Natural resources extraction and green finance: Dutch disease and COP27 targets for OECD countries

Gu, Xiao; Alamri, Ahmad Mohammed; Ahmad, Maaz; Alsagr, Naif; Zhong, Xiangming; Wu, Tong

doi:10.1016/j.resourpol.2023.103404

Cited by 47 publications

(26 citation statements)

References 62 publications

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“…Although Dingbang et al (2021) contend that the efficiency of fossil fuels has been rising against a decreasing trend for renewable energy efficiency in China, they however opine that an appropriate mix between renewable energy consumption and nonrenewable energy efficiency is necessary in fostering environmental quality. These findings therefore highlight the importance of energy transition in meeting the carbon neutral target (Gu et al, 2023). Hence, several contemporary scholars have stressed the importance of renewable energy consumption and green technologies in promoting environmental sustainability (Zhang et al, 2023;Aydin et al, 2023;Alola and Adebayo, 2023).…”

Section: Critical Review Of Literaturementioning

confidence: 76%

“…Furthermore, Aydin et al (2023) stress that green innovations and energy transition are necessary for the enhancement environmental sustainability. The effective achievement of energy transition will accelerate the attainment of the net zero target as re-echoed in the COP27 goals (Gu et al , 2023). However, Arora and Arora (2023) argue that the importance placed by the COP27 on environmental protection and climate change is insufficient to keep global temperatures within 1.5 ° C.…”

Section: Introductionmentioning

confidence: 99%

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Energy transition and pollution emissions in developing countries: are renewable energies guilty?

Achuo

Ojöng

2023

IJDI

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Purpose This study aims to examine the effects of energy transition on pollution emissions in Africa. In addition, it explores the indirect channels through which energy consumption impacts environmental quality. Design/methodology/approach The study uses system Generalised Method of Moments approach for a panel of 51 developing African countries over the 1996–2020 period. Findings The results show that fossil fuel and renewable energy consumption increase pollution emissions. The environment-degrading effect of renewable energy in Africa is however counter-intuitive, though the results are robust across regional economic blocks and income groups except for upper-middle-income countries where energy consumption is environment enhancing. Moreover, the results show that the environmental impacts of non-renewable energy consumption are modulated through financial development and information and communication technology (ICT) adoption, leading to respective positive net effects of 0.04460796 and 0.07682873. This is up to respective policy thresholds of 203.265 and 137.105 of financial development and ICT adoption, respectively, when the positive net effects are nullified. Practical implications Contingent on the results, the study suggests the need for African countries to develop sound financial systems and encourage the use of green technologies, to ensure that energy transition effectively contributes to emissions reduction. Policymakers in Africa should also be aware of the critical levels of financial development and ICT, beyond which complementary policies are required for non-renewable energy consumption to maintain a negative impact on environmental degradation. Originality/value Firstly, extant studies on the nexus between energy transition and environmental degradation in Africa are very sparse. Therefore, this study fills the existing research gap by comprehensively examining the effects of energy transition on pollution emissions across 51 African economies. Additionally, besides accounting for the direct environmental effects of energy transition, the current study accounts for the indirect channels through which the environmental impacts of energy transition are modulated. Hence, this study provides critical thresholds for the policy modulating variables, which enlighten policymakers on the necessity of designing complementary policies once the modulating variables attain the established thresholds.

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Section: Critical Review Of Literaturementioning

confidence: 76%

Section: Introductionmentioning

confidence: 99%

Energy transition and pollution emissions in developing countries: are renewable energies guilty?

Achuo

Ojöng

2023

IJDI

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“…Additionally, several studies have been carried out to investigate the globalization-led environmental performance in the case of a group of countries. For example, Hiader et al (2019) in the case of APEC countries, Kalayci and Hayaloglu (2019) 2023) confirmed that enhancement in financial globalization has noteworthy importance in improved green growth, which, in turn, reduces the level of emissions and promotes environmental sustainability (Gu et al, 2023).…”

Section: Financial Globalization and Environmental Performancementioning

confidence: 92%

“…The G7 nations endeavour to promote sustainable business practices, incentivize investments in environmentally friendly technologies and assist industries that prioritize reducing their environmental footprints. The concept of ecological sustainability centres around preserving natural resources, minimizing pollution and mitigating climate change (Gu et al, 2023). The G7 nations place a high level of importance on implementing strategies aimed at mitigating the impact of climate change, which include, but are not limited to, the reduction of greenhouse gas (GHG) emissions, the adoption of renewable energy sources, the preservation of biodiversity and the promotion of sustainable water and land management practices.…”

