Interaction among geopolitical risk, trade openness, economic growth, carbon emissions and Its implication on climate change in india

Abstract

In this paper, we examine whether geopolitical risk influences environmental degradation, while controlling for non-renewable energy consumption, economic growth and trade openness, using a quarterly dataset from 1985Q1 to 2019Q4. The choice of India as a case study is based on a number of reasons. India is a developing country, which produces approximately 3.2% of global GDP. Also, India produces almost 17.7% of the world population. The country also emits about 6.8% of global carbon emissions, and according to the 2020 report of the consulting firm Eurasia, India is ranked fifth in terms of geopolitical risk. This study adds to the existing literature by using the quantile-on-quantile (QQR) regression to examine the effect of geopolitical risk on environmental degradation, as well as highlighting the implications of geopolitical risk on environmental sustainability. Based on empirical estimation, we find that geopolitical risk increases and decreases carbon emissions in India. That is, geopolitical risk increases environmental degradation at middle quantiles and decreases environmental degradation at lower and higher quantiles. In addition, we find that non-renewable energy consumption, economic growth and trade openness impede environmental quality in India. Thus, we are of the opinion that policymakers, when making policy decisions on environmental quality, should factor in geopolitical risk in two areas, mitigation and channel of escalation, among other policy suggestions.

Testing the role of economic complexity on the ecological footprint in China: a nonparametric causality-in-quantiles approach

“…For a sustainable renewable energy investment, experts have warned that China should shift to ancillary and spot markets, where the low energy storage and low marginal cost of renewable energy could facilitate higher reduction in electricity cost and encourage higher trading of electricity. Although several short-term policies have focused on administrative planning, we lend our voice to the argument of Hoove et al 79 that in the medium to long term, government and policymakers should pay attention to ancillary and spot market measures as crucial for rationalizing electricity investment, cut down electricity prices and costs, and improve clean energy consumption. These would rather another reduce China's economic complexity and its impact on the economy and environment for both the immediate and future generations.…”

RETRACTED ARTICLE: Financial stability influence on climate risk, GHG emission, and green economic recovery of China

“…It is important to understand the link between climate risks and financial stability to reduce the negative effects of climate change (Chien et al 2023a, b). The main ways that climate risks affect financial stability are directly through the balance sheets of financial institutions, indirectly through the spread of climate-related risks across markets and sectors, and directly through the growth of macroeconomic risks (Adebayo et al 2019). Climate risks can also affect the economy as a whole and the financial system because they can disrupt supply chains, change the prices of commodities, and cause sudden changes in the prices of assets.…”

The Impact of Innovation, Foreign Direct Investments, Trade Openness, Economic Growth on Carbon Emissions in Türkiye

“…In this section, studies examining the relationship between innovation, foreign direct investments, GDP per capita, trade openness and CO2 emissions are included. Adebayo et al (2019) examined the impact of economic growth, nonrenewable energy consumption and trade openness rate on environmental degradation in India. Annual data covering the period 1985-2019 were used in the study.…”