Fossil fuel, industrial growth and inward FDI impact on CO2 emissions in Vietnam: testing the EKC hypothesis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sami Ullah ◽  
Muhammad Nadeem ◽  
Kishwar Ali ◽  
Qaiser Abbas
Keyword(s):  
Fuel Consumption ◽  
Structural Breaks ◽  
Fossil Fuel ◽  
Ekc Hypothesis ◽  
Industrial Growth ◽  
Content Type ◽  
Dynamic Relationship ◽  
Fossil Fuel Consumption ◽  
Long Run ◽  
Short Run

PurposeIn this paper, the authors investigate that the increasing level of fossil fuel combustion in the industrial sector has been considered the prime cause for the emissions of greenhouse gas. Meanwhile, the research focusing on the impact of fossil fuel consumption on the emission of CO2 is limited for the developing countries containing Vietnam. This study applied the autoregressive distributed lag (ARDL) approach with structural breaks presence, and the Bayer–Hanck combined cointegration method to observe the rationality of the environmental Kuznets curve (EKC) hypothesis in the dynamic relationship between the industrialization and carbon dioxide (CO2) emission in Vietnam, capturing the role of foreign direct investment (FDI) inflows and the fossil fuel consumption over the period of 1975–2019. The outcomes revealed the confirmation of cointegration among the variables and both short and long-run regression parameters indicated the evidence for the presence of a U-shaped association between the level of industrial growth and CO2 emission that is further confirmed by employing the Lind and Mehlum U-test for robustness purpose. The results of Granger causality discovered a unidirectional causality from FDI and fossil fuel consumption to CO2 emission in the short run. For the policy points, this study suggests the use of efficient and low carbon-emitting technologies.Design/methodology/approachIn order to test for consistency and robustness of the cointegration analysis, this study also applied the ARDL bound testing method to find out long-run association among variables with the existence of the structural break in the dataset. The ARDL method was preferred to other traditional cointegration models; because of the smaller dataset, the results obtained from the ARDL method are efficient and consistent and equally appropriate for I(1) and I(0) variables.FindingsThe short-run and long-run causal associations among variables have been observed by employing the error correction term (ECT) augmented Granger-causality test that revealed the presence of the long-run causality among variables only when the CO2 emission is employed as a dependent variable. The outcomes for short-run causality indicated the presence of unidirectional causality between consumption of fossil fuel and CO2 emission, where the fossil fuel consumptions Granger-cause CO2 emission. Industrial growth has also been found to have an impact on fossil fuel consumptions, however not the opposite. This advocates that the policies aimed at reducing the fossil fuel consumptions would not be harmful to industrial growth as other energy efficient and cleaner technology could be implemented by the firms to substitute the fossil fuel usage.Originality/valueThe study explored the dynamic relationship among FDI, consumption of fossil fuel, industrial growth and the CO2 emission in Vietnam for the time period 1975–2019. The newly established Bayer–Hanck joint cointegration method and the ARDL bound testing were employed by taking into account the structural breaks in the dataset.

The impact of biomass consumption on CO2 emissions

2015 ◽  
Vol 7 (3) ◽  
pp. 348-358 ◽  
Author(s):  
Salih Turan Katircioglu
Keyword(s):  
Error Correction ◽  
Fuel Consumption ◽  
Fossil Fuel ◽  
Annual Data ◽  
Total Biomass ◽  
Content Type ◽  
Fossil Fuel Consumption ◽  
Equilibrium Relationship ◽  
The Impact

Purpose – The purpose of this study is to investigate the long-term equilibrium relationship between carbon dioxide (CO2) emissions and total biomass consumption (BC) in Turkey, which has a rich diversity of ecological conditions prevailing throughout its regions. Design/methodology/approach – Bounds tests and conditional error correction models under the autoregressive distributed lag approach have been applied to annual data that cover the 1980-2010 period. Findings – Results suggest that CO2 emissions are in a long-term equilibrium relationship with total BC in Turkey. BC has a negative effect on CO2 emissions; 1 per cent increase in total BC would lead to 0.029 per cent reduction in CO2 emissions. Long-term coefficient of fossil fuel consumption for CO2 emissions is positive and elastic, 1.247. Finally, conditional error correction model of the present study reveals that CO2 emission in Turkey converges to its economic long-term equilibrium very quickly by 93.7 per cent speed of adjustment through the channel of BC and fossil fuel consumption. Originality/value – Although there have been a considerable number of studies investigating the link between total energy consumption and CO2 emissions in the literature, searching the contribution of components of energy to CO2 emissions deserves attention. Therefore, this study contributes to the literature by investigating the effect of BC on CO2 emissions in the case of Turkey.

