Carbon emission effect of renewable energy utilization, fiscal development, and foreign direct investment in South Africa

Abstract This study explores the moderating power of institutional quality on carbon emission through renewable energy consumption, foreign direct investment, economic growth and financial development in the globe for the period of 2002 to 2019. By using two Step System Generalized Method of Moments, the results illustrate that renewable energy usage and foreign direct investment inflow enhance environmental quality while financial development and economic growth lowers environmental quality in the panel. The results shows that quality institutions in countries are still not yet adequate to defend the harmful impact of every environmental factor and protect environment however, the interaction term of institutional quality confirms the significant moderating effect of all explanatory variables on environmental quality in the panel. The findings also confirm the existence of Environmental Kuznets Curve and evidence the pollution halo hypothesis. The findings of this paper can be useful for policy makers whereas conducting stricter environmental regulation.

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Triangular Policy Inference from Renewable Energy, Foreign Direct Investment (FDI) and Urbanization Towards Climate Goal: Insight from Indonesia

10.21203/rs.3.rs-803937/v1 ◽

2021 ◽

Author(s):

Edmund Ntom Udemba ◽

Lucy Davou Philip

Keyword(s):

Economic Growth ◽

Energy Source ◽

Renewable Energy Source ◽

Foreign Direct Investment ◽

Renewable Energy ◽

Causal Relationship ◽

Granger Causality ◽

Direct Investment ◽

Carbon Emission ◽

Fossil Fuels

Abstract This is an expository study towards ascertaining the ability of Indonesia in mitigating carbon emission. Indonesia is positioned as among the best performing economies in Southeast Asia because of its vigorous fiscal management and sustained economic growth over the years. The country’s foreign investment inflow increased to 14% in 2019, largely in gas, electricity, water, and transportation because of the viability of its macroeconomic reforms. To test the environmental implication of this macroeconomic performance of Indonesia and to see its ability to achieve carbon neutrality, we adopt Indonesian quarterly data of 1990Q1- 2018Q4 for empirical analysis. Relevance Instruments in the economic performance of Indonesia such as urbanization, foreign direct investment (FDI) and renewable energy source are all adopted for accurate estimations and analysis of this topic. Different approaches such as structural break test, autoregressive distributed lag (ARDL)-bounds testing and granger causality are all adopted in this study. Our analysis and policy recommendations are based on short run and long run ARDL dynamics and granger causality. Findings from ARDL confirmed, negative relationship between carbon emission and renewable energy source, FDI and urbanization. Also, a U-shape instead of inverted U-shape EKC is found confirming the impeding implication of Indonesian economic growth to its environmental performance if not checkmate. From granger causality analysis, all the variables are seen transmitting to urbanization in a one-way causal relationship. Also, FDI and renewable energy prove to be essential determinants of the country’s environment development, hence, FDI is seen transmitting to both energy source (fossil fuels and renewables) in a one- way causal relationship. Renewable energy is as well seen having two ways causal relationship with both carbon emission and fossil fuels. This result has equally exposed the significant position of the three instruments (urbanization, FDI and renewable energy source) in Indonesia environment development.

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The role of remittances inflow, renewable and non-renewable energy consumption in the environment: accounting ecological footprint indicators for top remittance-receiving countries

10.21203/rs.3.rs-456013/v1 ◽

2021 ◽

Author(s):

Liping Zhang ◽

Bo Yang ◽

Atif Jahanger

Keyword(s):

Foreign Direct Investment ◽

Renewable Energy ◽

Direct Investment ◽

Ecological Footprint ◽

Least Square ◽

Policy Implications ◽

Energy Utilization ◽

Kuznets Curve ◽

Ekc Hypothesis ◽

Renewable Energy Consumption

Abstract This study determines the dynamic linkages between remittances inflow, foreign direct investment, and ecological footprint in top ten remittance-receiving counties in the presence of economic growth and renewable and non-renewable energy under the framework of Environmental Kuznets Curve (EKC) hypothesis over the period of 1990–2018 by employing the continuously updated fully modified (CUP-FM) and the continuously updated bias-corrected (CUP-BC) estimators. The results show that remittances inflow, foreign direct investment, and non-renewable energy utilization affect the ecological footprint positively while renewable energy utilization negatively impacts on ecological footprint. This study also supports the pollution haven hypothesis and inverted U-shaped EKC hypothesis. Furthermore, in order to account for the national heterogeneity, we have executed a country-wise EKC hypothesis, the results of the full modified ordinary least square (FMOLS) support the inverted U-shaped EKC hypothesis in the case of Bangladesh, China, France, India, Pakistan, and Vietnam while displaying a U-shaped curve in Germany, Mexico, and Nigeria. Besides, the results are robust to various robustness analyses that we have executed for inspection of the reliability of our main findings. Finally, this study presents important policy implications with respect to top remittance-receiving countries.

