An Analysis of the Impact of Clean and Non-clean Energy Consumption on Economic Growth and Carbon Emission: Evidence from PIMC Countries

This study empirically estimates the impact of clean and non-clean energy consumption on economic growth and carbon dioxide emissions within the framework of the environmental Kuznets curve and pollution haven hypothesis in the case of PIMC countries from 1980 to 2019. The results of the panel cointegration test proposed by Westerlund (2007) show a long-term equilibrium relationship among the variables of each designated model. The long-term elasticities of economic growth and carbon emission estimated by AMG, CCEMG and MG estimators indicate that both clean and non-clean energy consumption have a significant impact on economic growth, while carbon emission hinders growth. The results also reveal that economic growth, non-clean energy consumption and interaction between trade openness and non-clean energy consumption have a driving effect on carbon dioxide emission, however, clean energy consumption is found to reduce carbon emission. In addition, the analysis confirms the existence of the inverted U-shaped environmental Kuznets curve and pollution haven hypothesis in the panel of PIMC economies. Finally, there is a one-way causality from non-clean energy consumption to economic growth, but no such causation exists between clean energy consumption and economic growth. The objective of sustained economic growth with a safe environment may be achieved by encouraging clean energy consumption in the PIMC economies.

Does the digital finance revolution validate the Environmental Kuznets Curve? Empirical findings from China

In recent years, digital finance has become a crucial part of the financial system and reshaped the mode of green finance in China. Digital finance has brought certain impact on economic growth, industrial structure, and resident income, which may affect pollution. The nexus of digital finance and environment in China is thus worth exploring. By revising the traditional Environmental Kuznets Curve model with income inequality variable, this paper decomposes the environmental effects of economic activities into income growth effect, industrial structure effect and income inequality effect, and use panel data of China’s provinces to conduct an empirical analysis. The results reveal the following: (1) the Environmental Kuznets Curve is still valid in sample, and digital finance can reduce air and water pollution (as measured through SO2 and COD emission) directly; (2) in the influence mechanism, digital finance can alleviate income inequality and promote green industrial structure, thus reducing pollution indirectly, but the scale effect of income growth outweighs the technological effect, which increases pollution indirectly; and (3) digital finance has a threshold effect on improving the environment, then an acceleration effect appears after a certain threshold value. From the regional perspective, digital finance development in eastern regions is generally ahead of central and western regions, and the effects of environmental improvement in the eastern regions are greater. According to the study, this paper suggest that digital finance can be an effective way to promote social sustainability by alleviating income inequality and environmental sustainability by reducing pollution.

Assessment on the Applicability of Environmental Kuznets Curve Hypothesis on the Macroeconomic Factors Driving Carbon Dioxide Emissions in the Philippines

Since there is a lack of empirical literature in the Philippines that focuses on studying the validity of the Environmental Kuznets Curve Hypothesis, this study aims to build on succeeding studies testing the validity of the EKC hypothesis in the country. In the current study, we empirically investigate the long-run relationship between the annual Philippine Carbon Dioxide (CO2) emissions as the proxy variable for Environmental Degradation, Gross Domestic Product per capita, net inflows of Foreign Direct Investment, Renewable Energy per capita, specifically for the period of 1981 - 2019. This paper also observed the Johansen Cointegration results in critically assessing whether the variables were conclusive to test in the long-run measure. For that reason, we investigated the validity of the EKC hypothesis by utilizing the ARDL long bound approach. Thus, our results revealed that a long-run relationship exists, but interestingly, the Environmental Kuznets Curve Hypothesis does not exist in the Philippines.

A Symmetry and Asymmetry Investigation of the Nexus Between Environmental Sustainability, Renewable Energy, Energy Innovation, and Trade: Evidence From Environmental Kuznets Curve Hypothesis in Selected MENA Countries

The motivation of the study is to gauge the role of renewable energy consumption (REC), energy innovation (EI), and total trade (TR) on environmental sustainability (ES) in selected MENA (Middle East and North Africa) countries for the period 1980–2018 under the assumption of environmental Kuznets curve (EKC). The study implemented several econometrical tools, including structural break unit root test, Bayer–Hanck combined cointegration test, autoregressive distributed lag (ARDL), nonlinear ARDL, and Granger causality test under error correction term. Variables properties test detected that all the variables are stationary after the first difference but neither exposed to stationary after the second difference. The test statistics of the combined cointegration test documented a long-run association between ES, RE, EI, and TR, which is valid for both countries concerned. Regarding EKC concern, study findings with ARDL and nonlinear ARDL validated the EKC hypothesis for Tunisia and Morocco. Finally, the direction causality test documented unidirectional causality between renewable energy and ES, trade and ES, but the feedback hypothesis holds between EI and ES. We can advocate for specific sectoral environmental reforms in Tunisia and Morocco and suggest continuous environmentally friendly technologies by combining study findings. At the same time, subsidies on nonrenewable energy should be reduced, and green trade policies to help advance sustainable development should be implemented.