Bounds testing approach to analyzing the environment Kuznets curve hypothesis with structural beaks: The role of biomass energy consumption in the United States

Shahbaz, Muhammad; Solarin, Sakiru Adebola; Hammoudeh, Shawkat; Shahzad, Syed Jawad Hussain

doi:10.1016/j.eneco.2017.10.004

Cited by 171 publications

(69 citation statements)

References 63 publications

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“…The authors also report that the EKC hypothesis is not valid in the U.S. economy since the expected signs could not be obtained, and a neutral effect exists between trade openness and CO2 emissions in this country. Finally, Shahbaz et al (2017) analyze the validity of the EKC hypothesis in the U.S. for the period 1960-2016. Their paper considers not only the impact of economic growth on carbon emissions, but also the effects of biomass energy consumption, oil prices, and trade openness on carbon emissions.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Finally, following previous papers (e.g., Ang, 2007;Tiwari, 2014;Shahbaz et al, 2017), we consider the pivotal role of energy consumption, which contributes not only to the process of economic development but also to environmental degradation, and we mainly focus on consumption from fossil sources which are a fundamental input in the production process.…”

Section: Introductionmentioning

confidence: 99%

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The technical decomposition of carbon emissions and the concerns about FDI and trade openness effects in the United States

Shahbaz

Gözgör

Adom

et al. 2019

International Economics

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181

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This paper decomposes the environmental Kuznets curve into the scale, technique and composition effects while incorporating the roles of energy consumption, trade openness and foreign direct investments (FDI) effects in a carbon emissions function for the United States (U.S.). We have incorporated information about unknown structural breaks into this function while investigating the cointegration between the related variables. The empirical results confirm the existence of cointegration between the variables in the presence of structural breaks. Moreover, the scale effect increases carbon dioxide emissions, but the technique effect reduces it as expected. Energy consumption also adds to carbon emissions, while the composition effect improves environmental quality by lowering carbon dioxide emissions. Further, trade openness decreases carbon dioxide emissions. However, increases in FDI hamper environmental quality by increasing carbon emissions. To reduce the level of carbon emissions, the technical processes of production should be improved by investing in technological innovations and capital stock and upgrading environmental regulations to channel in environment-friendly FDIs. There should also be a transformation of the energy consumption structure towards cleaner energy sources.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The technical decomposition of carbon emissions and the concerns about FDI and trade openness effects in the United States

Shahbaz

Gözgör

Adom

et al. 2019

International Economics

Self Cite

181

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“…In other words, environmental pollution is increasing in income up to a certain threshold, beyond which environmental pollution is in fact declining in the level of income. Torras and Boyce (), Auci and Becchetti (), York, Rosa, and Dietz (), Shahbaz, Bhattacharya, and Ahmed (), Shahbaz, Solarin, Hammoudeh, and Shahzad (), and Balsalobre‐Lorente, Shahbaz, Roubaud, and Farhani () are good examples of empirical studies of EKC. Dinda () presents a review of the EKC literature.…”

Section: Introductionmentioning

confidence: 99%

Does energy‐related aid affect emissions? Evidence from a global dataset

Bhattacharyya

Intartaglia

McKay

2018

Review Development Economics

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Donor countries have been using international aid in the field of energy for at least three decades. The stated objective of this policy is to reduce emissions and promote sustainable development in the global South. In spite of the widespread use of this policy tool, very little is known about its effect on emissions. In this paper we perform an empirical audit of the effectiveness of energy‐related aid in tackling CO2 and SO2 emissions. Using a global panel dataset covering 128 countries over the period 1971–2011 and estimating a parsimonious model using the Anderson and Hsiao estimator, we do not find any evidence of a systematic effect of energy‐related aid on emissions. We also find that the non‐effect is not conditional on institutional quality or level of income. Countries located in Europe and Central Asia do better than others in utilizing this aid to reduce CO2 emissions. Our results are robust after controlling for the environmental Kuznets curve, country fixed effects, country‐specific trends, and time‐varying common shocks.

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“…It is unequivocally accepted across the globe, that there is a tradeoff between the EG and the energy consumption. Similarly, any form of investment and growth would result in high levels of energy consumption (for example see; [106][107][108]. However, further simpli cation of the situation would consider the emission of environmentally hazardous gases such as the CO 2 while consuming natural energy.…”

Section: H3 Asian Countries With a Higher Level Of Fdi Have A High Lmentioning

confidence: 99%

Unleashing the Indirect Influence of FDI in Environmental Degradation via Financial Development and Economic Growth. New Evidence from Asian Countries

Qamri

Bing

Khan

et al. 2020

Preprint

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Background:Scholars in developed and emerging economies have widely tested the interactions between foreign direct investment, financial development, economic growth and environmental degradation. Despite a number of empirical and review studies, it is not yet wrap up either the associations are negative, positive, direct or indirect. Additionally, minor attention is given to the indirect role of foreign direct investment in environmental degradation; perhaps no study has yet demonstrated the mediating role of financial development and economic growth between foreign direct investment and environmental degradation in Asian economies. Referring to the fragmented outputs and consequences as well as lacking the indirect role, the present study examines the influence of foreign direct investment on environmental degradation with the mediating role of financial development and economic growth. Results:Secondary data of 21 Asian countries from 1980-2018 were gathered from World Bank Indicators and then performed STATA to test the paths. Our findings are slightly different from the studies conducted in developed economies. The results indicate that foreign direct investment significantly improves environmental quality by deteriorating environmental pollution. It also significantly improves economic growth in the selected regions. Surprisingly, our study shows that foreign direct investment has a significant negative influence on financial development in the Asian regions. Both financial development and economic growth significantly negatively influence environmental degradation in Asian regions. However, financial development partially mediates while economic growth does not play any mediating role between foreign direct investment and environmental degradation in the Asian countries. Trade openness and population growth as control factors do not show any significant role in the model. Conclusions:This research recommends policymakers to focus on the inflow of foreign direct investment in order to enhance economic growth and environmental quality. It is strongly suggested for policymakers to attenuate the political intervention (e.g. ensure the political stability) in the inflow of foreign direct investment, so financial resources can be impartially distributed in the industrial sector and thus the nations will have an effective financial development system. Other implications have described.

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Bounds testing approach to analyzing the environment Kuznets curve hypothesis with structural beaks: The role of biomass energy consumption in the United States

Cited by 171 publications

References 63 publications

The technical decomposition of carbon emissions and the concerns about FDI and trade openness effects in the United States

The technical decomposition of carbon emissions and the concerns about FDI and trade openness effects in the United States

Does energy‐related aid affect emissions? Evidence from a global dataset

Unleashing the Indirect Influence of FDI in Environmental Degradation via Financial Development and Economic Growth. New Evidence from Asian Countries

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