Search Results (29)

The rapid expansion of plastic waste trade has intensified environmental pressures, accelerating ecosystem degradation and climate change. We examine the long-term impacts of plastic waste imports and domestic waste production on ecological footprints and greenhouse gas emissions across 20 countries representing 70% of global plastic waste trade and 45% of world GDP. Under the Environmental Kuznets Curve (EKC) framework, we explore nonlinear interactions among economic growth, urbanization, and sustainability goals. Using a panel simultaneous equations approach, we apply Pedroni, Kao, and Westerlund cointegration tests and Fully Modified and Dynamic OLS estimators to address endogeneity and heterogeneity. Robustness checks include alternative environmental indicators and the Dumitrescu–Hurlin panel causality test. Results demonstrate a stable long-run equilibrium: plastic waste imports substantially increase ecological footprints and emissions, while progress on sustainable development goals mitigates some damage. The negative GDP squared coefficient supports the EKC hypothesis, indicating that environmental impacts rise initially with growth but decline once income exceeds a threshold. These findings highlight the need for stronger international regulations, enhanced waste management infrastructures, and circular economy strategies. Focused investment in sustainable technologies and global cooperation is essential to lower environmental costs of plastic waste trade. Full article

Within the modern perspective of globalization, digitalization may be perceived as a key driver of technological development, a factor strongly affecting economic efficiency and the growth of Gross Domestic Product (GDP). However, this assumption still requires deeper empirical confirmation in developing nations whose economies depend on oil revenues. This paper investigates the causal and cointegration relationship between socioeconomic globalization, digitalization, and its impact on economic growth, using the kingdom of Saudi Arabia (KSA) as a specific case of global economic transformation between 1990 and 2022. Using the Autoregressive Distributed Lag (ARDL) model with various estimation methods, including Ordinary Least Squares (OLS), Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), and Canonical Cointegration Regression (CCR), we identified the most statistically significant factors contributing to economic growth. Our findings indicate that globalization has a negative and significant effect on GDP per capita at the 1 percent significance level. On the other hand, the results suggest that digitalization significantly contributes to economic growth in the short and long run. From these findings, this paper provides some key policy recommendations for improving the economic outlook of Saudi Arabia and other developing countries. Full article

A clean environment enhances well-being and drives economic growth. BRICS nations aim to cut emissions while sustaining growth, aligning with global sustainability goals. Their strong economic progress underscores the need to explore the links between communication technology, financial efficiency, education, and renewable energy consumption (RENC). Therefore, to analyze these dynamics, this study examines data spanning from 1990 to 2020 using a rigorous methodological framework. Initially, model selection was guided by AIC and BIC criteria by ensuring optimal model fit. Furthermore, multicollinearity was assessed using the Variance Inflation Factor (VIF), while heteroscedasticity and autocorrelation issues were tested through the Breusch–Pagan Test and the Ljung–Box Test, respectively. Additionally, cross-sectional dependence (CSD) was checked, followed by stationarity analysis using the second-generation CIPS. The Westerlund Cointegration Test was employed to confirm long-run relationships. As a final preliminary test, the study uses the Hausman test for selection of the appropriate model specification. Subsequently, the PMG-ARDL approach was utilized to examine both short- and long-term dynamics. The findings reveal a significant negative relationship between RENC, Gross Domestic Product (GDP), and CO₂ emissions. Conversely, RENC exhibits a strong positive association with education (EDUC), information and communication technology (IACT), the financial markets efficiency index (FMEI), and the financial institutions efficiency index (FIEI). Finally, the robustness of the PMG-ARDL results was validated through advanced techniques, including Fully Modified OLS (FMOLS) and the Generalized Method of Moments (GMM), reinforcing the reliability of the findings. The study offers valuable policy recommendations to support sustainable development in BRICS nations. Full article

The availability of agricultural land is central to stimulating reserves in sustainable food and crop production amidst accelerating economic sustainability and growth. Therefore, this article aims to investigate the influence of agricultural land (AGL) on food production (FP) and crop production (CP) with the linkage of environmental sustainability (ES) as a moderator from 1990 to 2021 for the economy of China with the autoregressive distributed lag (ARDL) bounds testing estimation model. Our findings showed that the ARDL model estimates the long-term and short-term joint matching relationships between agricultural land and the independent variables in the model, which is a statistically significant outcome. Therefore, in the long term, the food and crop production adjustment for speed to steadiness was huge as it was projected at 1.337%, 53.6%, 133.5%, and 37.4%, respectively, in all the models, which shows that the adjustment for speed of models is a good post-shock association process. We found evidence for a significant and positive relationship between agricultural land and food and crop production in ordinary least square (OLS) estimation, which also ensured the outcomes of the primary model. Furthermore, Toda–Yamamoto Granger causality test estimation found reverse causality between food production (FP) and crop production (CP) and showed evidence of the conservation hypothesis. We found bidirectional causality between food production and agricultural land and between crop production and agricultural land, which shows evidence of the feedback hypothesis. Additionally, the empirical findings of a robustness check with fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) techniques showed consistency with the investigations of ARDL estimation in the long run, ensuring the validity and strength of the primary outcomes. Overall, the present paper brings fresh knowledge about agricultural land use, and food and crop production to promote environmental sustainability. Full article

