Search Results (10)

In the modern era, CO₂ emissions is a popular and significant study topic. Environmental sustainability is adversely affected by CO₂ emissions, which have become the main cause of climate change. Using panel data analysis, this study investigated the connections between CO₂ emissions and economic development, capital accumulation, and the use of renewable energy. Long-term connections between variables were examined using the Augmented Mean Group (AMG) and Common Correlated Effects Mean Group (CCEMG) estimators, taking into account heterogeneity and cross-sectional dependence. Additionally, the Dumitrescu–Hurlin Panel Granger Causality Test was used to assess dynamic interactions between variables. Although CH₄ emissions increase CO₂ emissions, the effects of economic growth and capital accumulation are not statistically significant, as determined using the AMG and CCEMG. Although the use of renewable energy was shown to have the potential to lower CO₂ emissions, this impact was not statistically significant. The results of the dynamic panel demonstrate that CO₂ emissions increase with capital accumulation. Although methane (CH₄) emissions significantly impact CO₂ emissions, economic growth, capital accumulation, and renewable energy use do not show statistically significant effects, highlighting the varying influences of these factors across nations. The findings of this study emphasize the need to integrate environmental regulations into capital investment strategies and adopt country-specific policies to effectively reduce CO₂ emissions. They also underscore the need to customize green legislation to the specific conditions of each nation while simultaneously advocating for further expenditures in clean energy and the formulation of policies to supplant fossil fuels. Full article

This study examines how economic growth, travel, global connection, and changes in population impact the environmental footprint in seven countries, including Russia, the US, China, France, the UK, Pakistan, and India, from 1995 to 2023. The results show a significant link between Granger’s environmental impact and some economic, non-economic, and population factors in these countries. According to the study, environmental impacts result primarily from economic expansion and tourism revenue generation. The essential activities in economic development frequently result in significant ecological deficits through natural resource depletion, land alterations, and environmental releases. Business enlargement and tourism income commonly bring about deforestation while causing both pollution and habitat damage, thus showing why sustainable practices must exist to protect nature during economic development. We also have to consider factors other than economics, such as total income from natural resources and using nuclear power early. Additionally, how many people live in a particular area and the number of children born contribute to these footprints. Also, this study shows how economic, non-economic and demographic issues can indicate what harm the environment might face later. This is especially important in countries that use nuclear energy extensively. The report suggests different ways to solve this problem. These include advocating for sustainable tourism practices, directing research efforts towards nuclear energy, supporting renewable energy initiatives, promoting family planning and education, and raising public awareness. The aim is to reduce the environmental harm caused by nuclear energy and promote a more sustainable future. 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 link between energy (using electricity generation as a proxy) and sustainable economic growth alongside the mediating role of salient socio-political factors, such as education, life expectancy, government effectiveness, and governance structure, among others, based on data about the Nigerian economy from 1980 to 2022. We employed a battery of econometric techniques, ranging from unit root tests to autoregressive distributed lag bound tests for cointegration and a modified version of the Granger causality test proposed by Dumitrescu and Hurlin. We also employed general-to-specific estimation techniques to examine the possibility of substituting renewable and non-renewable energy sources. Our results suggest a bi-directional Granger causality between electricity generation and sustainable economic growth. This supports the validity of the feedback hypothesis, suggesting that electricity and sustainable economic growth are interdependent. Our results further revealed that socio-political factors significantly impact electricity generation. The results of our general-to-specific estimation techniques suggest that no possibility of substitution exists between the two main energy sources in Nigeria. This has some key policy implications. Full article

Manufacturing, as an energy-intensive industry, plays a major role in economic growth. Its green growth is the focus of national planning for sustainable development, especially for a country such as Korea, which has a scarcity of fossil energy of its own. While internationalization has brought Korea scarce energy, serious carbon emissions have become a pressing issue. It is still necessary to explore the relationship between globalization and green growth in manufacturing. Thus, our paper aims to observe their relationship by using 24 manufacturing industries from 2011 to 2019. Through the panel Granger non-causality test and the Dumitrescu–Hurlin test, we find that imports and inward foreign direct investment (FDI) causes green growth at the overall manufacturing level, but their causality relationships exist in different industries. The green-growth causality relationship of inward FDI mainly exists in capital-intensive and internationally competitive manufacturing industries (manufacture industries of basic metals; furniture; food products; coke, briquettes, and refined petroleum products; and chemicals and chemical products, except pharmaceuticals and medicinal chemicals). Furthermore, the green-growth causality relationship of imports primarily exists in the fossil-energy-consumption-intensive manufacturing industry (manufacture industries of motor vehicles, trailers, and semitrailers and coke, briquettes, and refined petroleum products). Furthermore, in our regression analysis, we find that only inward FDI robustly promotes the Korean manufacturing sector’s green growth; the positive effect is in the range from 0.005 to 0.009. Though the parameter estimates are positive and significant for FDI, they are close to zero, suggesting very limited positive effects that are close to almost zero. Conversely, imports have no significant impact, which we speculate is related to the import structure of Korea. Hence, the Korean manufacturing development model suggests that developing countries with similar country characteristics need to develop and guide the formation of capital-intensive and competitive industries. Additionally, it is imperative to decarbonize energy-intensive industries and to work on renewable energy development and diffusion. Finally, it is essential to introduce various green monitoring mechanisms to reduce carbon emissions. The government needs to strengthen its support for research and development of innovative technologies to reduce carbon emissions as well as promote the development of environmental and energy-saving related professional service enterprises. Full article

