Financial Risk, Renewable Energy Technology Budgets, and Environmental Sustainability: Is Going Green Possible?

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Unquestionably, energy transition, which entails increasing renewables in the energy mix, is among the most reliable strategies to discontinue the utilization of fossil fuels and achieve Sustainable Development Goals (SDGs). In this context, technological advancement can not only stimulate green energy supply but also promote resource efficiency for realizing ecological goals. Also, persistent long-term energy policies and uninterrupted investments are needed to progress on SDGs for climate control and sustainable development. Hence, factors such as economic and government stability are pertinent to implementing and governing energy strategies. Against this background, this study assesses the potential of energy transition in meeting ecological goals by taking into account the roles of economic stability, technology, and government stability in BRICS from 1992 to 2018. Using the second-generation Westerlund cointegration test, the study found a long-run association among variables. The findings from the Continuously Updated Fully Modified (CuP-FM) test disclosed that energy transition is effective in limiting the ecological footprint (EF) in BRICS. Alongside this, economic stability and technology reduce ecological degradation. In addition, government stability stimulates environmental sustainability, while population density decreases environmental sustainability. Finally, the implications of these conclusions for meeting SDGs are discussed and policy directions are provided.

Section: Introductionmentioning

confidence: 99%

Energy transition for meeting ecological goals: Do economic stability, technology, and government stability matter?

Tang

Shahzad

Ahmed

et al. 2022

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“…Therefore, as non-green trade openness increases, the EU can export pollution to their trading partners. In addition, while the consumption of fossil fuels increases the GHG emissions released to the nature, the use of renewable energy sources in consumption reduces these emissions (Štreimikienė, 2021;Ahmad et al, 2022b). Thus, we expect a negative sign for β 3 in Eq.…”

Section: Data Measurement and Model Settingsmentioning

confidence: 93%

“…The significant contribution of the Green Openness Index to the environmental literature is an undeniable fact (Ahmad et al, 2022a;Ahmad et al, 2022b). However, it is necessary to examine the environmental impact of trade consisting of products other than green products by aggregating the remaining part of the separated trade basket.…”

Section: Introductionmentioning

confidence: 99%

Nexus Between Trading Non-Green Products and Environment: Introducing Non-Green Trade Openness Index

Can¹,

Oluç

Sturm

et al. 2022

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Trade is a significant parameter that may impact environment positively or negatively. However, there is no consensus on this issue among the researchers. It seems likely that tradable products will affect the environmental quality level. However, this requires the separation of the international trade basket. Thus, this research asks whether trade in non-green products affects the level of environmental degradation in the 25 European Union (EU) member states? To answer this question, we develop an index of trade openness in non-green products and empirically investigate whether this index influences the ecological footprint. Non-green trade openness index represents the ratio of the total export and import of non-green products in a country’s international trade basket to that country’s Gross Domestic Product. Advanced panel estimation techniques are employed for a sample of 25 EU countries over the period between 2003 and 2016. The core finding–supporting the Pollution Haven Hypothesis–is that non-green trade openness reduces environmental degradation. We discuss several implications of this result for recent environmental policies, particularly for the EU climate policy.

“…Thus, relying on data elements and digital technologies, the digital economy has an impact on environmental pollution from multiple levels: First of all, from the micro-enterprise level, the application of digital technology has broken regional boundaries and time constraints. The energy consumption caused by the factor of time and time has promoted the innovation of traditional industries in the digital economy (Zhang 2021;Ahmad et al, 2022b). The improvement of innovation efficiency can not only optimize the terminal treatment technology of enterprise pollution emissions but also enable more energy-efficient production and lower energy consumption per unit product (Li and Lin 2017), thereby optimizing the energy structure and reducing pollution emissions from enterprises.…”

Section: Theoretical Analysis and Research Hypothesis 21 Digital Econ...mentioning

confidence: 99%

Modeling the impact of digital economy on urban environmental pollution: Empirical evidence from 277 prefecture-level cities in China

Bai

Huang

Shang

et al. 2022

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With the recent technological advancements, such as the internet, big data, and cloud computing, China’s digital economy plays a significant role in economic development. However, the digital economy may also affect the environmental quality, but the prevailing literature is scant on how the digital economy affects urban environmental pollution. To fill this gap, this study established an urban digital economy index system based on 277 prefecture-level cities in China and calculated their digital economy indicators from 2011 to 2019. Using a two-way fixed effects model, a mediation effect model and a moderation effect model, a multi-dimensional empirical test is conducted to determine the impact of the digital economy on urban pollution effects and internal mechanisms. Empirical results indicate that the digital economy significantly reduces urban pollutant emissions and shows spatial heterogeneity. After a series of robustness tests and endogenous analysis, our findings are consistent. The mechanism test results reveal that the digital economy can help mitigate pollution emissions through improved industrial structure, promotion of green innovation, and financial development. Further, the empirical results also demonstrate that government intervention can significantly enhance the negative environmental impact of the digital economy. Moreover, the findings from the heterogeneity test (i.e., city size, time, and space heterogeneity) show that the development of the digital economy is more significant in reducing urban pollution in large and eastern coastal cities. While the digital economy development policy impact of the digital economy on reducing pollution has been found after being adjusted by the national strategy. Our study enriches the research regarding the causes and mechanisms of environmental pollution, provides empirical evidence that the digital economy contributes to pollution control and provides decision-making references for enabling the growth of the digital economy and maximizing its pollution reduction power.