Emerging states’ path to enhancing the welfare of their citizens has been strongly accompanied by environmental degradation; climate change effects often abrogate their economic results. This zero-sum game must change, and environmental concerns should be considered when the development of a country is discussed and assessed. In this sense, this study’s objective is to analyze the impact of economic complexity and renewable energy consumption in the presence of economic growth and urbanization in selected emerging European countries from 1995 to 2021. We used a multiple-methodologic approach to highlight the supportive effects of economic complexity and renewable energy consumption in mitigating carbon emissions. Furthermore, the effects of economic growth and urbanization were emphasized by applying the cointegration regression (CCR), fully modified OLS, and dynamic OLS (FMOLS–DOLS) approaches. Additionally, we used Driscoll–Kraay estimation regression to test the robustness of our results. The results reveal the beneficial role of renewable energy consumption and economic complexity in the decarbonization process of selected countries. Furthermore, the study highlighted the detrimental influence of urbanization and economic growth, which were feasible considering the emerging status of the countries included in the panel. Full article

One of the worst natural, economic, and social catastrophes caused by human activity is the Aral Sea crisis in Central Asia. The Aral Sea’s desiccation, which has an impact on the region’s overall sustainable development, human welfare, security, and survival, is what led to the problem. This study assesses the effects of economic expansion, population ageing, life expectancy, internet usage, and greenhouse gas emissions on the fertility rate in the countries that made up the Aral Sea basin between 1990 and 2021. Several econometric techniques were used in this study, including Pooled OLS (Ordinary Least Squares) with the Driscoll–Kraay estimating method, FMOLS (Fully Modified Ordinary Least Square), and DOLS (Dynamic Ordinary Least Square). Additionally, we used the Hurlin and Dumitrescu non-cause tests to verify the causal links between the variables. The empirical findings verify that a decrease in the fertility rate among women in the nations surrounding the Aral Sea occurs when the population of a certain age (women aged 15–64 as a percentage of the total population) grows and life expectancy rises. Greenhouse gas emissions (GHGs) also have an adverse effect on reproductive rates. Conversely, the region’s fertility rate may rise as a result of increased internet usage and economic growth. Furthermore, this study indicates that certain variables—aside from greenhouse gas emissions (GHGs)—have a causal relationship with the fertility rate. Full article

This study examines the intricate relationship between natural resource abundance, with a specific focus on oil production, and its impact on economic growth in Ghana. Through the application of the robust Fully Modified OLS methodology and using data spanned from 1960–2021 the research underscores the essential inclusion of oil as a significant variable in comprehending economic growth dynamics. Contrary to traditional resource curse theories, the study unveils a positive nexus between oil production and economic growth, particularly within a comprehensive variable framework. This finding challenges simplistic resource curse notions and underscores the need for a holistic economic perspective. Overall, the results show that the impact of oil production on economic growth is sensitive to the inclusion or exclusion of other variables in the model. In Model 1, where all variables are included, oil production has a significant positive (0.0112**) impact on growth. Ghana’s success in avoiding the resource curse is attributed to a multifaceted strategy encompassing diversified economic approaches, transparent governance, and responsible oil revenue management. Importantly, the inclusion of oil as a pivotal variable is well-justified by its tangible contributions to economic growth. The observed positive impacts emphasize the benefits of harnessing oil resources while maintaining a holistic view of the broader economic context. Looking ahead, the insights inform policymakers in resource-rich nations, illustrating how strategic resource management—illustrated by oil—can drive resilient and comprehensive economic growth. Ghana’s experience serves as a compelling template for informed policy decisions, offering valuable lessons for achieving sustainable prosperity. Full article

