Effects of Age Dependency and Urbanization on Energy Demand in BRICS: Evidence From the Machine Learning Estimator

This paper examines the effects of age dependency ratio (the young age, old-age and overall age) and urbanization on renewable and non-renewable energy consumption in Brazil, India, China, and South Africa, considering the panel data from 1990 to 2019. We control economic growth and foreign direct investment inflows as key factors in the energy demand function using the Stochastic Impacts by Regression on Population, Affluence and Technology approach. Empirical analysis has been implemented using the Kernel Regularized Least Squares machine learning method to solve possible classification problems in the traditional regressions without relying on the linearity assumption. It is observed that the young age dependency, overall age dependency, and urbanization negatively affect both renewable and non-renewable energy demand. On the contrary, old-age dependency and economic growth are positively associated with renewable and non-renewable energy demand. The mixed effects of foreign direct investment inflows on renewable and non-renewable energy demand patterns are also found. Thus, the findings suggest that environment policymakers in the BRICS economies should prioritize urbanization, young age, and overall age population to improve energy efficiency.

Download Full-text

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

Sustainability ◽

10.3390/su13041613 ◽

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.

Download Full-text

Empirical Research on the Relationship amongst Renewable Energy Consumption, Economic Growth and Foreign Direct Investment in Kazakhstan and Uzbekistan

Energies ◽

10.3390/en14020332 ◽

2021 ◽

Vol 14 (2) ◽

pp. 332

Author(s):

Janusz Grabara ◽

Arsen Tleppayev ◽

Malika Dabylova ◽

Leonardus W. W. Mihardjo ◽

Zdzisława Dacko-Pikiewicz

Keyword(s):

Economic Growth ◽

Foreign Direct Investment ◽

Renewable Energy ◽

Energy Consumption ◽

Direct Investment ◽

Renewable Energy Sources ◽

Energy Sources ◽

Renewable Energy Consumption ◽

Integration Test ◽

The Relationship

In this contemporary era, environmental problems spread at different levels in all countries of the world. Economic growth does not just depend on prioritizing the environment or improving the environmental situation. If the foreign direct investment is directed to the polluting industries, they will increase pollution and damage the environment. The purpose of the study is to consider the relationship between foreign direct investment in Kazakhstan and Uzbekistan and economic growth and renewable energy consumption. The study is based on data obtained from 1992 to 2018. The results show that there is a two-way link between foreign direct investment and renewable energy consumption in the considered two countries. The Granger causality test approach is applied to explore the causal relationship between the variables. The Johansen co-integration test approach is also employed to test for a relationship. The empirical results verify the existence of co-integration between the series. The main factors influencing renewable energy are economic growth and electricity consumption. To reduce dependence on fuel-based energy sources, Kazakhstan and Uzbekistan need to attract energy to renewable energy sources and implement energy efficiency based on rapid progress. This is because renewable energy sources play the role of an engine that stimulates the production process in the economy for all countries.

Download Full-text

THE CONTRIBUTION OF FDI AND FINANCIAL DEVELOPMENT ON ECONOMIC GROWTH IN SRI LANKA

International Journal of Engineering Technologies and Management Research ◽

10.29121/ijetmr.v8.i1.2021.838 ◽

2021 ◽

Vol 8 (1) ◽

pp. 25-34

Author(s):

Sarojini Maheswaranathan ◽

K.M.N. Jeewanthi

Keyword(s):

Economic Growth ◽

Foreign Direct Investment ◽

Sri Lanka ◽

Private Sector ◽

Financial Development ◽

Direct Investment ◽

Capital Investment ◽

Bank Credit ◽

Percent Increase ◽

Foreign Direct Investment Inflows

The present study investigates the relationship between financial development, Foreign direct investment and economic growth in Sri Lanka for the period 1980 to 2019 by applying the Augmented Dickey-Fuller Unit root test along with the ARDL approach in process of achieving the desired objective. The outcome of this study shows that except GDP and FDI all other variables such as Capital investment as a percent of GDP (CI), Bank credit to the private sector as a percent of GDP (BCP), net foreign direct investment inflows in % of GDP (FDI) are stationary at first difference. The findings reveal that net foreign direct investment inflows are a positive relationship with economic growth in the long run. It means a one percent increase in net foreign direct investment inflows increases the GDP by 0.826439 percent. At the same time, a one percent increase in bank credit to the private sector decreases the GDP by 0.864320 percent. Moreover, in the short run FDI, CI and BCP have a positive and significant impact on GDP. Diagnostic tests such as normality test, heteroskedasticity and serial autocorrelation are employed to validate parameter estimation outcomes. Further, the stability of the variables confirms by the CUSUM test. The country should propose Strategies to boost the growth of efficient domestic financial institutions and encourage policy to attract greater FDI inflows that meet the needs of the knowledge-based economy.

