55 results on '"Balsalobre-Lorente D"'
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2. Anchoring Inflation Expectations in the Face of Oil Shocks & in the Proximity of ZLB : A Tale of Two Targeters
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Nasir, MA, Balsalobre-Lorente, D, and Huynh, TLD
- Abstract
This paper applies a N-ARDL framework to two longstanding inflation targeting policy regimes in order to assess the relation between oil prices dynamics and inflation expectations and the further consequences created by a proximal ZLB situation. The application is based on data from January 1994 to June 2018 for New Zealand and the UK. We focus on oil price shocks as a variable of interest and this was found to have an asymmetric effect on inflation expectations. One further key finding is that the real effective exchange rate has significant impacts on inflation expectations and this is indicative of an exchange rate pass-through to inflation via an inflation expectations channel. In general, we find that inflation, exchange rate, money supply, output growth, unemployment and fiscal deficit/surplus have significant implications for inflation expectations. Inflation expectations are also influenced by their past behaviour indicating adaptive inflation expectations. This study contributes to the debate on the inflation targeting at ZLB.
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- 2020
3. Carbon and Decarbonization Disclosure: Role of Responsible Innovation in Adoption of Artificial Intelligence of Things towards SDGs
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Di Vaio, A., Zaffar, A., and Balsalobre-Lorente, D.
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Sustainable Development Goals (SDGs) ,Decarbonization Practices ,SDG 5 ,Carbon Disclosure ,Responsible Innovation (RI) ,Artificial Intelligence of Things (AIoT)
4. The Role of Energy Innovation and Corruption in Carbon Emissions: Evidence Based on the EKC Hypothesis
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Balsalobre-Lorente, D., Shahbaz, M., Chiappetta Jabbour, C.J., Driha, O.M., Balsalobre-Lorente, D., Shahbaz, M., Chiappetta Jabbour, C.J., and Driha, O.M.
- Abstract
This study investigates how energy innovations and corruption affect carbon emissions. To this end, a panel data model of 16 selected OECD countries is employed, spanning the period of 1995–2016. The empirical framework falls within the hypothesis of the environmental Kuznets curve (EKC), which explores the relationship between the economic growth and carbon emissions. The empirical results show that when economic systems interact with corruption, positive effects that energy innovations have on environmental quality are reduced. Furthermore, the amount of economic growth needed to limit environmental pollution levels is also distorted. Corruption seems to be pernicious for the environment in the long term, as it limits the stage at which decontamination occurs; i.e., corruption reduces the positive effect generated by measures focused on energy innovation in terms of reducing environmental pollution. These findings are expected to be significant in terms of implementing anti-corruption measures and effective environmental policies, and they call for appropriate policy measures that might limit the effects of corruption on environmental quality. © 2019, Springer Nature Switzerland AG.
5. The role of economic policy uncertainty and social welfare in the view of ecological footprint: evidence from the traditional and novel platform in panel ARDL approaches
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Esmaeili, P., Rafei, M., Balsalobre-Lorente, D., Adedoyin, Festus Fatai, Esmaeili, P., Rafei, M., Balsalobre-Lorente, D., and Adedoyin, Festus Fatai
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In the contemporary world, environmental degradation has become a concern for human beings. Accordingly, the impact of social welfare, economic policy uncertainty, natural resource rents, life expectancy, and trade openness are examined on ecological footprint (the most comprehensive proxy of environmental degradation) in 19 energy-intensive countries from 1997 to 2018. With this in mind, this study used the traditional panel ARDL and CS-ARDL approaches to evaluate how the study’s variables influence ecological footprint. Notably, the results of the CS-ARDL approach are more robust due to cross-sectional dependence and slope heterogeneity problems. The outcomes revealed that economic policy uncertainty and trade openness affect the ecological footprint negatively in the short run and positively in the long run. Moreover, social welfare degrades the environment in the long run, and natural resource rents improve environmental quality by mitigating the ecological footprint in the short run and harming the environment in the long run. Besides, life expectancy does not significantly affect ecological footprint in the long or short run. Meanwhile, the results confirmed the bi-directional causal relationship between the study’s variable and ecological footprint. Based on the outcomes, the way to adopt effective policies to improve the quality of the environment has been paved. Furthermore, a comprehensive policy framework for stricter environmental regulation is expected to be developed using the outcomes derived from this study.
6. Modeling the environmental implications of car ownership and energy consumption in the UK: Evidence from NARDL model
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Funsho Idowu, O., Adedoyin, Festus Fatai, Bekun, F. V., Balsalobre-Lorente, D., Funsho Idowu, O., Adedoyin, Festus Fatai, Bekun, F. V., and Balsalobre-Lorente, D.
- Abstract
We investigated the asymmetric effects of energy consumption, car ownership and tourism activities on CO2 emissions in the UK. Empirical results from the Non-Linear Autoregressive Distributed Lag (NARDL) model reveal that in the UK, only car ownership has asymmetric effects on emissions with a magnitude of −1.428% (positive) and 10.108% (negative) shocks that highlight the impact of car ownership on emission level in UK while rising energy consumption and GDP have symmetric positive impacts on emissions, and tourism has a negative impact on emissions. Furthermore, on causality analysis, we found a unidirectional causality runs from GDP per capita to car ownership, and that car ownership and tourism both causes energy consumption in a one-way relationship. Apart from encouraging environmentally friendly energy sources to reduce carbon emission in the UK, the short and long-run analyses disclose that economic expansion and energy consumption increase carbon emission. Empirical results also offer a new perspective on the ascending relevance of electric cars in UK. Hence, only policies that discourage the use of carbon emission inputs in the process of production should be encouraged. Electric vehicles seem to be more efficient when compared to combustion engines because most energy put in the battery is used to drive the cars and wastes less energy when they are driven in cities. This can be achieved by increasing tariffs and decreasing quotas on internal combustion-powered cars. Subsequently, promote and increase usage of electric vehicles that reduce greenhouses.
7. Modelling coal rent, economic growth and CO2 emissions: Does regulatory quality matter in BRICS economies?
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Adedoyin, Festus, Gumede, M.I., Bekun, F.V., Etokakpan, M.U., Balsalobre-lorente, D., Adedoyin, Festus, Gumede, M.I., Bekun, F.V., Etokakpan, M.U., and Balsalobre-lorente, D.
- Abstract
Global warming issues have been on the front burner of most economies and Brazil, Russia, India, China and South Africa countries (BRICS) are no exception. The region has joined the rest of the world on the global strides to mitigate against global warming in terms of decoupling carbon dioxide emissions from economic growth. This is the motivation for the present study to consider the interaction between economic growth, pollutant emissions, coal rent while accounting for the role of other covariates like regulatory quality. The study is conducted in a balanced panel setting over annual frequency data from 1990 to 2014. To this end, Pooled mean group with dynamic autoregressive distributed lag [PMG-ARDL (1,1,1,1,1)] was conducted to explore the coal-rents-energy nexus. The empirical study shows that for BRICS countries, unlike coal consumption, coal rents have a significant but negative impact on CO2 emissions. Also, in contrast to expectation, regulations on coal rents in the form of carbon damage costs have a significant but positive impact on CO2 emissions. This suggests that in line with the drive for growth by BRICS countries, and to achieve a reduction in the levels of CO2 emissions for green growth and sustainable development, more stringent environmental-energy-related regulations are inevitable. Thus, for policymakers, it is vital to reinforce the use of stringent regulations as these economies open up to more use of coal energy. However, the need to shift, the energy mix in BRICS to renewables is pertinent in a time of global environmental consciousness for cleaner energy sources and environmentally friendly ecosystem.
8. The asymmetric impact of air transport on economic growth in Spain: fresh evidence from the tourism-led growth hypothesis.
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Balsalobre-Lorente, D., Driha, O.M., Bekun, F.V., Adedoyin, Festus, Balsalobre-Lorente, D., Driha, O.M., Bekun, F.V., and Adedoyin, Festus
- Abstract
The tourism sector has emerged as an essential driver for economic growth strategies during the last decades. An asymmetric long-run effect of air transport on economic growth is validated assuming a process of social globalization in Spain between 1970 and 2015. To achieve the study’s objective, the recent asymmetric autoregressive distributed lag methodology framework advanced by Shin, Yu, and Greenwood-Nimmo (2014) is applied. For determining the causality direction, this methodology is applied in conjunction with the non-parametric causality test proposed by Diks and Panchenko (2006). The current study also accounts for the effects of renewable energy use and urbanization process over economic growth. Empirical results showed that air transport, urbanization process and social globalization exert positive and significant implications over economic growth, while renewable energy use reduces economic growth, as a consequence of an energy mix sustained by fossil sources. Based on these outcomes several policy recommendations were offered in the concluding section.
