Insurance market development, renewable energy, and environmental quality in the UAE: Novel findings from a bootstrap ARDL test

Abstract

The present work aims to contribute to the existing literature by assessing the influence of insurance market development on the UAE's environmental quality. This study stands to be the first to evaluate the influence of the insurance market on environmental quality in the UAE. The study used an advanced approach to confirm the cointegrating relationship among selected variables: bootstrap Autoregressive Distributed Lag (ARDL) testing and the Bayer and Hanck test for co-integration. The empirical outcomes reveal that renewable energy consumption stimulates environmental quality in the short and long run. Furthermore, empirical outcomes show that insurance market development has a positive effect on the level of environmental quality in the country. Therefore, policymakers in the UAE are advised to make policies and strategies to reinforce the sustainability of insurance markets that would minimize environmental pollution by giving incentives to whoever contributes minimal carbon and uses eco-friendly materials. This can be achieved through an active role in green investments and product development to promote environmental quality and increase insurers” profitability and credit rating.

Assessing the effect of real estate market and renewable energy on environmental quality in Belgium

“…A 1% decrease in renewable energy is accompanied by a 0.002% and 1.101% significant rise in the EF in both the short and long run. The study outcomes are similar to Jahanger et al (2022) for Mexico, Samour et al (2022) for UAE, Destek and Sinha (2020) for 24 OECD countries, Saidi and Omri (2020) for 15 OECD countries, Usman and Hammar (2021) for 15 most emitting countries, Danish et al (2020), Nathaniel et al (2021) for BRICS countries, Saidi and Omri (2020) for Canada, Belgium, France, Sweden, Germany, USA, Finland, UK, Japan, Switzerland, and Czech republic, and Qashou et al (2022) for Turkey. However, the finding contradicted Destek and Sinha (2020) who negative but the insignificant effect of REC on EF for Austria, Belgium, Chile, Denmark, France, Italy, Portugal, New Zealand, and Sweden, Rafindadi (2016a, 2016b, 2016c) for Japan and Rafindadi (2019b) for South Africa (Table 7).…”

Cross-sectional analysis of socioeconomic drivers of PM2.5 pollution in emerging SAARC economies

“…Contrary to the assertions made by environmentalists, it is widely acknowledged that energy serves as the major contributor to the emissions of both industrialized and non-industrialized sectors 25 . A causal analysis of economic growth and environmental deterioration is conducted by Samour et al 28 and Muhammad et al 29 since economic growth and associated social activity are highly dependent on efficient energy use 30 . The current investigation has revealed a favorable association between economic development and the accompanying social activities, as well as the consequent increase in energy consumption and emissions of greenhouse gases.…”