Effects of energy consumption, economic growth, and financial development on carbon emissions: evidence from heterogeneous income groups

Oil price, energy consumption and carbon dioxide (CO2) emissions: insight into sustainability challenges in Venezuela

“…The first economic condition is the income effect. Fiscal spending that determines the demand for economic activities and the performance of firms and households in the Venezuelan economy depends mainly on the volume of crude oil receipts (Bjerkholt and Niculescu 2004;Villafuerte and Lopez-Murphy 2009;Di Bella et al 2015). The results of this empirical study, therefore, suggest that with higher crude oil prices, various economic units (households, firms and government agencies) increase their consumption on energy-intensive technologies such as buying more vehicles.…”

“…The second economic condition is the institutionalization of energy consumption subsidies. The extensive subsidisation of energy consumption in Venezuela over the years as a means of sharing oil-resource wealth leads to overuse and waste of energy (Di Bella et al 2015). According to Di Bella et al (2015), the subsidization of energy consumption in the oil-dependent Latin American economies boosted by income from oil resource exports promoted the growth and development of energy-intensive sectors such as car manufacturing industry thereby increasing energy-intensive consumption.…”

“…The extensive subsidisation of energy consumption in Venezuela over the years as a means of sharing oil-resource wealth leads to overuse and waste of energy (Di Bella et al 2015). According to Di Bella et al (2015), the subsidization of energy consumption in the oil-dependent Latin American economies boosted by income from oil resource exports promoted the growth and development of energy-intensive sectors such as car manufacturing industry thereby increasing energy-intensive consumption. Similar economic conditions have been documented for other heavily dependent net oil-exporting economies, including Algeria (see Fuinhas and Marques 2013), Saudi Arabia (see Alshehry and Belloumi 2015) and Ecuador (see Nwani 2017).…”

“…According to OPEC Annual Statistical Bulletin (2018), crude oil now accounts for over 90 per cent of total export earnings in the Venezuelan economy. This means that fiscal spending that determines the demand for economic activities and the performance of various economic agents in the economy depends solely on the size of oil export receipts (Bjerkholt and Niculescu 2004;Villafuerte and Lopez-Murphy 2009;Di Bella et al 2015). Higher crude oil prices would mean higher revenue, more economic and social activities and increased consumption expenditure in the economy.…”

The symmetrical and asymmetrical effects of foreign direct investment and financial development on carbon emission: evidence from Nigeria

“…The study of Frankel and Rose (2012) also opined that "financial market can effectively allocate financial resources to the domestic firms to enable them purchase environment-friendly technology". Some studies observed that there would be an increase in carbon emission on one hand if financial development generates demands for energy by using technologies [35,71,106]. On the other hand, credit facilities and investment channels provided by financial system and international trade may give room for an enabling environment for research and development of low-carbon energy sources if financial development is incorporated into eco-friendly policies and regulations [27,90].…”