A Symmetry and Asymmetry Investigation of the Nexus Between Environmental Sustainability, Renewable Energy, Energy Innovation, and Trade: Evidence From Environmental Kuznets Curve Hypothesis in Selected MENA Countries

Abstract

The motivation of the study is to gauge the role of renewable energy consumption (REC), energy innovation (EI), and total trade (TR) on environmental sustainability (ES) in selected MENA (Middle East and North Africa) countries for the period 1980–2018 under the assumption of environmental Kuznets curve (EKC). The study implemented several econometrical tools, including structural break unit root test, Bayer–Hanck combined cointegration test, autoregressive distributed lag (ARDL), nonlinear ARDL, and Granger causality test under error correction term. Variables properties test detected that all the variables are stationary after the first difference but neither exposed to stationary after the second difference. The test statistics of the combined cointegration test documented a long-run association between ES, RE, EI, and TR, which is valid for both countries concerned. Regarding EKC concern, study findings with ARDL and nonlinear ARDL validated the EKC hypothesis for Tunisia and Morocco. Finally, the direction causality test documented unidirectional causality between renewable energy and ES, trade and ES, but the feedback hypothesis holds between EI and ES. We can advocate for specific sectoral environmental reforms in Tunisia and Morocco and suggest continuous environmentally friendly technologies by combining study findings. At the same time, subsidies on nonrenewable energy should be reduced, and green trade policies to help advance sustainable development should be implemented.

An Asymmetric Nexus between Urbanization and Technological Innovation and Environmental Sustainability in Ethiopia and Egypt: What Is the Role of Renewable Energy?

“…More precisely, a 1% growth in renewable energy integration in Egypt (Ethiopia) can decrease the present trend in carbon emission in the environment by 1.967% (1.276%). Our findings are in line with existing literature such as Adebayo and Kirikkaleli [17], Wang et al [82], Andriamahery, and Qamruzzaman [7]. In the short run (see Panel-C, Table 3), the study documented a similar line of the image that is negative and statistically significant in Egypt (Ethiopia) with a coefficient of −0.0491 (−0.0928).…”

“…According to Bayer and Hanck [72], the separate cointegration test p-value is combined in Fisher's formula as follows: The prevail limitation in conventional cointegration tests, in the process of mitigating the problem, Pesaran et al [73] have familiarized the cointegration test with a mixed order of variables integration which is commonly known as autoregressive distributed lagged (ARDL). Since then, the ARDL approach has been extensively used in investigating long-run associations in empirical studies [7,[74][75][76][77]. ARDL estimation has possessed certain benefits over traditional cointegration tests, including; (1) according to Ghatak and Siddiki [78], ARDL can address the sample issue in empirical estimation; (2) model stability and efficiency may be achieved by adopting suitable lagged specifications for mixed-order variable integration [73]; (3) impartial assessment of elasticity across the long and short term can be established [79].…”

“…Nature is under growing strain from human activities, including depletion and extraction of natural resources, pollution, waste, and movement of creatures [7,8]. The consolidation of a large and rising human population, fast economic expansion, and the deployment of polluting and asset-depleting technology all contribute to environmental consequences or degradation [9].…”

“…Existing literature has postulated and produced many studies on macro-fundamentals effects on environmental quality improvement\sustainability [7,[15][16][17][18][19]. The study by Khan et al.…”

Do Urbanization, Remittances, and Globalization Matter for Energy Consumption in Belt and Road Countries: Evidence From Renewable and Non-Renewable Energy Consumption

“…Furthermore, when heterogeneous sets of regressors are utilized in regressions and equilibrium errors are related through cointegration regressions, the DSUR outperforms non-system alternatives such as dynamic ordinary least squares (DOLS) and provides efficiency advantage methods. Furthermore, as previously stated, the DSUR may be used on heterogeneous or homogeneous panels (Hongxing et al, 2021;Andriamahery and Qamruzzaman, 2022).…”