The cross efficiency (CE) model has been accepted as an alternative approach for evaluating carbon emission efficiency in data envelopment analysis (DEA). However, the current studies can't examine ...the time effect of economic and energy inputs on regional productivity. This paper proposes a novel method combing CE model with Malmquist productivity index (CE-MPI) to discover a dynamic change of carbon emission efficiencies of China's 30 provinces. The results indicate that Eastern Zone is the most advanced in carbon emission efficiency as well as productivity capacity but the efficiency gap between Inter-mediate and Western Zone is less than 5.7 percent point. The technology progress drives the improvement of the CE-MPI. But the efficiency change pulls down the level of productivity for most zones. Based on the efficiency change and the technical change, China's 30 provinces are divided into four classification and given different recommendations for improving carbon emission efficiency.
The Iran-Saudi Arabia conflict is an ongoing struggle for influence in the region that has created uncertainty, affected oil prices and regional economics. This paper uses wavelet analysis to examine ...the frequency and time-varying co-movement and casual nexus between petroleum prices (OP) and financial liquidness (MS) with and without geopolitical risk (GPR). The aim is to test the validity of the monetary equilibrium model from 1988 to 2019. The model is supported by the findings, as both short and medium-term association is found between OP and MS at high frequencies in the presence of GPR. We find a medium-term association between OP and MS in the absence of GPR. The paper's overall conclusion suggests that GPR affects OP and OP, in turn, impact MS. Diversifying economic activities to minimize oil dependency, which is sensitive to external shocks, is suggested as a mitigation solution.
The green innovations, environmental policies, and carbon taxes are the tools to achieve sustainable development goals (SDGs) in the mitigation process. This study is intended to examine the impact ...of innovation, carbon pricing (CTAX), environmental policies (EP), and energy consumption (ECON) on PM
2.5
and greenhouse gas (GHG) emission for Central-Eastern European countries. The panel effect during 2000–2018 is tested using a dynamic panel data model while the Granger causality approach obtains country-related outcomes. The outcomes reveal that eco-friendly innovations have a more profound effect on carbon mitigation. Environmental policies reduce emissions by 2.7% in the short run and 17.4% in the long run. Similarly, CTAX mitigates GHG emissions by 8.6% in the short-run and PM2.5 by 0.9% and 5.7% in the short and long run. However, urbanization, energy consumption and trade openness are the leading polluters in the region. The main findings remain dominant in the country-specific results and find unidirectional and bidirectional causality evidence among variables. The research concludes that green innovations and strict environmental policy can lead towards achieving sustainable development goals using carbon taxes as a tool on the way.
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In this paper, we present a two-step methodology designed to elucidate the extent of co-movement in the behavior of asset bubbles across a selected group of developed and emerging economies, with ...observations extending from the year 2000 onwards. We characterize the behavior of these bubbles, conceptualized as the disparity between fundamental and market values, by examining their responses to monetary policy shocks. Our investigation into their co-movement dynamics post-2000 involves the estimation of a Bayesian Dynamic Factor Model that incorporates the reactions of asset bubbles to monetary policy shocks, both in the short term and the long term. Notably, our findings reveal a convergence in short-term responses among these bubbles prior to the onset of the financial crisis. However, as the crisis unfolded, our results indicate a shift towards divergence. Concerning the long-term response of bubbles to monetary policy, divergence was observed before the crisis, but once the crisis had taken hold, there was a noticeable trend towards convergence. An influential idiosyncratic factor was identified for countries like the United States, South Korea, and Japan, impacting both short-term and long-term behavior. Conversely, the long-term behavior of bubbles in most emerging economies appears to be influenced by idiosyncratic factors. Furthermore, our results largely maintain their robustness even when utilizing an alternative measure of monetary policy stance during the period of the zero lower bound. Nevertheless, this secondary analysis suggests heightened volatility in the factors affecting both emerging and advanced markets.
•We apply a time-varying BVAR to uncover the dynamic impact of monetary policy shocks on bubbles.•We use a sample of developed and emerging countries.•We further use the responses in a dynamic factor model to study the comovement of the bubbles.•There is a convergence in the short-term responses before the financial crisis in 2007–2009.•The idiosyncratic component of the bubbles responses is strong for several countries, including the US, Japan.•The results are largely robust to different robustness tests.
The growing population and rising need for transportation amplify emissions, elevating the corresponding welfare costs. This research examines the effect of transportation sector Innovation in ...mitigating emissions and decreasing welfare costs. The study selected the 15 most polluted European economies from 1994 to 2020 and employed second-generation econometric approaches. The study used the Westerlund panel co-integration technique and pooled mean group estimate strategy to examine the long and short-term relationships. Additionally, a fixed and random-effects model is employed to assess the consistency of the results. The research utilized the Granger causality methodology to investigate the outcomes specific to each country. The findings indicate that the implementation of new technologies for transport has a restraining effect on demand, transportation, and overall emissions in both the long and short term. Moreover, the interaction of renewable technologies with green energy profoundly impacts the European economies. The results show that environmental degradation increases temperature and rainfall uplift welfare costs. The country-specific results demonstrate a significant causal association among variables in the major economies, endorsing the effect of innovation in mitigation efforts and climate change on surging the welfare cost. The results suggest that green transport using renewable energies is the way to achieve carbon neutrality, decrease welfare costs, and 2050 sustainable transport targets.