The long run impact of immigration on labor market in an advanced economy

2015 ◽  
Vol 42 (4) ◽  
pp. 356-367
Author(s):  
Faridul Islam ◽  
Saleheen Khan
Keyword(s):  
Labor Market ◽  
Gdp Per Capita ◽  
Advanced Economy ◽  
Content Type ◽  
Dynamic Relationship ◽  
Long Run ◽  
The Usa ◽  
Short Run ◽  
Per Capita ◽  
The Impact

Purpose – The purpose of this paper is to examine the dynamic relationship among immigration rate, GDP per capita, and and real wage rates in the USA. Design/methodology/approach – The paper implements the Johansen-Juselius (1990, 1992) cointegration technique to test for a long-run relationship; and for short-run dynamics the authors apply Granger causality tests under the vector error-correction model. Findings – The results show that the long-run causality runs from GDP per capita to immigration, not vice versa. Growing economy attracts immigrants. The authors also find that immigration flow depresses average weekly earnings of the natives in the long-run. Originality/value – The authors are not aware of any study on the USA addressing the impact of immigrants on labor market using a tripartite approach by explicitly incorporating economic growth. It is therefore important to pursue a theoretically justified empirical model in search of a relation to resolve on apparent immigration debate.

scholarly journals Re-visiting the renewable energy–economic growth nexus

2017 ◽  
Vol 11 (3) ◽  
pp. 387-403 ◽  
Author(s):  
Oluwafisayo Alabi ◽  
Ishmael Ackah ◽  
Abraham Lartey
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Ordinary Least Squares ◽  
Renewable Energy Consumption ◽  
Content Type ◽  
Dynamic Relationship ◽  
Long Run ◽  
Short Run ◽  
Opec Member ◽  
The Relationship

Purpose This paper aims to investigate the dynamic relationship between renewable energy and economic growth in African OPEC member countries (Angola, Algeria and Nigeria). Design/methodology/approach The fully modified ordinary least squares technique for heterogeneous cointegrated panels (Pedroni, 2000) is used to estimate the parameters of the model. Findings The study revealed four main findings. First, there is a bidirectional causality between renewable energy and economic growth in the long and the short run. Second, a bidirectional causality exists between non-renewable energy and economic growth in the short and long run. Third, a bidirectional causality exists between CO2 emissions and economic growth. Fourth, a unidirectional causality was also found between CO2 emissions and non-renewable energy consumption with the direction of causality stemming from the consumption of non-renewable energy to CO2 emissions. Practical implications Because renewable consumption enhances growth, OPEC-member Africa countries should encourage investment in modern renewable sources that has high conversion efficiency such as solar, wind and hydro to strengthen their response to mitigating the impacts of climate change. Originality/value This study applies multiple methods to analyze the relationship between renewable energy and economic growth in African OPEC countries.

scholarly journals Evaluating the EKC Hypothesis for the BCIM-EC Member Countries under the Belt and Road Initiative

2020 ◽  
Vol 12 (4) ◽  
pp. 1478 ◽  
Author(s):  
Arifur Rahman ◽  
S. M. Woahid Murad ◽  
Fayyaz Ahmad ◽  
Xiaowen Wang
Keyword(s):  
Panel Data ◽  
Carbon Emission ◽  
Structural Breaks ◽  
Energy Use ◽  
Trade Openness ◽  
Gdp Per Capita ◽  
Ekc Hypothesis ◽  
Long Run ◽  
Short Run ◽  
Per Capita

