Exploring the relationship between economic growth, energy consumption, urbanization, trade, and CO2 emissions: a PMG-ARDL panel data analysis on regional classification along 81 BRI economies

Yao, Hongxing; Abban, Olivier Joseph; Boadi, Alex Dankyi; Ankomah-Asare, Evans Takyi

doi:10.1007/s11356-021-15660-1

Cited by 50 publications

(12 citation statements)

References 66 publications

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“…Korea, which supports our empirical results, whileAslan et al (2021) demonstrate that energy usage adversely impacts the ecosystem in 17 Mediterranean nations Doğanlar et al (2021). reportedly claimed that Turkey's energy use is increasing carbon footprints, andHongxing et al (2021) found that energy use raises pollution levels in 81 Belt and Road Initiative countries. According to research byHu et al (2021), energy use enhances greenhouse gases in Guangdong, China.…”

supporting

confidence: 84%

Exploring the moderating role of financial development in environmental Kuznets curve for South Africa: fresh evidence from the novel dynamic ARDL simulations approach

Udeagha

Breitenbach

2023

Financ Innov

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The extant literature has produced mixed evidence on the relationship between financial development and ecological sustainability. This work addresses this conundrum by investigating financial development’s direct and indirect consequences on ecological quality utilizing the environmental Kuznets curve (EKC) methodological approach. Our empirical analysis is based on the novel dynamic autoregressive distributed lag simulations approach for South Africa between 1960 and 2020. The results, which used five distinct financial development measures, demonstrate that financial development boosts ecological integrity and environmental sustainability over the long and short terms. In the instance of South Africa, we additionally confirm the validity of the EKC theory. More importantly, the outcomes of the indirect channels demonstrate that financial development increases energy usage’s role in causing pollution while attenuating the detrimental impacts of economic growth, trade openness, and foreign direct investment on ecological quality. Moreover, the presence of an inadequate financial system is a requirement for the basis of the pollution haven hypothesis (PHH), which we examine using trade openness and foreign direct investment variables. PHH for both of these variables disappears when financial development crosses specified thresholds. Finally, industrial value addition destroys ecological quality while technological innovation enhances it. This research provides some crucial policy recommendations and fresh perspectives for South Africa as it develops national initiatives to support ecological sustainability and reach its net zero emissions goal.

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supporting

confidence: 84%

Exploring the moderating role of financial development in environmental Kuznets curve for South Africa: fresh evidence from the novel dynamic ARDL simulations approach

Udeagha

Breitenbach

2023

Financ Innov

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“…Every time that CO 2 emissions were included, a positive relationship with economic growth occurred in harmony with the many of the previous literature (Balsalobre-Lorente and Leitão 2020; Yiew et al 2021;Hongxing et al 2021;Iqbal et al 2022). However, a concern is that temperature and rainfall decrease are insignificant when pollution is joined, model has lower AIC, and there is no cointegration.…”

Section: Discussionsupporting

confidence: 83%

“…Besides, the paper of Hongxing et al ( 2021 ) analyzed the interaction between economic growth, energy consumption, urbanization, trade, and CO 2 pollution in 81 belt and road initiative (BRI) countries, for the period 1990–2018. Particularly, with the use of pooled mean group (PMG) estimations was found that the contribution significance of all other magnitudes on economic growth is different across geographical regions.…”

Section: Literature Viewmentioning

confidence: 99%

Climate change: north and south EU economies—an application of dynamic asymmetric panel data models