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Policy Insight from Renewable Energy, Foreign Direct Investment (FDI) and Urbanization towards Climate Goal: Insight from Indonesia

10.21203/rs.3.rs-1228552/v1 ◽

2022 ◽

Author(s):

Edmund Ntom Udemba ◽

Lucy Davou Philip

Keyword(s):

Economic Growth ◽

Energy Source ◽

Renewable Energy Source ◽

Foreign Direct Investment ◽

Renewable Energy ◽

Causal Relationship ◽

Granger Causality ◽

Direct Investment ◽

Carbon Emission ◽

Fossil Fuels

Abstract This is an expository study towards ascertaining the ability of Indonesia in mitigating carbon emission. Indonesia is positioned as among the best performing economies in Southeast Asia because of its vigorous fiscal management and sustained economic growth over the years. The country’s foreign investment inflow increased to 14% in 2019, largely in gas, electricity, water, and transportation because of the viability of its macroeconomic reforms. To test the environmental implication of this macroeconomic performance of Indonesia and to see its ability to achieve carbon neutrality, we adopt Indonesian quarterly data of 1990Q1- 2018Q4 for empirical analysis. Relevance Instruments in the economic performance of Indonesia such as urbanization, foreign direct investment (FDI) and renewable energy source are all adopted for accurate estimations and analysis of this topic. Different approaches such as structural break test, autoregressive distributed lag (ARDL)-bounds testing and granger causality are all adopted in this study. Our analysis and policy recommendations are based on short run and long run ARDL dynamics and granger causality. Findings from ARDL confirmed, negative relationship between carbon emission and renewable energy source, FDI and urbanization. Also, a U-shape instead of inverted U-shape EKC is found confirming the impeding implication of Indonesian economic growth to its environmental performance if not checkmate. From granger causality analysis, all the variables are seen transmitting to urbanization in a one-way causal relationship. Also, FDI and renewable energy prove to be essential determinants of the country’s environment development, hence, FDI is seen transmitting to both energy source (fossil fuels and renewables) in a one- way causal relationship. Renewable energy is as well seen having two ways causal relationship with both carbon emission and fossil fuels. This result has equally exposed the significant position of the three instruments (urbanization, FDI and renewable energy source) in Indonesia environment development.

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Mitigating Environmental Degradation With Institutional Quality and Foreign Direct Investment (FDI): New Evidence From Asymmetric Approach

10.21203/rs.3.rs-262284/v1 ◽

2021 ◽

Author(s):

Edmund Ntom Udemba

Keyword(s):

Economic Growth ◽

Foreign Direct Investment ◽

Renewable Energy ◽

Direct Investment ◽

Carbon Emission ◽

Fossil Fuels ◽

Negative Impact ◽

Institutional Quality ◽

Renewable Energy Consumption ◽

The Impact

Abstract Chile is currently rated among the performing countries towards the achievement of the global goals of reducing carbon emission. It is on recorded that Chile as a country has moved from highly insufficient to insufficient and still working towards conforming to the recommend the region of 20C in quest of controlling climate change through carbon emission reduction. From this development, it is essential to investigate on the country’s strategies in achieving this success and equally make recommendation for other countries to adopt Chile’s strategy as a blue print in controlling carbon emission. To effectively do this and achieve the objective of this study, I adopt nonlinear and asymmetric approaches to have a combine (positive and negative) view of the reactions of the selected variable towards determining the impact of each variable towards curbing emission in Chile. Also, a careful selection of variable which includes economic growth (GDP per capita-Y), institutional quality, foreign direct investment (FDI), fossil fuels and renewable energy consumption was undertaken in this study. The focus was on the interaction of institutional quality and FDI towards ascertainment of environment performance. Chile’s quarterly data of 1996Q1 to 2018Q4 was utilized and the following findings were made: positive and negative shocks to the economic growth, institutional quality and renewable energy impacted favorably and negatively on Chile’s environment through reduction and promotion of emission respectively. In contrast, positive and negative shocks to FDI and fossil fuels impact both negatively on the Chile’s environment through increase in carbon emission. So institutional quality is vital in controlling the negative impact from FDI and fossil fuels.

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The Dynamic Interrelationship of Environmental Factors and Foreign Direct Investment: Dynamic Panel Data Analysis and New Evidence from the Globe

Mathematical Problems in Engineering ◽

10.1155/2020/2812489 ◽

2020 ◽

Vol 2020 ◽

pp. 1-12

Author(s):

Hayat Khan ◽

Itbar Khan ◽

Le Thi Kim Oanh ◽

Zhang Lin

Keyword(s):

Economic Growth ◽

Foreign Direct Investment ◽

Renewable Energy ◽

Energy Consumption ◽

Environmental Factors ◽

Environmental Quality ◽

Direct Investment ◽

Carbon Emission ◽

Dynamic Panel Data ◽

Renewable Energy Consumption

Studies on the role of renewable energy consumption and other environmental factors in carbon emission have got considerable attention recently, and they are predicted to get exaggerated in the coming decades. Energy usage increases economic growth and development of a country and backs to global warming and carbon emission which affect the local environment. For the prosperity of a country, it is felt crucial to measure the unavoidable impacts which effect environmental quality. Consequently, the current study investigates the interrelationship of renewable energy consumption, carbon dioxide emission, foreign direct investment, and economic growth in 190 countries of the world for the period of 1980 to 2018. By employing both static and dynamic models, the findings indicate that carbon emission, renewable energy consumption, foreign direct investment, and economic growth affect each other significantly whereas renewable energy consumption has been found beneficial for environmental quality; however, it decreases the inflow of FDI. RE has a decreasing impact, while FDI and carbon emission promote economic growth. The study suggests the promotion of renewable energy resources and policies related to FDI to promote the quality of the environment and achieve economic growth as well.

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