This paper empirically examines the inter-linkages between energy consumption and economic growth in top ten energy-consuming countries i.e. China, the USA, Russia, India, Japan, Canada, Germany, ...Brazil, France and South Korea. We use the quantile-on-quantile (QQ) approach of Sim and Zhou (2015) to explore some nuanced features of the energy-growth nexus and to capture the relationship in its entirety. The results show a positive association between economic growth and energy consumption, with considerable variations across economic states in each country. A weak effect of economic growth on energy consumption is noted for the lower quantiles of economic growth in China, India, Germany and France, which suggests that energy as an input has less importance at low levels of economic growth. A weak effect of economic growth on energy consumption is also noted for the highest quantiles of income in the United States, Canada, Brazil and South Korea, which indicates that energy demand decreases with the increase in economic growth as these countries have become more energy efficient. The weakest effect of energy consumption on economic growth is observed at lower quantiles of energy consumption in China, Japan, Brazil and South Korea. The results of the present study can help in the design of energy development and conservation policies for sustainable and long-term economic development.
•This paper examines the interlinkages between energy consumption and economic growth.•The quantile-on-quantile (QQ) approach is applied to explore the energy-growth nexus.•We find a positive association between economic growth and energy consumption.•This study provides the helpful policy guidelines for sustainable economic development.
This paper investigates the role of economic complexity on energy demand using the panel dataset of 25 Organization for Economic Co-operation and Development (OECD) countries from 1978 to 2016. Both ...real per capita income level and economy-wide real energy price index are critical determinants in energy demand modeling. The battery of the cross-sectional dependency test proposed by Pesaran (
2004
and 2007) is used, signaling the presence of cross-sectional dependency in the dataset. Thus, the Westerlund (
2007
) cointegration test is also used, revealing the long-run relationship between the series. Moreover, the results from using the Augmented Mean Group (AMG) estimations illustrate that real per capita income level positively affects energy demand while real energy price and economic complexity negatively influence on it. From a policy perspective, we suggest increasing technological innovation (i.e., higher economic complexity) will reduce the energy demand. The reduction of massive energy usage may be beneficial for the natural environment’s health in the OECD countries.
Using annual data for the period 1971–2012, this study explores the relationship between globalization and energy consumption for India by endogenizing economic growth, financial development and ...urbanization. The cointegration test proposed by Bayer–Hanck (2013) is applied to estimate the long-run and short-run relationships among the variables. After confirming the existence of cointegration, the overall results from the estimation of an ARDL energy demand function reveal that in the long run, the acceleration of globalization (measured in three dimensions — economic, social and overall globalization) leads to a decline in energy demand in India. Furthermore, while financial development is negatively related to energy consumption, economic growth and urbanization are the key factors leading to increased energy demand in the long run. These results have policy implications for the sustainable development of India. In particular, globalization and financial development provide a win–win situation for India to increase its economic growth in the long run and become more environmentally sustainable.
•The impact of globalization on India's energy demand•Long run results show the following•Globalization reduces energy demand•Financial development reduces energy demand•Urbanization increases energy demand
We empirically investigate the dynamic relationship between globalization and CO2 emissions for 87 (high, middle and low-income) countries. We utilize the cross-correlation approach to examine the ...well-known EKC hypothesis between globalization and environmental degradation. The results validate the inverted U-shaped EKC hypothesis for 16 (approximately 18%) from the high- and middle-income countries only, thereby highlighting that a rise in globalization will decrease carbon emissions for these countries in the future. On contrary, the results also confirm the U-shaped relationship between globalization and environmental degradation for 8% of the countries. The remaining countries do not have a U- or an inverted U-shaped relationship between globalization and CO2 emissions. Policy implications are also discussed.
This research is the first comparative attempt incorporating the role of economic, demographic, sectoral contribution, government and trade in explaining financial development for India and China. ...Using time-series estimations, we establish that institutional quality and government size impede financial development, whereas urbanization, industrialization and service sector growth help in financial development for both countries. Trade openness also enhances Indian financial development but hinders Chinese financial development. We suggest that the policy advisers should not underestimate the role of urbanization, industrialization and service sector growth in implementing financial development. Finally, we find that the institutions and governments will play a key role for both economies in enhancing finance and growth.
This paper examines the role of financial globalization, institutions and economic growth on the development of financial sector in European countries. We use panel data covering the period of ...1989−2016. Using the composite index of financial development covers various dimensions of financial market, that is, depth, access and efficiency and four-way classification of institutions as suggested by Rodrik (2005) and Law et al. (2018), the empirical results indicate that economic growth and institutional quality are positively associated with financial development. Contrarily, financial globalization hinders the process of financial sector development. The results are robust to using alternative proxies of economic growth, institutional indicators and capturing the period of financial crisis. These empirical findings suggest policy guidelines to develop financial sector by using globalization, institutional quality and economic growth as economic tools.
