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

Author(s):  
Abbas Ali Chandio ◽  
Muhammad Ibrahim Shah ◽  
Narayan Sethi ◽  
Zulqarnain Mushtaq
2021 ◽  
Author(s):  
Abbas Ali Chandio ◽  
Muhammad Ibrahim Shah ◽  
Narayan Sethi ◽  
Zulqarnain Mushtaq

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.


2009 ◽  
Vol 56 (3) ◽  
pp. 327-357 ◽  
Author(s):  
Abdelkarim Yahyaoui ◽  
Atef Rahmani

The objective of our work is to show the importance of a healthy institutional framework in the finance-growth relation. In this context, we start by presenting, a theoretical lighting on this subject while trying to define the concept of the governorship and to determine its various measurements. Then, we empirically test a model of growth of Solow increased by the human capital, treating relation between financial development, institutions and economic growth. The various estimates were made by Panel data Methods over the period of 1990 to 2006 for 22 developing countries. Following these estimates, it seems that the quality of the institutions is regarded as an important factor which must not be neglected in the study of the relation between the financial sphere and the real sphere.


2021 ◽  
Vol 2021 ◽  
pp. 1-8
Author(s):  
Yiping Guo

This study introduces the role of financial risk index and renewable energy electricity output along with financial development and human capital as new determinants of carbon emissions and uses updated time-series data from 1988–2018 for China, employing novel econometric approaches, i.e., Narayan and Popp unit root test with structural breaks, Maki cointegration, and frequency domain causality test for long, short, and medium run causality. The empirical outcome shows that improvement in human capital index and rising shares of renewable energy in electricity output help to limit carbon emissions. In contrast, gross domestic product, financial risk index, and structural break of 2001 increase carbon emissions. Moreover, structural break year of 2008 and financial development index reduces carbon emissions. The negative association between financial development and carbon emissions supports the positive school of thoughts of financial development which promotes sustainable environment. This study recommends promotion of quality human capital and green financial development along with increasing the shares of renewable energy in electricity for achieving China 2030 climate targets of reducing pollution.


2021 ◽  
Author(s):  
Haifa Saadaoui

Abstract This study focuses on the role of institutional factors as well as financial development in renewable energy transition in Middle East and North Africa (MENA) region over the period 1990-2018 using the ARDL PMG method. The investigation of long-run and short-run analysis confirms that institutional and political factors play a key role in promoting the transition to renewable energy, and shows that improving these factors can lead to decarbonization of the energy sector in the long run. Another important finding is that global financial development does not have a significant effect on the transition process in the long run, implying that the whole financial system needs a fundamental structural change to accelerate the substitution between polluting and clean energies. However, in the short term, the impact appears to be negative and significant, highlighting the inadequacy of financial institutions and financial markets in promoting the region’s sustainable path. Moreover, income drives the transition to renewable energy in both short and long term. The causality results show that both financial development and institutional quality lead to renewable energy transition, while there is a bidirectional link between income and renewable energy.This study can provide a very useful recommendation to promote a clean transition in the MENA region.


2009 ◽  
Vol 13 (2) ◽  
pp. 247-257 ◽  
Author(s):  
D. Koutsoyiannis ◽  
C. Makropoulos ◽  
A. Langousis ◽  
S. Baki ◽  
A. Efstratiadis ◽  
...  

Abstract. Since 1990 extensive funds have been spent on research in climate change. Although Earth Sciences, including climatology and hydrology, have benefited significantly, progress has proved incommensurate with the effort and funds, perhaps because these disciplines were perceived as "tools" subservient to the needs of the climate change enterprise rather than autonomous sciences. At the same time, research was misleadingly focused more on the "symptom", i.e. the emission of greenhouse gases, than on the "illness", i.e. the unsustainability of fossil fuel-based energy production. Unless energy saving and use of renewable resources become the norm, there is a real risk of severe socioeconomic crisis in the not-too-distant future. A framework for drastic paradigm change is needed, in which water plays a central role, due to its unique link to all forms of renewable energy, from production (hydro and wave power) to storage (for time-varying wind and solar sources), to biofuel production (irrigation). The extended role of water should be considered in parallel to its other uses, domestic, agricultural and industrial. Hydrology, the science of water on Earth, must move towards this new paradigm by radically rethinking its fundamentals, which are unjustifiably trapped in the 19th-century myths of deterministic theories and the zeal to eliminate uncertainty. Guidance is offered by modern statistical and quantum physics, which reveal the intrinsic character of uncertainty/entropy in nature, thus advancing towards a new understanding and modelling of physical processes, which is central to the effective use of renewable energy and water resources.


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