An Approach to the EKC Hypothesis Considering Tourism Industry and Renewable Energy Consumption: Considering Cross-Sectional Dependence and Heterogeneity

2021 ◽  
Vol 17 (5) ◽  
pp. 485-498
Author(s):  
So-Youn Kim ◽  
Su-Yeol Ryu
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
Tourism Industry ◽  
Ekc Hypothesis ◽  
Renewable Energy Consumption ◽  
Cross Sectional ◽  
Cross Sectional Dependence

Nexus of Renewable Energy Consumption, Economic Growth, Population Growth, FDI, and Environmental Degradation in South Asian Countries: New Evidence from Driscoll-Kraay Standard Error Approach

2021 ◽  
Vol 3 (2) ◽  
pp. 200-211
Author(s):  
Ansar Abbas Shah ◽  
Muhammad Sajjad Hussain ◽  
Muhammad Atif Nawaz ◽  
Mazhar Iqbal
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Population Growth ◽  
South Asian ◽  
Environmental Degradation ◽  
Asian Countries ◽  
Renewable Energy Consumption ◽  
Cross Sectional ◽  
Cross Sectional Dependence

Environmental degradation is the most prominent area nowadays, especially in developing counties where high renewable energy consumption and population growth deteriorate the atmosphere of the country. Thus, the current study investigates the nexus among renewable energy consumption, economic growth (EG), population growth, foreign direct investment (FDI), and environmental degradation in South Asian countries. The covariance matrix estimators that are developed by “Driscoll and Kraay” are used in this study. The primary property of this estimator is that it does not account for the cross-sectional dependence; thus, it provides substantial, robust outcomes among the cross-sectional units while in the presence of cross-sectional dependence. The data was collected from the World Development Indicators (WDI) from 2001 to 2019. The findings exposed that positive nexus among the population growth, FDI, and environmental degradation while renewable energy consumption and EG has negative nexus with environmental degradation and also not supported the EKC hypothesis in South Asian countries. These findings suggested that the regulators should develop policies that reduce environmental degradation in the presence of high EG, energy consumption, FDI, and population growth.

scholarly journals Does Green Energy Complement Economic Growth for Achieving Environmental Sustainability? Evidence from Saudi Arabia

2020 ◽  
Vol 13 (1) ◽  
pp. 180
Author(s):  
Montassar Kahia ◽  
Anis Omri ◽  
Bilel Jarraya
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Environmental Sustainability ◽  
Least Square ◽  
Ekc Hypothesis ◽  
Renewable Energy Consumption ◽  
Ordinary Least Square

This study extends previous environmental sustainability literature by investigating the joint impact of economic growth and renewable energy on reducing CO2 emissions in Saudi Arabia over the period 1990–2016. Using the fully modified ordinary least-square (FMOLS) and dynamic ordinary least-square DOLS estimators, we find that economic growth increases CO2 emissions in all estimated models. Moreover, the validity of the environmental Kuznets curve (EKC) hypothesis is only supported for CO2 emissions from liquid fuel consumption. The invalidity of the EKC hypothesis in the most commonly used models implies that economic growth alone is not sufficient to enhance environmental quality. Renewable energy is found to have a weak influence on reducing the indicators of environmental degradation. We also find that the joint impact of renewable energy consumption and economic growth on the indicators of CO2 emissions is negative and insignificant for all the estimated models, meaning that the level of renewable energy consumption in Saudi Arabia is not sufficient to moderate the negative effect of economic growth on environmental quality. Implications for policy are also discussed.

scholarly journals The Relationship between Financial Development and Renewable Energy Consumption in South Asian Countries

2021 ◽  
Author(s):  
Sakib Amin ◽  
Farhan Khan ◽  
Ashfaqur Rahman
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
Financial Development ◽  
Energy Use ◽  
Green Energy ◽  
Renewable Energy Consumption ◽  
Causality Test ◽  
Cross Sectional ◽  
Long Run ◽  
Cointegration Tests

Abstract We analyse how the financial development and green energy use are linked to the countries of South Asia from 1990 to 2018. Domestic credit to the private sector and renewable energy consumption is being used in this paper as indicators of financial development and the use of renewable energy. On the indication of cross-sectional dependency among the variables of the models, we apply second generation panel unit root tests and cointegration tests to check the stationarity properties and long-run cointegration relation among the variables. We find that variables are stationary at the first difference, and long-run cointegration exists. By applying robust dynamic heterogeneous and cross-section augmented estimators, we find that increase in GDP increases renewable energy consumption by 1.56-0.50%; however reduces by 0.07-0.03% after certain thresholds. Furthermore, increase in financial development, on average, reduces the propensity of renewable energy consumption by 0.15-0.07% in the long-run. On the other hand, the Dumitrescu-Hurlin panel causality test shows a unidirectional relationship from GDP to financial development and financial development to renewable energy consumption but not vice versa. We suggest that the selected countries revisit and restructure the renewable energy policy and emphasise institutional reforms to strengthen renewable energy development in the upcoming years.

THE DRIVERS OF ENVIRONMENTAL DEGRADATION IN ASEAN+China: DO FINANCIAL DEVELOPMENT AND URBANIZATION HAVE ANY MODERATING EFFECT?

