scholarly journals Nexus Between CO2 Emissions, Energy Use and Economic Growth in Nepal

2021 ◽  
Vol 3 (2) ◽  
pp. 138-161
Author(s):  
Shreezal G.C. ◽  
Naveen Adhikari
Keyword(s):  
Economic Growth ◽  
Environmental Degradation ◽  
Electricity Generation ◽  
Sustainable Growth ◽  
Electricity Production ◽  
Pollution Level ◽  
Percentage Increase ◽  
Ekc Hypothesis ◽  
Causal Framework ◽  
The Impact

Background: Economic growth in different economies comes with a cost of environmental degradation. The environment-growth nexus has come to the spotlight since scientists as well as policy-makers point out the threat of climate change and global warming all around the world. Nepal faces problems of pollution day by day raising a question about sustainable growth in the country. Such sustainability can be achieved by exploiting the water resources of the country which can be further used to generate cleaner forms of energy. Objective: This paper examines the interconnection between environmental degradation and economic growth in Nepal under the Environmental Kuznets curve’s framework and causal framework. These frameworks also incorporate energy variables such as electricity production, electricity and oil consumption at a disaggregated level to understand the energy growth nexus in Nepal. Method: The Auto-Regressive Distributed Lag model followed by TY Non-Granger Causality tests and variance decompositions are incorporated in the study to examine the EKC hypothesis and the nexus between energy and growth is analyzed through a multivariate framework. Result: Our result does not show the presence of the EKC hypothesis in the case of Nepal. However, the causal framework indicated that a percentage increase in electricity generation would lead to a reduction in carbon dioxide by 0.7%. The variance decomposition results showed that the impact of CO2 on GDP would decrease with horizons getting longer. On the other hand, the impact of electricity generation on CO2 on was found to be 78% in the longer horizon. Conclusion: Nepal should harness its potential of generating hydroelectricity to reduce environmental pollution as well as increase economic growth. Substituting the cleaner form of energy such as hydroelectricity can help in reducing the consumption of fossils and fuels as well as help in mitigating the pollution level in Nepal. This will further allow Nepal to be self-reliant since it has huge potential for generating hydroelectricity. 

scholarly journals The Impact of Foreign Direct Investments and Economic Growth on Environmental Degradation: The Case of the Balkans

Energies ◽  
2021 ◽  
Vol 14 (3) ◽  
pp. 566
Author(s):  
Aleksandra Pavlović ◽  
Milica Njegovan ◽  
Andrea Ivanišević ◽  
Mladen Radišić ◽  
Aleksandar Takači ◽  
...  
Keyword(s):  
Economic Growth ◽  
Linear Regression ◽  
Environmental Degradation ◽  
Pearson Correlation ◽  
Kuznets Curve ◽  
Foreign Direct Investments ◽  
Ekc Hypothesis ◽  
Middle Income ◽  
The Balkans ◽  
The Impact

The aspiration of this study was to examine the impact of foreign direct investments (FDI) and economic growth on environmental degradation in the Balkans for the period 1998–2019. Balkan countries were classified into two groups, high income countries (HIC) and upper-middle income countries (UMIC). Thus, two hypotheses have been set. The effect of FDI on environmental degradation was observed through pollution haven hypothesis (PHH). To examine that connection, we used Pearson correlation for all countries, HIC and UMIC. Furthermore, the impact of economic growth on environmental degradation was tested through the environmental Kuznets curve (EKC) hypothesis. For that purpose, polynomial linear regression was applied. In order to examine the dependence of environmental degradation in relation to all predictors in the model, a multivariate linear regression was used. PHH was confirmed in Serbia, Albania, Croatia, Romania, and Bulgaria, the Balkans as a whole, and HIC, and the EKC hypothesis was rejected. This paper represents a contribution to a very scarce number of studies regarding the impact of FDI and economic growth on the environment in the Balkans, as a whole. The results of this study can be useful to policy makers in the terms of inducting stricter environmental rules.

scholarly journals Does the Environmental Kuznets Curve Exist? An International Study

