP growth and carbon emission and found bidirectional causality between economic growth and energy use.

The effects of globalization, energy consumption and economic growth on carbon dioxide emissions in South Asian countries

This study analyzes the relationship between globalization, energy consumption, and economic growth among selected South Asian countries. This study also finds causal association between energy growth and nexus of CO2 emissions, and employed the premises of the EKC framework. The study used annual time series analysis, starting from 1972 to 2017. The data set has been collected from the world development indicator (WDI). The result of a fully modified ordinary least square (FMOLS) method describes a significantly worsen the quality environment in the south Asian region. The individual country as Bangladesh shows a positively significant impact on the CO2 emissions and destroying the level of environment regarding non-renewable energy and globalization index. However, negative and positive growth level (GDP) and square of GDP confirm the EKC hypothesis in this region. This study has identified the causality between GDP growth and carbon emission and found bidirectional causality between economic growth and energy use.

Urbanization, coal consumption and CO2 emissions nexus in China using bootstrap Fourier Granger causality test in quantiles

This short note aims at revisiting the causal links among urbanization, coal consumption and CO2 emissions in China using a newly developed Bootstrap Fourier Granger Causality in Quantile test over the period of 1969–2019. The quantile causality approach evaluates causal relationships in a more detailed and flexible way than the conditional mean causality analysis. While the causality definition of Granger (Econometrica 37:424–438, 1969) cannot provide information about a tail causal relation or nonlinear causalities, the Causality in Quantiles test allows us to determine whether extremely low or high changes matter for the urbanization-coal consumption- CO2 emission nexus. Granger causality test based on our proposed model indicates one-way Granger causality running from urbanization to both CO2 emissions (within 0.2 quantile) and coal consumption (within 0.4, 0.6 and 0.8 quantiles) in China. These empirical results have important policy implications for the government conducting urbanization and energy policies in China.