The Influence of Industrial Output, Financial Development, and Renewable and Non-Renewable Energy on Environmental Degradation in Newly Industrialized Countries

Abstract

The prime objective of this study is to examine the impact of industrial output and financial development on carbon dioxide emissions for a panel of 10 newly industrialized countries, namely Brazil, China, India, Indonesia, Malaysia, Mexico, Philippines, South Africa, Thailand, and Turkey. The empirical analysis was conducted between 1982 and 2019 by employing various estimation tests and techniques. The different tests account for cross-sectional dependence in different series of the model. Therefore, the relevant panel unit root was conducted, and we found that all series become stationary after the first difference. The long run parameters were estimated, and we found that there is a significant long-run relationship between the industrial output, the financial development, and the carbon emissions. The carbon emissions are found to be significantly affected by both domestic income and industrial output, while being negatively affected by financial development. Industrial production coefficient estimates are highly elastic when compared to the other estimates. The results also indicate unidirectional short-run causality from the domestic output and trade openness to carbon emissions, urban population to domestic output, and financial development to industrial output. However, there is no evidence of bidirectional causality. The study concludes that sustainable economic growth can be achieved by using contemporary and efficient production techniques, using environmentally friendly inputs in industries, and increasing vigilance of both the public and private sectors. Both the public and private sectors should therefore be pushed to use more modern, eco-friendly, and productive processing techniques. It is recommended that both the public and commercial sectors be encouraged to embrace cutting-edge, environmentally friendly, and productive processing methods.

Fuzzy Method to Improve Products and Processes Considering the Approach of Sustainable Development (FQE-SD Method)

“…Despite this, the implementation of sustainable development practices is not yet popular in enterprises, and the main goal is to meet customer satisfaction [26,33,34]. Moreover, making decisions regarding impacts to the environment is difficult and imprecise, which results in subjective assessments of problems in the case of predicting impacts on the natural environment [35,36]. The motivation of this research was to develop a method that supports making decisions in the area of quality improvement considering impacts on the natural environment.…”

“…Later, a relative fuzzy weight for the qualitative-environmental indicators is computed. This is conducted by normalizing the mean value in the row [35,52] (3):…”

Validation of the Environmental Kuznets Curve: cases from countries along the Belt and Road

“…Akinsola F et al (2022) used an autoregressive distributed lag model to analyze that the increase in industrialization has accelerated environmental degradation in African countries. In addition, industrialization has increased the output of the industrial sector and further promoted carbon dioxide emissions in middle-income economies and newly industrialized countries, exacerbating environmental pollution (Sohag K et al 2017, Parveen S et al 2023.…”

Could Globalization and Renewable Energy Contribute to a Decarbonized Economy in the European Union?

“…For both tests, the null hypothesis of homogeneous unit root states that "all sections in the panel are nonstationary", while under the alternative hypothesis, "at least, one individual section is stationary". Both tests are largely used in the literature regarding the impact of various economic, financial or energy variables, such as: globalization, economic growth, financial development, renewable/non-renewable energy on carbon emissions or environmental quality [115,[126][127][128][129][130][131][132][133][134][135][136][137][138][139][140][141][142][143][144][145].…”