Dynamic Nexus between macroeconomic factors and CO2 emissions: Evidence from oil-producing countries

Abstract

Current literature conveys that in spite of multiple studies being conducted to explore the influences of various macroeconomic factors both geographical and non-geographical on the CO2 emissions in different parts of the world, there is a scarcity of the same analyses from oil-producing countries. In this study, we reveal a new dimension by investigating the dynamic linkage of climate change, economic growth, energy use, and agricultural and rural development to the CO2 emissions of oil-producing countries around the world. In doing so, we apply Pedroni and Kao panel cointegration test, vector error correction model (VECM), pairwise Granger causality test, impulse response function (IRF), and some supportive models such as-generalized method of moments (GMM), and fixed-effect models. Our primary VAR-based models’ evidence that energy use (EUE), foreign direct investment (FDI), and trade to GDP (TPR) rate have both short-run and long-run casual consequences in CO2 emissions, while only long-run Granger causality is running from agricultural land ratio (ALR), forest area ratio (FAR), gross domestic product (GDP), population growth rate (PGR), renewable energy consumption (REC), and rural population rate (RPR) to CO2 emissions. However, bidirectional associations are observed between CO2 to foreign direct investment and trade percentage rate; EUE to renewable energy consumption and TPR; and TPR to FDI and gross domestic product. To demonstrate the significant impact, our secondary analysis tools GMM and fixed-effect regressions’ results disclose that high energy use and more domestic products significantly contaminate the environmental condition by increasing CO2 emissions in the atmosphere. Hence, our research provides great implications for the authorities of government, producers, businessmen, and general public in the oil-producing countries to ensure a sustainable environment by reducing energy use or alternating with renewable energies and emphasizing environmentally friendly products production over the long-run rather than conventional products production in the short-run.

Bank-Specific and Macroeconomic Determinants of Profitability of Islamic Shariah-Based Banks: Evidence from New Economic Horizon Using Panel Data

“…The World Bank database and the annual reports of respective banks are widely recognized for their comprehensive and reliable economic data sources. Several authors (da Silva et al 2018;Gazi et al 2022;Hasan et al 2022) around the world have relied on the Word Bank database in conducting research. In addition, the annual reports of banks involve a comprehensive review of the banks' financial statements, internal controls, and accounting practices to ensure compliance with regulatory requirements and generally accepted accounting principles (GAAP), which are also duly audited by independent auditors.…”

“…The selection of variables has been made based on the available research papers in this field and their significance in determining the profitability of banks. For instance, ROA and ROE together offer a comprehensive assessment of a bank's profitability from both operational and shareholder perspectives (Dodi and Arief 2018;Owoputi 2014;Ara et al 2021;Gazi et al 2022). ROA focuses on the bank's ability to generate profits from its overall asset base, while ROE highlights the return earned on shareholders' equity.…”

“…However, it is important to note that the focus of these investigations has primarily been on conventional commercial banks, thereby overlooking the distinct operational and regulatory framework within which Islamic Shariah-based banks operate. In addition to the aforementioned studies, recent research by Gazi et al (2022) and Rekha and Hossain (2022) has underscored the significant impact of the COVID-19 pandemic on private commercial banks in Bangladesh. Notably, these studies have focused on the nuanced effects of the pandemic on the operational dynamics and financial performance of conventional commercial banks.…”

“…However, a notable gap persists in understanding the distinct implications of the pandemic for Shariah-based commercial banks in Bangladesh. Indeed, while the broader banking sector has grappled with the repercussions of the COVID-19 crisis (Elnahass et al 2021;Ramlal 2022;Gazi et al 2022), there remains a dearth of research specifically elucidating the unique challenges and opportunities encountered by Shariah-based commercial banks within this context.…”

Solar panel shunt diodes and techniques for diagnosing them

“…The improvement of solar power plants has a good effect on the favorable effects on the environment (Md. Abu Issa Gazi, Md. Nahiduzzaman, Jakhongir Shaturaev, 2022).…”