Effects of public and private expenditures on environmental pollution: A dynamic heterogeneous panel data analysis

Adewuyi, Adeolu O.

doi:10.1016/j.rser.2016.06.090

Cited by 84 publications

(41 citation statements)

References 68 publications

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“…Additionally, DFE assumes that both long-term and short-term coefficients can be homogeneous, but the intercept item can be different. The Hausman test can be adopted to further ensure which method is more suitable and whether the long-term coefficients are homogeneous [ 54 ].…”

Section: Literature Reviewmentioning

confidence: 99%

To Facilitate or Curb? The Role of Financial Development in China’s Carbon Emissions Reduction Process: A Novel Approach

Xing

Jiang

2017

IJERPH

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With the Paris Agreement coming into effect, China, as the largest CO2 emitter in the world, will be facing greater pressure to reduce its carbon emissions. This paper discusses how to solve this issue from the perspective of financial development in China. Although many studies have analyzed its impact on carbon emissions, the conclusions are contradictory. A major criticism of the existing studies is the reasonability of the selection of appropriate indicators and panel estimation techniques. Almost all studies use only one or limited indicators to represent the financial development and ignore the cross-sectional dependence. To fulfil the gaps mentioned above, a financial development index system is built, and with the framework of the STIRPAT (Stochastic impacts by regression on population, affluence, and technology) model, this paper applies an ARDL approach to investigating the long-run relationship between financial development and carbon emissions and a dynamic panel error-corrected model to capture the short-run impact. The empirical results show that financial development can improve carbon emissions, and such impact not only shows a regional difference but also reflects the features of stage differences. Additionally, based on the discussion on seven specific aspects of financial development, our findings can be helpful for policy makers to enact corresponding policies to realize the goal of reducing carbon emissions in China.

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Section: Literature Reviewmentioning

confidence: 99%

To Facilitate or Curb? The Role of Financial Development in China’s Carbon Emissions Reduction Process: A Novel Approach

Xing

Jiang

2017

IJERPH

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“…Numerous empirical studies have shown that fiscal spending is a significant determinant of environmental pollution [ 3 , 4 , 9 , 15 , 16 , 17 ]. For instance, Halkos and Paizanos (2013) used data from 77 countries to examine the impacts of government spending on environmental pollution [ 16 ].…”

Section: Literature Review and Developed Hypothesesmentioning

confidence: 99%

“…The expected coefficient for the dependent variable is negative. Following previous studies [ 4 , 15 , 39 ], and the availability of sample data, we selected SO 2 (unit: ton), PM 2.5 (μg/m 3 ), and industrial waste water (unit: million ton), which are of widespread concern, as environmental pollution indicators. Investigating the determinant of environmental pollution may help the Chinese government to comprehensively and deeply understand the effect of FESTs on China’s environmental quality.…”

Section: Econometric Specification and Datamentioning

confidence: 99%

Fiscal Expenditures on Science and Technology and Environmental Pollution: Evidence from China

Xiong

Han

Crabbe

et al. 2020

IJERPH

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Studying the driving factors of environmental pollution is of great importance for China. Previous literature mainly focused on the cause of national aggregate emission changes. However, research about the effect of fiscal expenditures on science and technology (FESTs) on environmental pollution is rare. Considering the large gap among cities in China, it is necessary to investigate whether and how FESTs affect environmental pollution among cities. We adopted three kinds of typical environmental pollutants including sulfur dioxide (SO2) emissions, wastewater emission, and atmospheric particulate matter less than 2.5 micrometers in diameter (PM2.5). Using the data of 260 prefecture-level cities over ten years in China, we found that FESTs play a significantly positive role in reducing sulfur dioxide (SO2) emissions and PM2.5 concentrations, but fail to alleviate wastewater emissions. Specifically, for every 1% increase in FESTs, SO2 emissions were reduced by 5.317% and PM2.5 concentrations were reduced by 5.329%. Furthermore, we found that FESTs reduced environmental pollution by impeding fixed asset investments and by promoting research and development activities (R&D). Moreover, the impacts of FESTs on environmental pollution varied across regions and sub-periods. Our results are robust to a series of additional checks, including alternative econometric specifications, generalized method of moments (GMM) analysis and overcoming potential endogeneity with an instrumental variable. Our findings confirm that government efforts can be effective on pollution control in China. Hence, all governments should pay more attention to FESTs for sustainable development and environmental quality improvements.

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“…Following the theoretical framework and the possibility of bidirectional causality among the variables, the simultaneous equations (3 and 4) are re-specified in sector specific and log-linear terms 7 . Based on data availability for the variables, the simultaneous equations estimated are given as follows (see next sub-section for variables definitions); Equations (12a) through (14b) are re-specified to correct for cross-sectional correlated errors, following Pesaran (2004,), Binder and Offermanns, (2007) and Adewuyi, (2016) as follows: Since the existence of cross section dependence and non-stationarity could make the econometrics results imprecise, the estimation started with testing for cross-section dependence (CD), and stationarity using Pesaran (2004 and, CD tests, and Hadri (2000), Pesaran (2003;CADF and 2007; CIPS) tests respectively. Therefore, the simultaneous equations for 5a to 7b are estimated using two stage least square (2SLS) and three stage least (3SLS) techniques correcting for cross section dependence since there are relatively large cross-section and time period and as confirmed by the CD tests (Lee and Robinson, 2016).…”

Section: Simultaneous Equation Frameworkmentioning

confidence: 99%

The Effects of Foreign Direct Investment (FDI) on Sectoral Growth and Poverty in Africa

Chukwu

Adewuyi

2020

Preprint

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Background This study examines the effects of foreign direct investment (FDI) on sectoral growth and poverty reduction in Africa. The transfer of technology into different sectors of economy through FDI has enabled many developing and emerging economies to achieve sustained economic growth and development. However, this is not the case with Africa’s growth architecture and poverty levels. A look at the region’s growth and welfare structure revealed that the FDI-growth-welfare relationship is weak when compared with those of other developing continents such as Asia and Latin America. Methods The study adopted recent causality method and simultaneous equation as well as dynamic threshold models to analyze the effect of FDI on sectoral growth and poverty. We accounted for sectoral spillover effect, heterogeneity, simultaneity and cross section dependence in our modeling. Results Main findings from our results suggest that FDI promotes outputs of manufacturing and service sectors, but hinders that of agricultural sector, while it fosters human development. Also, the results showed that, while human development promotes output of the agricultural sector, it deters output of manufacturing and service sectors. Further results revealed that only agricultural output improves human development and welfare among countries. The dynamic threshold regression analysis showed that FDI promotes output growth in all sectors with larger effect at levels beyond the optimal HDI. Conclusions Africa’s growth architecture is weak to stimulate poverty reduction. For the region to improve its sectoral output growth and welfare using the FDI as a catalyst, a policy framework towards attracting more FDI into the three key productive sectors (especially in the manufacturing and services) is desirable for increased output and poverty reduction. However, to achieve the desired level of poverty reduction, policies should be targeted to sectors with inter-sectoral linkages especially between agricultural and manufacturing sectors along the local and international value chain.

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Effects of public and private expenditures on environmental pollution: A dynamic heterogeneous panel data analysis

Cited by 84 publications

References 68 publications

To Facilitate or Curb? The Role of Financial Development in China’s Carbon Emissions Reduction Process: A Novel Approach

To Facilitate or Curb? The Role of Financial Development in China’s Carbon Emissions Reduction Process: A Novel Approach

Fiscal Expenditures on Science and Technology and Environmental Pollution: Evidence from China

The Effects of Foreign Direct Investment (FDI) on Sectoral Growth and Poverty in Africa

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