This paper uses a new measure of international trade, i.e. the international trade potential index, to measure the welfare gains from trade across countries. The measure is based on the import shares ...of countries in their gross domestic products. It is observed that gains from international trade are low in prosperous economies, but they are larger in poorer economies. Then, the paper investigates the impact of the index of international trade potential on renewable energy consumption in the unbalanced panel dataset of 36 Organisation for Economic Co-operation and Development member countries from 1966 to 2016. The novel evidence is that international trade potential is positively related to renewable energy consumption. It is also found that per capita income, per capita carbon dioxide emissions, and energy prices increase the demand for renewable energy.
•We use a new measure of international trade, the international trade potential index.•We investigate the impact of international trade potential on renewable energy consumption.•We focus on an unbalanced panel dataset of 36 OECD member countries from 1966 to 2016.•International trade potential is positively related to renewable energy consumption.•Per capita income, per capita carbon dioxide emissions, and energy prices increase the demand for renewable energy.
The “globalization‐led financial development” hypothesis of Mishkin (2009) postulates that globalization through the channel of institutional quality can improve financial development in developing ...economies. In this context, our study is motivated to examine the effects of economic globalization and institutional quality on financial development in top and bottom globalized developing countries using the panel data of 1984–2016. We consider a sample of 15 European and Central Asian and 4 South Asian countries as top and bottom globalized developing regions. Economic growth, government investment and inflation are also included as a set of control variables in financial development function. The battery of panel cointegration tests (Pedroni, 2004; Westerlund, 2007) is utilized, indicating the presence of long‐run association between the series. The findings from using Pesaran's et al. (2001) panel Autoregressive Distributed Lag (ARDL) model indicate that economic globalization and institutional quality promote financial development in both the developing regions but the effect of economic globalization on financial development is higher in top globalized developing region than the bottom globalized developing region. Economic globalization also enhances financial market and impedes the development of financial institutions in top globalized developing region, while it performs the opposite in bottom globalized developing region. We find the varying effects of government investment and inflation on financial development, while economic growth enhances it in heterogeneous developing regions. These results are robust across alternative panel techniques. Our findings suggest that economic globalization is an instrument for the policymakers to improve developing countries’ financial development in the long‐run.
Using panel data from 1990-2015 for selected BRICS (Brazil, India, China and South Africa) countries, the study empirically evaluates the role of primary and secondary education levels in curbing ...carbon emissions along with incorporating the changes in the pattern of energy consumption based on renewable and non-renewable energy consumption, real economic growth, urbanization and economic globalization as additional determinants in per capita CO2 emission function. Using random effect and system GMM techniques, the study reveals that primary education and non-renewable energy consumption along with total energy consumption, economic growth and globalization contribute to rising carbon emissions, whereas secondary education, urbanization and renewable energy consumption contribute to improving environmental quality via reducing carbon emissions. From a policy perspective, it suggests that policymakers and governments should put more efforts in promoting investment on higher education levels and expand green cities-driven urbanization, incentivize the society for a massive switch from adoption of non-renewable energy to renewable energy for economic activities in order to achieve sustainable environmental quality in emerging economies.
•The pattern of education levels and energy consumption on CO2 emissions is examined.•The panel data for the period 1990–2015 are used for the selected BRICS economies.•Both primary education and non-renewable energy consumption drive CO2 emissions.•Economic growth and globalization also drive environmental degradation.•Secondary education, urbanization and renewable energy improve environmental quality.
This study examines the factors affecting domestic households' tourism spending in India. The results from using the unconditional quantile regression method show that regular salary earners in India ...spend less on tourism. The likelihood of tourism spending increases with higher education. Female-headed households spend less on tourism than male-headed households, suggesting masculinity in controlling resources. Households at the lower quantile of tourism spending treat tourism as a luxury, but it is a necessity for those at the higher quantiles. We found heterogeneous effects of travel and households' characteristics on tourism spending. We suggest that the Indian government should develop better tourist packages and enhance the resource ownership of women. It will enable the tourist sector in India to attract regular salary earners and increase female participation.
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•Regular salary earners spend less on tourism in India.•Female headed households spend less than the male headed households in tourism.•Tourism is a luxury at the lower quantiles and a necessity for higher quantiles.•Higher education encourages tourism spending.•Heterogeneous effects of travel and households' characteristics on tourism spending.
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