On the environmental effects of development and non-development expenditure in India: Evidence from an asymmetric ARDL model

Asif, Mohammad; Itoo, Haider Hassan; Dar, Javaid Ahmad

doi:10.1080/09638199.2021.2013517

Cited by 6 publications

(6 citation statements)

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“…(2021) upheld EKC hypothesis in their respective investigations. However, subsequent investigations reported inconclusive and mixed findings regarding the EKC hypothesis (Dar and Asif, 2017a; Asif et al. , 2022; Godil et al ., 2020; Itoo and Ali, 2023).…”

Section: Review Of Literaturementioning

confidence: 99%

“…Empirical studies by Alam et al (2011), Boutabba (2014, Sehrawat et al (2015), Rasool et al (2020), Acheampong et al (2020) and Ahmed et al (2021) upheld EKC hypothesis in their respective investigations. However, subsequent investigations reported inconclusive and mixed findings regarding the EKC hypothesis (Dar and Asif, 2017a;Asif et al, 2022;Godil et al, 2020;Itoo and Ali, 2023). As a consequence of these contradictory and ambiguous findings, the EKC framework was criticized for failing to take into account various structural, institutional, and macroeconomic determinants that tend to have an effect on the conservation of environment.…”

Section: Empirical Literaturementioning

confidence: 99%

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Do financial development and institutional quality matter for ecological sustainability in the long run? Evidence from India

Khanday

Wani

Tarique

2023

MEQ

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PurposeThe paper assesses the moderating function of institutions in the financial development and environmental nexus covering India for the time period 1980–2019.Design/methodology/approachDeviating from extant literature which has mostly used emissions of major greenhouse gasses as a measure of environmental quality, the present study uses a broad measure of environmental quality called ecological footprint (EFP). Financial development is measured using a robust proxy recently introduced by International Monetary Fund (IMF). This index is multifaceted and covers three broad dimensions of financial sector in terms of depth, efficiency and access of both financial institutions and markets, thus outperforming the exclusively bank-based measures used in the past literature. Further institutional quality index is generated using the data from international country risk guide. Finally, autoregressive distributed lag model is used for the empirical estimation of short-run and long-run results.FindingsThe empirical estimates reveal that financial development and institutional quality are good for long-run environmental sustainability of India, whereas economic growth degrades the environment in the long- run. The results also attest to the existence of pollution heaven hypothesis in India for long run. Furthermore, regarding the moderating role of institutions, the study reveals that institutional quality complements financial development in affecting environment in the short run. While as, in the long run, they play a substitutive role whereby sound institutions cover-up the inefficiencies in financial system.Research limitations/implicationsFirst, the paper uses the index of financial development developed by the IMF in order to quantify the level of financial development in India overtime. The index is based on three key dimensions of financial development such as the depth, efficiency and access of both financial institutions and markets. However, the index completely neglects the role of financial stability in determining financial development. Thus, future studies that are based on this IMF introduced index of financial development should incorporate the stability dimension to it. Second, this empirical study focused exclusively on India and employed aggregate EFP to measure environmental quality. Further studies can complement the content of this research by conducting similar studies to capture country-specific characteristics of other emerging economies and also scrutinize the impact on the six sub-indices of EFP.Practical implicationsThe results of the study reveal that the effect of financial development, and institutions on ecological footprint is sensitive to time dynamics. Moreover, the findings offer important policy implications to government and policy makers in India on how to curb the menace of environmental degradation.Originality/valueThe paper addresses the gap in the literature by examining the moderating role of institutional quality in the financial development and ecological footprint nexus in India. Furthermore, the authors employ a robust proxy for both financial development and environmental quality unlike extant studies on India.

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Section: Review Of Literaturementioning

confidence: 99%

Section: Empirical Literaturementioning

confidence: 99%

Do financial development and institutional quality matter for ecological sustainability in the long run? Evidence from India

Khanday

Wani

Tarique

2023

MEQ

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“…For example, governments should not provide subsidies for non-renewable consumption; exploitation of timber, which can hurt the ecosystem; and tax holidays for firms that generate emissions should be completely removed. These can tackle environmental deterioration and, at the same time, reduce the fiscal burden on governments, which can increase spending on socially desirable products [41]. Governments should also ensure that industrialization is in line with green growth policies for both groups.…”

Section: Supporting Informationmentioning

confidence: 99%

Clean energy transition and climate vulnerabilities: A comparative analysis of European and non-European developed countries

Caijuan,

Javeed Akhtar,

Rehman

et al. 2024

PLoS ONE

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Currently, the world faces an existential threat of climate change, and every government across the globe is trying to come up with strategies to tackle the severity of climate change in every way possible. To this end, the use of clean energy rather than fossil fuel energy sources is critical, as it can reduce greenhouse gas emissions and pave the way for carbon neutrality. This study examines the impact of the energy cleanability gap on four different climate vulnerabilities, such as ecosystem, food, health, and housing vulnerabilities, considering 47 European and non-European high-income countries. The study considers samples from 2002 to 2019. This study precedes the empirical analysis in the context of a quadratic relationship between the energy cleanability gap and climate vulnerability. The study uses system-generalized methods of the moment as the main technique, while panel quantile regression is a robustness analysis. Fixed effect and random effect models have also been incorporated. The study finds that the energy cleanability gap and all four climate vulnerabilities demonstrate a U-shaped relationship in both European and non-European countries, implying that when the energy cleanability gap increases, climate vulnerability decreases, but after reaching a certain threshold, it starts to increase. Development expenditure is found to be negatively affecting food and health vulnerabilities in European nations, while it increases food vulnerability and decreases health vulnerability in non-European nations. Regarding industrialization’s impact on climate vulnerabilities, the study finds opposite effects for the European and non-European economies. On the other hand, for both groups, trade openness decreases climate vulnerabilities. Based on these results, the study recommends speeding up the energy transition process from fossil fuel energy resources towards clean energy resources to obtain carbon neutrality in both European and non-European groups.

