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

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.

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

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.

scholarly journals Renewable Energy Consumption and Local Environmental Effects for Economic Growth: The Role of Financial Development and Foreign Direct Investment

2021 ◽  
Author(s):  
Itbar khan ◽  
lei han ◽  
Hayat khan
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Financial Development ◽  
Environmental Quality ◽  
Low Income ◽  
Carbon Emission ◽  
Renewable Energy Consumption ◽  
Middle Income ◽  
Income Groups

Abstract The use of renewable energy improves environmental quality by reducing carbon emission and influence economics growth where carbon emission also effect economic growth of a country. The economic theory of tourism also indicates that tourism development enhance economic growth though spillovers as well contribute to climate change. The inflow of FDI and financial development enhance economic growth however its also effect environmental quality. Based on the ongoing debate, the present research trying attempts to explore the effect of CO2 emission and renewable energy consumption, FDI and financial development on economic growth in different income grouped countries to know whether these impacts are the same for the low income, middle income and high income countries on economic growth? Using panel data for high income, low income & middle income countries for the period of 1980–2018, the current study found that all variables effect economic growth significantly where FDI and carbon emission are positive while renewable energy consumption and financial development are negative for economic growth in the whole sample while its differ in the income groups. These studies have shown that these variables are not the same as the economic growth of economic growth and different income groups are not the same, but it changes. In addition, the foundation of this study has a great deal of recommendations for income Group economic decision make-up.

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.

scholarly journals The Dynamic Nexus Between Financial Development, Renewable Energy and Carbon Emission: Role of Globalization and Institutional Quality Across BRI Countries

2021 ◽  
Author(s):  
Muhammad Sheraz ◽  
Xu Deyi ◽  
Muhammad Zubair Mumtaz ◽  
Atta Ullah
Keyword(s):  
Renewable Energy ◽  
Financial Development ◽  
Environmental Degradation ◽  
Carbon Emission ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
Consumption Pattern ◽  
Global Integration ◽  
Causality Test ◽  
Sustainable Environment

Abstract This empirical study examines the endogenous relationship between carbon emission (CO2), financial development, renewable energy, globalization, and institutional quality in 64 belt and road initiative countries (BRI) using a two-step system generalized method of moments (GMM) approach with panel data over the period 2003 to 2018. Furthermore, this study used (Dumitrescu & Hurlin, 2012) causality test to estimate the variables’ causal relationship. The results indicate that financial development significantly increases CO2 emissions and causes environmental degradation in BRI countries. However, renewable energy and globalization mitigate CO2 emission and improve the quality of the environment. Institutional quality was found to be positive in correlation with CO2 emission and indicates bad governance, corruption, weak bureaucracy, and improper implementation of environmental laws cause environmental degradation. Further, the study also reports a bidirectional relationship of financial development, renewable energy, and institutional quality with CO2 emission and a unidirectional causality running from globalization to CO2 emission in BRI countries. This study offers insight to policymakers to restructure the financial system, energy consumption pattern, and global integration and to improve institutions’ quality for a sustainable environment and the economy at the national and regional levels.

scholarly journals Renewable Energy Use and Ecological Footprints Mitigation: Evidence from Selected South Asian Economies

2021 ◽  
Vol 13 (4) ◽  
pp. 1613
Author(s):  
Lian Xue ◽  
Mohammad Haseeb ◽  
Haider Mahmood ◽  
Tarek Tawfik Yousef Alkhateeb ◽  
Muntasir Murshed
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Renewable Energy ◽  
South Asian ◽  
Direct Investment ◽  
Energy Use ◽  
Fossil Fuel ◽  
Institutional Quality ◽  
Ecological Footprints ◽  
Foreign Direct Investment Inflows

Fossil fuel-dependency has induced a trade-off between economic growth and environmental degradation across the developing nations in particular. Against this backdrop, this study aims to evaluate the impacts of renewable energy use on the ecological footprints in the context of four South Asian fossil fuel-dependent nations: Bangladesh, India, Pakistan, and Sri Lanka. The econometric analysis involves the use of recently developed methods that account for cross-sectional dependency, slope heterogeneity, and structural break issues in the data. The results reveal that renewable energy consumption reduces the ecological footprints while nonrenewable energy use boosts the ecological footprints. The results also confirm the validity of the environmental Kuznets curve and pollution haven hypotheses for the panel of the South Asian nations. Besides, foreign direct investment inflows are found to degrade the environment while higher institutional quality improves it. Furthermore, unidirectional causalities are run from overall energy use, economic growth, and institutional quality to ecological footprints. At the same time, bidirectional associations between foreign direct investment inflows and ecological footprints are also ascertained. The overall findings highlight the pertinence of reducing fossil fuel-dependency, enhancing economic growth, restricting dirty foreign direct investment inflows, and improving institutional quality to ensure environmental sustainability across South Asia.

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