In all countries, the priority of policymakers is to reduce carbon emissions without reducing economic growth performance. Progress in innovation is one of the main measures that can be used to ...reduce carbon emissions. It is important to demonstrate the impact of innovation at the sectoral level, in terms of more realistic data on policy measures. The aim of this study is to investigate the effects of innovation on carbon emissions on a sectorial basis for fourteen countries in the G20, for the period between 1991 and 2017. The selected countries are Argentina, Brazil, Canada, France, Germany, India, Indonesia, Japan, Korea, Mexico, South Africa, Turkey, the United Kingdom, and the United States for which data is available. The results show that the Environmental Kuznets Curve (EKC) hypothesis is invalid and, in the long-term, innovations did not have a statistically significant effect on the energy sector, transport sector, and other sectors. It was also found that while an increase in innovation in the industrial sector leads to a reduction in carbon emissions, an increase in innovation in the construction sector increases carbon emissions. Therefore, it can be recommended that, in addition to national policies to reduce CO2 emissions, specific policies should be implemented for each sector separately.
•Innovation on carbon emission on a sectorial basis for 14 countries in G20 for 1971–2017.•The Environmental Kuznets Curve (EKC) hypothesis is invalid.•Long-term innovations didn’t have a significant effect on the energy sector, transport sector, and other sectors.•The increase in innovation in the industrial sector leads to a reduction in carbon emissions.•Increasing innovation in the construction sector increases carbon emissions.
Environmental sustainability has become the most critical global agenda of the 21st century. The Paris Agreement goals to keep the global temperature rise below 2°C compared to the pre‐industrial ...period. BRICS, which use intensive natural resources, hold regular meetings, and announce policies to comply with the Paris Agreement. This article aims to help BRICS achieve their sustainable development goals. In order to achieve this aim, the relationship between renewable energy consumption, natural resources, and CO2 emissions is explored in depth using the non‐linear panel autoregressive distributed lag method controlling for economic growth and foreign direct investments. Robust results are obtained by allowing for heterogeneity and cross‐section dependence in econometric analysis. Contrary to the previous literature, it has been shown in the empirical analysis that the impact of natural resources on CO2 emissions is not the same in both the long and short‐run. In the long‐run, negative and positive changes in natural resources increase environmental degradation, while foreign direct investments improve environmental quality. In addition, it seems that renewable energy sources have not reached the level to enhance environmental quality. The empirical results indicated that natural resource and renewable energy consumption findings are novel and bring a different perspective to the existing literature. BRICS should take measures to ensure sustainable use of natural resources in order to minimize dependence on fossil fuels. China, Russia, India, and South Africa should increase the share of RSE in the total energy mix and support renewable energy infrastructure investments for moving towards sustainable environmental development.
This study probes the role of disaggregated financial development and renewable energy in carbon emissions by incorporating gross fixed capital formation and economic growth in the function of carbon ...emissions. The financial development is measured through the stock market and banking sector development. We also examine the validity of the EKC hypothesis, using the data of G-7 and N-11 countries spanning from 1990 to 2016. The integration properties of the considered variables are examined through second generation unit roots tests. The Lagrange Multiplier (LM) bootstrap panel cointegration method has confirmed the long-run equilibrium relationship among the variables for all the four models used. The long-run elasticity results suggest that renewable energy increases environmental quality by reducing carbon emission intensity for both groups of panel countries. Banking development index decreases carbon emissions in G-7 countries, while increases carbon emissions in N-11 countries. Similarly, stock market development index increases carbon emissions in G-7 countries, while decreases in N-11 countries. Overall, economic growth and fixed capital formation impede environmental quality by accelerating the intensity of carbon emissions. This study suggests policy implications based on the empirical results for both groups of countries.
•This study examines the effect of stock market, banking sector development and renewable energy on carbon emissionsin G-7 and N-11 countries.•The Lagrange Multiplier (LM) bootstrap panel Cointegration approach used to find cointegration.•Banking development index decreases carbon emissions in G-7 countries, while increases carbon emissions in N-11 countries.•Stock market development index increases carbon emissions in G-7 countries, while decreases in N-11 countries.•Renewable energy increases environmental quality by reducing carbon emission intensity for both groups of panel countries.
Innovation technologies have been recognized as an efficient solution to alleviate carbon emissions stem from the transport sector. The aim of this study is to investigate the impact of innovation on ...carbon emissions stemming from the transportation sector in Mediterranean countries. Based on the available data, Albania, Algeria, Bosnia and Herzegovina, Croatia, Egypt, Morocco, Tunisia, and Turkey are selected as the 8 developing countries; and Cyprus, France, Greece, Israel, Italy, and Spain are selected as the 6 developed countries and included in the analysis. Due to data constraints, the analysis period has been determined as 1997–2017 for the developing Mediterranean countries and 2003–2017 for the developed Mediterranean countries. After determining the long-term relationship with the panel co-integration method, we obtained the long-term coefficients with PMG and DFE methods. The empirical test results indicated that the increments in the level of innovation in developing countries have a positive impact on carbon emissions due to transportation if the innovation results from an increase in patents. An increase in the level of innovation in developed countries has a positive impact on carbon emissions due to transportation if the innovation results from an increase in trademark. As a result, innovation level has a positive effect on carbon emissions due to transportation, and this effect is stronger for developed countries.