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“…, 2020; Khan et al. , 2020a, b; Neog and Yadava, 2020; Olubusoye and Musa, 2020; Zou and Zhang, 2020; Asif et al. , 2021; Jafri et al.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The nexus between environmental pollution and its determinants has been widely investigated by scholars in the recent past. There are several factors that determine the progression of CO 2 emissions, such as population, economic growth, energy intensity, energy use, natural resource depletion, industry, urbanization, remittances inflows, foreign direct investment, institutional quality, trade and human capital, trade openness, technology, services, international trade, monetary policy and so on (Sadorsky, 2014;Azam et al, 2016;Chikaraishi et al, 2015;Kasperowiscz, 2015;Liddle, 2015;Rafiq et al, 2016;Aye and Edoja, 2017;Yeh and Liao, 2017;Wang et al, 2017;Acheampong, 2018;Mardani et al, 2018;Zaidi et al, 2018;Ribeiro et al, 2019;Rehman et al, 2019;Brown et al, 2020;Khan et al, 2020a, b;Long, 2020;Hussain et al, 2020;Mitic et al, 2020;Zou and Zhang, 2020;Destek and Okumus, 2019;Mohanty and Sethi, 2021;Leitao et al, 2021;Wang et al, 2021;Asif et al, 2021). From the literature it is noted that several studies examine the positive relation between CO 2 emissions, population, energy use, economic growth, remittances inflows, natural resources depletion, urbanization and industries (van Beek et al, 2010;Sadorsky, 2014;Begum et al, 2015;Saidi and Hammami, 2015;Adewuyi and Awodumi, 2016;Bento and Moutinho, 2016;Rafiq et al, 2016;Bergesen et al, 2017;Ito, 2017;Yeh and Liao, 2017;Wang et a...…”

Section: Literature Reviewmentioning

confidence: 99%

Analyzing the causal nexus between CO₂ emissions and its determinants in India: evidences from ARDL and EKC approach

Itoo

Ali²

2022

MEQ

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PurposeThe present study is a novel attempt to measure the impact of population growth, natural resource depletion, non-renewable energy consumption, growth of national income, remittances inflow and industrial output on carbon dioxide emissions in India during the period of 1980–2018.Design/methodology/approachAutoregressive distributive lag (ARDL) is used to achieve the objective. The application of FMOLS (fully modified ordinary least squares), DOLS (dynamic ordinary least squares) and CCR (canonical cointegrating regression) techniques illustrate statistical robustness.FindingsThe long-run ARDL results confirm that increase in population, national income and energy consumption have a positive and significant impact on pollution levels in India. In contradiction to this, long run results further reveal that the increase in natural resource depletion, industrial output and remittances inflow have insignificant and negative impact on pollution levels in India. Further, the empirical findings did not find any evidence for the applicability of the environmental Kuznets curve (EKC) in India during the study period.Research limitations/implicationsThe study is confined to only a few important determinants of CO2 emissions in India. However, there is a large chunk of studies that have incorporated other determinants of CO2 emissions. Specifying a few determinants of CO2 emissions in India is itself a lacuna in the present study. Moreover, taking the time period from 1980 to 2018 is also one of the limitations of the study.Practical implicationsPlenty of research has been devoted to the causal relationship between the environment and its various determinants. However, not much attention has been paid to investigating the association between population growth, natural resource depletion, energy consumption, GDP per capita, remittances inflow, industry and carbon dioxide emissions in India. Since, CO2 emissions are one of the widely accepted and applied emissions in EKC applications, which the present study intends to test. Moreover, the study employs advanced econometric techniques including ARDL framework, FMOLS, DOLS and CRR methodologies to achieve robust results. Such an investigation will potentially allow policymakers to frame efficient environmental and fiscal policies to achieve the desired results.Originality/valueThe continuous increase of CO2 emissions in India has compelled policy makers to prioritize this issue as soon as possible and formulate national environmental policy for reducing the share of carbon dioxides emissions in climate change. The study could constitute the focus of future research.

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On the environmental effects of development and non-development expenditure in India: Evidence from an asymmetric ARDL model

Cited by 6 publications

References 45 publications

Do financial development and institutional quality matter for ecological sustainability in the long run? Evidence from India

Do financial development and institutional quality matter for ecological sustainability in the long run? Evidence from India

Clean energy transition and climate vulnerabilities: A comparative analysis of European and non-European developed countries

Analyzing the causal nexus between CO₂ emissions and its determinants in India: evidences from ARDL and EKC approach

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On the environmental effects of development and non-development expenditure in India: Evidence from an asymmetric ARDL model

Cited by 6 publications

References 45 publications

Do financial development and institutional quality matter for ecological sustainability in the long run? Evidence from India

Do financial development and institutional quality matter for ecological sustainability in the long run? Evidence from India

Clean energy transition and climate vulnerabilities: A comparative analysis of European and non-European developed countries

Analyzing the causal nexus between CO2 emissions and its determinants in India: evidences from ARDL and EKC approach

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Product

Resources

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Analyzing the causal nexus between CO₂ emissions and its determinants in India: evidences from ARDL and EKC approach