The influence of renewable energy use, human capital, and trade on environmental quality in South Africa: multiple structural breaks cointegration approach

2020 ◽  
Author(s):  
Paul Terhemba Iorember ◽  
Gylych Jelilov ◽  
Ojonugwa Usman ◽  
Abdurrahman Işık ◽  
Bilal Celik
Keyword(s):  
South Africa ◽  
Human Capital ◽  
Renewable Energy ◽  
Environmental Quality ◽  
Structural Breaks ◽  
Energy Use ◽  
Multiple Structural Breaks

scholarly journals Analyzing long-term empirical interactions between renewable energy generation, energy use, human capital, and economic performance in Pakistan

2019 ◽  
Vol 9 (1) ◽  
Author(s):  
Nousheen Fatima ◽  
Yanbin Li ◽  
Munir Ahmad ◽  
Gul Jabeen ◽  
Xiaoyu Li
Keyword(s):  
Human Capital ◽  
Renewable Energy ◽  
Economic Performance ◽  
Energy Use ◽  
Energy Generation ◽  
Causal Connection ◽  
Causality Analysis ◽  
Short Term ◽  
Renewable Energy Generation

Abstract Background The current research attempts to systematically investigate the causal interactions between renewable energy generation, aggregated energy use, human capital, and economic performance in Pakistan both in a short-term and long-term test for the period of 1990–2016. Methods As a primary step, a unit root analysis was conducted employing, among others, an augmented Dickey-Fuller-generalized least squares (ADF-GLS) test. Based on the order of integration I(1), the Johansen and Juselius (JJ) co-integration testing was employed to confirm a long-term causality analysis, which was followed by a vector error correction model (VECM) to calculate the short-run Granger causality analysis. Furthermore, the vector autoregressive (VAR)-based Cholesky test allowed the standard deviation impulse response functions to be generated to explain the responses of variables to arbitrary shocks in the data series under analysis. Results The empirical findings unearthed the bilateral causal connection between aggregated energy use and economic performance, renewable energy generation and economic performance, and human capital and economic performance. Thus, it confirmed the existence of feedback effects for aggregated energy use, renewable energy generation, and human capital in their relation to economic performance. Likewise, a unilateral positive causal connection was revealed running from renewable energy generation and human capital to aggregated energy use, and from human capital to renewable energy generation in both a long-term and short-term test. Additionally, the causal association running from aggregated energy use and renewable energy generation to economic performance was exposed in a long-term as well as short-term test, hence supporting the growth hypothesis. Conclusions The findings signified the importance of an enhanced generation of renewable energy along with the promotion of an aggregated energy use for the economic performance in Pakistan.

Does financial development improve environmental quality in Turkey? An application of endogenous structural breaks based cointegration approach

2018 ◽  
Vol 29 (2) ◽  
pp. 368-384 ◽  
Author(s):  
Javaid Ahmad Dar ◽  
Mohammad Asif
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Environmental Quality ◽  
Unit Root ◽  
Structural Breaks ◽  
Energy Use ◽  
Financial Sector ◽  
Content Type ◽  
Long Run ◽  
Endogenous Structural Breaks

Purpose The purpose of this paper is to investigate the long-run effect of financial sector development, energy use and economic growth on carbon emissions for Turkey, in presence of possible regime shifts over a period of 1960-2013. Design/methodology/approach Along with the conventional unit root tests, Zivot-Andrews unit root test with structural break has been employed to check the stationarity of variables. The cointegrating relationship between variables is investigated by using the autoregressive distributed lag bounds test and Hatemi-J threshold cointegration test. Findings The results confirm a cointegrating relationship between the variables. The long-run relationship between the variables has gone through two endogenous structural breaks in 1976 and 1986. Development of financial sector improves environmental quality whereas energy use and economic growth degrade it. The results challenge the validity of environmental Kuznets curve hypothesis in Turkish economy. Research limitations/implications The study uses domestic credit to private sector as a proxy for development of financial sector. The model can be improved by constructing an index of financial development instead of using a single determinant as a proxy for financial development. Practical implications The study may pave the way for policy makers to capture important environmental pollutants in better way and develop effective and efficient energy and economic policies. This may make significant contribution to curbing CO2 emissions while sustaining economic growth. Originality/value This is the only study to examine long-run impact of financial sector development on carbon emissions, using the threshold cointegration approach. Hence, the study is a gentle request to reduce the possible omitted variable econometric estimation bias and fill the gap in the existing literature.

scholarly journals Determinants of Material Footprint in BRICS Countries: An Empirical Analysis