Adam

Drakos

2022

Environ Sci Pollut Res

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The need for a cleaner environment and wealthier economies has been highly recognized by European Union (EU) policymakers of the last years, as evidenced by the creation of a plethora of laws and regulations for reducing carbon dioxide emissions while promoting the economic prosperity of EU countries. Indeed, many works have been done in this field, remarking on climate change’s impacts on economies and the need for determinant environmental policies inside the EU. This paper investigates the effect of climate change on economic growth using nonlinear dynamic panel methods for 15 countries of the EU in the period 1981–2019. Specifically, it is examined the impact of temperature, precipitation, and CO2 emissions on economic growth. So, autoregressive distributed lags (ARDL) methods were employed, overcoming cross-dependency and also considering linearity and nonlinearity. The results showed that economic growth has positive nonlinear relationship with long-run temperature, but in short-run they have a symmetric negative association. Moreover, precipitation has long-run negative and a short-run positive relationship with economic growth. However, when CO2 emissions are added, then model’s performance is decreased, and precipitation has a positive effect on economic growth, but all others, except from temperature increase, become insignificant. Finally, actions should be taken for more stable climate conditions and consistent environmental policies by EU countries. Graphical abstract

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“…Our empirical evidence is further supported by Pata ( 2018a ), who found that energy consumption contributes to escalate environmental degradation in Turkey over the period 1974–2013. Aslan et al ( 2021 ) found similar results for 17 Mediterranean countries, Doğanlar et al ( 2021 ) for Turkey, Udeagha and Breitenbach ( 2021 ) for SADC countries, Hongxing et al ( 2021 ) for 81 BRI 8 economies, Hu et al ( 2021 ) for Guangdong, China, Udeagha and Ngepah ( 2021b ) for South Africa, and Islam et al ( 2021 ) for Bangladesh. Our findings, however, contradict those of Baloch et al ( 2021 ), who found that energy innovation lowers energy intensity and, as a result, CO 2 emissions in OECD nations.…”

Section: Empirical Results and Their Discussionmentioning

confidence: 80%

Investigating the moderating role of economic policy uncertainty in environmental Kuznets curve for South Africa: Evidence from the novel dynamic ARDL simulations approach

Udeagha

Muchapondwa

2022

Environ Sci Pollut Res

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South Africa, one of the emerging markets and fast-developing economies in Sub-Saharan Africa recognised for varying world’s natural assets on the international market, has recorded significant economic growth in the previous several years. However, aside from the ecological repercussions of energy generation, how economic uncertainties moderate the effects of energy intensity, renewable and non-renewable energy usage, and economic complexity on the environment has largely gone unnoticed. As a result, this paper addresses an important empirical vacuum by exploring the moderating influence of economic policy uncertainty in the environmental Kuznets curve for South Africa from 1960 to 2020. Results from the novel dynamic autoregressive distributed lag simulations framework reveal the following key findings: (i) economic policy uncertainty accelerates environmental degradation in both the short and long run; (ii) economic growth (as measured by the scale effect) increases environmental degradation, whereas the square of economic growth (as measured by the technique effect) slows it down, confirming the presence of the environmental Kuznets curve (EKC) hypothesis; (iii) environmental quality is deteriorated by energy intensity, economic complexity, non-renewable energy usage, and trade openness; (iv) the use of renewable energy and technological innovation increase environmental quality; (v) whereas the moderating effects of economic policy uncertainty on the environmental impacts of energy intensity, renewable and non-renewable energy consumption result in an increase in environmental destruction, its moderating effect on environmental implication of economic complexity plays an important role in improving environmental quality. These findings permit us to draw important policy recommendations for South Africa for improving environmental quality.

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Exploring the relationship between economic growth, energy consumption, urbanization, trade, and CO2 emissions: a PMG-ARDL panel data analysis on regional classification along 81 BRI economies

Cited by 50 publications

References 66 publications

Exploring the moderating role of financial development in environmental Kuznets curve for South Africa: fresh evidence from the novel dynamic ARDL simulations approach

Exploring the moderating role of financial development in environmental Kuznets curve for South Africa: fresh evidence from the novel dynamic ARDL simulations approach

Climate change: north and south EU economies—an application of dynamic asymmetric panel data models

Investigating the moderating role of economic policy uncertainty in environmental Kuznets curve for South Africa: Evidence from the novel dynamic ARDL simulations approach

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