Climate change has emerged as a global challenge because of its threat to sustainable development goals. Fossil fuels and economic growth are responsible for pollution and, thus, for climate change. In this context, this study explored the environmental Kuznets curve hypothesis for the case of 17 MENA countries over the period of 1990–2020. It investigated the symmetric and asymmetric impact of energy consumption and economic growth on CO₂ emissions by controlling for population density, trade openness, and FDI inflows using panel linear and nonlinear ARDL models. The robustness of the results was checked using the fully modified OLS and dynamic OLS methods. Moreover, the Dumitrescu–Hurlin panel causality test was employed to determine the directions of causality between the variables. Overall, the empirical results of both panel linear and nonlinear ARDL models validate the environmental Kuznets curve hypothesis for the selected sample of MENA countries. Economic growth leads to environmental degradation only in the long run, whereas a rise in energy consumption leads to an increase in pollution in both the short and long run. These results are confirmed by the fully modified OLS and dynamic OLS methods. The findings of the Dumitrescu–Hurlin panel causality test also indicate the existence of bidirectional causality between energy consumption and CO₂ emissions and between economic growth and CO₂ emissions. Therefore, policy makers in the MENA region should invest in clean technologies and accelerate the transition to renewable energies such solar energy, wind power, and hydropower to align with sustainable development goals. Full article

The primary objective of this paper is to examine the relationship between finance and economic growth in a cohort of 16 economies within the MENA region spanning a four-decade period from 1980 to 2021. This study employs panel unit root and panel co-integration analyses to investigate this long-term nexus. The fully modified and dynamic Ordinary Least Squares (OLS) approaches are utilized to estimate the long-run coefficients. The findings underscore the existence of cross-sectional interdependence among these nations. Furthermore, Pedroni’s panel co-integration research robustly supports the idea of a long-term co-integrating relationship between financial development and economic growth. Our long-run panel estimations reveal a positive and statistically significant impact of financial development on GDP per capita income growth. In addition to this broad analysis, this paper conducts a detailed time-series examination focused on a specific country to validate the robustness of the results. These findings further substantiate the favorable influence of financial development on income growth in the majority of MENA nations. Notably, private sector participation in these economies is found to be alarmingly low. As a result, a significant policy implication of this study underscores the urgent need for policymakers to prioritize measures conducive to private sector expansion. Moreover, enhancing financial inclusion, addressing the crowd-out effect, and tackling non-performing loans are critical areas requiring attention within the MENA region. Furthermore, our research highlights the potential benefits of developing stock markets as part of an optimal strategy to enhance both economic and income growth rates. In conclusion, this study contributes valuable insights into the finance–growth nexus in the MENA region, emphasizing the importance of financial development as a driver of economic prosperity and the need for targeted policy initiatives to support private sector growth and financial stability. Full article

In this study, the focus is on examining the influence of renewable energy consumption, economic risk, and financial risk on the load capacity factor (LF) within the BRICS countries. The analysis covers the time span from 1990 to 2019. The empirical strategy uses the Method of Moments Quantile Regression (MMQR) and long-run estimators (Fixed Effects Ordinary Least Squares, FE-OLS; Dynamic Ordinary Least Squares, DOLS; and Fully Modified Ordinary Least Squares, FMOLS). The findings highlight the presence of a cointegrating relationship. Moreover, fossil fuels and economic growth cause LF to decrease, while economic risk and the use of renewable energy sources increase the deepening of the LF. Furthermore, the results of the MMQR method are confirmed by DOLS, FMOLS, and FE-OLS estimates. Causality results also demonstrate that these factors may forecast ecological quality, indicating that policies for renewable energy consumption, financial risk, renewable energy, and economic growth can all have an impact on the degree of LF. In light of this research, policymakers should strongly encourage expenditures on environmentally friendly technologies and economic and financial stability to increase energy efficiency as well as sustain the widespread adoption and use of energy-saving products. Full article

Since South Africa is in pursuit of accomplishing the 2030 Sustainable Development Goals, it has become pertinent to accelerate the desired energy transition. Against this background, this work aims to evaluate the effects of oil prices, fiscal policy, and foreign direct investment on renewable energy consumption in South Africa from 1979 to 2019. Using the novel Augmented Autoregressive Distributed Lag approach, this study finds that economic growth and taxation revenues positively promote renewable energy in South Africa. In contrast, the findings show that an increase in oil prices has a negative impact on renewable energy in both short and long periods. Likewise, the research shows that foreign direct investment was not found to enhance renewable energy. The findings from fully modified-OLS, dynamic ordinary least squares, and canonical cointegrating regression models corroborate the findings of the Autoregressive Distributed Lag method. For the Granger causality inference, the findings demonstrate that there is a one-way causal connection detected from economic growth to the consumption of renewable energy. Based on these outcomes, a policy framework has been offered to help South Africa to attain the sustainable development goals. Full article

