Energy, Trade, Urbanization and Environmental Degradation Nexus in Sri Lanka: Bounds Testing Approach

Weili

Mathematical Problems in Engineering

et al. 2021

Studies regarding environmental degradation and its association with different factors have got considerable attention recently in the prevalent literature but with assorted outcomes which have been a guide to the ongoing debate on environmental studies. Energy from renewable sources has been considered beneficial for environmental quality while it is still below the anticipated level especially in developing economies. Openness to trade is important to enhance economic growth while it has been overawed to worsen the quality of environment due to deprived policies especially in developing countries. Subsequently, the present research investigates trade openness, renewable energy consumption, and foreign direct investment in carbon emission in the world developing and developed countries by employing static, dynamic and long run estimators. Trade openness has been found to have a decreasing effect on carbon emission in developed countries while degrading the quality of environment in developing countries while renewable energy consumption enhances environmental quality in both samples. The impact of tourism on carbon emission varies in different samples where FDI increases emission in developed countries while having a negative effect of carbon emission in developing countries. The long run estimators also evidence the existence of long run association among variables. The outcomes of this study have considerable policy implication regarding trade openness policy formulation to upsurge environmental quality especially in developing countries. The study has further suggestions regarding tourism and promoting the use of renewable energy sources by avoiding the use of former’s energy to enhance environmental quality.

Section: Trade Openness and Carbon Emissionmentioning

confidence: 99%

Renewable Energy Consumption, Trade Openness, and Environmental Degradation: A Panel Data Analysis of Developing and Developed Countries

Weili

Mathematical Problems in Engineering

et al. 2021

“…On the other hand, negative arguments are raised by some researchers due to the fact that increased exports lead to increased industrial production activities, which ultimately increase CO 2 emissions and, hence, damage environmental quality [51]. Empirically, Jebli, Youssef [52], Balsalobre-Lorente, Shahbaz [37], Gasimli, Gamage [53], Mahmood, Maalel [54], Murad and Mazumder [55], Tiwari, Shahbaz [13], and Halicioglu [56], found detrimental effects of trade on the environment in 22 Central and South American countries, 5 EU countries, as well as Sri Lanka, Tunisia, Malaysia, India, and Turkey. In contrast, Khan, Ali [57] demonstrated that exports decreased and imports increased consumption-based carbon emissions in nine oil-exporting countries.…”

Section: Co 2 Emissions-trade/exports Nexusmentioning

confidence: 99%

Are Energy Consumption, Population Density and Exports Causing Environmental Damage in China? Autoregressive Distributed Lag and Vector Error Correction Model Approaches

Rahman

2021

Sustainability

This paper investigates whether energy consumption, population density, and exports are the main factors causing environmental damage in China. Using annual data from 1971–2018, unit root tests are applied for the stationarity analyses, and Autoregressive Distributed Lag (ARDL) bounds tests are used for the long-run relationships between the variables. A Vector Error Correction Model (VECM) Granger approach is employed to examine the causal relationships amongst the variables. Our findings show that the selected variables are cointegrated, and that energy consumption and economic growth are identified as the main reasons for CO2 emissions in both the short-run and long-run. In contrast, exports reduce CO2 emissions in the long-run. Short-run unidirectional Granger causality is found from economic growth to energy consumption, CO2 emissions and exports, and from CO2 emissions to energy consumption and exports. Moreover, long-run causal links exist between CO2 emissions and exports. Five policy recommendations are made following the obtained results.

“…In the next 25 years Africa's energy use is expected to be influenced by a fast growing population and high economic activities and this will in turn affect world energy markets (International energy outlook, 2018). Furthermore, urbanization has been identified as another important contributor to economic growth (Gasimli et al, 2019). Urbanization-driven population increase, industrialization (Uttara et al, 2012), income and overexploitation of natural resources are associated with deterioration in significant environmental indicators pertaining to, inter alia, air, soil, water and forest quality.…”

Section: Introductionmentioning

confidence: 99%

The Criticality of Growth, Urbanization, Electricity and Fossil Fuel Consumption to Environment Sustainability in Africa

et al. 2019

While most African economies are primarily sandwiched with the seemingly unsurmountable task of attaining consistent economic growth and unhindered energy supply, the enormous threat posed by environmental degradation has further complicated the economic and environmental sustainability drive. In this context, the present study examines the effect of economic growth, urbanization, electricity consumption, fossil fuel energy consumption, and total natural resources rent on pollutant emissions in Africa over the period 1980-2014. By employing selected African countries, the current study relies on the Kao and Pedroni cointegration tests to cointegration analysis, the Pesaran's Panel Pooled Mean Group-Autoregressive distributive lag methodology (ARDL-PMG) for long run regression while Dumitrescu and Hurlin (2012) is employed for the detection of causality direction among the outlined variables. The study traces long run equilibrium relationships b-etween examined indicators. The ARDL-PMG results suggest a statistical positive relationship between pollutant emissions and urbanization, electricity consumption and non-renewable energy consumption. Dumitrescu and Hurlin (2012) Granger causality test lends support to the long-run regression results. Bi-directional causality is observed between pollutant emissions, electricity consumption, economic growth and pollutant emissions while a unidirectional causality is apparent between total natural resources rent and pollutant emissions. Based on these results, several policy implications for the African continent were suggested. (a) The need for a paradigm shift from fossil fuel sources to renewables is encouraged in the region (b) The need to embrace carbon storage and capturing techniques to decouple pollutant emissions from economic growth on the continent's growth trajectory. Further policy insights are elucidated.