scholarly journals Heterogeneous Analysis of Pollution Abatement via Renewable and Non-Renewable Energy: Lessons from Investment in G20 Nations

2021 ◽  
Author(s):  
Kazeem Bello Ajide ◽  
Ekundayo Peter Mesagan
Keyword(s):  
Renewable Energy ◽  
Carbon Emissions ◽  
Capital Investment ◽  
Pollution Abatement ◽  
Jel Classification ◽  
Cross Sectional ◽  
Pooled Mean Group ◽  
Long Run ◽  
Short Run ◽  
Cross Sectional Dependence

Abstract This study analyses the role of renewable and non-renewable energy in pollution reduction through the capital investment channel in G20 economies between 1990 and 2017. We consider cross-sectional dependence since the countries are heterogeneous and cross-sectionally dependent using the pooled mean group approach. Findings reveal that renewable energy negatively impacts carbon emissions in both the short- and long-run, while non-renewable energy positively affects carbon emissions in both the short- and long-run. Again, results show that capital investment lowers pollution in the short-run but increases it in the long-run. Lastly, we find that capital investment interacts with renewable energy to reduce pollution in both short- and long-run, while its interaction with non-renewable energy expands pollution in both short- and long-run. We, therefore, conclude that capital investment provides an important channel to reduce pollution in G20 nations and recommend that if energy consumption is to work through the capital investment channel to lower pollution in the G20, the proportion of renewable energy must increase relative to non-renewable energy in their energy mix.JEL Classification: Q41; Q42; Q53; F23; O50.

scholarly journals Does Globalization Moderate the Effect of Economic Complexity on CO2 Emissions? Evidence From the Top 10 Energy Transition Economies

2021 ◽  
Vol 9 ◽  
Author(s):  
Kai He ◽  
Muhammad Ramzan ◽  
Abraham Ayobamiji Awosusi ◽  
Zahoor Ahmed ◽  
Mahmood Ahmad ◽  
...  
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Transition Economies ◽  
Carbon Emissions ◽  
Environmental Sustainability ◽  
Energy Transition ◽  
Cross Sectional ◽  
Economic Complexity ◽  
Long Run ◽  
The Government

The association between economic complexity (sophisticated economic structure) and carbon emissions has major implications for environmental sustainability. In addition, globalization can be an important tool for attaining environmental sustainability and it may also moderate the association between economic complexity and carbon emissions. Thus, this research examines the effects of economic complexity, economic growth, renewable energy, and globalization on CO2 emissions in the top 10 energy transition economies where renewable energy and globalization have greatly increased over the last 3 decades. Furthermore, this study also evaluates the joint effect of globalization and economic complexity on carbon emissions. Keeping in view the presence of slope heterogeneity and cross-sectional dependence in the data, this research utilized second-generation unit root tests (CIPS and CADF), Westerlund cointegration approach, and CS-ARDL and CCEMG long-run estimators over the period of 1990–2018. The results affirmed the presence of cointegration among the considered variable. Long-run findings revealed that globalization, renewable energy, and economic complexity decrease carbon emissions. Conversely, economic growth increases carbon emissions. Moreover, the joint impact of economic complexity and globalization stimulates environmental sustainability. Based on these findings, the government of these groups of economies should continue to expand the usage of renewable energy. They should also promote interaction with the rest of the world by adopting the policy of opening up.

scholarly journals Nexus Among Tourism, Environmental Degradation, Inward FDI and Economic Growth: Fresh Evidence from ASEAN Countries

2020 ◽  
Author(s):  
Muhammad Azam ◽  
Sameena Noor ◽  
Muhammad Atif Nawaz
Keyword(s):  
Economic Growth ◽  
Environmental Degradation ◽  
Causal Link ◽  
Positive Influence ◽  
Jel Classification ◽  
Pooled Mean Group ◽  
Long Run ◽  
Short Run ◽  
Asean Countries ◽  
Tourism Arrivals

Abstract This study aims to investigate the linkage among tourism, foreign direct investment, environmental degradation by CO2 emissions and economic growth in five countries from Association of Southeast Asian Nations (ASEAN) over 1995–2017. The outcomes of pooled mean group (PMG) estimator reveal that FDI and international tourism arrivals have a significantly positive influence on economic growth both in the short-run and the long-run. The association between growth and CO2 emissions is found negative and significant. The Granger causality result reveals that there is bidirectional causality between FDI and growth, tourism and growth and FDI and tourism. A unidirectional causal link is found between CO2 emissions and growth, tourism and population and population and CO2 emissions. These findings suggest enhance more inward FDI, control environmental pollution, but also necessary to attract more tourists towards these countries, which in turn, generate revenue and boost up economic growth and development.JEL Classification Codes: F21; O13; O47; Z32

Are Merchandise Exports and FDI Inflows an Engine of Growth for ASEAN-10 Countries? New Evidence Using the Pooled Mean Group Estimation Method