9. The Effects of Air Transportation, Energy, ICT and FDI on Economic Growth in The Industry 4.0 Era: Evidence from The United States
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Adedoyin, Festus, Bekun, F.V., Driha, M.O., Balsalobre-Lorente, D., Adedoyin, Festus, Bekun, F.V., Driha, M.O., and Balsalobre-Lorente, D.
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This study analyses the causal and long-run linkage between air transport and economic growth. It was conducted to validate the tourism-led growth hypothesis for the United States (US) during the period 1981-2017 and includes Information and Communication Technologies (ICTs) alongside coal rents in the tourism-led growth hypothesis. This study presents a new direction for future studies by considering the relevance of the fourth industrial revolution (Industry 4.0), particularly in the US. To achieve the stated claim, this study considers as additional explanatory variables how ICTs moderate the impact of Foreign Direct Investment (FDI) on GDP. The empirical result confirms a connection between the Industry 4.0 era and the role of ICTs, which promotes substantial changes in the way of life and productivity. This has led to a vast technological advancement, which is in line with but at a faster pace than the technological advancement of previous revolutions. From empirical results, the study provides relevant policy recommendations related to the role of natural resources, new technologies and tourism on US GDP, while it also provides evidence of the positive effect of ICTs over FDI under the Industry 4.0 era.
10. Do green energy, command and control-based environmental regulations, and green growth catalysts for sustainable development? New evidence from China.
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Aydin M, Degirmenci T, Bozatli O, Radulescu M, and Balsalobre-Lorente D
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Sustainable development constitutes a comprehensive framework that integrates various economic, social, and environmental dimensions. Within this paradigm, the environmental aspect assumes particular prominence. In this context, we focus on the relationship between pro-environmental policies and sustainable development in China, the world's largest polluter. This study examines the impact of command-and-control-based environmental regulations (CCER), low-carbon energy, and green economic growth on sustainable development in China from 1990 to 2019. Methodologically, we follow up-to-date Fourier-based econometric methods. The results show that CCER, low-carbon energy, and green economic growth positively affect sustainable development. Accordingly, we argue that pro-environmental policies in China support sustainable development efforts. We believe that China's remarkable development in low-carbon energy investments, strict environmental regulation policies, and efforts to promote green economic growth are essential factors in such an outcome. Policymakers should pay attention to environmental and energy policies that promote the clean energy sector while continuing to implement relevant policies., Competing Interests: Declaration of competing interest The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper., (Copyright © 2024 Elsevier Ltd. All rights reserved.)
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- 2024
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11. Time-quantile impact of foreign direct investment, financial development, and financial globalisation on green growth in BRICS economies.
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Özkan O, Popescu IA, Destek MA, and Balsalobre-Lorente D
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- South Africa, Internationality, Investments, Economic Development
- Abstract
Implementing policy combinations that neither negatively impact economic performance nor create the least amount of harm is the most crucial factor to consider in policy practices that promote environmental quality. In this regard, green growth, which harmonises both environmental and economic performance, gains importance. Based on this, this study analyses the effects of foreign direct investments, financial development, and financial globalisation on green growth for BRICS countries for the period 1990-2021. For this purpose, the effects of these factors on green growth are investigated using novel wavelet quantile regression and wavelet quantile correlation techniques. The findings show that while foreign direct investment inflow harms green growth in countries other than South Africa, there is a positive effect for South Africa. On the other hand, financial development and financial globalisation have adverse effects on green growth only in South Africa but have an increasing effect on green growth in other countries., Competing Interests: Declaration of competing interest The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper., (Copyright © 2024 Elsevier Ltd. All rights reserved.)
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- 2024
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12. Stay circular economy, empowerment, and natural resource utilization factual factors for SDG 12? The principal role of digital technologies.
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Balsalobre-Lorente D and Shah SAR
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- Humans, Natural Resources, Conservation of Natural Resources, Environmental Policy, Digital Technology, Empowerment
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Recently, the UN has suggested several green initiatives to adopt renewable energy consumption in human & economic activities. Therefore, most practitioners have followed the responsible production & consumption (RP&C) pattern under SDG 12 to increase economic progress. This study considers the top 15 circular economies that are ruthless in producing and consuming energy greenly. This study finds the circular economy, digital technologies, natural resource utilization, empowerment, environmental policy, and environmental degradation as decisive factors for the RP&C of energy. Similarly, the current empirical research utilizes an advanced series of estimators to investigate the study's objective. However, the long-term outcomes show a significant contribution to responsible production by circular economy while remaining insignificant for production. Under RP&C base models, this study obtains a 1.830% change in consumption and 0.135% in energy production via a significant shift in digital technologies. Furthermore, environmental policy and empowerment are positively associated with RP&C in the specified region. The role of natural resources is inversely but insignificantly related to responsible consumption and vice versa for the production side. Rising environmental concerns show a heterogeneous role for both models. This study also investigates the mediating role of digital technologies on circular economy, natural resources, and empowerment and supports the positive association in RP&C. This study suggests some implications to support SDG 12 further., Competing Interests: Declaration of competing interest It is submitted that there are no known conflicts of interest associated with this publication that could have influenced its outcome., (Copyright © 2024 Elsevier Ltd. All rights reserved.)
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- 2024
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13. Uncovering the drivers of CO 2 emissions in the United States: The hidden spillover effects.
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Ozcan B, Esmaeili P, Rafei M, and Balsalobre-Lorente D
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- United States, Conservation of Natural Resources, Economic Development, Environmental Pollution, Carbon Dioxide analysis
- Abstract
This study explores the applicability of the Environmental Kuznets Curve (EKC) hypothesis in the United States (US) from 2006 to 2020, employing the Spatial Durbin Model (SDM) to analyze the cross-border effects of pollution among states. The results indicate that although economic growth initially decreases environmental degradation, it subsequently contributes to more significant environmental degradation, challenging the EKC hypothesis's validity at the US state level. Factors such as higher energy prices and reliance on fossil fuels are also identified as significant drivers of environmental deterioration, with varying impacts observed across states. Conversely, adopting renewable energy sources is crucial in mitigating pollution levels. The study underscores the importance of coordinated state-level efforts to harmonize economic growth with sustainable environmental practices. It highlights the complexities of policymaking in balancing economic development with environmental conservation and emphasizes the need for targeted interventions to address environmental challenges effectively. This research enhances our understanding of sustainable development pathways amidst diverse regional dynamics within the US by providing empirical evidence and policy insights., Competing Interests: Declaration of competing interest The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper., (Copyright © 2024 Elsevier Ltd. All rights reserved.)
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- 2024
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14. The effect of eco-friendly and financial technologies on renewable energy growth in emerging economies.
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Alofaysan H, Radulescu M, Balsalobre-Lorente D, and Si Mohammed K
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Successfully integrating renewable energy sources depends on eco-friendliness, financial technology, and economic growth (GDP). This paper examines the dynamic effect of innovative financial and green technology on renewable energy for 38 emerging economies from 2006 to 2021. Using the dynamic First-difference Generalized Method of Moments (FD-GMM) model, the analysis identifies a critical GDP threshold of 1831.772 US dollars, significant at the 1 % confidence level. Below this threshold, GDP negatively affects green energy adoption, while above it, GDP positively influences the shift to greener energy, supporting the predicted U-shaped relationship in the data. The results conclude that eco-friendly and financial technology positively and significantly influence renewable energy adoption, where the dynamics and barriers to adopting eco-friendly and financial technologies in emerging countries may differ from those in developed nations. Based on the findings, relevant energy policies have been recommended for energy stakeholders, Tech firms and decision-makers., Competing Interests: The authors declare the following financial interests/personal relationships which may be considered as potential competing interests: Magdalena Radulescu: Associate Editor of Heliyon journal Daniel Balsalobre-Lorente: Associate Editor of Heliyon journal If there are other authors, they declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper., (© 2024 The Authors.)
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- 2024
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15. Do circular economy, public-private Partnership and carbon policy manage the environmental stress? Developed countries' situation under the Prism of COP27.