This paper attempts to examine the environmental Kuznets curve (EKC) hypothesis for the BCIM-EC (Bangladesh–China–India–Myanmar economic corridor) member countries under the Belt and Road Initiative (BRI) of China. Both time series and panel data are covered, with respect to carbon dioxide (CO2) emissions, GDP per capita, energy use, and trade openness. For panel data analysis, GDP per capita and energy consumption have positive effects on CO2, while the effect of the quadratic term of GDP per capita is negative in the short-run. However, the short-run effects do not remain valid in the long-run, except for energy use. Therefore, the EKC hypothesis is only a short-run phenomenon in the case of the panel data framework. However, based on the Autoregressive Distributed Lag (ARDL) approach with and without structural breaks, the EKC hypothesis exists in India and China, while the EKC hypothesis holds in Bangladesh and Myanmar with regard to disregarding breaks within the short-run. The long-run estimates support the EKC hypothesis of considering and disregarding structural breaks for Bangladesh, China, and India. The findings of the Dumitrescu and Hurlin panel noncausality tests show that there is a unidirectional causality that runs from GDP per capita to carbon emission, squared GDP to carbon emission, and carbon emission to trade openness. Therefore, the BCIM-EC under the BRI should not only focus on connectivity and massive infrastructural development for securing consecutive economic growth among themselves, but also undertake a long-range policy to cope with environmental degradation and to ensure sustainable green infrastructure.

scholarly journals Global non-fossil fuel consumption: driving factors, disparities, and trends

2019 ◽  
Vol 57 (4) ◽  
pp. 791-810 ◽  
Author(s):  
Jiandong Chen ◽  
Yinyin Wu ◽  
Chong Xu ◽  
Malin Song ◽  
Xin Liu
Keyword(s):  
Fuel Consumption ◽  
Gini Coefficient ◽  
Nuclear Power ◽  
Fossil Fuel ◽  
Decomposition Analysis ◽  
Rate Of Change ◽  
Driving Factors ◽  
Content Type ◽  
Fossil Fuel Consumption ◽  
Index Decomposition

Purpose Non-fossil fuels are receiving increasing attention within the context of addressing global climate challenges. Based on a review of non-fossil fuel consumption in major countries worldwide from 1985 to 2015, the purpose of this paper is to analyze trends for global non-fossil fuel consumption, share of fuel consumption and inequality. Design/methodology/approach The similarities were obtained between the logarithmic mean divisia index and the mean-rate-of-change index decomposition analysis methods, and a method was proposed for complete decomposition of the incremental Gini coefficient. Findings Empirical analysis showed that: global non-fossil fuel consumption accounts for a small share of the total energy consumption, but presents an increasing trend; the level of global non-fossil fuel consumption inequality is high but has gradually declined, which is mainly attributed to the concentration effect; inequality in global non-fossil fuel consumption is mainly due to the difference between nuclear power and hydropower consumption, but the contributions of nuclear power and hydropower to per capita non-fossil fuel consumption are declining; and population has the greatest influence on global non-fossil fuel consumption during the sampling period. Originality/value The main contribution of this study is its analysis of global non-fossil fuel consumption trends, disparities and driving factors. In addition, a general formula for complete index decomposition is proposed and the incremental Gini coefficient is wholly decomposed.

The curvilinear relationship between environmental pollution and economic growth

2020 ◽  
Vol 14 (5) ◽  
pp. 891-910 ◽  
Author(s):  
Haroon Rasool ◽  
Mushtaq Ahmad Malik ◽  
Md. Tarique
Keyword(s):  
Economic Growth ◽  
Environmental Pollution ◽  
Structural Break ◽  
Curvilinear Relationship ◽  
Ekc Hypothesis ◽  
Data Set ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
Structural Break Test

