Modelling the relationship between financing by Islamic banking system and environmental quality: evidence from bootstrap autoregressive distributive lag with Fourier terms

Solarin, Sakiru Adebola

doi:10.1007/s11135-019-00904-7

Cited by 46 publications

(27 citation statements)

References 33 publications

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“…to analyze the following H 0 hypothesis to supplement the method of Pesaran et al (2001): Solarin (2019) extended the bootstrap ARDL test with Fourier terms. Gallant and Souza (1989) pointed out that a small number of low-frequency components of Fourier approximation can capture an unknown number of progressive and sharp structural brakes.…”

Section: Methodsmentioning

confidence: 99%

Does income inequality increase the ecological footprint in the US: evidence from FARDL test?

Üzar

Eyüboğlu

2022

Environ Sci Pollut Res

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In recent years, there has been a great interest in identifying determinants of environmental degradation. Although the effects of many economic, social, and political factors on the environment have been studied, the evidence of the relationship between income distribution and the environment is still quite scant. Looking at previous studies, the effect of income distribution on carbon emissions has generally been examined. In the last two years, a new line of research has emerged that investigates the links between income distribution and ecological footprint. Therefore, we investigate the effect of income inequality on the ecological footprint also considering its components. In this study, Fourier ARDL and Fourier ADL (new econometric techniques) are utilized to determine the ecological footprint-income inequality nexus in the US covering the period 1965–2017. We included economic growth and energy consumption as explanatory variables in the model. In this context, the study is a pioneering study examining the impact of income inequality on the ecological footprint as an environmental indicator in the US. The empirical results of Fourier ARDL and Fourier ADL denote that income inequality, economic growth, energy consumption, ecological footprint, and its components (cropland, fishing ground, and carbon) are cointegrated. Besides, it is found that income inequality has a positive effect on ecological footprint and cropland. Results denoted that economic growth and energy consumption have a positive and significant effect on ecological footprint and cropland, fishing ground, and carbon footprint components.

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Section: Methodsmentioning

confidence: 99%

Does income inequality increase the ecological footprint in the US: evidence from FARDL test?

Üzar

Eyüboğlu

2022

Environ Sci Pollut Res

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“…Further, π = 3.14, k highlights the frequency of Fourier, t shows the trend, and T is the sample size. See Solarin (2019) for more details on the ARDL methodology with the Fourier transformation.…”

Section: Methodsmentioning

confidence: 99%

Exploring the Dynamic Relationship Between Energy Efficiency, Trade, Economic Growth, and CO2 Emissions: Evidence From Novel Fourier ARDL Approach

Liu

Durani

Syed

et al. 2022

Front. Environ. Sci.

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Climate change, energy security, and volatile energy prices have been emerging as eminent threats worldwide. To overcome these concerns, energy efficiency could play a positive role. Hence, this study probes whether energy efficiency curbs CO2 emissions in the US, while controlling for trade, economic growth, and population. We use the Fourier-ADF and Fourier-LM tests to discern the unit-roots. Moreover, to render reliable findings, we rely on the novel Fourier ARDL model. The study divulges that energy efficiency plunges emissions in the long- and short-run. In particular, a 1% upsurge in energy efficiency impedes emissions by about 0.37% and 1.07% during the long- and short-term, respectively. Moreover, population and economic growth escalate emissions whether it is long- or short-run. Next, we document that trade upsurges emissions in the long-run. Also, we perform two types of sensitivity analysis to test whether our key results remain the same across different models/methods. Finally, we suggest escalating energy efficiency through investment and technological advancement. Moreover, import tariffs on renewables should be plunged while there should be relatively high tariffs on non-renewables.