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Balsalobre-Lorente D, Shah SAR, and Huseynova R
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Since the Industrial Revolution, the economies have played well to make progress in economic growth. Besides, rapid growth has brought severe challenges, and environmental degradation is one of them. Therefore, the globe has introduced several green initiatives, such as the Kyoto Protocol, the Paris Agreement, and the Sustainable Development Goals, but the problem remains intact. Specifically, this study focuses on COP27 and highlights the key challenges and their best solutions. Undoubtedly, most nations have tried to meet their settled targets by 2030, but these have different priorities to facilitate their populace. Therefore, international cooperation has been introduced as a logical solution to collaborate across borders or within the region to deal with sustainability themes. However, developed nations have environmental problems due to industrial, income, and population growth, directly associated with environmental risks. Thus, under the SDGs, this empirical research tries to cover the critical problems (income, population aging, & industrial development) and their best alternative (public-private partnership, emission taxes & circular economy) to minimize environmental issues. Similarly, the current study utilizes an advanced series of estimators to investigate the study's objective for 17 developed nations from 2000 to 2021. Investigated outcomes describe income, population aging, and industrial activities that bring carbon emissions. Conversely, carbon policy and public-private partnerships support the sustainability theme for specified economies. Under the base model, the circular economy declines the environmental pressure by 0.016 %, 0.002 %, and 0.019 %, respectively, under the specified estimators. Moreover, this empirical research investigates the mediating role of carbon policy, public-private partnership & circular economy on industrial development. It brings a significant decline in emissions only for carbon policy & circular economy. However, this study also proposes some green policies to become clean & green shortly., Competing Interests: It is submitted that there are no known conflicts of interest associated with this publication that could have influenced its outcome., (© 2024 The Authors. Published by Elsevier Ltd.)
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- 2024
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16. Evaluating the effects of ECON-ESG on load capacity factor in G7 countries.
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Işık C, Ongan S, Islam H, Sharif A, and Balsalobre-Lorente D
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- Environment, Natural Resources, Conservation of Natural Resources
- Abstract
For the first time, this study introduces the ECON-ESG quadruple, developed by Işık et al. (2024a), by adding the economy (ECON) dimension to the classical ESG (environment, social, governance) triad. Based on this new concept, it explores the impact of ECON-ESG factors on the Load Capacity Factor (LCF) in G7. The impact of ECON-ESG factors on LCF is vital because sustainability through these factors plays a critical role in a sustainable environment with LCF. CS-ARDL model finds that while governance factors (GOVNF) positively affect LCF, economic factors (ECONF) have negative effects. Environmental factors (ENVF) and social factors (SOCF) do not affect LCF. These findings can be interpreted as follows: (i) Negative effects of ECONF on LCF can be interpreted as high productivity levels in G7 leading to high resource consumption, exceeding biocapacity. (ii) In G7 with high-income levels, increased consumption may lead to overconsumption of natural resources and exceeding biocapacity. (iii) High technological progress in G7 can sometimes paradoxically lead to greater resource consumption rather than encouraging more efficient resource use, increasing an ecological footprint. The positive effects of GOVNF on LCF can be interpreted as follows: (iv) High and quality governance practices and policies in G7 can increase biocapacity. (vi) Under good governance, governments and environmental organizations can positively impact LCF by raising public awareness of environmental issues and enabling society to use natural resources more sustainably. Therefore, policymakers should harmonize economic policies through ECONF and governance policies through social factors (GOVNF), which contradict each other in LCF. Additionally, the effect of the single composite form ECON-ESG introduced and proposed in this study on LCF is found to be negative. This requires policymakers and firms to re-evaluate their sustainability one more time from a holistic perspective, including economic factors, as done in this study., Competing Interests: Declaration of competing interest The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper., (Copyright © 2024 Elsevier Ltd. All rights reserved.)
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- 2024
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17. Financial health and economic growth responsiveness as solution to environmental degradation in Pakistan.
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Golo MA, Han D, Balsalobre-Lorente D, and Radulescu M
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- Pakistan, Economic Development
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This study analyses the impact of GDP per capita, domestic credit, savings, and population on the environment in Pakistan from 1995 to 2019. The country has consistently been ranked eighth, fifth, and eight as an environmentally vulnerable nation from 1998 to 2017, 1999 to 2018, and 2000 to 2019, respectively. Therefore, the study explores the role of environmental awareness as a potential strategy for making peace with nature. Findings of the ARDL bounds testing approach confirm the long-run cointegration among variables of concern. In further assessment, the study determines that increased per capita income is detrimental to environmental quality in the long run. However, in the short run, it shows a favourable impact. On the other hand, domestic credit worsens the environment in the long and short runs. However, savings are positively insignificant in this regard. Furthermore, the total population significantly harms the environment in the long and short run. Fortunately, environmental awareness has emerged as a key solution to environmental degradation in Pakistan. Findings show that an increase in the dissemination of environmental awareness through the Internet, mobile, and landline phones, as well as by increasing education expenditures, mitigates the populations' detrimental impact on the environment and improves environmental quality in the long run., (© 2024. The Author(s).)
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- 2024
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18. Fresh evidence of the impact of economic complexity, health expenditure, natural resources, plastic consumption, and renewable energy in air pollution deaths in the USA? An empirical approach.
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Aydin M, Degirmenci T, Bozatli O, and Balsalobre-Lorente D
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- Humans, Health Expenditures, Renewable Energy, Economic Development, Natural Resources, Carbon Dioxide analysis, Plastics, Air Pollution
- Abstract
Most plastic waste generated from plastic consumption cannot be recycled and is destroyed by burning. As a result of burning plastics, microplastics spread into the atmosphere, increasing air pollution. Respiratory diseases and chronic health problems are caused by air pollution. Approximately 7 million people die each year due to pollution-related ailments. Therefore, it is crucial to provide empirical evidence rather than approximate estimates of the role of plastic consumption in air pollution-related deaths. Also, understanding the causes of air pollution-related deaths and demonstrating the policies' effectiveness will provide valuable insights for policymakers, the international community, and researchers. This study investigates the effects of plastic consumption, health expenditures, natural resources, economic complexity, and renewable energy on air pollution deaths in the USA from 1995 to 2019 using the novel Fourier Augmented ARDL method. The findings show that plastic consumption, health expenditures, natural resources, and economic complexity increase air pollution deaths, while renewable energy decreases it. Such findings imply that plastic consumption is an essential determinant of air pollution-related mortality, that health policy must be reconsidered, that efficient use of resources is important and that sophisticated economic structures do not always produce the desired results. Overall, policymakers should review health policies to reduce deaths from air pollution and take measures to support green growth using renewable energy and economic complexity tools., Competing Interests: Declaration of competing interest The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper., (Copyright © 2024 The Authors. Published by Elsevier B.V. All rights reserved.)
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- 2024
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19. Shaping a greener future: The role of geopolitical risk, renewable energy and financial development on environmental sustainability using the LCC hypothesis.
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Wang W, Balsalobre-Lorente D, Anwar A, Adebayo TS, Cong PT, Quynh NN, and Nguyen MQ
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- Reproducibility of Results, Asia, Renewable Energy, Economic Development, Carbon Dioxide, Climate Change, Policy
- Abstract
The recent progress report of Sustainable Development Goals (SDG) 2023 highlighted the extreme reactions of environmental degradation. This report also shows that the current efforts for achieving environmental sustainability (SDG 13) are inadequate and a comprehensive policy agenda is needed. However, the present literature has highlighted several determinants of environmental degradation but the influence of geopolitical risk on environmental quality (EQ) is relatively ignored. To fill this research gap and propose a inclusive policy structure for achieving the sustainable development goals. This study is the earliest attempt that delve into the effects o of geopolitical risk (GPR), financial development (FD), and renewable energy consumption (REC) on load capacity factor (LCF) under the framework of load capacity curve (LCC) hypothesis for selected Asian countries during 1990-2020. In this regard, we use several preliminary sensitivity tests to check the features and reliability of the dataset. Similarly, we use panel quantile regression for investigating long-run relationships. The factual results affirm the existence of the LCC hypothesis in selected Asian countries. Our findings also show that geopolitical risk reduces environmental quality whereas financial development and REC increase environmental quality. Drawing from the empirical findings, this study suggests a holistic policy approach for achieving the targets of SDG 13 (climate change)., Competing Interests: Declaration of competing interest The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper., (Copyright © 2024 Elsevier Ltd. All rights reserved.)
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- 2024
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20. Evaluating the impacts of renewable energy action plans: A synthetic control approach to the Turkish case.
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Soylu OB, Turel M, Balsalobre-Lorente D, and Radulescu M
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This paper evaluates the impact of the National Renewable Energy Action Plans (NREAP) that was prepared under the (2009/28/EC) Directive of the European Commission by using Türkiye as a case study. We aimed to reveal the causal impacts of the plan on renewable energy generation based on different technologies such as hydro, wind, and solar, along with the impacts on greenhouse gas emissions. To do this, we used the synthetic control method. The study's outcome indicates that NREAP has served as a promising treatment policy for Türkiye's deployment of renewable energy potential. The total treatment effect is 14%, mainly driven by increases in solar and wind shares, while no significant impact was observed on the hydro share of electricity. Moreover, our analysis found no treatment effect on greenhouse gas emissions, and placebo tests supported the robustness of these results. The analysis did not reveal any evidence of a treatment effect on greenhouse gas emissions., Competing Interests: The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper., (© 2024 The Authors. Published by Elsevier Ltd.)
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- 2024
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21. The dampening effect of geopolitical risk and economic policy uncertainty in the linkage between economic complexity and environmental degradation in the G-20.