Download Full-text

Trade Liberalization, Foreign Direct Investment Inflows, Environmental Quality and Economic Growth Nexus: A Comparative Analysis of Pakistan and China

Review of Applied Management and Social Sciences ◽

10.47067/ramss.v2i1.11 ◽

2019 ◽

Vol 2 (1) ◽

pp. 17-26

Author(s):

Sumaira Alvi ◽

Imran Sharif Chaudhry ◽

Fatima Farooq ◽

Noreen Safdar

Keyword(s):

Economic Growth ◽

Foreign Direct Investment ◽

Trade Liberalization ◽

Environmental Quality ◽

Direct Investment ◽

Negative Impact ◽

Positive Impact ◽

Secondary Data ◽

Bounds Testing ◽

Foreign Direct Investment Inflows

The present research endeavors to evaluate whether trade liberalization, foreign direct investment inflows and environmental quality affect the economic growth in Pakistan and China. These have crucial role in the economies and pragmatic for formulating economic growth policies. The secondary data is used for all the variables. The ARDL bounds testing approach to cointegration is applied to evaluate the determinants included in the model for both countries. The results of the research conclude that trade liberalization and foreign direct investment both have positive impact on economic growth while environmental pollution has negative impact on economic growth in long-run.

Download Full-text

The effects of non-renewable energy, renewable energy, economic growth, and foreign direct investment on the sustainability of African countries

Renewable Energy ◽

10.1016/j.renene.2021.10.066 ◽

2021 ◽

Author(s):

Nassima Djellouli ◽

Latifa Abdelli ◽

Mohamed Elheddad ◽

Rizwan Ahmed ◽

Haider Mahmood

Keyword(s):

Economic Growth ◽

Foreign Direct Investment ◽

Renewable Energy ◽

Direct Investment ◽

African Countries

Download Full-text

Dynamic connection between inward foreign direct investment, renewable energy, economic growth and carbon emission in China: evidence from partial and multiple wavelet coherence

Environmental Science and Pollution Research ◽

10.1007/s11356-020-08836-8 ◽

2020 ◽

Vol 27 (32) ◽

pp. 40456-40474 ◽

Cited By ~ 1

Author(s):

Hira Arain ◽

Arshian Sharif ◽

Bilal Akbar ◽

Md. Yamin Younis

Keyword(s):

Economic Growth ◽

Foreign Direct Investment ◽

Renewable Energy ◽

Direct Investment ◽

Carbon Emission ◽

Wavelet Coherence ◽

Inward Foreign Direct Investment ◽

Multiple Wavelet Coherence

Download Full-text

The effectiveness of Vietnamese policies response to climate change through ARDL analysis

ECONOMICS AND BUSINESS ADMINISTRATION ◽

10.46223/hcmcoujs.econ.en.11.2.1435.2021 ◽

2021 ◽

Vol 11 (2) ◽

pp. 42-52

Author(s):

Le Hoang Nghiem ◽

Dang Bac Hai ◽

Tran Thi Diem Nga ◽

Su Thi Oanh Hoa

Keyword(s):

Climate Change ◽

Economic Growth ◽

Foreign Direct Investment ◽

Renewable Energy ◽

Energy Consumption ◽

Co2 Emissions ◽

Direct Investment ◽

Economic Factor ◽

Renewable Energy Consumption ◽

Long Run

Being a highly vulnerable country due to climate change, Vietnam has issued various climate policies while trying to keep the pace of economic growth. The study evaluates the effectiveness of these policies by examining the effect of economic and energy factors in the efforts of controlling CO2 emissions. Approach by Autoregressive Distributed Lag (ARDL) analysis, the model of a linear regression between CO2 emissions and Gross Domestic Product (GDP), Foreign Direct Investment (FDI) & sources of energy consumption has been developed from 1985 to 2018. The study indicates that the economic factor as Foreign Direct Investment (FDI) is a possible significant element to mitigate the emission. In addition, sources of energy consumption have the important role of controlling CO2 emissions. In the long run, the consumption of non - renewable energy is a positive and significant effect on CO2 emissions while renewable energy is vice versa. These outcomes show the Foreign Direct Investment (FDI) and renewable energy consumption factors lead to the decrease of CO2 emissions in the long run for Vietnam, which implies the co-exist of economic growth and decarbonization.

Download Full-text

Institutions Powers, financial development and environmental factors influence on Carbon emission: Evidence from a Global Perspective

10.21203/rs.3.rs-341557/v1 ◽

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.

Download Full-text