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“…Following the conclusion of the unit root analysis, and given that the variables have a maximum order of integration at the first difference, the next step involves the application of the novel Fourier-Bootstrapped Autoregressive Distributed Lag (BARDL) bounds testing technique introduced by Solarin (2019). This method for predicting cointegration (long-run associations) among the variables is an extended and advanced variant of the conventionally used ARDL bounds testing approach introduced by Pesaran et al (2001) and the advanced BARDL method of McNown et al (2018).…”

Section: Empirical Model and Estimation Strategymentioning

confidence: 99%

“…For cointegration to exist, all these three test statistics (F-overall, t-dependent, and F-independent) have to be statistically significant; in simple terms, the absolute values of these statistics have to be greater than the corresponding bootstrapped critical values (Pata & Aydin, 2020). However, despite being superior to the conventional ARDL bounds test, the BARDL method has a limitation in terms of not being efficient in accounting for the smooth and sharp shifts/transitions in the cointegrating relationships among the variables (Solarin, 2019). Hence, Solarin (2019) extended the BARDL method of McNown et al (2018) by introducing Fouriers into the ECM model.…”

Section: Empirical Model and Estimation Strategymentioning

confidence: 99%

“…However, despite being superior to the conventional ARDL bounds test, the BARDL method has a limitation in terms of not being efficient in accounting for the smooth and sharp shifts/transitions in the cointegrating relationships among the variables (Solarin, 2019). Hence, Solarin (2019) extended the BARDL method of McNown et al (2018) by introducing Fouriers into the ECM model. The inclusion of the Fourier is believed to capture the possible smooth transitions in cointegrating relationships (Pata & Aydin, 2020).…”

Section: Empirical Model and Estimation Strategymentioning

confidence: 99%

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Repercussions of Hydroelectricity use on Carbon Emissions in Bangladesh: Evidence using Novel Fourier-Bootstrapped ARDL and Fourier-Gradual Shift Causality analyses

et al. 2022

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Bangladesh has recently pledged at the 26th Conference of Parties (COP26) to reduce its carbon dioxide emission figures by 22% at the end of 2030. However, since this South Asian country has always turned to fossil fuels for electricity generation purposes, achieving this emission reduction goal is a challenging task for the Bangladesh government. Nevertheless, considering the negative environmental implications associated with the generation and consumption of unclean energy, particularly electricity, it is critically important for Bangladesh to expedite the process of clean transformation of its traditional pollution-intensive power system. Hence, the objective of this study is to dissect the repercussions of hydroelectricity use on Bangladesh’s fossil fuel consumption-related carbon dioxide As opposed to the traditional method of quantifying environmental quality using total carbon dioxide emissions, this study considers Bangladesh’s annual carbon dioxide emissions generated from the combustion of gas, oil, and coal. Besides, novel Fourier-based econometric methods that effectively handle structural break problems in data are utilized in this study. Based on the results, it is found that up-scaling hydroelectricity consumption levels exert emission-inhibiting effects while greater economic globalization activities are witnessed to boost the emissions. More importantly, hydroelectricity consumption and economic globalization are observed to jointly curb fossil fuel consumption-based emissions of carbon dioxide. Additionally, the results verify the environmental Kuznets curve hypothesis for Bangladesh. Furthermore, financial sector development is found to be effective in reducing the natural gas consumption-related carbon dioxide emissions while urbanization is held responsible for amplifying emissions generated from all three types of fossil fuels. Therefore, considering these findings, the Bangladesh government needs to particularly emphasize scaling up production and consumption of hydroelectricity to decarbonize its economy.

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Modelling the relationship between financing by Islamic banking system and environmental quality: evidence from bootstrap autoregressive distributive lag with Fourier terms

Cited by 46 publications

References 33 publications

Does income inequality increase the ecological footprint in the US: evidence from FARDL test?

Does income inequality increase the ecological footprint in the US: evidence from FARDL test?

Exploring the Dynamic Relationship Between Energy Efficiency, Trade, Economic Growth, and CO2 Emissions: Evidence From Novel Fourier ARDL Approach

Repercussions of Hydroelectricity use on Carbon Emissions in Bangladesh: Evidence using Novel Fourier-Bootstrapped ARDL and Fourier-Gradual Shift Causality analyses

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