This study aims to examine the relationship between military expenditure and environmental sustainability in developed Mediterranean countries: Greece, France, Italy, and Spain. Sustainable economic ...growth is strictly related to energy consumption which leads to producing a higher level of carbon emissions. Besides, there may be a nexus between military expenditures and environmental pollution. This study focuses on developed Mediterranean countries since carbon emissions and greenhouse gas emissions are relatively high in these countries. Furthermore, France and Italy are the top countries in terms of total military spending. We investigate the relationship between military expenditure and carbon emissions using the Global Vector Autoregression model proposed by Pesaran et al. (J Bus Econ Stat 22 129:162, Pesaran et al., J Bus Econ Stat 22:129–162, 2004) and Dees et al. (J Appl Econ 22(1):38, Dees et al., J Appl Econ 22:1–38, 2007) between 1965 and 2019. The empirical findings indicated that the relationship between carbon emission and military expenditure should be taken into account from a global perspective for environmental sustainability, and an increase in the global military expenditure seems to be very harmful to the global environment. It can be concluded that country-based prevention cannot provide the desired solution in combating environmental pollution.
Natural resource-rich countries transfer more sources to military expenditures due to extreme security concerns. As public revenues have declined due to the decline in oil prices, military ...expenditures have been cut in many countries. Nevertheless, this is not valid for all countries. Even in some countries, despite the decrease in oil prices and volatility, military expenditures increase. The aim of this study is to investigate the relationship between volatility in oil prices and military expenditures in GCC countries (United Arab Emirates, Bahrain, Qatar, Kuwait, Saudi Arabia, and Oman). The analysis period was determined differently for each country depending on the availability of data. UAE and Qatar were excluded from the analysis as the defense expenditures data of these countries could not be provided regularly. ARDL model was preferred for the research. According to the bound test results, there is a cointegration relationship between the variables in all countries. Besides, the long-term results showed that the volatility in oil prices in all countries, except for Bahrain, positively affects military expenditures. The error correction model indicated that there is a reverse relationship between oil price volatility and military expenditures. These findings indicated that despite the volatility in oil prices, military expenditures in GCC countries are not reduced.
Empirical findings focusing on the relationship between capital markets and macroeconomic variables are used as data sources in determining policies for the development of the conventional and ...Islamic financial system. The aim of this study is to investigate the existence of volatility spillover effects between foreign exchange markets and Islamic stock markets in three major emerging countries, namely India, Malaysia, and Turkey using daily data for the period 2013–2019. Volatility spillover effects are investigated using the causality-in-variance test developed by Hafner and Herwartz (2006). In order to examine the nature of the relationship between the variables, and whether it changes over time, the time-varying test statistic is estimated using rolling samples. We find evidence in favor of volatility spillovers from the Islamic stock market to the foreign exchange market only in Turkey. The time-varying test results show that the presence of volatility spillover is at least one direction between exchange rates and the Islamic stock market at specific periods.
The environmental effects of urbanization and globalization are still subject to debate among scholars. South Africa is the most globalized, most urbanized and the most carbon-intensive economy in ...Sub Saharan Africa (SSA) region. Taking this into cognizance, this study examines the effects of urbanization and globalization on CO2 emissions for South Africa using time series annual data for the period 1980–2017. Zivot and Andrews single and Bai and Perron multiple structural break unit root tests are employed to assess if all the series are stationary. This procedure follows ARDL cointegration test to check the presence of a long-run association among variables. Having been confirmed about such a cointegrating relation, ARDL short-run and long run coefficients indicate that urbanization induces CO2 emissions while only long-run significant emissions effect of globalization was noted. Toda-Yamamoto non-causality test reports a bi-directional causal link between urbanization and CO2 emissions. No causal link is observed between globalization and CO2 emissions. Variance decomposition results do not rule out these effects in future. Policy implications are discussed.
Global climate change brings environmental quality sensitivity, especially in developed countries. Developed countries use non-renewable energy sources intensively both in their own countries and in ...other countries, they make productions that cause an enormous rate of increase in CO2 emissions and unsustainable environmental costs. This has increased the interest in environmentally friendly alternative energy sources. The aim of this study is to investigate the impact of nuclear energy consumption and technological innovation on environmental quality in G7 countries using annual data over the period 1970–2015. The Panel Threshold Regression Model was used for the analysis. Empirical findings have indicated that the relationship between nuclear energy consumption and carbon emissions differs according to innovation for nuclear power plants. It was also concluded that nuclear energy consumption reduces carbon emissions more after a certain level of innovation. This result shows that the increase in innovative technologies for nuclear power plants not only increases energy efficiency but also contributes positively to environmental quality.
As one of the fundamental health outputs in the health economics literature,
the improvement of life expectancy is one of the variables that positively affect
economic growth. Many papers, ...investigating the relationship between health
expenditure and life expectancy indicated that life expectancy has a positive effect
on health expenditures. This study aims to investigate the relationship between
life expectancy and health expenditures for the period of 2000-2015 in Turkey,
Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.
Panel data approach was used for the study. The results of panel cointegration
analysis indicate that there is a significant bidirectional long-term relationship
between the two variables.
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