The study extended the conventional Autoregressive Distributed Lag (ARDL) model into the lead model, supported with a partial adjustment model and adaptive expectation model. The ARDL‐LEAD modelling is applied to Saudi Arabia's tourism industry to assess the country's environmental sustainability agenda (ESA) by using monthly time series data from 1995M01‐2018M12. The short‐run results confirmed the Environmental Kuznets Curve (EKC) hypothesis with the lag variables, while the U‐shaped relationship was found between economic growth (EG) and CO2 emissions with the leads variable. The inbound tourism and trade openness (TOP) decrease CO2 emissions at the lead factor in the short‐run. The long‐run relationship verified the U‐shaped relationship between EG and CO2 emissions, while TOP openness increases CO2 emissions to substantiate 'pollution haven hypothesis (PHH)' in a country. The Wald Granger causality shows the different variations at the current period and forecasted estimates. The Granger estimates at the current level confirmed the growth‐led emissions (GLE), tourism‐led emissions (TLE), and tourism‐led growth (TLG) hypotheses, while at forecast estimates, the results substantiate the TLE and emissions‐led growth (ELD) hypotheses in a country.
Purpose
The study aims to analyze the role of coronavirus testing capacity to possibly reduce the case fatality ratio (CFR) in a large cross-section of countries. The study controlled health-care expenditures, logistics performance index (LPI), carbon damages, and corporate social responsibility (CSR) to understand the nature of causation between the CFR and stated factors.
Design/methodology/approach
The study used a cross-sectional regression apparatus for coefficient estimates and variance decomposition analysis (VDA) for forecasting relationships between the variables over time.
Findings
The results confirmed the W-shaped relationship between CFR and case-to-test ratio (CTR) in the presence of a LPI that exacerbates the CFR cases across countries. The VDA estimates suggest that carbon damages, logistics activities, and CSR are likely to influence CFR over time.
Originality/value
To the best of the authors’ knowledge, the study is believed to be the first study that assesses the W-shaped relationship between the CFR and CTR in the presence of dynamic variables, which helps to formulate long-term sustainable health-care policies worldwide.
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