2020 ◽  
Vol 12 (21) ◽  
pp. 9117 ◽  
Author(s):  
Nutnaree Maneejuk ◽  
Sutthipat Ratchakom ◽  
Paravee Maneejuk ◽  
Woraphon Yamaka
Keyword(s):  
Economic Growth ◽  
International Economic ◽  
Co2 Emissions ◽  
Environmental Degradation ◽  
Environmental Kuznets Curve ◽  
Environmental Damage ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
The Impact ◽  
The Relationship

This study aims to examine the relationship between economic development and environmental degradation based on the Environmental Kuznets Curve (EKC) hypothesis. The level of CO2 emissions is used as the indicator of environmental damage to determine whether or not greater economic growth can lower environmental degradation under the EKC hypothesis. The investigation was performed on eight major international economic communities covering 44 countries across the world. The relationship between economic growth and environmental condition was estimated using the kink regression model, which identifies the turning point of the change in the relationship. The findings indicate that the EKC hypothesis is valid in only three out of the eight international economic communities, namely the European Union (EU), Organization for Economic Co-operation and Development (OECD), and Group of Seven (G7). In addition, interesting results were obtained from the inclusion of four other control variables into the estimation model for groups of countries to explain the impact on environmental quality. Financial development (FIN), the industrial sector (IND), and urbanization (URB) were found to lead to increasing CO2 emissions, while renewable energies (RNE) appeared to reduce the environmental degradation. In addition, when we further investigated the existence of the EKC hypothesis in an individual country, the results showed that the EKC hypothesis is valid in only 9 out of the 44 individual countries.

Globalization, Poverty, Environmental Degradation and Economic Growth Nexus: Empirical Analysis of SAARC Regions

2020 ◽  
Vol 39 (1) ◽  
Author(s):  
Adiqa Kiani ◽  
Ejaz Ullah ◽  
Khair Muhammad
Keyword(s):  
Economic Growth ◽  
Sri Lanka ◽  
Empirical Analysis ◽  
Environmental Degradation ◽  
Negative Relationship ◽  
Policy Makers ◽  
Significant Negative Relationship ◽  
The Impact

The main objective of this study is to investigate the impact of poverty, globalization, and environmental degradation on economic growth in the selected SAARC countries. This study is employed panel Autoregressive Distributive Lag (ARDL) technique for empirical analysis using selected SAARC regions including India, Pakistan, Bangladesh, Nepal and Sri Lanka over the period of 1980 to 2018. Globalization impacts economic growth positively and significantly.  In addition to this the significant negative relationship is found between population and economic growth. The results show that poverty is positively related with environmental degradation. Furthermore, the results indicate that globalization is positively and significantly associated with environmental degradation in the SAARC region. Finally, the results show that urbanization is positive and significantly associated with environmental degradation, which could be the serious concerns for the policy makers to control.

Reducing the Risks of the Financial Sector to Ensure Sustainable Growth of the Russian Еconomy

2019 ◽  
Vol 12 (3) ◽  
pp. 86-92
Author(s):  
T. I. Minina ◽  
V. V. Skalkin
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Financial Sector ◽  
Developed Countries ◽  
Sustainable Growth ◽  
Necessary Condition ◽  
Real Sector ◽  
Financial Instruments ◽  
The Real ◽  
The Impact

Russia’s entry into the top five economies of the world depends, among other things, on the development of the financial sector, being a necessary condition for the economic growth of a developed macroeconomic and macro-financial system. The financial sector represents a system of relationships for the effective collection and distribution of economic resources, their deployment according to public demand, reducing the risk of overproduction and overheating of the economy.Therefore, the subject of the research is the financial sector of the Russian economy.The purpose of the research was to formulate an approach to alleviating the risks of increasing financial costs in the real sector of the economy by reducing the impact of endogenous risks expressed as financial asset “bubbles” using the experience of developed countries in the monetary policy.The paper analyzes a macroeconomic model applied to the financial sector. It is established that the economic growth is determined by the growth and, more important, the qualitative development of the financial sector, which leads to two phenomena: overproduction in the real sector and an increase in asset prices in the financial sector, with a debt load in both the real and financial sectors. This results in decreasing the interest rate of the mega-regulator to near-zero values. In this case, since the mechanisms of the conventional monetary policy do not work, the unconventional monetary policy is used when the mega-regulator buys out derivative financial instruments from systemically important institutions. As a conclusion, given deflationally low rates, it is proposed that the megaregulator should issue its own derivative financial instruments and place them in the financial market.