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Balsalobre-Lorente D, Nur T, Topaloglu EE, and Evcimen C
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- Uncertainty, Carbon Footprint, Environmental Pollution, Renewable Energy, Carbon Dioxide, Economic Development
- Abstract
The question remains whether high geopolitical risk and economic policy uncertainty will have a dampening or enhancing effect on pollution factors. In this regard, the study empirically investigates the effects of economic complexity, geopolitical risk, economic policy uncertainty, renewable energy consumption and economic growth on environmental pollution for G-20 countries from 1997 to 2018. The long-term coefficient estimates, derived from the FMOLS estimator, support the inverted U-shaped EKC linkages between economic complexity and ecological footprint, carbon footprint and carbon dioxide emissions. Furthermore, over the long term, geopolitical risks, renewable energy use, and the interaction between economic complexity and policy uncertainty have a positive impact on environmental quality in the G-20 economies. Conversely, economic growth and the interaction between economic complexity and geopolitical risk are negatively associated with environmental quality. Additionally, economic policy uncertainty has a positive effect on ecological footprint carbon footprint and carbon dioxide emissions. Finally, causality results revealed that explanatory variables are the cause of environmental pollution indicators. Hence, in order to advance environmental quality in these nations, precautions must be taken to mitigate the effects of economic policy uncertainty and boost the accessibility of renewable energy sources. Additionally, while not advised as a policy measure, the feasible economic fallout of geopolitical risk should also be considered., Competing Interests: Declaration of competing interest The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper., (Copyright © 2023. Published by Elsevier Ltd.)
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- 2024
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22. Can minimizing risk exposures help in inhibiting carbon footprints? The environmental repercussions of international trade and clean energy.
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Shi C, Murshed M, Alam MM, Ghardallou W, Balsalobre-Lorente D, and Khudoykulov K
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- Internationality, Cross-Sectional Studies, Economic Development, Carbon Dioxide, Renewable Energy, Carbon Footprint, Commerce
- Abstract
Since bettering environmental conditions has acquired significant interest globally, discovering factors that may facilitate the establishment of environmental sustainability is currently of foremost importance. Hence, this study considers a sample of 33 members of the Organization for Economic Cooperation and Development and checks whether reducing exposure to different forms of country risks, in the presence of international trade and clean energy consumption, can reduce their respective carbon footprint levels. Utilizing annual data from 2000 to 2018 and employing methods that handle problems related to dependence across cross-sectional units and heterogeneity of slope coefficients, the findings endorse that (a) reducing financial and political risks abate carbon footprints, (b) economic risk exposure does not influence carbon footprints, (c) international trade exerts carbon footprint-boosting effects, and (d) undergoing unclean to clean energy transition curbs carbon footprints. Accordingly, the concerned governments should these findings into account while conceptualizing green environmental policies in the future., Competing Interests: Declaration of competing interest The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper., (Copyright © 2023 Elsevier Ltd. All rights reserved.)
- Published
- 2023
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23. Research and development for a carbon-neutral future and the status of EKC in G7 economies: evidence from CSARDL approach.
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Xu Q, Khan S, Balsalobre-Lorente D, and Ahmad F
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- Cross-Sectional Studies, Carbon Footprint, Research, Carbon Dioxide, Economic Development, Renewable Energy, Social Conditions, Carbon
- Abstract
Climate change issues present substantial obstacles to the global community's stability and humanity's overall welfare. Reducing carbon emissions is crucial in attaining environmental sustainability and addressing the consequences of SDG 13 (climate actions). The G7 nations, representing some of the largest economies globally and significantly contributing to global carbon emissions, have achieved certain advancements in mitigating their carbon footprint. Nevertheless, the attainment of carbon neutrality continues to pose a substantial obstacle. This study examines the mechanisms leading to environmental sustainability in G7 economies, explicitly emphasizing the contribution of research and development (R&D) toward attaining carbon neutrality. The present study utilizes G7 data from 1990 to 2020 to conduct an empirical analysis employing a cross-sectional autoregressive distributed lag (CSARDL) panel model. The primary objective of this investigation is to examine the influence of R&D expenditure (R&DE) on carbon emissions metric ton (CO2Mt). Furthermore, this study investigates the current state of the EKC in the economies of the G7 nations, as well as the influence of renewable energy (RE) and non-renewable energy (NRE) on CO2Mt. The results suggest that R&DE is critical in mitigating CO2Mt and attaining carbon neutrality. The study also validates the EKC implies a negative and non-linear relationship between growth and CO2Mt. Moreover, renewable and non-renewable energy validate their respective negative and positive effects on CO2Mt. The findings of our study offer valuable insights for policymakers in the G7 nations, aiding them in developing effective regulatory measures for achieving carbon neutrality goals., (© 2023. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)
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- 2023
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24. Reinvigorating the environmental Kuznets curve hypothesis in the context of highly polluted nations: evidence using advanced panel estimation techniques.
- Author
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Rahman AKMA, Galiano JC, Murshed M, Balsalobre-Lorente D, Mahmood H, and Hossain ME
- Subjects
- India, Japan, China, Russia, Environmental Pollution, United States, Economic Development, Carbon Dioxide analysis
- Abstract
China, United States, India, Russia, and Japan are regarded as the top five carbon dioxide-emitting nations in the world. These countries altogether account for more than half of the global annual discharges of carbon dioxide. Consequently, impeding the carbon emission-led environmental adversities in these countries is of critical emphasis for establishing environmental sustainability worldwide. In this regard, this study checks how economic progress, energy use intensification, and renewable energy use affect the annual growth rates of per capita carbon dioxide emission in these highly-polluted economies considering the study period from 1990 to 2021. Besides, for analytical purposes, advanced panel data estimation techniques have been utilized for detecting and neutralizing the impacts of cross-sectional dependency and slope heterogeneity-related problems in the data. Overall, the findings endorse that economic progress deteriorates environmental quality both in the short and long run. However, since the long-run unfavorable environmental impacts of economic growth are relatively lower compared with the short-run impacts, the environmental Kuznets curve hypothesis can be deemed valid. Besides, more intensive use of energy resources is witnessed to impose negative long-run environmental consequences while the adoption of renewable energy instead of fossil fuels is found to improve environmental well-being, both in the short and long run. Furthermore, the results affirm that economic progress and energy use intensification jointly degrade environmental conditions. By contrast, economic progress alongside greater adoption of renewable energy is observed to inflict an environmental quality-improving effect. Considering these findings, a couple of carbon dioxide mitigating policies are suggested to the concerned highly polluted developed and developing nations., (© 2023. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)
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- 2023
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25. Pollution, political instabilities and electricity price in the CEE countries during the war time.
- Author
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Simionescu M, Radulescu M, Balsalobre-Lorente D, and Cifuentes-Faura J
- Subjects
- Environmental Pollution, Renewable Energy, Electricity, Carbon Dioxide analysis, Economic Development
- Abstract
Pollution, war and energy crisis are the CEE countries' most important global actual issues. Therefore, this study aims to investigate the impact of political stability and electricity price in 11 CEE countries in the period 2007-2021 to anticipate the effect of these factors on pollution in times of political and energy crisis. The common results based on DOLS/FMOLS and CCEMG estimations indicate that political stability enhances CO2 emissions, while higher electricity prices for non-household consumers reduce pollution. An inverted-U pattern was observed in the relationship between growth and pollution, while renewable energy consumption is the most powerful tool to reduce CO2 emissions. These results are the starting point for policy recommendations., Competing Interests: Declaration of competing interest The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper., (Copyright © 2023 Elsevier Ltd. All rights reserved.)
- Published
- 2023
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26. Environmental impact of globalization: The case of central and Eastern European emerging economies.
- Author
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Balsalobre-Lorente D, Shahbaz M, Murshed M, and Nuta FM
- Subjects
- Internationality, Renewable Energy, Carbon, Economic Development, Carbon Dioxide
- Abstract
Against the backdrop of piling environmental concerns in the modern era of globalization, this study aims to check the validity of the Pollution Haven Hypothesis (PHH) in Eastern European emerging countries and the relevance of globalization. The study targets to reduce the lack of consensus on the globalization-economic complexity-environment in European countries. Besides, we also intend to explore the existence of an N-shaped economic complexity-related Environmental Kuznets Curve (EKC) controlling for the bearing of renewable energy on environmental degradation. For analytical purposes, both parametric and non-parametric quantile regression approaches are employed. Overall, we find a non-linear relationship between economic complexity and carbon emissions, and N-shaped EKC is verified. Globalization and renewable energy consumption boost and inhibit emissions, respectively. More importantly, the results confirm the moderating role of economic complexity in neutralizing the carbon emissions-boosting effect of globalization. On the other hand, the non-parametric findings show that the N-shaped EKC hypothesis does not hold for high emissions quantiles. Furthermore, for all emissions quantiles, it is found that globalization boosts emissions, economic complexity, and globalization jointly curbs emissions and renewable energy curbs emissions. Based on the overall findings, some vital environmental development policies are recommended. The conclusions support shaping policy options promoting economic complexity and renewable energy as key factors in mitigating carbon emissions., Competing Interests: Declaration of competing interest The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper., (Copyright © 2023 Elsevier Ltd. All rights reserved.)