2018 ◽  
Vol 12 (4) ◽  
pp. 414-430 ◽  
Author(s):  
Soo Khoon Goh ◽  
Koi Nyen Wong ◽  
Chee Lam Yew
Keyword(s):  
Panel Data ◽  
Regional Economy ◽  
Driving Forces ◽  
Early Stage ◽  
Regional Growth ◽  
Estimation Method ◽  
Jel Classification ◽  
Pooled Mean Group ◽  
Long Run ◽  
Short Run

The Association of Southeast Asian Nations (ASEAN) has made remarkable economic progress in terms of rapid economic growth and expanding export trade and foreign direct investment (FDI). Theoretically speaking, both merchandise exports and FDI can be regarded as the key driving forces behind the ‘economic miracle’ of the regional economy. The major contribution of this study is that it is the first effort to empirically analyse the short-run and long-run growth effects of merchandise exports and FDI on the ASEAN-10 countries using time-series panel data. In this regard, this study aims to ascertain whether the spectacular regional growth is export- and FDI-driven, based on the ASEAN-10 panel data spanning from 1970 to 2016 using the pooled mean group (PMG) method. The findings show that merchandise exports are a key source of growth for the regional economy, attributable to the joint liberalisation efforts of the member states to expand trade and FDI. The study does not find evidence of FDI-led growth because the bulk of the FDI was invested in only a few ASEAN countries, and the minor FDI-recipient countries are at an early stage to benefit from the growth impacts of FDI, owing to lower absorptive capacity. JEL Classification: C51, F21, F23, O19

ELECTRICITY CONSUMPTION, TRADE OPENNESS AND ECONOMIC GROWTH IN DEVELOPING COUNTRIES: A DISAGGREGATED APPROACH

2021 ◽  
pp. 1-28
Author(s):  
KIZITO UYI EHIGIAMUSOE ◽  
SIKIRU JIMOH BABALOLA
Keyword(s):  
Economic Growth ◽  
Trade Openness ◽  
Electricity Consumption ◽  
Impulse Response Functions ◽  
African Countries ◽  
Cross Sectional ◽  
Long Run ◽  
Short Run ◽  
Cross Sectional Dependence ◽  
Trade And Growth

This study examines the relationship between electricity consumption, trade openness and economic growth in 25 African countries during 1980–2016. It disaggregates electricity into renewable and non-renewable and disaggregates trade into exports and imports. It employs cointegration and Granger causality techniques that enable us to determine both joint and individual causality, as well as account for individual heterogeneity and cross-sectional dependence. It also uses the variance decompositions (VDs) and impulse response functions (IRFs). This study shows a short-run and long-run joint causality from electricity and trade to growth, as well as a short-run and long-run joint causality from trade and growth to electricity. Besides, the Dumitrescu–Hurlin Granger non-causality technique shows a bidirectional causality between electricity and growth and between trade and growth but a unidirectional causality from electricity to trade. It also reveals the causal relationships from exports, imports, renewable and non-renewable electricity to growth. This study implies that electricity consumption and trade openness stimulate growth, while the latter also determines electricity consumption and trade openness. Based on the findings, we recommend some policy options.

WARMING AND INCOME GROWTH IN THE UNITED STATES: A HETEROGENEOUS, COMMON FACTOR DYNAMIC PANEL ANALYSIS

2018 ◽  
Vol 09 (04) ◽  
pp. 1850012
Author(s):  
BRANTLEY LIDDLE
Keyword(s):  
Common Factor ◽  
The United States ◽  
Cross Sectional ◽  
Temperature Changes ◽  
Panel Methods ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
Cooling Degree Days ◽  
Cross Sectional Dependence

This paper analyzes whether temperature changes influence economic growth in the contiguous 48 US states by employing panel methods that address both heterogeneity and cross-sectional dependence. Ultimately, it is determined that the negative effect of warming (initially proxied by cooling degree days) is restricted to agriculture GDP. But when weathers’ impact was measured by average summer temperature, the negative effect — still mostly restricted to agriculture GDP — was substantially and significantly larger (a finding similar to previous work) and geographically uniform. Yet, the model’s dynamics suggested that the magnitude of the short-run impact was larger (in absolute terms) than the long-run impact.

scholarly journals Wind Energy And CO2 Emissions: AMG Estimations For Selected Countries

2021 ◽  
Author(s):  
Taner Güney ◽  
Emrah Üstündağ
Keyword(s):  
Energy Consumption ◽  
Wind Energy ◽  
Carbon Emissions ◽  
Cross Sectional ◽  
Long Run ◽  
Negative Effect ◽  
Cross Sectional Dependence ◽  
The Relationship ◽  
Positive Effect

Abstract This study aims to analyze the relationship between wind energy consumption, coal energy consumption, globalization, economic growth and carbon emissions in a selected country group. This analysis was made with the data of 37 countries for the period 2000-2019. In order to examine the long-term relationship between the variables, the AMG method, which makes an estimation by considering the cross-sectional dependence and slope homogeneity, was used in the study. According to the long-term coefficient estimates of the cointegrated variables, wind energy consumption has a statistically significant and negative effect on carbon emissions in the long run. A 1% increase in wind energy consumption reduces carbon emissions by 0.018%. On the other hand, the globalization variable has a statistically significant and positive effect on carbon emissions in the long run. A 1% increase in globalization increases carbon emissions by 0.107%. These findings show the importance of wind energy consumption in reducing carbon emissions. For this reason, policies should be produced to increase wind energy consumption globally and necessary incentives should be provided.

