Impact of Economic and Financial Development on Environmental Degradation: Evidence from Small Island Developing States (SIDS)

Seetanah, Boopen; Sannassee, Raja Vinesh; Fauzel, Sheereen; Soobaruth, Y.; Giudici, Giancarlo; Nguyen, Anh Pham Huy

doi:10.1080/1540496x.2018.1519696

Cited by 94 publications

(39 citation statements)

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“…However, this finding is contrary to that of Ra et al ( 2016 ) who found that urbanization has no impact on emissions. Similarly, economic growth and energy consumption also contribute positively to emissions as revealed by Su et al ( 2019 ) for China and Dogru et al ( 2016 ) for the Mediterranean Area but is contrary to Seetanah et al ( 2019 ) who found a negative relationship between economic growth and emissions for Malta.…”

Section: Resultsmentioning

confidence: 85%

“…Also, energy consumption and economic growth lead to a positive and significant impact on emissions. Another study by Seetanah et al (2019) considered the impact of economic and financial development (FD) on environmental degradation (ED) in 12 small island economies for the period 2000-2016. Utilizing a panel vector autoregressive model, the study confirmed the existence of the environmental Kuznets curve in the selected countries.…”

Section: Literature Reviewmentioning

confidence: 99%

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RETRACTED ARTICLE: Modelling the interaction between tourism, energy consumption, pollutant emissions and urbanization: renewed evidence from panel VAR

Adedoyin

Bekun

2020

Environ Sci Pollut Res

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In less than two decades, the global tourism industry has overtaken the construction industry as one of the biggest polluters, accounting for up to 8% of global greenhouse gas emissions as reported by the United National World Trade Organization (UNWTO 2018). This position resonates the consensus of the United Nations Framework Convention on Climate Change (UNFCCC). Consequently, research into the causal link between emissions and the tourism industry has increased significantly focusing extensively on top earners from the industry. However, few studies have thoroughly assessed this relationship for small island economies that are highly dependent on tourism. Hence, this study assessed the causal relationship between CO2 emissions, real GDP per capita (RGDP) and the tourism industry. The analysis is conducted for seven tourism-dependent countries for the period 1995 to 2014 using panel VAR approach, with support from fully modified ordinary least square and pooled mean group–autoregressive distributed lag models. Unit root tests confirm that all variables are stationary at first difference. Our VAR Granger causality/block exogeneity Wald test results show a unidirectional causality flowing from tourism to CO2 emission, RGDP and energy consumption, but a bi-directional causality exists between tourism and urbanization. This implies that in countries that depend on tourism, the behaviour of CO2 emission, RGDP and energy consumption can be predicted by the volume of tourist arrivals, but not the other way around. The impulse response analysis also shows that the responses of tourism to shocks in CO2 appear negative within the 1st year, positive within the 2nd and 3rd years but revert to equilibrium in the fourth year. Finally, the reaction of tourism to shocks in energy consumption is similar to its reaction to shocks in RGDP. Tourism responds positively to shocks in urbanization throughout the periods. These outcomes were resonated by the Dumitrescu and Hurlin causality analysis where the growth-induced tourism hypothesis is validated as well as feedback causality observed between tourism and pollutant emission and urbanization and pollutant emission in the blocks over the sampled period. Consequently, this study draws pertinent energy and tourism policy implications for sustainable tourism on the panel over their growth trajectory without compromise for green environment.

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Section: Resultsmentioning

confidence: 85%

Section: Literature Reviewmentioning

confidence: 99%

RETRACTED ARTICLE: Modelling the interaction between tourism, energy consumption, pollutant emissions and urbanization: renewed evidence from panel VAR

Adedoyin

Bekun

2020

Environ Sci Pollut Res

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“…However, it also accounts for a significant amount of greenhouse gas emissions (GHG). Carbon dioxide discharge has increased globally in few years (Kahia et al 2019 ; Seetanah et al 2019 ). Emerging markets’ fossil fuel combustion obtrusively contribute to these emissions.…”

Section: Introductionmentioning

confidence: 99%

The impact of financial development and geopolitical risk on renewable energy consumption: evidence from emerging markets

Alsagr

Hemmen

2021

Environ Sci Pollut Res

149

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In the past three decades, the significance of large industrialized emerging economies has been highlighted. In terms of economic productivity and CO2 emissions, these markets play an important role in the global environment. Hence, to achieve global environmental needs, transition to renewable energy sources is essential. However, financial constraints along with geopolitical risks could act as possible barriers to the required transition. Thereby, in this paper, we aim to assess the impact of financial development and geopolitical risk on renewable energy consumption in emerging markets from 1996 to 2015. A two-step system GMM is tested, revealing a positive significant effect of financial development on transition to renewable energy. Moreover, contrary to the expected negative effect of geopolitical risk, our results reveal significant positive effect of geopolitical risk on renewable energy consumption. We highlight that the effects of both financial development and geopolitical risk are more pronounced in the long run. Finally, imperative policy implications are highlighted.

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“…However, Tamazian and Rao (2010), Shahbaz, Solarin, et al (2013), Mrabet and Alsamara (2017) and Al-Mulali et al (2016) reported that financial development reduced the emissions of carbon. Conversely, Seetanah et al (2019) and Dogan and Turkekul (2016) suggested that financial development does not correlate with the emissions of carbon. Insofar, in Malaysia, the relationship study between these two variables is still at the infant stage.…”

Section: Problem Statementmentioning

confidence: 99%

Is Financial Development in Malaysia Green? An Empirical Assessment of EKC Hypothesis

Othman¹

2020

European Proceedings of Social and Behavioural Sciences

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Impact of Economic and Financial Development on Environmental Degradation: Evidence from Small Island Developing States (SIDS)

Cited by 94 publications

References 50 publications

RETRACTED ARTICLE: Modelling the interaction between tourism, energy consumption, pollutant emissions and urbanization: renewed evidence from panel VAR

RETRACTED ARTICLE: Modelling the interaction between tourism, energy consumption, pollutant emissions and urbanization: renewed evidence from panel VAR

The impact of financial development and geopolitical risk on renewable energy consumption: evidence from emerging markets

Is Financial Development in Malaysia Green? An Empirical Assessment of EKC Hypothesis

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