The nexus of environment-related technologies and consumption-based carbon emissions in top five emitters: empirical analysis through dynamic common correlated effects estimator (original) (raw)

Modelling the Macroeconomic Determinants of Carbon Dioxide Emissions in the G-7 Countries: The Roles of Technological Innovation and Institutional Quality Improvement

Global Business Review

The group of seven (G-7) countries are seven of the most advanced global nations. Yet, these nations have not been able to achieve environmentally sustainable economic growth (EG) in the past. Consequently, despite growing economically, the environmental quality in the G-7 countries has persistently deteriorated. Hence, the present study examined the environmental impacts associated with EG, technological innovation, institutional quality (IQ), renewable energy consumption (RENE) and population using the carbon dioxide emission figures to measure environmental quality in the G-7 economies for the period 1996–2018. The econometric analyses involved the application of different estimation techniques that control the cross-sectional dependency and slope heterogeneity issues in the data. Overall, the results indicated that greater EG and higher population size increase environmental pollution by boosting the carbon dioxide emission levels. In contrast, technological innovation, IQ impro...

The role of innovation in environmental-related technologies and institutional quality to drive environmental sustainability

Frontiers in Environmental Science

In this study, we examine the long-run effect of environmental-related technological innovation, institutional quality, trade openness, energy consumption, and economic growth on CO2 emissions in APEC countries from 2004 to 2018. Firstly, panel unit root tests were used to explore the stationarity of each data series. The panel unit root test findings showed that all data series are stationary at the first difference. Second, the Westerlund panel cointegration test was used to deal with heterogeneity and cross-sectional dependence. Thirdly, the empirical findings from the augmented mean group (AMG) and common correlated effects mean group (CCEMG) estimators indicate that environmental-related technological innovation and institutional quality destructively affect CO2 emissions. In contrast, trade openness, energy consumption, and economic growth positively impact CO2 emissions. While causality analysis refers to the unidirectional causality runs from trade openness, energy consumpti...

Impacts of Environment-Related Technology, Structural Change, and Globalization on Greenhouse Gas Emissions: Evidence from Top Twenty Emitter Countries

International Journal of Energy Economics and Policy

The issues of environmental degradation, climate change, and rising temperatures are a real and growing concern for humanity at the level of individuals, groups, and societies. Reducing greenhouse gas is an important element for nations to achieve their ambitious climate-resilient growth goals. The purpose of this research is to investigate the impact of environment-related technology, structural change, income, and globalization on greenhouse gas (GHG) emissions in the top twenty emitter countries from 1997 to 2019. To this end, this study has applied the new and widely used method of moment quantile regression (MMQREG) to permit the estimation of relationships across the distribution of an outcome. In order to test the reliability of the benchmark estimation results, this article uses three different methods for robust testing, the PCSE, FGLS and the linear regression with Driscoll–Kraay standard errors. The main findings of this paper show that environment-related technology, st...

Does the modifying role of institutional quality remains homogeneous in GDP-CO2 emission nexus? New evidence from ARDL approach

Environmental Science and Pollution Research, 2020

This study presents a country-specific analysis for three developing countries (Pakistan, India, and Bangladesh) to determine the interaction effect of institutional quality and economic growth along with other control variables (foreign direct investment and renewable energy) on CO 2 emissions. This research uses an auto regressive distributed lag (ARDL) model for quarterly data ranging from 1996Q1 to 2016Q4. The findings show that the interaction cause of economic growth and institutional quality on CO 2 emissions is not homogeneous in developing countries. In India and Bangladesh, the modifying role of institutional quality is evident to reducing CO 2 emissions but in Pakistan, this interacting effect increases CO 2 emissions. The findings confirm an inverted U-shaped EKC in Pakistan and Bangladesh but not significant in India. The independent role of GDP and institutional quality significantly reduces CO 2 emissions in Pakistan and Bangladesh.

Impact of energy efficiency, technology innovation, institutional quality, and trade openness on greenhouse gas emissions in ten Asian economies

ESPR, 2022

Despite the fact that Asian economies have experienced robust economic growth in recent decades, rising pollution emissions have raised worries among policymakers about the long-term stability of this output growth. Knowing this fact, the present study attempts to empirically analyze the impact of some important factors, e.g., energy efficiency, technology innovations, trade openness, and institutional quality, on environment in 10 Asian economies over the period 1995-2018. Taking into account the slope heterogeneity and cross-sectional dependence present in the data, Westerlund and Edgerton (2008) and Banerjee and Carrion-i-Silvestre (2017) cointegration techniques and cross-sectionally augmented autoregressive distributed lag model (CS-ARDL) estimation are applied. For robust analysis, augmented mean group (AMG) and common correlated effects mean group (CCEMG) are also employed in the study. The empirical findings provided by selected variables reveal that both trade openness and institutional quality have detrimental impact, whereas energy efficiency and technology innovations have favorable impact on environmental quality in the selected economies. Empirical findings are robust to various policy recommendations. To create a sustainable future environment, Asian economies should focus on the improvement of their institutions quality and increase investments in technology innovations. The Asian countries must encourage traderelated environmental regulations and energy efficiency policies for better and sustainable environmental quality.