The relationship between environmental degradation, energy use and economic growth in Nigeria: new evidence from non-linear ARDL

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hammed Oluwaseyi Musibau ◽  
Waliu Olawale Shittu ◽  
Fatai Olarewaju Ogunlana
Keyword(s):  
Economic Growth ◽  
Environmental Degradation ◽  
Environmental Quality ◽  
Energy Use ◽  
Partial Sums ◽  
Future Research ◽  
Ekc Hypothesis ◽  
Content Type ◽  
Non Linear ◽  
The Relationship

Purpose The purpose of this paper is to study the relationship among environmental degradation, energy use and economic growth, thus lending a voice to testing the relevance, or otherwise, of the environmental Kuznets curve (EKC) hypothesis in Nigeria. Design/methodology/approach The authors rely on the secondary data obtained from World Bank’s World Development Indicators for Nigeria, between 1981 and 2014. The non-linear autoregressive distributed lag (ARDL) technique is used after examining the unit root properties – using the augmented Dickey–Fuller and Phillips–Perron methods – and the long-run relationship – using the ARDL bounds approach to estimate the asymmetries in the effects of economic growth on the environment. Findings The findings of this study uphold the relevance of the EKC hypothesis in Nigeria, as the growth of GDP first reduces the environmental quality but raises it over time. Furthermore, the use of energy is found to deteriorate environmental quality, given that CO2 rises by 0.002% for a unit increase in the consumption of energy in Nigeria. Research limitations/implications A limitation to this research is the data coverage, which is just between 1981 and 2014, based on availability. One other limitation is the use of electric power consumption as a proxy for energy use (because of the difficulty in obtaining accurate data on energy consumption in Nigeria). Future research should, therefore, test different other proxies, to either agree with the findings or justify any deviation therefrom. Also, the use of up-to-date data is recommended as an improvement to this study, while a non-linear technique should be used on studies involving the panel of countries. Originality/value Many studies have examined this relationship by simply taking the square of GDP as a measure of its non-linear effect on the environment. The authors are one of the first who consider the asymmetric effect of economic growth on the environment through the non-linear ARDL technique. With this, the partial sums of positive and negative changes in economic growth on the environment are easily established.

The impact of financial development, economic growth and energy consumption on environmental degradation

2015 ◽  
Vol 26 (5) ◽  
pp. 666-682 ◽  
Author(s):  
Madhu Sehrawat ◽  
A K Giri ◽  
Geetilaxmi Mohapatra
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Financial Development ◽  
Environmental Degradation ◽  
Series Data ◽  
Development Economic ◽  
Content Type ◽  
Indian Economy ◽  
Long Run ◽  
The Impact

Purpose – The purpose of this paper is to investigate the impact of financial development, economic growth and energy consumption on environment degradation for Indian economy by using the time series data for the period 1971-2011. Design/methodology/approach – The stationary properties of the variables are checked by ADF, DF-GLS, PP and Ng-Perron unit root tests. The long-run relationship is examined by implementing the Autoregressive Distributed Lag bounds testing approach to co-integration and error correction method (ECM) is applied to examine the short-run dynamics. The direction of the causality is checked by VECM framework and variance decomposition is used to predict exogenous shocks of the variables. Findings – The empirical evidence confirms the existence of long-run relationship among the variables. Financial development appears to increase environmental degradation in India. The main contributors to environmental degradation are: economic growth, energy consumption financial development and urbanization. The results also lend support to the existence of environmental Kuznets curves for Indian economy. Research limitations/implications – The present study suggests that environmental degradation can be reduced at the cost of economic growth or energy efficient technologies should be encouraged to enhance the domestic product with the help of financial sector by improving environmental friendly technologies from advanced economies. Originality/value – This paper proposes to make a contribution to the existing literature through examining the relationship between financial development and environmental degradation in Indian economy during 1971-2011 by employing modern econometric techniques.