- Published
- 2023
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27. Testing the impact of renewable energy and oil price on carbon emission intensity in China's transportation sector.
- Author
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Jahanger A, Ali M, Balsalobre-Lorente D, Samour A, Joof F, and Tursoy T
- Subjects
- Carbon Dioxide analysis, Renewable Energy, Transportation, China, Carbon analysis, Economic Development
- Abstract
As the largest carbon emitter in the world, with its transportation sector contributing the largest shares of its emission, the need for a low-carbon transition economy has become a policy agenda for China because in order to reach carbon neutrality by 2050, lowering the intensity of carbon emissions in the transportation sector will be crucial. In this regard, we used the "bootstrap autoregressive distributed lag model" to explore the impact of clean energy and oil prices on the intensity of carbon emissions in China's transportation sector. The study found that an increase in oil prices decreases the intensity of carbon emissions in the short and long run. Similarly, an increase in the level of renewable energy and economic complexity declines the intensity of carbon emissions in the transportation sector. On the contrary, the research demonstrates that non-renewable energy contributes positively to carbon emission intensity. Therefore, the authorities must promote green technology to neutralize the transportation system's detrimental effects on China's environmental quality. The implications for successfully promoting carbon emission intensity mitigation in the transportation sector are examined in the conclusion., (© 2023. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)
- Published
- 2023
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28. The relevance of international tourism and natural resource rents in economic growth: Fresh evidence from MINT countries in the digital era.
- Author
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Balsalobre-Lorente D, Luzon LI, Usman M, and Jahanger A
- Subjects
- Carbon Dioxide analysis, Economic Development, Indonesia, Investments, Mexico, Natural Resources, Nigeria, Turkey, Tourism
- Abstract
The Mexico, Indonesia, Nigeria, and Turkey (MINT) economies are recognized to be bedevilled with many obstacles hampering the economic expansion. In the meantime, many of these problems have not been comprehensively scrutinized in the context of the countries. In recent years, natural resources and tourism development have significantly increased in MINT economies. This study scrutinizes the relationship between natural resource rent, mobile use, foreign direct investment, international tourism, and economic growth in a balanced panel data of four MINT nations from 1971 to 2019. The key finding of this study shows that there is a positive and significant impact of foreign direct investment, natural resource rent, mobile use, and international tourism on MINT's economic growth. Furthermore, the tourism-led growth hypothesis is supported empirically in the case of MINT nations. Furthermore, the Granger causality analysis demonstrates that unidirectional causality is discovered from economic growth to tourism. The study recommends that MINT nations implement some practical tourism strategies to push up economic development, and in turn economic growth will positively contribute to the tourism sector., (© 2022. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)
- Published
- 2023
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29. Revisiting the environmental Kuznetz curve and pollution haven hypothesis in N-11 economies: Fresh evidence from panel quantile regression.
- Author
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Esmaeili P, Balsalobre Lorente D, and Anwar A
- Subjects
- Humans, Environmental Pollution analysis, Renewable Energy, Internationality, Investments, Carbon Dioxide analysis, Economic Development
- Abstract
Human activities in recent decades have severely affected environmental quality, and CO
2 emissions have irreparable consequences on human health and the survival of the earth. Moreover, achieving sustainable development goals requires the expansion of environmental literature to accelerate the performing of critical actions. With this in mind, this study evaluates the impact of foreign direct investment, economic complexity, and the utilization of renewable energy on CO2 emission in N-11 countries from 1995 to 2019 by Panel Quantile Regression. As a novelty, the interaction between economic complexity and foreign direct investment is considered to get a better comprehension. Given the results, Environmental Kuznetz Curve is validated in N-11 countries through economic complexity. Notably, the impact of economic complexity is more substantial and robust in the incipient stages of industrialization. Furthermore, foreign direct investment is a destructive factor for environmental quality, and Pollution Haven Hypothesis is not rejected. Interestingly, the interaction of economic complexity and foreign direct investment mitigates the trend of CO2 emissions. Eventually, the utilization of renewable energy reduces CO2 emissions. Thereby, applying more strict environmental regulations and standards, developing green energy infrastructure and technologies, improving institutional quality, and supporting knowledge-based and technology-intensive exports are the main policy recommendations of this study., Competing Interests: Declaration of competing interest The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper., (Copyright © 2023 Elsevier Inc. All rights reserved.)- Published
- 2023
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30. Examining the nonlinear impact of human capital on environmental degradation in N-11 countries: an application of the PSTR approach.
- Author
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Kocoglu M, Jahanger A, Awan A, Barak D, and Balsalobre-Lorente D
- Subjects
- Humans, Internationality, Communication, Policy, Renewable Energy, Carbon Dioxide, Economic Development
- Abstract
The emergence of globalization and human capital has played a crucial role in the economic integration of countries, leading to the growth of the economies and a reduction in carbon dioxide (CO
2 ) emissions. This study highlights the importance of investing in human capital development to control ecological degradation and promote sustainable economic growth. This paper employs the PSTR method to investigate the threshold impact of GDP, globalization, information communication technology, and energy consumption on CO2 emissions. The study examines two regimes, with a single threshold to analyze the transition of human capital on these variables. The results reveal that human capital developments play a central role in controlling ecological degradation due to reduced CO2 emissions. Based on the empirical findings, this research study offers corresponding policy suggestions., (© 2023. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)- Published
- 2023
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31. Environmental technology, economic complexity, renewable electricity, environmental taxes and CO2 emissions: Implications for low-carbon future in G-10 bloc.
- Author
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Saqib N, Radulescu M, Usman M, Balsalobre-Lorente D, and Cilan T
- Abstract
This study investigates the impact of environmental technological innovation, economic complexity, energy productivity, the use of renewable electricity generation, and environmental taxes on carbon dioxide (CO
2 ) emissions in the G-10 countries for the timeframe from 1995 to 2020. The purpose of the study is to examine the need for a clear plan or strategy to achieve environmental objectives in G-10 countries. In both short-term and long-term projections, the increased use of environment-based technology, economic complexity, and renewable electricity generation has a major positive impact on carbon emission reduction. Moreover, the results demonstrate both unidirectional and bidirectional causality from carbon emissions to renewable energy, electrical generation, and environment-based technologies, respectively. Based on the results, the study proposes a number of concrete policies, such as updating modernized tax systems, increasing tax collection, providing individuals with the means to finance the Sustainable Development Goals through incentive regulations, and making grants from international organizations and the private sector available to finance investments toward the Sustainable Development Goals (SDGs) and carbon neutrality environment targets. This is the study's most significant contribution in order to attain a sustainable and low-carbon future in the G-10 countries, which has policy implications for governments and policymakers., Competing Interests: The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper, (© 2023 The Authors. Published by Elsevier Ltd.)- Published
- 2023
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32. Convergence of per capita ecological footprint among BRICS-T countries: evidence from Fourier unit root test.
- Author
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Bayraktar Y, Koc K, Toprak M, Ozyılmaz A, Olgun MF, Balsalobre-Lorente D, and Soylu OB
- Subjects
- Carbon Dioxide analysis, China, Russia, Economic Development, Environmental Pollution
- Abstract
In recent years there has been a great deal of research into environmental pollution using a variety of techniques in response to growing environmental concerns. Convergence analysis, one of these techniques, helps determine whether the developing countries will catch up with the rich countries in pollution using unit root tests. However, the vast majority of the research in the field has generally used conventional unit root tests. Since many economic series contain structural breaks, using unit root tests that account for structural breaks is essential for accurate prediction. More specifically, if the series has a fractional process, conventional unit root tests may erroneously conclude that the departure from linearity is permanent. Moreover, the existing literature mainly uses gas emissions, such as carbon dioxide, which represent pollution weakly. Therefore, we use per capita ecological footprint (EF hereafter) as a more comprehensive pollution indicator of environmental degradation. In this direction, the study aims to determine whether BRICS-T countries' EF converges to the average of the BRICS-T for the 1992-2017 period. Besides the ADF unit root test, we employed the Fourier ADF unit root test, which considers the structural breaks, and the Fractional Frequency Fourier ADF unit root test, which accounts for structural breaks by considering fractional values. Our results showed that EF converges in Russia and Turkey according to the conventional ADF test, in China and Russia according to the Fourier ADF test, and in Brazil and China according to the Fractional Fourier Frequency test., (© 2023. The Author(s).)