Section: Introductionmentioning

confidence: 99%

What we learn from nexus between greener growth andenergy‐relatedemissions: Sustainability perspective evidence in context of financial globalization

Chen,

Zhou,

Raza

et al. 2023

Geological Journal

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With gradually increasing global climate issues, the Energy Protection Agency (EPA) emphasizes emission reduction measures at the national and international levels. Financial globalization and green innovation are considered a solution to the low‐income problem through internalization and specialization of markets and bring technological progress and innovation through open market access. The developed nations have been using financial globalization as the main driver of economic progress. This study examines the effects of financial globalization and green innovation on energy‐related greenhouse gas emissions for G7 countries. Unlike the literature that considered carbon and overall greenhouse gas emissions, this study is novel as it specifically focuses on energy‐related emissions in developed economies. The authors use the panel data of G7 economies from 1990 to 2020. To estimate the individual effects of each explanatory variable on emissions despite the nonlinear data distribution, this study uses the novel method of moment quantile regression (MMQR) approach. The results suggested that financial globalization, income, eco‐innovation, financial risk and human capital significantly influence greenhouse gas emissions in G7 countries, where economic growth and human capital are the leading drivers of energy‐related emissions. However, green technology, financial globalization and financial risk significantly help improve the environmental quality of the region. The results suggested fruitful implications, including increased participation in global economic activities, investment in green innovation, human capital and efficient financial risk management to attain sustainable development.

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“…Global warming and its detrimental effects on the environment have forced policymakers to encourage the adoption of sustainable technologies and practices by industry, manufacturers, and retailers, which led to green financing and green marketing practices to encourage customers to consume green products (Chandio et al 2021 ; Khairunnessa et al 2021 ; Gu et al 2023a ). Furthermore, as continuous advancements occur in technology and innovation (Li et al 2023 ; Chen et al 2023 ), urbanisation and development (Guo and Zhong 2022 ; Liu et al 2022a , 2022b ), and the economy (Hu et al 2022 ), the need to integrate green finance into multiple areas becomes pertinent to alleviate their environmental impact.…”

Section: Introductionmentioning

confidence: 99%

The influence of green finance availability to retailers on purchase intention: a consumer perspective with the moderating role of consciousness

Firdousi

Obrenovic

et al. 2023

Environ Sci Pollut Res

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As the global warming crisis is increasing daily, it is crucial to find ways to reduce the carbon footprint generated by activities like the production, consumption, and distribution of goods and services. This empirical study has looked at one approach through which environment-friendly production and consumption can be encouraged. The developed model has studied the relationship between retailers’ access to green finance and consumer purchase intention of green products by incorporating the role of environmental, status, and future consciousness. Theoretical foundations for this model have been taken from the theory of planned behaviour (TPB) and theory of reasoned action (TRA), which have extensively discussed the role of consciousness and societal norms while making purchase intentions. To gain insights about the purchasing behaviour of consumers, this study collected data from the Jiangsu province of China, where a non-probability convenience sampling technique was used to distribute a questionnaire to 400 respondents between February 2022 and August 2022. The collected data was analysed using Structural Equation Modeling (SEM) in SmartPLS in order to study the relationship between independent and dependent variables. Results of this study show that retailers’ access to green finance positively impacts consumer purchase intention towards green products, and adding a consciousness perspective in the model strengthens this relationship. Moreover, the theory of planned behaviour and the theory of reasoned action were validated through this study, providing insights for policymakers on the importance of promoting green finance to influence green product purchase intention. Overall, this study shows that policymakers should give green financing to retailers and environmental and future awareness to consumers to encourage environment-friendly behaviour.

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Natural resources extraction and green finance: Dutch disease and COP27 targets for OECD countries

Cited by 47 publications

References 62 publications

Energy transition and pollution emissions in developing countries: are renewable energies guilty?

Energy transition and pollution emissions in developing countries: are renewable energies guilty?

What we learn from nexus between greener growth andenergy‐relatedemissions: Sustainability perspective evidence in context of financial globalization

The influence of green finance availability to retailers on purchase intention: a consumer perspective with the moderating role of consciousness

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