2021 ◽  
Author(s):  
Malayaranjan Sahoo ◽  
Seema Saini ◽  
Muhammed Ashiq Villanthenkodath
Keyword(s):  
Human Capital ◽  
Renewable Energy ◽  
Natural Resources ◽  
Environmental Quality ◽  
Panel Cointegration ◽  
Renewable Energy Consumption ◽  
Cross Sectional ◽  
Brics Countries ◽  
Long Run ◽  
The Cross

Abstract This paper explores the relationship between renewable energy consumption, urbanization, human capital, trade, natural resources, and material footprint for BRICS countries from 1990 to 2016. We apply the cross-sectional dependency test to check the correlation among the cross-section. Then, we use the second-generation panel test like CADF and CIPS to check the stationary in the series. After that, we go for the panel cointegration test, i.e., Pedroni and Westerlund panel cointegration, to know the long-run relationship of the variable. The test results reject the null hypothesis of no cointegration among the variables and accept cointegration. The long-run results indicate that economic growth, natural resources, renewable energy, and urbanization have reduced the environmental quality for BRICS countries in case of material footprint employed to measure environmental degradation. However, foreign trade, human capital improves environmental quality. Based on the empirical results, the study recommended some important policy suggestions to achieve sustainable development in BRICS countries.

Impact of Globalization and Renewable Energy Consumption on Environmental Degradation: A Lesson for South Africa

2021 ◽  
Vol 11 (1) ◽  
pp. 145-155
Author(s):  
Seun Damola Oladipupo ◽  
Husam Rjoub ◽  
Dervis Kirikkaleli ◽  
Tomiwa Sunday Adebayo
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Environmental Degradation ◽  
Energy Use ◽  
Sustainable Growth ◽  
Renewable Energy Consumption ◽  
Nonrenewable Energy

South Africa is one of Africa's most polluted countries, with rising CO2 emissions posing a threat. South Africa must discover ways of minimizing pollution and take necessary steps before it is too late in order to achieve sustainable growth. For this purpose, this research assesses the ecological consequences of globalization, nonrenewable energy use, economic growth and renewable energy consumption in South Africa. The study leverages on the non-linearity advantages of the novel quantile on quantile regression (QQR) method for a robust analysis as opposed to the use of conventional linear approaches, thereby overcoming conspicuous shortfalls in extant studies, while offering a detailed explanation of the overall dependency structure between CO2 emissions and globalization, nonrenewable energy use and renewable energy use using a dataset covering the period between 1970 and 2018. The outcomes suggest that nonrenewable energy use, globalization, and economic growth contribute to environmental degradation in the majority of the quantiles, while the effect of renewable energy use on CO2 is not strong at all quantiles. The study highlights that economic expansion, nonrenewable energy use and globalization play key roles in in mitigating environmental sustainability in South Africa, while renewable energy is not sufficient to meet environmental requirements.

scholarly journals Assessing the effect of climate change and financial development on agricultural production in ASEAN-4: The role of renewable energy, institutional quality and human capital as moderators

2021 ◽  
Author(s):  
Abbas Ali Chandio ◽  
Muhammad Ibrahim Shah ◽  
Narayan Sethi ◽  
Zulqarnain Mushtaq
Keyword(s):  
Climate Change ◽  
Human Capital ◽  
Renewable Energy ◽  
Financial Development ◽  
Agricultural Production ◽  
Energy Use ◽  
Agricultural Sector ◽  
Institutional Quality ◽  
Distributed Lag ◽  
Long Run

Abstract This study utilizes the data of ASEAN-4 nations, namely Indonesia, Malaysia, Philippines, and Thailand, to examine how climate change, renewable energy, human capital, institutional quality as well as financial development affect the agricultural production. Since shocks in one country can easily affect another country of this region, the second generation modelling techniques are utilized to prove the relationship among the variables of interest. Findings from the Westerlund (2007) cointegration test confirms long run relationship among the variables. The result from Cross-sectionally augmented autoregressive distributed lag (CS-ARDL) model reveals that climate change negatively affects the agricultural production, renewable energy, human capital, institutional quality positively affects the agricultural production. Moreover, renewable energy use, human capital and intuitional quality moderates the effect of carbon emission on agricultural production. In addition, a U shaped relationship between financial development and agricultural production is discovered, suggesting that financial development can promote production in the agricultural sector only after reaching a certain threshold. Finally, some policy recommendations are provided for the ASEAN-4 countries.

Sign in / Sign up

Export Citation Format

Share Document