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- 2023
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33. Revisiting the effects of energy, population, foreign direct investment, and economic growth in Visegrad countries under the EKC scheme.
- Author
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Leitão NC, Dos Santos Parente CC, Balsalobre-Lorente D, and Cantos Cantos JM
- Subjects
- Environmental Pollution analysis, Internationality, Renewable Energy, Investments, Economic Development, Carbon Dioxide analysis
- Abstract
This research studied the impacts of the environmental Kuznets curve and the determinants of economic growth for Visegrad countries from 1990 to 2018. This paper reflects on the effects of renewable and non-renewable energy, urban population, foreign direct investment, economic growth, and carbon dioxide emissions. According to our results, the panel of unit root tests showed that the variables under study are integrated into the first differences. Considering the empirical results for the environmental Kuznets curve, we observe that economic growth is positively correlated with pollution emissions; nevertheless, the squared income per capita is negatively impacted by carbon dioxide emissions. Energy consumption increases carbon emissions, and foreign direct investment confirms the pollution halo hypothesis. Therefore, the econometric results showed that renewable energy consumption promotes regional growth. Consequently, urban population and foreign direct investment positively correlate with economic growth., (© 2022. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)
- Published
- 2023
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34. The role of economic policy uncertainty and social welfare in the view of ecological footprint: evidence from the traditional and novel platform in panel ARDL approaches.
- Author
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Esmaeili P, Rafei M, Balsalobre-Lorente D, and Adedoyin FF
- Subjects
- Humans, Cross-Sectional Studies, Uncertainty, Social Welfare, Economic Development, Carbon Dioxide
- Abstract
In the contemporary world, environmental degradation has become a concern for human beings. Accordingly, the impact of social welfare, economic policy uncertainty, natural resource rents, life expectancy, and trade openness are examined on ecological footprint (the most comprehensive proxy of environmental degradation) in 19 energy-intensive countries from 1997 to 2018. With this in mind, this study used the traditional panel ARDL and CS-ARDL approaches to evaluate how the study's variables influence ecological footprint. Notably, the results of the CS-ARDL approach are more robust due to cross-sectional dependence and slope heterogeneity problems. The outcomes revealed that economic policy uncertainty and trade openness affect the ecological footprint negatively in the short run and positively in the long run. Moreover, social welfare degrades the environment in the long run, and natural resource rents improve environmental quality by mitigating the ecological footprint in the short run and harming the environment in the long run. Besides, life expectancy does not significantly affect ecological footprint in the long or short run. Meanwhile, the results confirmed the bi-directional causal relationship between the study's variable and ecological footprint. Based on the outcomes, the way to adopt effective policies to improve the quality of the environment has been paved. Furthermore, a comprehensive policy framework for stricter environmental regulation is expected to be developed using the outcomes derived from this study., (© 2022. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)
- Published
- 2023
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35. Pathways towards environmental sustainability: exploring the influence of aggregate domestic consumption spending on carbon dioxide emissions in Pakistan.
- Author
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Chishti MZ, Alam N, Murshed M, Rehman A, and Balsalobre-Lorente D
- Subjects
- Energy-Generating Resources, Environmental Pollution analysis, Pakistan, Carbon Dioxide analysis, Economic Development
- Abstract
The traditional literature has explored various factors including, but not limited to, trade openness, financial development, energy consumption, foreign direct investment, globalization, and per capita income that significantly contribute to carbon emissions. However, the current study identifies aggregate domestic consumption spending as a novel driver of carbon dioxide, employing the data for the period of 1973-2018 in Pakistan. To this end, we develop the theoretical framework to illustrate the link between aggregate domestic consumption spending and carbon dioxide emissions and deploy autoregressive distributed lag (ARDL), asymmetric ARDL, and the threshold non-linear ARDL (NARDL) techniques. The results of the ARDL method suggest that only in the short run, aggregate domestic consumption spending significantly affects carbon dioxide emissions. Furthermore, the findings of the NARDL approach reveal that the positive and negative shocks significantly deteriorate and ameliorate the environmental quality by increasing and decreasing the pollution, respectively, in the short and long run. Even though the outcome of the threshold NARDL technique supports the results of the aforementioned approaches, the novelty of the current study is to find out the threshold in aggregate domestic consumption spending, which carries a significant role in determining the carbon emissions in both periods. Besides, we infer that fossil fuels energy and trade openness also degrade the Pakistani climate by boosting atmospheric pollution. Additionally, the application of the asymmetric Granger causality test validates the results by asserting the casual relationship between aggregate domestic consumption spending and carbon dioxide emissions. Based on the results, we suggest the authorities to start to promote the deployment of green products publicly to obtain green and sustainable development., (© 2022. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)
- Published
- 2022
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36. Environmental strategies for achieving a new foreign direct investment golden decade in Algeria.
- Author
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Chaouachi M and Balsalobre-Lorente D
- Subjects
- Algeria, Economic Development, Humans, Internationality, COVID-19, Investments
- Abstract
While numerous studies have discussed the impact of economic growth on the environment, this paper advances in the empirical literature, aiming to validate the existence of an N-shaped environmental Kuznets curve (EKC) relationship between the ecological footprint and economic growth in Algeria during the period 1975-2014. The proposed empirical model includes as additional explanatory variables the foreign direct investment (FDI) and the electricity consumption aimed to increase the relevance of the results, correcting the lack of studies that have previously analyzed the EKC for the case of Algeria. Through the ARDL econometric approach, we confirm an N-shaped EKC between the per capita economic growth and ecological footprint in Algeria, reinforcing these results using the FMOLS and DOLS techniques. In the long run, the empirical results confirmed that the N-shaped EKC in Algeria is valid; electricity consumption and foreign direct investment directly impact ecological footprint. Even though the main objective of this study is to assess the N-shaped EKC, the novelty of the paper is the analysis of the interaction between FDI and electricity consumption. The empirical evidence reveals that FDI contributes to reducing the negative impact of fossil sources in the energy mix in Algeria through the transition to a cleaner energy mix pattern. In the final step of our analysis, we explore the causal nexus among variables by applying the Toda Yamamoto non-causality test. The Toda Yamamoto non-causality test reveals a unidirectional causality between economic growth and ecological footprint; one-run relationship flows from electricity consumption to ecological footprint, and economic growth leads to cause foreign-direct investment. These empirical results evidence the necessity of establishing suitable policies after the gold decade of the FDI in Algeria, being required to advance in this line to come back to ascending levels of FDI after the financial crisis of 2008 and the current COVID-19 crisis. In this sense, policymakers should consider the advantages of FDI for promoting clean foreign investment, necessary for reaching a transition to sustainable development in Algeria. In this sense, this study proposes a battery of environmental strategies to achieve this objective and sustainable growth in the country. Thus, policy implications and directions for future research are suggested., (© 2021. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)
- Published
- 2022
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37. Analyzing global inequality in access to energy: Developing policy framework by inequality decomposition.
- Author
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Sinha A, Balsalobre-Lorente D, Zafar MW, and Saleem MM
- Subjects
- Conservation of Energy Resources, Poverty, Sustainable Development
- Abstract
Energy poverty is a critical policymaking problem in the world, while the outlined solutions in academic and policy literature talks about the solutions, without addressing the possible cause of the problem. The interaction between labor and energy market might pave a way to address the issue. Within the context of energy poverty, this interaction might turn out to be a major roadblock in the way to attain the objectives of Sustainable Development Goals (SDGs). From this perspective, this study aims at analyzing the constituents of inequality in access to energy, and in that pursuit, it has employed Kaya-Theil Decomposition method. The study is carried out at the global level over the period of 1990-2019. The study outcomes demonstrate all the inequality components to be rising during the study period. Presence of a possible feedback loop in the association might create the Vicious Circle of Energy Poverty around the globe. This study contributes to the literature by addressing the demand-side dimension of the energy poverty issue, while using the Kaya-Theil Decomposition method as an estimator of demand-side factors. Based on the study outcomes, a policy framework has been recommended, and it is aimed at helping the nations to achieve the objectives of SDG 7, SDG 8, and SDG 10., (Copyright © 2021 Elsevier Ltd. All rights reserved.)
- Published
- 2022
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38. Exploring the impact of tourism and energy consumption on the load capacity factor in Turkey: a novel dynamic ARDL approach.
