Search Results (6)

This study examines the contributions of renewable energy transition (RET) and environmental innovation (EI) to environmental performance in G7 countries from 2003 to 2021, with a focus on the transmission channels of green finance and environmental governance. Using the Augmented Mean Group (AMG) estimator and confirming robustness through the Dynamic Common Correlated Effects Mean Group (DCCE-MG) method, the study explores both direct and indirect effects of RET and EI on two key environmental indicators: the Environmental Performance Index and the Load Capacity Factor. The results reveal that both RET and EI have a significant impact on environmental performance. Moreover, green finance and environmental governance serve as crucial channels through which RET and EI exert their influence. These findings underscore the importance of developing effective financial instruments and robust regulatory frameworks to translate energy and innovation policies into tangible environmental benefits. By highlighting the interplay between technological advancement, financial capacity, and institutional quality, this study provides novel insights into the environmental policy landscape of advanced economies and offers guidance for designing integrated strategies to achieve long-term sustainability goals. Full article

Emerging countries are the main source of new CO₂ emissions and the major net carbon importers, and they have also become an important part of the global trade pattern. In this study, the impact of trade openness on CO₂ emissions was investigated by approaches such as fully modified least squares (FMOLS), dynamic ordinary least squares (DOLS), and pooled mean group-autoregressive distributive lag (PMG-ARDL) methods. Further estimations were conducted by employing methods such as DCCEMG (dynamic common-correlated effect mean group) and Driscoll–Kray to strengthen the robustness of the results. Moreover, the Granger causality between trade openness and CO₂ emissions was tested by using the Dumitrescu–Hurlin method. Conclusions can be drawn as follows: First, economic growth, energy consumption, trade openness, and CO₂ emissions are all interconnected in the long term. Specifically, higher levels of economic growth and trade openness are associated with lower CO₂ emissions, whereas energy consumption contributes to higher emissions. However, in the short term, economic growth and energy consumption lead to an increase in CO₂ emissions, while trade openness does not have a significant impact. Moreover, there is a two-way Granger causality between trade openness and CO₂ emissions. Additionally, economic growth and energy consumption have an indirect effect on CO₂ emissions by influencing trade openness. Given these findings, emerging market countries should focus on enhancing their service sectors, promoting technological advancements, and fostering international collaboration in green technologies. By actively engaging in efforts to combat climate change, these countries reach a point where trade expansion and carbon reduction are achieved. Full article

This study examines the complex relation among environmental taxes, productive capacities, urbanization, and their collective effects on environmental quality in Africa, drawing on two decades of data from twenty African countries. It situates the study within the broader discourse on sustainable development and economic growth, emphasizing the Environmental Kuznets Curve (EKC) framework to examine the relationship between economic development, characterized by urban expansion and increased productive capacities, and the adoption of environmental taxes amidst the continent’s diverse economic and environmental environments. Using advanced econometric techniques, including the Cross-Section Augmented Autoregressive Distributed Lag (CS-ARDL) model and the Dynamic Common Correlated Effects Mean Group (DCCEMG) estimator, the study addresses data challenges such as cross-sectional dependence and slope heterogeneity. The results provide important insights into the dynamics of environmental quality in relation to economic and urban growth and the role of environmental taxation. The study proposes tailored policy strategies aimed at strengthening sustainable development initiatives in line with international agreements such as the Paris Agreement and the Sustainable Development Goals. These strategies advocate for a nuanced application of environmental taxes and the promotion of productive capacities to enhance environmental sustainability across the African continent. Full article

This study examines the dynamic relationships between digitalization, environmental tax revenues, and energy resource capacity within the framework of the Environmental Kuznets Curve (EKC), focusing on their combined impact on environmental quality. It employs a cross-sectional augmented autoregressive distributed lag (CS-ARDL) approach, an advanced technique for complex panel data that is specifically designed to address issues of cross-sectional dependence and slope heterogeneity inherent in panel data analysis. The research covers 88 countries, including both low- and middle-income countries (LMICs) and high-income countries (HICs), to understand how digitalization, as a driving force of the Fourth Industrial Revolution, interacts with environmental taxation and energy resource management to affect greenhouse gas emissions. The results reveal distinct effects of environmental taxes and energy capacity on environmental quality, with marked differences between LMICs and HICs. In HICs, technological progress, especially in information and communication technology (ICT), is found to contribute significantly to environmental quality. For LMICs, the effects are less evident, and the findings suggest the need for tailored strategies in environmental policy and energy management. By providing empirical evidence on the differential impacts of digitalization and energy policies in different economic contexts, this research enriches the environmental economics discourse. It highlights the need for policy frameworks tailored to specific contexts that effectively balance economic growth with sustainable development goals, thereby providing insightful implications for achieving the Sustainable Development Goals (SDGs). Full article

This study presents a new insight into the dynamic relationship between financial institutional deepening (FID), financial deepening, financial market deepening (FMD), foreign direct investment (FDI), economic growth (GDP), population, and carbon dioxide emissions (CO₂e) in the G-11 economies by employing a cross-sectionally augmented autoregressive distributed lag (CS-ARDL) approach during 1990–2019. The outcomes from the CS-ARDL and dynamic common correlated effects mean group (DCCEMG) models shows that financial deepening, GDP, FDI, and population degraded environmental quality both in the short run and the long run. Contrary to this, FID and FMD improves environmental quality in these countries. The government should work to maximize financial institutions (access, depth, efficiency) and financial markets (access, depth, efficiency) to reduce the CO₂e. A strong positive and in-phase correlation of CO₂e with economic growth and population is observed for G-11 countries. These results suggest policy makers should further improve financial institutions by creating opportunities for their populations. Moreover, the governments of G-11 countries should revise their foreign direct investment policies and attention should be given to import efficient means of energy production. Full article

To tackle the challenges associated with global warming and climate change, several countries set their targets to lower carbon emissions in accordance with COP21 (Paris Conference). Even though studies highlighted the different aspects that contribute to environmental degradation, there still exists the scarcity of adequate research that emphasizes the environmental implications of financial institutional deepening, renewable energy consumption (REC), and technology innovations. Therefore, this study investigated the significance of financial institutional deepening, REC, gross domestic product (GDP), imports, exports, and technology innovations to achieve sustainability in G-10 countries, namely The Netherlands, Germany, France, Switzerland, United Kingdom, Sweden, Japan, Belgium, Canada, and Italy from 1990 to 2020. The results obtained from cross-sectionally augmented autoregressive distributed lag (CS-ARDL) and the dynamic common correlated effects mean group (DCCEMG) models reveal that financial institutional deepening and imports positively impact CO₂ emissions (CO₂e) both in the long and short run. A 1% increase in financial institutional deepening and import will increase CO₂e by 0.5403% and 0.2942% in the short run and 0.2980% and 0.1479% in the long run levels, respectively. Contrary to this, REC, GDP, exports, and technology innovations improve environmental quality in these countries. The Dumitrescu & Hurlin causality test shows bidirectional causality between imports and CO₂e, GDP and CO₂e, exports and CO₂e, and financial institutional deepening and CO₂e, compared to unidirectional causality from technology innovations to CO₂e and from REC to CO₂e. Apart from this, the outcomes suggest that policymakers in G-10 countries have to consider their financial markets and firms to revise their current environmental policies. Full article