The Environmental Kuznets Curve hypothesis for carbon and ecological footprints in South Asia: the role of renewable energy

Murshed, Muntasir; Haseeb, Mohammad; Alam, Md Shabbir

doi:10.1007/s10708-020-10370-6

Cited by 93 publications

(33 citation statements)

References 132 publications

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“…At the same time, technological limitations and infrastructural backwardness limit the prospects of undergoing RET and safeguarding environmental sustainability in tandem. Under such circumstances, attracting FDI can be expected to lessen the financial constraints and simultaneously overcome the other barriers inhibiting RET and environmental development (Murshed et al, 2021b;Liu et al, 2016). Besides, mitigating CO 2 and other harmful emissions has become a global agenda following the ratification of the Paris Agreement (Chaudhry et al, 2020) by several of the world economies including Bangladesh.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Foreign Direct Investments, Renewable Electricity Output, and Ecological Footprints: Do Financial Globalization Facilitate Renewable Energy Transition and Environmental Welfare in Bangladesh?

Murshed

Elheddad

Ahmed

et al. 2021

Asia-Pac Financ Markets

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100

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Phasing out fossil fuel dependency to adopt renewable energy technologies is pertinent for both ensuring energy security and for safeguarding the well-being of the environment. However, financial constraints often restrict the developing countries, in particular, from undergoing the renewable energy transition that is necessary for easing the environmental hardships. Against this background, this study makes a novel attempt to evaluate the impacts of FDI inflows on enhancing renewable energy use and attaining environmental sustainability in Bangladesh between 1972 and 2015. Using the autoregressive distributed lags with structural break approach to estimate the short- and long-run elasticities, it is found that FDI inflows enhance the share of renewable electricity output in the total electricity output levels of the country. Besides, FDI inflows are also evidenced to directly hamper environmental quality by boosting the ecological footprints figures of Bangladesh. Hence, it can be said that FDI promotes renewable electricity generation in Bangladesh but transforms the nation into a pollution haven. However, although FDI inflows cannot directly reduce the ecological footprints, a joint ecological footprint mitigation impact of FDI inflows and renewable electricity generation is evidenced. Besides, the findings also verify the authenticity of the Environmental Kuznets Curve hypothesis in Bangladesh’s context. Therefore, economic growth can be referred to as being both the cause and the panacea to the environmental problems faced by Bangladesh. These results, in a nutshell, calls for effective measures to be undertaken for attracting the relatively cleaner FDI in Bangladesh whereby the objectives of renewable energy transition and environmental sustainability can be achieved in tandem. In line with these findings, several appropriate financial globalization policies are recommended.

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Section: Theoretical Frameworkmentioning

confidence: 99%

Foreign Direct Investments, Renewable Electricity Output, and Ecological Footprints: Do Financial Globalization Facilitate Renewable Energy Transition and Environmental Welfare in Bangladesh?

Murshed

Elheddad

Ahmed

et al. 2021

Asia-Pac Financ Markets

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100

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“…However, it is to be noted that the nations are yet to mitigate their emission levels. Instead, the emission figures have amplified following the ratification of the agreement [6,14]. Bangladesh, Pakistan, and India are among the ten topmost polluted nations worldwide [15].…”

Section: Introductionmentioning

confidence: 99%

Renewable Energy Use and Ecological Footprints Mitigation: Evidence from Selected South Asian Economies

et al. 2021

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Fossil fuel-dependency has induced a trade-off between economic growth and environmental degradation across the developing nations in particular. Against this backdrop, this study aims to evaluate the impacts of renewable energy use on the ecological footprints in the context of four South Asian fossil fuel-dependent nations: Bangladesh, India, Pakistan, and Sri Lanka. The econometric analysis involves the use of recently developed methods that account for cross-sectional dependency, slope heterogeneity, and structural break issues in the data. The results reveal that renewable energy consumption reduces the ecological footprints while nonrenewable energy use boosts the ecological footprints. The results also confirm the validity of the environmental Kuznets curve and pollution haven hypotheses for the panel of the South Asian nations. Besides, foreign direct investment inflows are found to degrade the environment while higher institutional quality improves it. Furthermore, unidirectional causalities are run from overall energy use, economic growth, and institutional quality to ecological footprints. At the same time, bidirectional associations between foreign direct investment inflows and ecological footprints are also ascertained. The overall findings highlight the pertinence of reducing fossil fuel-dependency, enhancing economic growth, restricting dirty foreign direct investment inflows, and improving institutional quality to ensure environmental sustainability across South Asia.

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“…� 2 = < 0�, or � 2 = > 0� if PPI is not eco-friendly. Renewable energy use was incorporated into the framework, which is in consonance with 235Murshed et al (2021),Dong (2019), andUsman, et al (2021). The interaction between renewable energy 236 and ecological footprint is expected to be negative � 3 = < 0�.…”

mentioning

confidence: 99%

Ecological footprint, public-private partnership investment in energy, and financial development in Brazil: a gradual shift causality approach

Akinsola¹,

Awosusi

Kırıkkaleli

et al. 2021

Environ Sci Pollut Res

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The present study aims to close this gap in the literature by exploring the effect of public-private partnerships in energy and financial development on Brazil's ecological footprint by considering the impact of renewable energy and economic growth using data spanning from 1983 to 2017. The study utilized several techniques such as ARDL, FMOLS, DOLS, and CCR to examine the relationship between ecological footprint and the determinants, while the Gradual shift causality test was utilized to capture the causal linkage between the series in the presence of structural break. The outcome of the Maki Cointegration test revealed evidence of a long-run association among the variables of interest. Furthermore, the results of the ARDL, FMOLS, DOLS, and CCR tests revealed that economic growth and public and private investment in energy increase environmental degradation while both renewable energy and financial development mitigates it. Moreover, the Gradual shift causality test revealed a bidirectional causal linkage between ecological footprint and economic growth. The present study recommends establishing a forum that will foster public and private partnerships to enhance communication, which will create collaboration for new initiatives for green technological innovations. Additionally, the financial market can be assisted by the government by formulating a framework that would promote low carbon technology development.

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The Environmental Kuznets Curve hypothesis for carbon and ecological footprints in South Asia: the role of renewable energy

Cited by 93 publications

References 132 publications

Foreign Direct Investments, Renewable Electricity Output, and Ecological Footprints: Do Financial Globalization Facilitate Renewable Energy Transition and Environmental Welfare in Bangladesh?

Foreign Direct Investments, Renewable Electricity Output, and Ecological Footprints: Do Financial Globalization Facilitate Renewable Energy Transition and Environmental Welfare in Bangladesh?

Renewable Energy Use and Ecological Footprints Mitigation: Evidence from Selected South Asian Economies

Ecological footprint, public-private partnership investment in energy, and financial development in Brazil: a gradual shift causality approach

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