- Author
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Pata UK and Balsalobre-Lorente D
- Subjects
- Economic Development, Environmental Pollution analysis, Turkey, Carbon Dioxide analysis, Tourism
- Abstract
In the last two decades, the tourism and energy sectors have grown rapidly and boosted economic growth, but it is inevitable that these sectors will cause environmental changes. So far, attempts have been made to determine the impact of the tourism and energy sectors on environmental degradation by examining pollution indicators such as CO
2 emissions and ecological footprint. However, these indicators neglect the supply side of the environment. In this context, this paper, for the first time, examines the influence of tourism, income, and energy consumption on the load capacity factor that results from dividing biocapacity by ecological footprint. Thus, the study aims to conduct a comprehensive sustainability analysis for Turkey by assessing the environmental quality on the supply and demand side. For this purpose, the study employs the novel dynamic Autoregressive-Distributed Lag (ARDL) simulations for the period 1965-2017, and the results indicate that tourist arrivals, energy consumption, and economic growth have a negative long run effect on the load capacity factor. Among these factors, only economic growth exerts a significant impact on the load capacity factor in both the short and long run. In the long run, the negative environmental effect of economic growth is less than in the short run. Therefore, the environmental Kuznets curve hypothesis is valid for Turkey. Based on the results, some policy recommendations are proposed to help Turkey improve its environmental quality., (© 2021. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)- Published
- 2022
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39. The carbon dioxide neutralizing effect of energy innovation on international tourism in EU-5 countries under the prism of the EKC hypothesis.
- Author
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Balsalobre-Lorente D, Driha OM, Leitão NC, and Murshed M
- Subjects
- Economic Development, European Union, Investments, Renewable Energy, Carbon Dioxide, Tourism
- Abstract
Mitigation of carbon dioxide emissions has become an utmost important global agenda, keeping into consideration the associated environmental hardships. As a result, it is important to unearth the factors which can neutralize carbon emissions to transform the world economy into a low-carbon one. Against this backdrop, this study explores the carbon dioxide neutralizing effects of economic growth, international tourism, clean energy promotion, and technological innovation in the context of five European Union (EU-5) nations during the 1990-2015 period. This study's main contribution is in terms of its approach to test the interaction effect between foreign direct investment (FDI) inflows and energy innovation on carbon dioxide emissions. The econometric analysis chronologically involves the employment of unit root, cointegration, causality, and regression methods. Overall, the findings support the inverted-U-shaped economic growth-carbon dioxide emissions nexus to verify the Environmental Kuznets Curve (EKC) hypothesis. Besides, the Pollution Haven Hypothesis in the context of the selected panel is also verified as higher FDI inflows are seen to boost the carbon dioxide emission levels. The results also confirm that energy innovation moderates the harmful effect of air transport (a proxy for international tourism) on carbon dioxide emissions during the developing stage of the tourism industry. On the other hand, renewable energy promotion is found to curb carbon dioxide emissions. These findings suggest that the European governments need to enhance investments in their respective renewable energy sectors and simultaneously ensure the development of clean industries, which can collectively help these nations become carbon-neutral in the future., (Copyright © 2021 Elsevier Ltd. All rights reserved.)
- Published
- 2021
- Full Text
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40. The influences of renewable electricity generation, technological innovation, financial development, and economic growth on ecological footprints in ASEAN-5 countries.
- Author
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Zeraibi A, Balsalobre-Lorente D, and Murshed M
- Subjects
- Carbon Dioxide, Cross-Sectional Studies, Electricity, Renewable Energy, Economic Development, Inventions
- Abstract
The Southeast Asian countries have experienced significant degrees of economic growth over the years but have not managed to safeguard their environmental attributes in tandem. As a result, the aggravation of the environmental indicators across this region casts a shadow of doubt on the sustainability of the economic growth achievements of the Southeast Asian countries. Against this milieu, this study specifically explores the influence of renewable electricity generation capacity, technological innovation, financial development, and economic growth on the ecological footprints in five Southeast Asian countries namely Indonesia, Malaysia, the Philippines, Thailand, and Vietnam during the period 1985-2016. One of the major novelties of this study is in terms of its approach to assess the renewable energy use-ecological footprint nexus using the renewable electricity generation capacity as an indicator of renewable energy use in the selected Southeast Asian nations. The econometric analysis involves methods that are robust to handling cross-sectional dependency and slope heterogeneity issues in the data. Accordingly, the recently developed Cross-sectional Augmented Autoregressive Distributed Lag estimator is used to predict the short- and long-run impacts on ecological footprints. The major findings suggest that higher renewable electricity generation capacity and technological innovation reduce ecological footprints, while higher financial development and economic growth increase the ecological footprints. Therefore, these findings imply that in forthcoming years, the selected Southeast Asian countries will need to tackle the environmental adversities by enhancing their renewable electricity generation capacities, increasing investment in technological development, greening the financial sector, and adopting environmentally-friendly growth policies. Hence, the implementation of relevant policies, in this regard, can be expected to ensure complementarity between economic growth and environmental welfare across Southeast Asia., (© 2021. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)
- Published
- 2021
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41. Analysing the ecological footprint in EU-5 countries under a scenario of carbon neutrality: Evidence from newly developed sharp and smooth structural breaks in unit root testing.
- Author
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Caglar AE, Balsalobre-Lorente D, and Akin CS
- Subjects
- Carbon Dioxide analysis, Carbon Footprint, Paris, Spain, United Kingdom, Carbon, Economic Development
- Abstract
This paper examines the resistance to shocks (economic, political, outbreaks etc.) of the ecological footprint in EU-5 countries over the period 1961-2016. The aim of the study is to determine whether the ecological footprint tends to return to the average with advanced econometric analysis. Efforts to move towards carbon neutrality, which increased after the Paris Agreement, are important for the countries in our analysis. To achieve our aim, we primarily used traditional and one-break unit root tests, followed by the novel SOR unit root test, which considers both sharp and smooth breaks to achieve robust results. The econometric findings show that EF and its six components (i.e., carbon, cropland, grazing land, forest, built-up land and fishing grounds) all contain unit root except the built-up land footprint for Spain and the grazing land and forest footprint for the United Kingdom. Our study provides policymakers with important information for implementing policies to reduce environmental pollution and achieve the target of carbon neutrality., (Copyright © 2021 Elsevier Ltd. All rights reserved.)
- Published
- 2021
- Full Text
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42. Testing the Environmental Kuznets Curve Hypotheses in Chinese Provinces: A Nexus between Regional Government Expenditures and Environmental Quality.
- Author
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Zeraibi A, Balsalobre-Lorente D, and Shehzad K
- Subjects
- China, Economic Development, Environmental Pollution analysis, Local Government, Carbon Dioxide analysis, Health Expenditures
- Abstract
With rapid economic growth, the Chinese government expenditures at various levels have increased adequately. At the same time, the environmental quality in China has deteriorated significantly. In this study, provincial-level data for 31 Chinese provinces during 2007-2017 are used to investigate the impacts of government expenditure on the emissions of three specific measures of environmental degradation. The main objective of this study is to examine the influence of government expenditures, economic growth per capita, environment protection expenditure, and added second-sector value on environmental quality by measuring sulfur dioxide (SO
2 ), chemical oxygen demand (COD), and ammonia nitrogen emissions (AN). Moreover, the study applied the generalized method of moments (GMM) and the fully modified least square (FMOLS) to estimate the co-integration relationship among the underlying factors. The results demonstrate a significant direct effect of government expenditure on improving environmental quality overall in the Chinese provinces, which increases with the level of economic growth. However, the results also confirmed the inverted N-shaped relationship between the pollution factor and economic growth per capita. Our key findings lead toward the manifestation and emphasis of the importance of appropriate policies for restoring government expenditure and, at the same time, strengthening the relationship between the industrial sector and environmental policy standards. Significantly, governments in developing countries should allocate larger budgets for environmental projects in their fiscal reforms for the sake of moving to greener and more inclusive economies with low-carbon activities.- Published
- 2021
- Full Text
- View/download PDF
43. The role of tourism, trade, renewable energy use and carbon dioxide emissions on economic growth: evidence of tourism-led growth hypothesis in EU-28.
- Author
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Balsalobre-Lorente D and Leitão NC
- Subjects
- Carbon Dioxide analysis, Policy, Renewable Energy, Economic Development, Greenhouse Gases
- Abstract
The article examines the effects of renewable energy, trade, carbon dioxide emissions and international tourism on economic growth in EU-28, considering panel data for the period 1995-2014. The investigation finds the new determinants of economic growth. The empirical results find support from the panel fully modified least squares (FMOLS), panel dynamic least squares (DOLS) and fixed effects (FE) as estimation techniques. The econometric results are consistent with the existing literature. The variables considered in this study are cointegrated in the first difference, as suggested by the panel unit root test. The present study seeks to advance the knowledge of the growth determinants, paying attention to the effect that both the tourism and energy sector exerts on economic growth for EU-28 countries. The empirical results demonstrate that trade openness, tourism arrivals and renewable energy encourage economic growth. Therefore, according to the econometric results, renewable energy allows improving environmental quality. However, CO
2 emissions are positively correlated with economic growth, showing that growth is directly correlated by climate change and greenhouse gas. The results also confirm the tourism-led growth hypothesis (TLGH) for the panel. Finally, the empirical results confirm that trade openness, energy use and international tourism contribute to enhance economic growth. Based on these findings, further insights and policy prescription are offered in the concluding section.Graphical abstract.- Published
- 2020
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44. European commitment to COP21 and the role of energy consumption, FDI, trade and economic complexity in sustaining economic growth.
