The moderating role of financial development in the renewable energy consumption - CO2 emissions linkage: The case study of Next-11 countries

Wang, Zhaohua; Pham, Thi Le Hoa; Sun, Kaining; Wang, Bo; Bui, Quocviet; Hashemizadeh, Ali

doi:10.1016/j.energy.2022.124386

Cited by 61 publications

(13 citation statements)

References 62 publications

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“…(2022), Jahanger et al. (2022) and Wang et al. (2022), the present study introduced the interaction term of lnGI*lnFDI to check the moderating effect of green innovation on the relationship between FDI and ecological footprint.…”

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

“…The study used the module of Hoechle (2007), who has implemented the DK standard errors regression technique in STATA software. The technique can handle the problem of heteroscedasticity, autocorrelation and cross-sectional dependence in the panel data (Wang et al, 2022). Also, it is suitable for both balanced and unbalanced panel data and compensates for missing values with a long period and a small cross-section (Hashemizadeh et al, 2021).…”

Section: Nexus Between Fdi and Ecological Footprintmentioning

confidence: 99%

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Nexus between foreign direct investment and ecological footprint in BRICS and Next-11: the moderating role of green innovation

Padhan,

Bhat

2023

MEQ

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PurposeThe study examines the presence of the pollution haven or pollution halo hypothesis in Brazil, Russia, India, China and South Africa (BRICS) and Next-11 economies. Hence, it empirically tests the direct impact of foreign direct investment (FDI) on the ecological footprint. Further, it explores the moderating role of green innovation on the nexus between FDI and ecological footprint.Design/methodology/approachThe study uses the Driscoll–Kraay (DK) standard error panel regression technique to examine the long-run elasticities amongst the variables for the group of emerging countries, BRICS and Next-11, during the period of 1992 to 2018. Further, statistical robustness is demonstrated using the fully modified ordinary least squares technique.FindingsThe empirical finding shows that FDI degrades environmental quality by raising the ecological footprint. Thus, it proves that FDI is a source of pollution haven in BRICS and Next-11 countries. However, green innovation negatively moderates the relationship between FDI and ecological footprint. That means the joint impact of green innovation, and FDI proves the presence of the pollution halo hypothesis. Further, renewable energy consumption is reducing the ecological footprint, but economic growth and industrialisation are worsening the environmental quality.Practical implicationsThis study offers policy implications for governments and policymakers to promote environmental sustainability by improving green innovation and allowing FDI that encourages clean and advanced technology.Originality/valueNo prior studies examine the moderating role of green innovation on the relationship between FDI and ecological footprint in the context of emerging countries.

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Nexus Between Fdi and Ecological Footprintmentioning

confidence: 99%

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Nexus between foreign direct investment and ecological footprint in BRICS and Next-11: the moderating role of green innovation

Padhan,

Bhat

2023

MEQ

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“…Rasmi and Türkay (2023) conducted an analysis of cement supply chain sustainability with economic, environmental, and social impacts through a multi‐objective optimization algorithm. Wang, Pham, et al (2022) argued that the interplay of financial development and renewable energy can improve environmental quality. Jahanger et al (2022) studied the effects of democracy, dictatorship and globalization on carbon dioxide emissions in 69 developing countries.…”

Section: Literature Reviewmentioning

confidence: 99%

The impact of globalization on the decoupling of water consumption and economic growth in BRICS and N11 countries—Linear and nonlinear approaches

Wang,

2023

Sustainable Development

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In the context of globalization, the 2030 sustainable development goals pose a huge challenge to the coordinated development of economy and environment in emerging economies. The purpose of this article is to investigate whether globalization contributes to balance water consumption and economic growth in emerging economies. China is the largest developing country and the largest trader of goods in the world. From holistic and representative perspectives, this article analyzes the mechanisms affecting economic growth and water consumption in BRICS countries, Next Eleven (N11) countries and China. Combining decoupling model and econometric models, fully modified ordinary least squares (FMOLS) linear model and threshold panel nonlinear model are constructed. Both linear and nonlinear effects of trade and foreign investment on economic growth and water consumption are considered. The results show that, from a holistic perspective, globalization helps balance economic growth and water consumption in emerging economies. The impact of trade on water consumption in BRICS countries is negative. And with the increase of trade, its positive coefficient on water consumption in N11 countries gradually decreases. Foreign direct investment (FDI) plays a positive role in the coordinated development of economic growth and water environment in BRICS and N11 countries. Taking China as a representative country, there is a decoupling phenomenon between economic growth and water use during the study period. With the trade crossing the threshold successively, the promoting effect on economy increases first and then decreases, and the inhibiting effect on water consumption weakens. With the increase of foreign investment, its positive effect on GDP increases, and its positive coefficient on water consumption decreases. The conclusions from representative country and holistic perspective are consistent. Finally, some policy recommendations are put forward.

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“…Over the years, many studies have demonstrated that, in Africa, there is widespread inadequate access to clean and modern energy technologies, which has continued to damage the ecological assets of the region (Dimnwobi et al ., 2022; Wang et al ., 2022). This is because many poor African households depend on forests for livelihood and to meet the basic energy needs for lighting and cooking.…”

Section: Introductionmentioning

confidence: 99%

The moderating role of financial development in energy poverty–sustainable environment linkages: evidence from Africa

Dada,

Ajide,

Al-Faryan

2024

MEQ

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PurposeDriven by the Sustainable Development Goals (goals 7, 8, 12 and 13), this study investigates the moderating role of financial development in the link between energy poverty and a sustainable environment in African nations.Design/methodology/approachPanel cointegration analysis, fully modified least squares, Driscoll and Kraay least squares and method of moments quantile regression were used as estimation techniques to examine the link between financial development, energy poverty and sustainable environment for 28 African nations. Energy poverty is measured using two proxies-access to clean energy and access to electricity, while the environment is gauged using ecological footprint.FindingsThe regression outcomes show that access to clean energy and electricity negatively impacts the ecological footprint across all the quantiles; hence, energy poverty increases environmental degradation. Financial development positively influences environmental degradation in the region at the upper quantiles. Similarly, the interactive term of energy poverty and financial development has a significant positive impact on ecological footprint; thus, the financial sector adds to energy poverty and environmental degradation. The results of other variables hint that per capita income and institutions worsen environmental quality while urbanisation strengthens the environment.Originality/valueThis study offers fresh insights into the moderating effect of financial development in the link between energy poverty and sustainable environment in African countries.

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The moderating role of financial development in the renewable energy consumption - CO2 emissions linkage: The case study of Next-11 countries

Cited by 61 publications

References 62 publications

Nexus between foreign direct investment and ecological footprint in BRICS and Next-11: the moderating role of green innovation

Nexus between foreign direct investment and ecological footprint in BRICS and Next-11: the moderating role of green innovation

The impact of globalization on the decoupling of water consumption and economic growth in BRICS and N11 countries—Linear and nonlinear approaches

The moderating role of financial development in energy poverty–sustainable environment linkages: evidence from Africa

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