This paper analyzes the impact of exchange rate volatility on economic growth under various exchange rate regimes. It empirically examines this issue in 14 emerging countries from 1990 to 2020. This study has three particularities: First, we use the GARCH model to generate the conditional variance, which will be used as a proxy variable for the exchange rate volatility. Second, to address our issue, we employ the Panel CS-ARDL model, one of the most recent models for handling panel cases. Third, we apply the Dumitrescu and Hurlin Granger non-causality test to capture the potential indirect effect that exchange rate volatility can have on economic growth through the channel of its determinants. The results of our study demonstrate that exchange rate volatility costs emerging countries both directly and indirectly in terms of growth. However, by controlling our countries according to the adopted exchange rate regime, we find that the magnitude of this impact tends to be stifled in the case of countries adopting intermediate exchange rate regimes. Through their combination of rigidity and flexibility, intermediate exchange rate regimes appear to be more effective in mitigating the direct effects of exchange rate volatility on economic growth. Full article

For the last three decades, ASEAN has been facing a persistent fiscal deficit. However, the impact of fiscal deficit on the current account deficit in the sub-groups of ASEAN is still unknown. This study aims to investigate the impact of fiscal deficit on current account deficit and their relationship among the three sub-groups of ASEAN which are based on gross national income (GNI), i.e., lower-middle-, upper-middle-, and higher-income countries. The analysis covers the panel data collected over the span of the last three decades (1990–2020) for ten Southeast Asian nations (ASEAN). The analyses incorporate the panel methodology for data analysis such as panel unit root for checking data stationarity, cointegration testing, panel autoregressive distributed lag (PARDL) for short- and long-run analysis, cointegration regression (fully modified and dynamic ordinary least squares) for significance, the panel Dumitrescu and Hurlin Granger causality test for examining causal relationships in tested variables, and stability diagnostics and CUMSUM and CUSUMSQ techniques for structural breaks and coefficient stability in the model. In lower-middle-income economies (LMIE), results indicate the existence of a unidirectional causal relationship from the current account deficit (CAD) to the fiscal deficit (FD), suggesting a reverse causal relationship from CAD to FD. In the long run, FD does not significantly induce CAD, while real interest rate (RIR) and exchange rate (EXC) influence CAD. In upper-middle-income economies (UMIE), results specify that there is no causality between FD and CAD. The RIR, EXC, and FD are significant to CAD in the long run. In higher-income economies (HIE), RIR and FD have an influence on CAD in the long run period. Moreover, from CAD to FD, a unidirectional causal association exists, and likewise for LMIE. This is a reverse causal relationship from CAD to the FD, supporting the current account targeting hypothesis (CATH) in both the LMIE and HIE groups. This study recommends that the LMIE and HIE groups can use the fiscal deficit as a tool to eliminate the unfavorable current account position. Policymakers can target EXC and RIR to stabilize CAD in long run. In UMIE and HIE, policymakers must consider FD alarming, as it can induce CAD in the long run. The RIR can be the targeted factor in the sub-groups of ASEAN. Full article

This paper examined the nexus between economic growth and exchange rate, remittances, trade, and agricultural output based on data sourced from 1980 to 2018 for 10 selected African economies. We employed both the Dumitrescu and Hurlin time-domain Granger causality test and the Croux and Reusens frequency domain Granger causality test. Results from the time-domain test suggests that causality only exists between economic growth and both exchange rate and trade, with no significant relationship between economic growth and both remittances and agricultural output. When we employed frequency domain model in our analysis, the results suggested that there is a bi-directional temporary and permanent causality between economic growth and exchange rate, trade, agriculture, and remittances. Our results suggest the validity of both the J-Curve and Marshall–Lerner hypotheses in the studied economies. Our study offers some relevant policy implications. Full article

Background: From a causal point of view, there exists a set of socioeconomic indicators concerning life expectancy. The objective of this paper is to determine the indicators which exhibit a relation of causality with life expectancy at birth. Methods: Our analysis applies the Granger causality test, more specifically its version by Dumitrescu–Hurlin, starting from the information concerning life expectancy at birth and a set of socioeconomic variables corresponding to 17 Spanish regions, throughout the period 2006–2016. To do this, we used the panel data involving the information provided by the Spanish Ministry of Health, Consumer Affairs and Social Welfare (MHCSW) and the National Institute of Statistics (NIS). Results: Per capita income, and the rate of hospital beds, medical staff and nurses Granger-cause the variable “life expectancy at birth”, according to the Granger causality test applied to panel data (Dumitrescu–Hurlin’s version). Conclusions: Life expectancy at birth has become one of the main indicators able to measure the performance of a country’s health system. This analysis facilitates the identification of those factors which exhibit a unidirectional Granger-causality relationship with life expectancy at birth. Therefore, this paper provides useful information for the management of public health resources from the point of view of the maximization of social benefits. Full article

This article examines the relation among carbon emissions, energy consumption, economic growth and urbanization in four panels: national level, developed areas, medium developed areas, and underdeveloped areas, which fully considers the differences across Chinese provinces. Due to the heterogeneity among Chinese provincial panels, the heterogeneous panel analysis technique is used, which includes heterogeneous panel estimation based on dynamic ordinary least squares (DOLS) and fully modified least squares (FMOLS), and the heterogeneous panel Granger test based on Dumitrescu and Hurlin is also used. The empirical results indicate that there are long-term equilibrium relationships between carbon emissions, GDP, energy consumption structure and urbanization rate in the four panels. GDP and energy consumption structure had obvious impacts on carbon emissions in all panels, but the urbanization rate significantly affected carbon emissions only in the national and medium developed areas. The heterogeneous Granger causality test reveals that the relationship between carbon emissions and various influencing factors in different regions varies. Finally, according to the empirical research results, policy implications of reducing carbon emissions in different regions were proposed. Full article