scholarly journals The Impact of Tourism on the Local Economy in Malaysia

2018 ◽  
Vol 13 (12) ◽  
pp. 151 ◽  
Author(s):  
Chin-Hong Puah ◽  
Meng-Chang Jong ◽  
Norazirah Ayob ◽  
Shafinar Ismail
Keyword(s):  
Economic Growth ◽  
Capital Investment ◽  
Positive Impact ◽  
Economic Transformation ◽  
Tourism Industry ◽  
Local Economy ◽  
Sustainable Growth ◽  
Distributed Lag ◽  
The Government ◽  
The Impact

The local and international communities play an important role in the sustainable growth of the Malaysian tourism industry. The principle of sustainable growth in the tourism industry was proposed by the World Tourism Organization (WTO) in 1988. As the tourism industry is one of the largest and fastest growing industries in Malaysia, the government has poured considerable effort into promoting this industry consistent with the objective of the Economic Transformation Program (ETP) to transform from a resource-based economy to a service-based economy. This study aimed to test the hypothesis of tourism-led growth from Malaysia’s perspective. The tourism revenue earned by the government can be used to invest in industry to further promote economic growth in Malaysia. Hence, tourist receipts and capital investment in the tourism industry are important factors that can affect the nation’s economic growth. Utilizing Malaysian data from 1995 to 2016, the study employed the Autoregressive Distributed Lag (ARDL) approach to examine whether the tourism-led growth is valid in this study. Empirical findings indicated that both variables have a significant positive impact on economic growth and the hypothesis of tourism-led growth is accepted in Malaysia.

scholarly journals The Combined Effects of Public and Private Investments on Economic Growth in the CEMAC Zone

2019 ◽  
Vol 3 (1) ◽  
Author(s):  
Noula Armand Gilbert ◽  
Chouafi Nguekam Orfé ◽  
Kamajou François
Keyword(s):  
Economic Growth ◽  
Sustainable Growth ◽  
Public And Private ◽  
Vector Error Correction ◽  
Panel Data Estimation ◽  
Public Investments ◽  
Long Run ◽  
Private Investments ◽  
Short Run ◽  
The Impact

This study evaluates the simultaneous impact of public and private investments on economic growth in the CEMAC zone between 1984 and 2017.To attain this aim, we use the Vector Error Correction Model (VECM) to test the direction of causality between the three variables above at the level of each country. We find that the direction of causality is not the same in all the countries both in the short as in long-run. We then develop an ideal model going from the Cobb Douglas production function which we quantitatively validate using panel data estimation through the method of Pool Mean Group which takes into account individual specificities. It arises that contrary to economic theory, private sector investments have positive and significant effects in short-run. However, the impact of public investments is negative and significant. In the long-run, the effects are reversed and call on the authorities of the CEMAC zone to reinforce the political risk to strengthen the public-private partnership in the process of sustainable growth.

scholarly journals Primal-Dual Approach to Environmental Kuznets Curve Hypothesis: A Demand and Supply Side Analyses of Environmental Degradation.

2021 ◽  
Author(s):  
gildas dohba dinga ◽  
DOBDINGA CLETUS FONCHAMNYO ◽  
ELVIS DZE ACHUO
Keyword(s):  
Economic Growth ◽  
Environmental Degradation ◽  
Environmental Kuznets Curve ◽  
Correlation Effect ◽  
High Income ◽  
Green Economy ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Primal Dual ◽  
Sustainable Economic Growth

Abstract Global warming and its unavoidable negatives effects on man and the environment have been a key if not the most important issue occupying policy makers in the world at large today. The much talked about green economy nowadays seeks to achieve sustainable economic growth and development without compromising environmental quality. The relationship between environmental degradation and economic growth is largely explained by the environmental Kuznets Curve (EKC) hypothesis. By employing the basic postulation of the baseline EKC framework, this study proposes and tests the existence of a dualistic approach of the EKC hypothesis. Geometry is used to illustrate the proposed dualistic model. Meanwhile, the novel dynamic common correlation effect econometric technique is employed to test the existence of the dualistic EKC within a panel of 109 countries from 1995 to 2016. The outcome from the estimated models shows that, in the global sample, the existence of the dualistic U-shape and N-shape EKC hypothesis is validated. When the sample is split into sub samples based on income levels, the U-shape EKC hypothesis is validated for lower income and high income economies meanwhile, the N-shape dualistic EKC is mostly associated with high income economies.

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