As the fourth industrial revolution drives innovation and economic growth, the energy sector is increasingly recognized for its significant economic contribution. This research aims to investigate the relationship between economic growth and renewable and non-renewable energy consumption in nine southeastern European countries using panel estimation techniques and causal inference. This research employs a unique approach to modeling the energy–growth nexus, incorporating interaction terms to better understand the impact of renewable energy on real GDP growth. The findings are a valuable addendum to the current body of research on the effects of renewable energy consumption on economic growth, and the results contribute to narrowing the empirical research gap in the econometrical field of panel data estimation and endogeneity. This study uses the fully modified OLS (FMOLS) technique for heterogeneous panels to estimate coefficients, while the error correction model (ECM) is used to estimate the cointegration vector between energy variables and GDP. The non-causality test by Dumitrescu and Hurlin (2012) evaluates the causation between energy variables and economic output. Empirical findings indicate that both renewable and non-renewable energy consumption positively affect economic growth. The outcomes of this study hold significant policy ramifications in terms of prioritizing reformation and investment towards specific sectors to foster capital infusion into renewable energy and energy efficiency projects and initiatives, consequently advancing sustainable economic growth. Full article

The incredible increase in carbon emissions is a major global concern. Thus, academicians and policymakers at COP26 are continuously urging to devise strategies to reduce carbon and other greenhouse gas emissions. The transportation sector is a major contributor to greenhouse gas emissions in developing countries. Therefore, this study projected an increase in fossil fuel demand for transportation and corresponding carbon dioxide emission in Pakistan from 2018 to 2030 by employing the Grey model and using annual data from 2010 to 2018. Furthermore, the determinant of fossil fuel demand is modeled using an environmental sustainability model such as stochastic regression IPAT that links environmental impact as a product of population, affluence, and technology on annual time series data spanning from 1990 to 2019. The projected values of oil demand and carbon emissions reveal an increasing trend, with average annual growth rates of 12.68% and 11.45%, respectively. The fully modified ordinary least squares (FM-OLS) findings confirmed the environmental Kuznets hypothesis. The increase in population growth emerged as the major driver for oil demand and carbon dioxide emissions, while technological advancement can reduce oil demand and corresponding carbon emissions. This study urges Pakistan to switch from oil to gas and other green energies by encouraging hybrid vehicles, as the number of vehicles on the road positively impacts the transport sector’s oil demand. Moreover, increasing economic growth and controlling the population growth rate by discouraging more children can be a valid policy for reducing oil demand and corresponding carbon emissions. Full article

The ambitious goal of the European Union (EU) countries is to achieve carbon neutrality by providing inclusive economic growth, which requires the development of relevant incentives and initiatives. Furthermore, such incentives and initiatives should guarantee the achievement of the declared goals. Energy sectors are the core determinant of inclusive economic growth. Traditional energy resources (coal oriented) have a higher negative impact on nature and people’s well-being than on economic and social benefits. However, the transition to renewable energy raises new issues in achieving goals of inclusive economic growth: affordable and clean energy, responsible energy consumption, and energy infrastructure. The analysis of the theoretical framework found that the digitalization of government could be a core instrument for handling the abovementioned issues. The paper aims to justify the role of green energy in achieving inclusive economic growth empirically. The study applies the following methods: fully modified Ordinary Least Square (OLS) and canonical cointegrating regression. The findings allow concluding that institutional quality passively affects inclusive economic growth and that the digitalization of government has a U-shaped impact on inclusive economic growth. In this case, countries should boost the digital transformation of public services and continuously increase the quality of institutions. Full article

Energy is an important factor in boosting and sustaining the economic growth level of a country. The aim of this study was to investigate the relationship between energy consumption and the economic growth of selected developed and developing countries from 1993–2019. For this purpose, we used the Pedroni co-integration method to determine the long-term relationship between economic growth and energy consumption. To estimate the long-term parameters, the panel fully modified OLS method and the Dumitrescu and Hurlin heterogeneous panel causality estimation technique were used, and the causality direction between variables was considered. The results showed that energy consumption had a positive and significant effect on the economic growth of both groups of countries. The causality analysis revealed the existence of a protection effect between renewable energy consumption and economic growth in developed countries. Hence, policies that lead to an increase in independent growth in these countries can effectively impact their growth. On the other hand, the existence of the feedback effect in developing countries shows that storage policies and reduced energy consumption may pose a threat to economic growth in these countries. Full article