ENERGY SECURITY, RENEWABLE, NON-RENEWABLE ENERGY AND ECONOMIC GROWTH IN ASEAN ECONOMIES: NEW INSIGHTS

2020 ◽  
pp. 1-32
Author(s):  
RABINDRA NEPAL ◽  
HAMMED OLUWASEYI MUSIBAU
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Security ◽  
Structural Breaks ◽  
Correlation Effect ◽  
Cross Sectional ◽  
Effect Analysis ◽  
Long Run ◽  
Cross Sectional Dependence ◽  
Asean Countries

This study examines the linkages between energy security (ES), renewable and non-renewable energy on economic growth for ASEAN countries within a neo-classical growth framework. The econometric techniques account for cross-sectional dependence and structural breaks by undertaking a dynamic common correlation effect analysis unlike previous studies. The study finds a long-run relationship between ES, renewable, non-renewable energy and economic growth for ASEAN economies between 1980 and 2018. Our results also confirm a feedback relationship between renewable energy and economic growth in the ASEAN. Thus, the ASEAN governments must prioritize renewable energy funding and investments. The results are robust to different estimations and methods.

scholarly journals Economic Development, CO2 Emissions and Energy Use Nexus-Evidence from the Danube Region Countries

Energies ◽  
2021 ◽  
Vol 14 (11) ◽  
pp. 3165
Author(s):  
Eva Litavcová ◽  
Jana Chovancová
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Carbon Emissions ◽  
Bounds Testing ◽  
Mutual Cooperation ◽  
Long Run ◽  
Short Run ◽  
Danube Region ◽  
The Impact

The aim of this study is to examine the empirical cointegration, long-run and short-run dynamics and causal relationships between carbon emissions, energy consumption and economic growth in 14 Danube region countries over the period of 1990–2019. The autoregressive distributed lag (ARDL) bounds testing methodology was applied for each of the examined variables as a dependent variable. Limited by the length of the time series, we excluded two countries from the analysis and obtained valid results for the others for 26 of 36 ARDL models. The ARDL bounds reliably confirmed long-run cointegration between carbon emissions, energy consumption and economic growth in Austria, Czechia, Slovakia, and Slovenia. Economic growth and energy consumption have a significant impact on carbon emissions in the long-run in all of these four countries; in the short-run, the impact of economic growth is significant in Austria. Likewise, when examining cointegration between energy consumption, carbon emissions, and economic growth in the short-run, a significant contribution of CO2 emissions on energy consumptions for seven countries was found as a result of nine valid models. The results contribute to the information base essential for making responsible and informed decisions by policymakers and other stakeholders in individual countries. Moreover, they can serve as a platform for mutual cooperation and cohesion among countries in this region.

What Goes Up Might Not Come Down: Modeling Directional Asymmetry with Large-N, Large-T Data

2021 ◽  
pp. 008117502110463
Author(s):  
Ryan P. Thombs ◽  
Xiaorui Huang ◽  
Jared Berry Fitzgerald
Keyword(s):  
Fixed Effects ◽  
Directional Asymmetry ◽  
Cross Sectional ◽  
Monte Carlo Experiments ◽  
Long Run ◽  
Large N ◽  
Fixed Effects Estimator ◽  
Cross Sectional Dependence ◽  
Using Data ◽  
Heterogeneous Panel

Modeling asymmetric relationships is an emerging subject of interest among sociologists. York and Light advanced a method to estimate asymmetric models with panel data, which was further developed by Allison. However, little attention has been given to the large- N, large- T case, wherein autoregression, slope heterogeneity, and cross-sectional dependence are important issues to consider. The authors fill this gap by conducting Monte Carlo experiments comparing the bias and power of the fixed-effects estimator to a set of heterogeneous panel estimators. The authors find that dynamic misspecification can produce substantial biases in the coefficients. Furthermore, even when the dynamics are correctly specified, the fixed-effects estimator will produce inconsistent and unstable estimates of the long-run effects in the presence of slope heterogeneity. The authors demonstrate these findings by testing for directional asymmetry in the economic development–CO2 emissions relationship, a key question in macro sociology, using data for 66 countries from 1971 to 2015. The authors conclude with a set of methodological recommendations on modeling directional asymmetry.

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