This work aims to contribute to the existing literature by investigating at the impact of financial development on ecological footprint. To achieve this goal, we have employed Driscoll-Kraay panel ...regression model for a panel of 59 Belt and Road countries in the period from 1990 to 2016. The findings suggest that financial development increases ecological footprint. Moreover, economic growth, energy consumption, foreign direct investment (FDI), and urbanization pollute the environment by increasing ecological footprint. In addition, several diagnostic tests have been applied to confirm the reliability and validity of the results. From the outcome of the study, various policy implications have been proposed for Belt and Road countries to minimize the ecological footprint.
This study examines the impact of energy consumption, financial development, globalization, economic growth, and urbanization on carbon dioxide emissions in the presence of Environmental Kuznets ...Curve (EKC) model for BRICS economies, by using a family of econometric techniques robust to heterogeneity and cross-sectional dependence. Results from LM test, CIPS and CADF unit root test, Westerlund Cointegration test, the Dynamic seemingly unrelated regression (DSUR), and Dumitrescu-Hurlin Granger causality test show that (i) the data is cross sectionally dependent and heterogeneous; (ii) carbon dioxide emissions, energy consumption, financial development, globalization, economic growth, square of GDP and urbanization have integration of order one; (iii) the examined variables are co-integrated; (iv) energy consumption and financial development contribute to the carbon dioxide emissions whereas globalization and urbanization have negative but insignificant relationship with carbon dioxide emissions; (v) supports the EKC hypothesis in BRICS economies; (vi) bidirectional causality exists among energy consumption, financial development, economic growth and square of GDP with carbon dioxide emissions whereas globalization and urbanization have unidirectional relationship with carbon dioxide emissions. Since these panel techniques account for heterogeneity and cross-sectional dependence in their estimation procedure, the empirical results are robust and reliable for policy recommendations. Furthermore, this study also uses time series tests (ADF, P-P, and FMOLS) to find the empirical results for each of the country and finds mixed results. Empirical findings directed towards some important policy implications.
It is widely discussed that greenhouse gases (GHGs) are the main culprit behind global warming. The conventional energy sources (oil, coal, and gas) mainly realize GHGs in the atmosphere. Due to ...this, the world's countries are switching towards clean energy sources and investing more in projects related to innovation in the energy sector. Thus, this study investigates the role of energy innovation in combating GHGs emissions by taking the environmental Kuznets curve for BRICS economies. The FMOLS and DOLS estimators are employed throughout 1996-2016. The findings documented that energy innovation plays an important role in mitigating GHGs emissions. Moreover, the result strongly approves the EKC hypothesis for BRICS countries in the significance of energy innovation. Finally, it is recommended that expanding the public budget in energy R&D expenditures can help to reduce GHG emissions and promote sustainable growth in BRICS countries.
This study investigates the impact of Internet use, financial development, economic growth, and trade openness on carbon dioxide (CO
2
) emissions in selected European Union (EU) countries. To this ...end, pooled mean group (PMG) estimator is utilized for panel data from 2001 to 2014. Empirical findings suggest that Internet use has long-run relationship with CO
2
emissions and lowering the environmental quality in EU countries. Also, the electricity consumption has a positive and significant effect on CO
2
emissions. Moreover, interestingly, economic growth and financial development have a diminishing negative impact on CO
2
emission. Heterogeneous panel Granger causality results suggest unidirectional causality running from Internet use to CO
2
emissions. The finding implies that the European Union countries did not achieve the level of green information and telecommunication (ICTs) consumption. Overall, the innovative findings indicate that Internet use is raising the threat to the sustainable development. Thus, to curb and mitigate CO
2
emissions from Internet use and electricity consumption is the need of time to maintain the sustainable development in EU countries.
The focus of the present research work is to investigate the dynamic relationship between economic growth, road transport energy consumption, and environmental quality. To this end, we rely on time ...series data for the period 1971 to 2014 in the context of Pakistan. To use sulfur dioxide (SO
2
) emission from transport sector as a new proxy for measuring environmental quality, the present work employs time series technique ARDL which allows energy consumption from the transport sector, urbanization, and road infrastructure to be knotted by symmetric relationships with SO
2
emissions and economic growth. From the statistical results, we confirm that road infrastructure boosts economic growth. Simultaneously, road infrastructure and urbanization hampers environmental quality and causes to accelerate emission of SO
2
in the atmosphere. Furthermore, economic growth has a diminishing negative impact on total SO
2
emission. Moreover, we did not find any proof of the expected role of transport energy consumption in SO
2
emission. The acquired results directed that care should be taken in the expansion of road infrastructure and green city policies and planning are required in the country.