Analysing the role of environment-related technologies and carbon emissions in emerging economies: a step towards sustainable development

Environmental Technology, 2020

The evaluation of the contribution of consumption-based carbon (CBCO2) emissions in greenhouse gas (GHG) emissions is crucially important for the design of sustainable environmental policies. Despite its importance, attention to the discussion of the role of environment-related technologies (ERT) in abating CBCO2 emission is limited. The role of ERT and renewable energy in reducing carbon emissions is investigated in a panel of seven emerging economies during 1990-2016 in the "Environment Kuznets Curve (EKC)" framework. Crosssectional dependence test, CIPS unit root test, Westerlund co-integration, and cross-sectional augmented autoregressive distributive lag econometric techniques are employed to support the propositions. Findings suggest the supportive role of environment-related technologies in the presence of renewable energy in reducing carbon emissions. However, GDP growth is substantially worsening the environment. The findings indicate the need to increase investment in

Exploring the nature of EKC hypothesis in Asia’s top emitters: role of human capital, renewable and non-renewable energy consumption

Environmental Science and Pollution Research, 2022

The present study uses both carbon dioxide emission and ecological footprints as proxies for environmental degradation to examine the environmental Kuznets curve hypothesis for the top three emitters from Asia, i.e., China, India, and Japan. To this end, the autoregressive distributed lag model for time series and panel estimation is used for a period spanning over 1980-2016. For carbon dioxide emission, China presents an inverted-U shape of the environmental Kuznets curve, while a U-shape relationship is found for India and Japan. Similarly, when the hypothesis is tested with the ecological footprint, Japan offers an inverted U-shape and U-shaped association is detected for China and India. The panel analysis indicates the existence of the environmental Kuznets curve with both proxies of environmental degradation. Besides, human capital and renewable energy promote environmental sustainability, while non-renewable energy use hinders environmental quality. The findings of this study suggest that in order to meet the combined goals of economic growth and environmental protection, the three economies, i.e., China, India, and Japan, should employ renewable energy-enabled technology. Keywords CO 2 emissions • Ecological footprint • Economic growth • Human capital • Environmental Kuznets curve JEL Classification C50 • Q56 Highlights 1. The study amalgamates both CO 2 emission (negative indicator) and ecological footprint (positive indicator) of environmental degradation to investigate the validity of the environmental Kuznets curve hypothesis for the top three Asian emitting economies, namely Japan, China, and India. 2.The environmental Kuznets curve holds for China when CO 2 emission represents environmental degradation. Japan confirms the validity of the environmental Kuznets curve hypothesis when ecological footprint depicts environmental degradation. However, the inverted U-shaped environmental Kuznets curve does not operate in India. 3. The panel analysis detects an inverted U-shaped environmental Kuznets curve for both the proxies of the environment for the panel of selected economies. 4. Human capital and renewable energy use promote environmental sustainability, while non-renewable energy is detrimental to the environment. 5.This study suggests China, India, and Japan are undisputable the three largest Asian economies producing high pollutant emissions; it becomes imperative for the three economies to adopt renewable energy-enabled technologies to achieve the dual purpose of economic growth and a clean environment. 6.Finally, this study recommends that combating climate change and ensuring a sustainable environment (SDG13) require de-carbonization measures be pursued to enable a healthy environment that will reduce health impacts due to energy-related air pollution (SDG3) by 2030.

Carbon emission and economic growth nexus: Empirical evidence from the five largest carbon emitters

2018

The mad rush for rapid economic growth led by industrialization in emerging economies is having a negative impact on ecological management. Rapid economic growth and expansion of economic activities in most developed countries have resulted in acceleration of global warming and climate change. The direction of causality between carbon emission and economic growth varies from one country to the other depending on the data set and methodology employed by the researcher. In this paper, we examine the causal relationship between carbon emission and economic growth in five selected countries namely China, United States, Russia, India, and Japan. These countries are selected because they are the largest carbon emitters in the world. The study used two types of unit root test technique Levin-Lin-Chu (LLC) and Im-Pesaran-Shin (IPS) unit-root tests to ascertain the order of integration. Johansen Fisher Panel cointegration techniques and Pairwise Dumitrescu Hurlin Panel Causality Tests were a...

Impact of Technological Progress on Carbon Emissions in Different Country Income Groups

This study examines the complex relationship between carbon emissions and technological progress in a sample of 60 countries, divided into four categories based on their per capita income between the periods of 1989-2018. For robustness purposes and due to the broad definition of technology, we use six different proxies to represent technology; namely: Information and telecommunication technology (ICT); patents; public R&D expenditure; total factor of productivity (TFP); and a number of science and technology publications. After applying the fixed-effect method with Driscoll and Kraay standard errors, for the full sample, the results show that the ICT variables are a good instrument for carbon abatement, while R&D expenditure and patents do not have a clear impact on carbon emissions, TFP increases carbon emissions, and science and technology publications are negatively related to carbon emissions. The impact of the indicators on the various income levels groups of countries vary wh...

The pathway toward pollution mitigation: Does institutional quality make a difference?

Business Strategy and the Environment, 2020

Institutions in a country ensure sustainability and play a significant role in economic development by encouraging best practices in governmental interventions. A strong and transparent institutional framework opposes corruption and improves the management of public finances, which may also yield desired outcomes for the environment and society. However, the role of institutions in environmental issues is still under-investigated in the literature. This study aims to investigate the relationship between renewable energy consumption, institutional quality, economic performance, and carbon dioxide (CO 2) emissions in 18 Asia-Pacific Economic Cooperation (APEC) countries for the period 1992-2015. To this end, robust panel data estimation techniques are employed. The study confirms that a cointegration relationship exists among study variables. Evidence from the empirical results reveals that institutions have beneficial environmental effects. Likewise, renewable energy reduces carbon emissions to mitigate climate change, but nonrenewable energy harms the environment. Institutional quality helps to form the environmental Kuznets curve hypothesis in APEC countries. Finally, causality analysis refers to the unidirectional causality running from institutional quality to CO 2 emissions. Results reveal that stronger institutional arrangements in APEC countries could be the solution for implementations of effective environmental regulation to combat rising environmental challenges without sacrificing higher economic growth.