Purpose The genesis of Environmental Kuznets curve (EKC) of “grow now clean later” has led to a substantial deterioration of local as well as the global environment. India has not been spared of this malaise and accounts for the third-largest carbon dioxide emitter in the world. Thus, the present study revisits the curvilinear relationship between economic growth and environmental pollution in case of India over the period of 1971-2014. Design/methodology/approach Dickey–Fuller generalised least square (DF-GLS) test developed by Elliott et al. is used to ensure that none of the variables is I(2). The study applies the autoregressive distributed lag (ARDL) bounds estimation technique to test for the existence of cointegration among variables and estimate long-run and short-run parameters. The study also applies the Bai–Perron structural break test with unknown break date to determine the threshold point. The study further uses the vector error correction model (VECM) Granger causality test to check the direction of causality between variables. Findings The ARDL bounds estimation technique confirms the cointegration among variables. The long-run coefficients of energy consumption, economic growth and financial development are found to have an adverse impact on environmental quality. The results also validate the existence of conventional EKC hypothesis. Bai–Perron structural break test, along with t-test and scatter graph, shows that inverted U-shaped relationship between environmental pollution and economic growth holds true. The VECM-based causality results support “growth hypothesis” both in the long run and short run. Research limitations/implications This study refrained from considering a variety of variables, as the main intention of the study is to investigate whether any threshold or turnaround point exists for India. The future studies should consider a new set of variables (e.g. population, corruption index, social indicators, political scenario, energy research and development expenditures, foreign capital inflows, public investment towards alternate energy exploration, etc.) in the estimation of EKC hypothesis. Practical implications The results validate the existence of conventional EKC hypothesis. Thereby the study argues that instead of being a threat to environmental quality, economic growth is observed to generate a sustainable environment to live in. Further, bi-directional causality is found between carbon emissions and economic growth. Thus, any effort to mitigate CO2 or environment conservation policy will impede economic growth. Consequently, controlling primary energy consumption and supply and replacing it with renewable and clean energy could be desirable for climate change mitigation. Originality/value The data set has been refined so that the EKC estimation issues raised by Stern (2004) are addressed. In particular, statistical properties of the data set such as serial correlation, presence of a stochastic or deterministic trend, has been adequately taken care of to remove any spurious correlation. Finally, various control variables have been included to provide consideration to issues of model adequacy, such as the possibility of omitted variables bias. To the authors’ best knowledge, there is no India-specific study which has taken care of data-related issues, as suggested by Stern, in the estimation of a curvilinear relationship between environmental degradation and economic growth in India. Further, this is the first study which has used Bai–Perron structural break test with unknown break date to identify the threshold point while estimating EKC in India.

scholarly journals Industrial growth and emissions of CO2 in Ghana: The role of financial development and fossil fuel consumption

2019 ◽  
Vol 5 ◽  
pp. 1339-1353 ◽  
Author(s):  
Eric Abokyi ◽  
Paul Appiah-Konadu ◽  
Francis Abokyi ◽  
Eric Fosu Oteng-Abayie
Keyword(s):  
Fuel Consumption ◽  
Financial Development ◽  
Fossil Fuel ◽  
Industrial Growth ◽  
Fossil Fuel Consumption

scholarly journals Modelling Economic Growth, Carbon Emissions, and Fossil Fuel Consumption in China: Cointegration and Multivariate Causality

2019 ◽  
Vol 16 (21) ◽  
pp. 4176 ◽  
Author(s):  
Lv ◽  
Chu ◽  
McAleer ◽  
Wong
Keyword(s):  
Economic Growth ◽  
Fuel Consumption ◽  
Granger Causality ◽  
Co2 Emissions ◽  
Fossil Fuel ◽  
The Novel ◽  
Causality Analysis ◽  
Policy Makers ◽  
Fossil Fuel Consumption ◽  
Long Run

Most authors apply the Granger causality-VECM (vector error correction model), and Toda–Yamamoto procedures to investigate the relationships among fossil fuel consumption, CO2 emissions, and economic growth, though they ignore the group joint effects and nonlinear behaviour among the variables. In order to circumvent the limitations and bridge the gap in the literature, this paper combines cointegration and linear and nonlinear Granger causality in multivariate settings to investigate the long-run equilibrium, short-run impact, and dynamic causality relationships among economic growth, CO2 emissions, and fossil fuel consumption in China from 1965–2016. Using the combination of the newly developed econometric techniques, we obtain many novel empirical findings that are useful for policy makers. For example, cointegration and causality analysis imply that increasing CO2 emissions not only leads to immediate economic growth, but also future economic growth, both linearly and nonlinearly. In addition, the findings from cointegration and causality analysis in multivariate settings do not support the argument that reducing CO2 emissions and/or fossil fuel consumption does not lead to a slowdown in economic growth in China. The novel empirical findings are useful for policy makers in relation to fossil fuel consumption, CO2 emissions, and economic growth. Using the novel findings, governments can make better decisions regarding energy conservation and emission reductions policies without undermining the pace of economic growth in the long run.