- Author
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Doğan B, Balsalobre-Lorente D, and Nasir MA
- Subjects
- Europe, Paris, Renewable Energy, Carbon Dioxide analysis, Economic Development
- Abstract
The nexus between economic growth and energy consumption has been exhaustively explored, yet the empirical evidence and the theoretical points of view remain at odds. This study contextualises and capitalises on this discrepancy and examines the connection between non-renewable and renewable energy consumption and economic growth, considering the moderating impact of economic complexity, trade openness, FDI and institutional quality. We use a panel quantile regression model and data from 32 European countries in the period 1995-2014. Our key results show that economic complexity, renewable energy consumption, trade openness, FDI and institutional quality enhance economic growth. The results for non-renewable energy consumption showed both a positive and a negative impact in different quantiles, indicating that the consumption of renewable energy is in fact more effective for economic growth than the use of non-renewables. Our findings have far-reaching implications for stakeholders and policymakers working on sustainable economic growth and energy policy with a view to meeting the commitments made under the Paris Agreement (COP21)., (Copyright © 2020 Elsevier Ltd. All rights reserved.)
- Published
- 2020
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45. The effects of air transportation, energy, ICT and FDI on economic growth in the industry 4.0 era: Evidence from the United States.
- Author
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Adedoyin FF, Bekun FV, Driha OM, and Balsalobre-Lorente D
- Abstract
This study analyses the causal and long-run linkage between air transport and economic growth. It was conducted to validate the tourism-led growth hypothesis for the United States (US) during the period 1981-2017 and includes Information and Communication Technologies (ICTs) alongside coal rents in the tourism-led growth hypothesis. This study presents a new direction for future studies by considering the relevance of the fourth industrial revolution (Industry 4.0), particularly in the US. To achieve the stated claim, this study considers as additional explanatory variables how ICTs moderate the impact of Foreign Direct Investment (FDI) on GDP. The empirical result confirms a connection between the Industry 4.0 era and the role of ICTs, which promotes substantial changes in the way of life and productivity. This has led to a vast technological advancement, which is in line with but at a faster pace than the technological advancement of previous revolutions. From empirical results, the study provides relevant policy recommendations related to the role of natural resources, new technologies and tourism on US GDP, while it also provides evidence of the positive effect of ICTs over FDI under the Industry 4.0 era., (© 2020 Elsevier Inc. All rights reserved.)
- Published
- 2020
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46. Modelling coal rent, economic growth and CO 2 emissions: Does regulatory quality matter in BRICS economies?
- Author
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Adedoyin FF, Gumede MI, Bekun FV, Etokakpan MU, and Balsalobre-Lorente D
- Abstract
Global warming issues have been on the front burner of most economies and Brazil, Russia, India, China and South Africa countries (BRICS) are no exception. The region has joined the rest of the world on the global strides to mitigate against global warming in terms of decoupling carbon dioxide emissions from economic growth. This is the motivation for the present study to consider the interaction between economic growth, pollutant emissions, coal rent while accounting for the role of other covariates like regulatory quality. The study is conducted in a balanced panel setting over annual frequency data from 1990 to 2014. To this end, Pooled mean group with dynamic autoregressive distributed lag [PMG-ARDL (1,1,1,1,1)] was conducted to explore the coal-rents-energy nexus. The empirical study shows that for BRICS countries, unlike coal consumption, coal rents have a significant but negative impact on CO
2 emissions. Also, in contrast to expectation, regulations on coal rents in form of carbon damage costs have a significant but positive impact on CO2 emissions. This suggest that in line with the drive for growth by BRICS countries, and to achieve a reduction in the levels of CO2 emissions for green growth and sustainable development, more stringent environmental-energy-related regulations are inevitable. Thus, for policymakers it is vital to reinforce the use of stringent regulations as these economies opens up to more use of coal energy. However, the need to shift, the energy mix in BRICS to renewables is pertinent in a time of global environmental consciousness for cleaner energy sources and environmentally friendly ecosystem., Competing Interests: Declaration of competing interest The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper., (Copyright © 2019 Elsevier B.V. All rights reserved.)- Published
- 2020
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47. The effects of tourism and globalization over environmental degradation in developed countries.
- Author
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Balsalobre-Lorente D, Driha OM, Shahbaz M, and Sinha A
- Subjects
- Climate Change, Developed Countries, Renewable Energy, Carbon Dioxide chemistry, Economic Development, Internationality
- Abstract
This paper focuses on long-term evidence on economic growth, international tourism, globalization, energy consumption and carbon dioxide (CO
2 ) emissions in OECD countries for the period of 1994-2014. The empirical analysis reveals that climate change is magnified by energy use, tourism and economic growth. An inverted U-shaped relationship is also found between international tourism and CO2 emissions. The contribution of international tourism to climate change in the early stages of development is thus diminished by globalization in the later stages. In other words, globalization appears to reduce carbon emissions from international tourism. The empirical results provide additional arguments for shaping regulatory frameworks aimed at reversing the current energy mix in OECD countries by facilitating energy efficiency and promoting renewable sources.- Published
- 2020
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48. Tourism and inequality in per capita water availability: is the linkage sustainable?
- Author
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Sinha A, Driha O, and Balsalobre-Lorente D
- Subjects
- Socioeconomic Factors, Investments, Water
- Abstract
This paper shows the bilateral association between tourism development and inequality in per capita availability of water. The study is conducted on the countries with high tourism receipt, and thereafter, this study shows whether the directions of tourism development in these countries are going to be sustainable or not. In order to achieve this, we have used tourism investment and tourism receipt as two indicators of tourism development and have assessed their differential impacts on the disparity in water availability by applying DOLS and causality analysis approach. Empirical results show long-run impact of tourism on inequality in per capita availability of water, along with the presence of bidirectional causal association among the tourism development and inequality parameters. This study further reveals the impact of tourism on the regional disparity in distribution of water that can appear due to the differential approach taken toward tourism development. Based on study outcomes, several policy directions where offered for the investigated blocs.
- Published
- 2020
- Full Text
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49. The role of ICT and financial development in CO 2 emissions and economic growth.
- Author
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Raheem ID, Tiwari AK, and Balsalobre-Lorente D
- Subjects
- Communication, Air Pollution economics, Carbon Dioxide economics, Economic Development, Information Technology
- Abstract
This study explores the role of the information and communication technology (ICT) and financial development (FD) in both carbon emissions and economic growth for the G7 countries for the period 1990 to 2014. Using PMG, we found that the ICT has a long-run positive effect on emissions, while FD is a weak determinant. The interactive term between the ICT and FD produces negative coefficients. Also, both the variables are found to impact negatively on economic growth. However, their interaction shows that they have mixed effect on economic growth, i.e., positive in the short run and negative in the long run. Policy implications were designed based on these results.
- Published
- 2020
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50. An approach to the pollution haven and pollution halo hypotheses in MINT countries.
- Author
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Balsalobre-Lorente D, Gokmenoglu KK, Taspinar N, and Cantos-Cantos JM
- Subjects
- Carbon Dioxide analysis, Ecology, Economic Development, Indonesia, Internationality, Least-Squares Analysis, Mexico, Nigeria, Renewable Energy economics, Turkey, Urbanization, Carbon Dioxide chemistry, Environmental Pollution analysis, Investments economics
- Abstract
This study examines the nonlinear relationship between foreign direct investment (FDI) and the ecological footprint (EF), trying to confirm the pollution haven hypothesis (PHH). We use a panel data model for MINT (Mexico, Indonesia, Nigeria, and Turkey) countries in the period 1990-2013 and an empirical framework based on the pollution haven hypothesis (PHH). Using the fully modified least squares (FMOLS) and dynamic ordinary least squares (DOLS) econometric methodologies, the empirical results confirm an inverted-U relationship between FDI and the ecological footprint. To reinforce our analysis, we check the connection between economic growth and the ecological footprint, validating the environmental Kuznets curve (EKC) hypothesis for MINT countries. Finally, we also confirm a negative connection between renewable energy use, the urbanization process, and the changes in the ecological footprint. These findings offer a series of useful recommendations for policymakers, where the promotion of clean industries and energy-efficiency actions are essential for reducing environmental damage in MINT countries. We highlight the viability of the ecological footprint as a first-order environmental indicator whose evolution is determined by demographic fluctuations.
- Published
- 2019
- Full Text
- View/download PDF
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