Testing the impact of real interest rate, income, and energy consumption on Turkey’s CO2 emissions

Isiksal, Aliya Zhakanova; Samour, Ahmed; Reşatoğlu, Nil Günsel

doi:10.1007/s11356-019-04987-5

Cited by 61 publications

(29 citation statements)

References 42 publications

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“…De igual manera, Zhakanova et al (2019) confirman la CKA a corto y largo plazo para Turquía en 1980-2014 en un modelo que incorpora la tasa de interés, el ingreso, la apertura, la inversión extranjera directa (IED) y el consumo de energía entre los determinantes.…”

Section: Curva De Kuzntes Ambiental Y Determinantes De Las Emisionesunclassified

“…Algunos estudios que combinan CKA-STIRPAT han incluido al consumo de energía per capita(Halicioglu, 2009;Verbič et al, 2021; Yousaf et al, 2016), mientras que ejemplos de estudios que incorporan el precio del petróleo como una variable adicional para probar la hipótesis CKA incluyen a Abumunshar et al (2020),Erdogan et al (2020), yApergis y Payne (2015). Por último, la apertura comercial es considerada por(Adebayo, 2021;Khan, 2021;Zhakanova et al, 2019;Sánchez y Caballero, 2019;Rayhan et al, 2018;Rauf et al, 2018; Dogan y Turkekul, 2016).…”

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Curva de Kuznets Ambiental y determinantes de las emisiones de C02 en Ecuador: un enfoque de cointegración

Oliva¹,

Chancay²,

Mogrovejo³

et al. 2021

S. F. J. of Dev.

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La hipótesis de la Curva de Kuznets Ambiental es de gran importancia para comprender la relación entre la actividad económica y la degradación ambiental. Dada la situación actual de cambio climático y crisis ambiental, se ha vuelto importante investigar el impacto de la expansión económica en el medio ambiente. El presente estudio tiene como objetivo comprobar la hipótesis de una CKA para Ecuador, para lo cual se estima un modelo empírico que permite identificar los principales determinantes de corto y largo plazo de las emisiones de dióxido de carbono per cápita como medida del deterioro ambiental para el período 1965-2019. La metodología propuesta está sustentada en el enfoque de cointegración de Pesaran y Shin (1999) en el marco de un modelo autorregresivo de rezagos distribuidos (ARDL). Los resultados confirman la relevancia del impacto del nivel de desarrollo o ingreso, apertura económica, precio del petróleo y consumo de energía primaria en relación con las emisiones per cápita de dióxido de carbono; asimismo, se verifica la CKA, lo que implica que el deterioro ambiental es una función creciente del nivel de actividad económica hasta un determinado nivel crítico de renta, que se ubicó en 3.688,6 USD a precios constante. Despues de ese nivel, el crecimiento se asocia con niveles progresivamente mayores de calidad ambiental. Sin embargo, las emisiones pueden incrementarse ante variaciones en el precio del petróleo y el consumo de emergería primaria. De este modo, se concluye que un crecimiento más elevado a corto plazo puede acelerar la transición del país hacia niveles de ingreso compatibles con menores emisiones. The Environmental Kuznets Curve hypothesis is of great importance for understanding the relationship between economic activity and environmental degradation. Given the current situation of climate change and environmental crisis, it has become important to investigate the impact of economic expansion on the environment. The present study aims to test the hypothesis of a CKA for Ecuador, for which an empirical model is estimated that allows identifying the main short and long-term determinants of per capita carbon dioxide emissions as a measure of environmental deterioration for the period 1965-2019. The proposed methodology is based on the cointegration approach of Pesaran and Shin (1999) within the framework of an autoregressive model of distributed lags (ARDL). The results confirm the relevance of the impact of the level of development or income, economic openness, oil price and primary energy consumption in relation to per capita emissions of carbon dioxide; Likewise, the CKA is verified, which implies that environmental deterioration is a growing function of the level of economic activity up to a certain critical income level, which was located at USD 3,688.6 at constant prices. After that level, growth is associated with progressively higher levels of environmental quality. However, emissions may increase in the face of variations in the price of oil and consumption of primary emergencies. In this way, it is concluded that higher growth in the short term can accelerate the country's transition towards income levels compatible with lower emissions.

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Section: Curva De Kuzntes Ambiental Y Determinantes De Las Emisionesunclassified

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Curva de Kuznets Ambiental y determinantes de las emisiones de C02 en Ecuador: un enfoque de cointegración