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The accurate forecast of carbon dioxide emissions is critical for policy makers to take proper measures to establish a low carbon society. This paper discusses a hybrid of the mixed data sampling ...(MIDAS) regression model and BP (back propagation) neural network (MIDAS-BP model) to forecast carbon dioxide emissions. Such analysis uses mixed frequency data to study the effects of quarterly economic growth on annual carbon dioxide emissions. The forecasting ability of MIDAS-BP is remarkably better than MIDAS, ordinary least square (OLS), polynomial distributed lags (PDL), autoregressive distributed lags (ADL), and auto-regressive moving average (ARMA) models. The MIDAS-BP model is suitable for forecasting carbon dioxide emissions for both the short and longer term. This research is expected to influence the methodology for forecasting carbon dioxide emissions by improving the forecast accuracy. Empirical results show that economic growth has both negative and positive effects on carbon dioxide emissions that last 15 quarters. Carbon dioxide emissions are also affected by their own change within 3 years. Therefore, there is a need for policy makers to explore an alternative way to develop the economy, especially applying new energy policies to establish a low carbon society.
Airborne and spaceborne hyperspectral imaging techniques are topics of great interest in the remote sensing field due to their ability to provide rich spatial and spectral information, which are ...paramount for a better characterization of the Earth's surface and atmosphere. This paper provides a comprehensive review of the current state-of-the-art in the applications of airborne and spaceborne hyperspectral imaging for atmospheric research. Main hyperspectral imaging systems, data analysis methods and their applications in some atmosphere research areas, including the estimation of aerosol and water vapor content for a deeper understanding of atmospheric phenomena, cloud characterization for better prediction of weather phenomena, and gas emissions detection for air quality control, were discussed. Many studies have shown very promising results, but as hyperspectral imaging is in a continuous dynamic, there are several challenges that need to be addressed in future studies so that it can become one of the most important tools for atmosphere research. The answer to some questions on this topic is provided and directions for future research are outlined.
Corporate involvement with social responsibility (CSR) is a voluntary practice. However, governments have recently adopted a more supportive stance by providing research and development support and ...tax exemptions. Therefore, this study examines the role of government subsidies (Sub) in CSR, considering the amount and number of subsidies and the type of industry in a competitive business environment. The paper establishes theoretical linkages through the construction of an oligopolistic market model of private enterprises based on industrial organisation theory's structure–conduct–performance (SCP) paradigm. Moreover, our study tests the empirical relationship using a dataset of 100 listed companies in Pakistan observed from 2011 to 2019 using robust standard error methodologies and a fixed effects IV estimator. The results show that government subsidies significantly promote private enterprises to actively fulfil their social responsibilities, and product market competition plays an intermediary role that endorses the theoretical proposition. This effect is visible at all stages of the enterprise's life cycle. Additionally, the relationship is more prominent in the case of low- and medium-sized government subsidies, competitive industries, and firms with no political connections. The results further reveal that product market competition is the primary channel through which government subsidies influence CSR. Concurrently, optimising the allocation of financial resources has specific significance.
We revisit the results in Gali and Gambetta (2015) by reestimating their time-varying Bayesian VAR model including the shadow rate of Wu and Xia (2016). We found some significant differences when ...looking at the results during and in the aftermath of the crisis: with the shadow rate, the impact of monetary policy shocks on asset prices becomes negative. There is also a much lower positive impact of monetary policy shocks on bubbles when using the shadow rate. The impact is lower by almost three percentage points.
•We revisit the results in Gali and Gambetta (2015) using the shadow rate for an alternative estimation.•In the alternative estimation, the response of asset to monetary policy shocks becomes negative.•Bubbles respond positively, but the response is significantly lower as compared to the baseline estimation using the federal funds rate.
In this article, we aim to study systemic risk spillovers for European energy companies and to determine the spillover network of the energy sector with other economic sectors. To examine the ...spillovers within the energy sector, we employ three systemic risk measures. We then embed the results of these models into a Diebold–Yilmaz framework. Moreover, we consider an entropy procedure to extract a Bayesian formulation of its systemic risk spillover. This allows us to determine which company in our sample contributes the most to systemic risk, which company is the most vulnerable to systemic risk, and the place of the energy sector within risk networks. Our results reveal the fact that all companies manifest enhanced spillovers during 2008, early 2009, and 2020. These episodes are associated with the dynamics of the global financial crisis and the pandemic crisis. We notice that specific companies are risk drivers in the sector in both times of market turbulence and calm. Lastly, we observe that several economic sectors such as banks, capital goods, consumer services, and diversified financials generate relevant spillovers towards the energy sector.
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