Nexus between renewable energy, foreign direct investment, and agro-productivity: The mediating role of carbon emission

2022 ◽  
Vol 184 ◽  
pp. 526-540
Author(s):  
Md Qamruzzaman
Keyword(s):  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Direct Investment ◽  
Carbon Emission ◽  
Mediating Role

scholarly journals Institutions Powers, financial development and environmental factors influence on Carbon emission: Evidence from a Global Perspective

2021 ◽  
Author(s):  
hayat khan ◽  
Liu weili ◽  
itbar khan
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Financial Development ◽  
Environmental Quality ◽  
Direct Investment ◽  
Carbon Emission ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
Global Perspective

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.

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

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.

scholarly journals Unleashing the Indirect Influence of FDI in Environmental Degradation via Financial Development and Economic Growth. New Evidence from Asian Countries

2021 ◽  
Author(s):  
Ghulam Muhmmad Qamri ◽  
Bing Sheng ◽  
Rana Ejaz Ali Khan ◽  
Wasisfah Hanim
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Financial Development ◽  
Environmental Degradation ◽  
Environmental Quality ◽  
Direct Investment ◽  
The Political ◽  
Asian Countries ◽  
Mediating Role

Abstract Background:Scholars in developed and emerging economies have widely tested the interactions between foreign direct investment, financial development, economic growth and environmental degradation. Despite a number of empirical and review studies, it is not yet wrap up either the associations are negative, positive, direct or indirect. Additionally, minor attention is given to the indirect role of foreign direct investment in environmental degradation; perhaps no study has yet demonstrated the mediating role of financial development and economic growth between foreign direct investment and environmental degradation in Asian economies. Referring to the fragmented outputs and consequences as well as lacking the indirect role, the present study examines the influence of foreign direct investment on environmental degradation with the mediating role of financial development and economic growth. Results:Secondary data of 21 Asian countries from 1980-2018 were gathered from World Bank Indicators and then performed STATA to test the paths. Our findings are slightly different from the studies conducted in developed economies. The results indicate that foreign direct investment significantly improves environmental quality by deteriorating environmental pollution. It also significantly improves economic growth in the selected regions. Surprisingly, our study shows that foreign direct investment has a significant negative influence on financial development in the Asian regions. Both financial development and economic growth significantly negatively influence environmental degradation in Asian regions. However, financial development partially mediates while economic growth does not play any mediating role between foreign direct investment and environmental degradation in the Asian countries. Trade openness and population growth as control factors do not show any significant role in the model. Conclusions:This research recommends policymakers to focus on the inflow of foreign direct investment in order to enhance economic growth and environmental quality. It is strongly suggested for policymakers to attenuate the political intervention (e.g. ensure the political stability) in the inflow of foreign direct investment, so financial resources can be impartially distributed in the industrial sector and thus the nations will have an effective financial development system. Other implications have described.

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

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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