Market efficiency in Indian soybean futures markets

2014 ◽  
Vol 9 (4) ◽  
pp. 520-534 ◽  
Author(s):  
Thiagu Ranganathan ◽  
Usha Ananthakumar
Keyword(s):  
Market Efficiency ◽  
Risk Premium ◽  
Futures Markets ◽  
Structural Breaks ◽  
Time Varying ◽  
Content Type ◽  
Futures Contract ◽  
Long Run ◽  
Short Run ◽  
Commodity Derivatives

Purpose – The National commodity exchanges were established in India in the year 2003-2004 to perform the functions of price discovery and price risk management in the economy. The derivatives market can perform these functions properly only if they are efficient and unbiased. So, there is a need to properly evaluate these aspects of the Indian commodity derivatives market. The purpose of this paper is to test the market efficiency and unbiasedness of the Indian soybean futures markets. Design/methodology/approach – The paper uses cointegration and a QARCH-M-ECM-based framework to test the market efficiency and unbiasedness in the soybean futures contract traded in the National Commodity Derivatives Exchange (NCDEX). The cointegration test is used to test the long-run unbiasedness and market efficiency of the contract, while the QARCH-M-ECM model is used to test the short-run market efficiency and unbiasedness of the contract by allowing for a time-varying risk premium. The price data is also tested for presence of structural breaks using a Zivot and Andrews unit root test. Findings – The soybean contract is unbiased in the long run, but there are short-run market inefficiencies and also a presence of a time-varying risk premium. Though the weak form of market efficiency is rejected in the short run, the semi-strong market efficiency is not rejected based on the forecasts. Originality/value – This is the first paper to consider time-varying risk premium while performing the tests of market efficiency and unbiasedness on Indian commodity markets.

Globalisation, income inequality and poverty relationships: evidence from Mexico, Indonesia, Nigeria and Turkey

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tolulope Temilola Osinubi ◽  
Philip Akanni Olomola
Keyword(s):  
Income Inequality ◽  
Strong Predictor ◽  
Multidimensional Poverty ◽  
Political Stability ◽  
Content Type ◽  
Vector Autoregressive ◽  
Multidimensional Poverty Index ◽  
Dynamic Relationship ◽  
Long Run ◽  
Short Run

PurposeThe study examines the dynamic relationship among globalisation, income inequality and poverty in Mexico, Indonesia, Nigeria and Turkey (MINT countries) between 1980 and 2018.Design/methodology/approachA Bayesian vector autoregressive (BVAR) approach is used as a technique of estimation hanging on the fact that the method uses prior distribution for the estimated parameters.FindingsThe results show that globalisation is a strong predictor of itself in all the MINT countries only in the short run. In the long run, income inequality and poverty strongly influence globalisation, respectively, in Indonesia and Turkey, while globalisation still has more impact on itself in Nigeria. Income inequality has a strong endogenous impact on itself in Mexico and Indonesia over the time horizon, whereas globalisation and poverty are strong predictors of income inequality in the long run in Nigeria and Turkey, respectively. Also, poverty strongly influences itself in all the MINT countries in all the periods, meaning that poverty begets itself in all the MINT countries, except for Indonesia in the long run.Practical implicationsThe study suggests that all the MINT countries should ensure political stability and a strong institutional framework to gain from the process of globalisation and to experience reductions in the levels of income inequality and poverty.Originality/valueThis study is distinct from other studies in the sense that an overall globalisation index (GBI) as used by Dreher et al. (2008) is used for the globalisation variable, and the Multidimensional Poverty Index (MPI) is used to capture poverty in all the MINT countries. Also, the research paper uses a BVAR approach as against the classical VAR, and this helps in solving over-fitting problems.

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