Oliva¹,

Chancay²,

Mogrovejo³

et al. 2021

S. F. J. of Dev.

View full text Add to dashboard Cite

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“…Besides, previous studies have identified various determinants of CO 2 e. These factors include financial development (Ahmad et al 2018b ), technological innovation (Ahmad et al 2019a ), fiscal decentralization (Du and Sun 2021 ), freight and passenger transportation (Godil et al 2020 ), economic growth (Nathaniel et al 2021d ; Solarin et al 2021 ), institutional quality (Wawrzyniak and Doryń 2020 ), urbanization (Ahmad and Zhao 2018 ; Nathaniel et al 2021c ), exports (Anser et al 2021 ), renewable energy consumption (Nathaniel et al 2021b ), corruption (Ren et al 2021 ), public-private partnership investment in energy (Raza et al 2021 ), aggregate consumption (Ahmad and Khattak 2020 ), human capital (Asghar et al 2020 ), shadow economy (Sohail et al 2021 ), higher education (Li et al 2021 ), imports (Adewuyi and Awodumi 2020 ), gross fixed capital formation (Nathaniel and Adeleye 2021 ), energy demand (Vo and Zaman 2020 ), foreign direct investment (Rahman et al 2019b ), green technology innovation (Meirun et al 2021 ), democratic transition (Mao 2018 ), inflow of remittances (Ahmad et al 2019a ; Khan et al, 2020 ), tourism (Aziz et al 2020 ), international cooperation (Chen et al 2020 ), financial instability (Baloch et al 2018 ), fuel tax (Akkaya and Hepsag 2021 ), income inequality (Guo et al 2020 ), premature deindustrialization (Ullah et al 2020 ), information and communication technologies (Anser et al 2021 ), natural resources rents (Nathaniel 2021 ; Nathaniel et al 2021e ), military expenses (Isiksal 2021 ), globalization (Sharif et al 2020 ), real interest rate (Isiksal et al 2019 ), trade openness (Iheonu et al 2021 ; Nathaniel 2020 ), commercial policies (Jiang et al 2021a ), globalization (Nathaniel et al 2021a ), and nonrenewable energy (Nathaniel and Iheonu 2019 ).…”

Section: Introductionmentioning

confidence: 99%

Do higher education research and development expenditures affect environmental sustainability? New evidence from Chinese provinces

Jiang

Khattak

et al. 2021

Environ Sci Pollut Res

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Even though higher education R&D expenditures (HEEXP) are important determinants of economic growth that facilitate science, technology, new ideas, and innovation, yet its effect on environmental sustainability remains unexplored. This paper examines the nexus between HEEXP and carbon dioxide emissions (CO 2 e), followed by control variables such as electricity consumption (EC), foreign direct investment (FDI), gross domestic product (GDP), and total population (TP) for the period 2000Q1–2019Q4. Data were evaluated using different tests, e.g., the cross-sectional dependence test, cross-sectionally augmented Dickey-Fuller unit root test, Westerlund error-correction–based panel cointegration test, mean group, augmented mean group, common correlated effects mean group, and Dumitrescu-Hurlin panel causality test. First, the results validated the cointegration association among HEEXP, EC, FDI, GDP, TP, and CO 2 e. Second, the finding showed significant long-term negative nexus between HEEXP and CO 2 e. Third, the findings indicated that electricity consumption, foreign direct investment, gross domestic product, and total population are the important factors that intensify the overall situation of CO 2 e. Fourth, the results indicated that there exists bidirectional causality between EC and CO 2 e; FDI and CO 2 e; GDP and CO 2 e; POP and CO 2 e; and HEEXP and CO 2 e. This paper’s findings call for devising policies and strengthening financial support to induce higher education for developing green patents.

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“…Interest rates interact with emissions through multiple channels-by affecting the cost of capital, economic growth, FDI and trade flow structure (Backhaus et al 2016;Isiksal et al 2019). IEA (2009) and UNFCC ( 2008) estimated that 80% of the capital required to tackle climate change would come from the private sector.…”

Section: Introductionmentioning

confidence: 99%

“…Ziaei (2018) used the US interest rate spread to find its impact on the energy market and mortgage spread to find the impact on energy consumption by the residential sector. Tolis et al (2010) analysed the impact of interest rates on inflation and energy investments Isiksal et al (2019). had found a negative relationship between interest rates and CO 2 emissions in Turkey, while Muhafidin (2020)) found a positive relationship in Indonesia Qingquan et al (2020).…”

mentioning

confidence: 99%

Role of monetary policy on CO2 emissions in India

Pradeep

2021

SN Bus Econ

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The study investigates the impact of monetary policy on CO 2 emissions while controlling for income, trade, foreign direct investment (FDI) and accounting for structural breaks using annual data from 1971 to 2014. By utilizing the extended environmental Kuznets curve (EKC) framework and dynamic ARDL simulations, the results reveal that the Kuznets curve is a long-run phenomenon for India, not a short run. Moreover, interest rates are identified to possess a significantly positive relation with emissions in the short as well as long run. This indicates the sub-optimality of the present monetary policy for sustainable growth. Hence, it suggests incorporating environmental impacts into the central bank's framework. Additionally, trade is found to be inelastic and weakly beneficial for the environment, while FDI is elastic and significantly detrimental. The latter evidence supports Pollution Haven Hypothesis. Further, following Itkonen (Itkonen, Energy, 2012) arguments, the study demonstrates that inclusion of the energy-use term as a determinant of CO 2 emissions for India underestimates the turning point of the long-run Kuznets curve and the total effect of income on emissions. Consequently, such a model yields incorrect estimates.

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Testing the impact of real interest rate, income, and energy consumption on Turkey’s CO2 emissions

Cited by 61 publications

References 42 publications

Curva de Kuznets Ambiental y determinantes de las emisiones de C02 en Ecuador: un enfoque de cointegración

Curva de Kuznets Ambiental y determinantes de las emisiones de C02 en Ecuador: un enfoque de cointegración

Do higher education research and development expenditures affect environmental sustainability? New evidence from Chinese provinces

Role of monetary policy on CO2 emissions in India

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