The linkage between financial development and energy consumption is widely investigated in the literature. However, the non-linear relationship between financial development and energy demand is ...still under debate. Therefore, this study aims to examine the non-linear relationship between financial development, economic growth, and energy consumption in OECD countries. The study uses the Driscoll–Kraay standard errors panel regression model for spanning from 1980 to 2016. The empirical findings indicate that an inverted U-shape relationship exists between financial development and energy consumption as well as between economic growth and energy consumption. Moreover, the feedback hypothesis is found between financial development and energy use. Additionally, income and energy use granger cause each other. The innovative findings contribute to extant literature, which is of special interest to the country’s policymakers regarding energy efficiency.
The income inequality and emissions nexus have been a hot issue of debate among scholarly circles. However, the effect of income inequality coupled with renewable energy on consumption‐based carbon ...dioxide (CO2) emissions has not been addressed adequately in the recent literature. This study fills the auspicious gap in the literature by investigating the impacts of income inequality and renewable energy on consumption‐based CO2 emissions for BRICS economies. Considering the unique features of income distributions, two proxies of income inequality: the Gini index and income earned by the top 10%, are utilized to understand the various analytical approaches. To yield consistent and reliable estimates several panel data estimation techniques are employed for the period from 1994 to 2018 for BRICS economies. Empirical results reveal that income inequality contributes to consumption‐based CO2 emissions in the atmosphere. However, renewable energy helps in reducing consumption‐based CO2 emissions. Based on the empirical findings, the study suggests important policy implications for BRICS countries to control the environmental impacts.
This study examines the contribution of financial development to environmental degradation in Saudi Arabia in the period from 1971 to 2016, controlling the model for globalization and electricity ...consumption. The autoregressive distributive lag (ARDL) and vector error correction methods (VECM) are applied to the long-run and causal relationship, respectively. Empirical results indicate that financial development contributes to CO
2
emissions and degrades environmental quality. The results also show that the role of globalization in environmental degradation is insignificant and that electricity consumption is the main culprit behind the growing CO
2
emissions in Saudi Arabia. In addition, bidirectional causality exists between globalization and CO
2
emissions in the long run, and financial development and CO
2
emissions Granger-cause each other. Insights from the study help policymakers to understand the roles of financial development and globalization in environmental degradation and to comply with global mandate for the reduction of CO
2
emissions.
In the modern era of the wave of globalization, financial development is leading toward a higher rate of economic expansion and promoting energy innovation around the globe. Nevertheless, ...environmental impact of financial development has preoccupied government officials to circumvent adverse impact on environmental quality. Thus, this paper examines the nexus between financial development, economic growth, energy innovation, and environmental pollution for the period of 1990–2017 for the panel of Organization for Economic Cooperation and Development (OECD) countries. To obtain robust and unbiased results, this study utilizes Pooled Mean Group Autoregressive Distributed Lag (PMG/ARDL) estimator that counters the issue of heterogeneity and cross‐sectional dependence. Empirical evidence suggests that financial development promotes energy innovation and improves environmental quality. Globalization also has a long‐term relationship with energy innovation and reduces greenhouse gas (GHG) emissions. Moreover, findings validate the environmental Kuznets curve for OECD countries in the significance of financial development, globalization, and energy innovation.
The objective of this research is to examine the relationship between transport energy consumption, economic growth, and carbon dioxide emission (CO
2
) from transport sector incorporating foreign ...direct investment and urbanization. This study is carried out in Pakistan by applying autoregressive distributive lag (ARDL) and vector error correction model (VECM) over 1990–2015. The empirical results indicate a strong significant impact of transport energy consumption on CO
2
emissions from the transportation sector. Furthermore, foreign direct investment also contributes to CO
2
emission. Interestingly, the impact of economic growth and urbanization on transport CO
2
emission is statistically insignificant. Overall, transport energy consumption and foreign direct investment are not environmentally friendly. The new empirical evidence from this study provides a complete picture of the determinants of emissions from the transport sector and these novel findings not only help to advance the existing literature but also can be of special interest to the country’s policymakers. So, we urge that government needs to focus on promoting the energy efficient means of transportation to improve environmental quality with less adverse influence on economic growth.