2020 ◽  
pp. 2050024 ◽  
Author(s):  
KIZITO UYI EHIGIAMUSOE
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
Financial Development ◽  
Environmental Degradation ◽  
Trade Openness ◽  
High Carbon ◽  
Cross Sectional ◽  
Cross Sectional Dependence ◽  
Growth Energy ◽  
The Impact

This study examines the drivers of environmental degradation in [Formula: see text]. It focusses on three unresolved questions: (i) Does the inclusion of China in ASEAN panel aggravate environmental degradation, given that China is a high carbon emissions country? (ii) Does financial development moderate the impact of energy consumption on environmental degradation in ASEAN? (iii) Does urbanization moderate the impact of energy consumption on environmental degradation in ASEAN? It employs empirical strategies that account for heterogeneity, endogeneity and cross-sectional dependence. The results show that economic growth, energy consumption and non-renewable energy aggravate environmental degradation, whereas renewable energy, foreign direct investment and trade openness mitigate it. The inclusion of China in ASEAN panel weakens the EKC hypothesis. Financial development favorably moderates the effect of energy consumption on environmental degradation in ASEAN, but adversely moderates the effect in [Formula: see text]. Urbanization adversely moderates the impact of energy consumption on environmental degradation in both panels. Hence, efforts to address environmental degradation should consider these different drivers.

scholarly journals An Evaluation of the Tourism-Induced Environmental Kuznets Curve (T-EKC) Hypothesis: Evidence from G7 Countries

2020 ◽  
Vol 12 (21) ◽  
pp. 9150 ◽  
Author(s):  
Cem Ișik ◽  
Munir Ahmad ◽  
Uğur Korkut Pata ◽  
Serdar Ongan ◽  
Magdalena Radulescu ◽  
...  
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Environmental Kuznets Curve ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Renewable Energy Consumption ◽  
G7 Countries ◽  
Group Of Seven ◽  
The Uk

This paper analyzes the legitimacy of the Environmental Kuznets Curve (EKC) hypothesis for a group of seven (G7) countries over the period 1995–2015. In addition to testing the EKC speculation, the authors also would like to understand the ways in which increases in renewable energy consumption and the international tourism receipt affect the CO2 emissions in G7 countries, because the energy and tourism sectors may have considerable direct impacts on CO2 emissions. In this investigation, a panel bootstrap cointegration test and an augmented mean group (AMG) estimator were applied. The empirical findings indicate that the tourism-induced EKC hypothesis is valid only for France. Additionally, it was detected that a rise in renewable energy consumption has a negative (reduction) impact on CO2 emissions in France, Italy, the UK, and the US. However, an increase in the receipt of international touristm has a positive (additional) impact on Italy’s CO2 emissions. Hence, this country’s decision-makers should re-review their tourism policy to adopt a renewable-inclusive one for sustainable tourism and the environment.

scholarly journals Impact of Economic Growth and Energy Consumption on Greenhouse Gas Emissions: Testing Environmental Curves Hypotheses on EU Countries

2018 ◽  
Vol 10 (9) ◽  
pp. 3327 ◽  
Author(s):  
Mihaela Sterpu ◽  
Georgeta Soava ◽  
Anca Mehedintu
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
Greenhouse Gas ◽  
Ghg Emissions ◽  
Least Square ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Renewable Energy Consumption ◽  
Eu Countries ◽  
Per Capita

This study analyses the relationship between per capita greenhouse gas (GHG) emissions, gross domestic product, gross inland energy consumption, and renewable energy consumption for a panel of 28 countries of European Union in the period 1990–2016. Two theoretical models, a quadratic and a cubic one, are used to estimate the shape of the environmental curve and to test the Kuznets hypothesis. The panel cointegration approach proved the existence of long-run equilibrium relations among the four macroeconomic indicators. Empirical estimations, using panel data techniques, as well as heterogeneous regression for each individual country in the panel, show non-conclusive evidence for the environmental Kuznets curve (EKC) hypothesis. The least square estimates, with the variables in log per capita form, reveal that the inverted U-shaped EKC hypothesis is verified for the panel and for 17 of the 28 EU countries. Estimates of the cubic model show that the environmental curve has an inverted N-shaped form. These results do not hold when the values are in non-logarithmic form. In addition, the estimations for all models show that an increase of gross energy consumption leads to an increase of GHGs, while an increase of renewable energy consumption leads to a reduction in GHG emissions.

Renewable and non-renewable energy consumption, economic growth and carbon emission in BRICS

2020 ◽  
Vol 14 (1) ◽  
pp. 248-260 ◽  
Author(s):  
Umer Jeelanie Banday ◽  
Ranjan Aneja
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Gdp Growth ◽  
Renewable Energy Consumption ◽  
Causality Test ◽  
Cross Sectional ◽  
Content Type ◽  
Growth Hypothesis

Purpose The purpose of this study is to find the causal relationship among energy consumption (renewable energy and non-renewable energy), gross domestic product (GDP) growth and carbon dioxide (CO2) emission for Brazil, Russia, India, China and South Africa for the period of 1990-2017. Design/methodology/approach The study uses bootstrap Dumitrescu and Hurlin panel causality test, which accepts heterogeneity and dependency in cross-sectional units across emerging countries. Findings The results find unidirectional causality from GDP to CO2 for India, China, Brazil, South Africa and no causality for Russia. The causality results from renewable energy consumption to GDP show that there is evidence of feedback hypothesis for China and Brazil, growth hypothesis for Russia, conservation hypothesis for South Africa and neutrality hypothesis for India. However, the results accept growth hypothesis for India, China, Russia, Brazil and neutrality hypothesis for South Africa. In the case of renewable energy and non-renewable energy consumption to CO2 emission, the results find convergence in India, Russia and South Africa and divergence in China and Brazil. Originality/value It is the first study that investigates the part of balanced economic growth, instead of simply financial development in those economies. Numerous studies have used diverse factors such as economic development, renewable energy, non-renewable energy and CO2 emission; however, the examination has used total GDP growth rate, energy consumption and CO2 emissions.

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