The paper examines the impacts of financial development on sectoral carbon emissions (CO2) for environmental quality in Malaysia. Since the financial sector is considered as one of the sectors that will contribute to Malaysian economy to become a developed country by 2020, we utilize a cointegration method to investigate how financial development affects sectoral CO2 emissions. The long-run results reveal that financial development increases CO2 emissions from the transportation and oil and gas sector and reduces CO2 emissions from manufacturing and construction sectors. However, the elasticity of financial development is not significant in explaining CO2 emissions from the agricultural sector. The results for short-run elasticities were also consistent with the long-run results. We conclude that generally, financial development increases CO2 emissions and reduces environmental quality in Malaysia.
The current study investigates the dynamic relationship between structural changes, real GDP per capita, energy consumption, trade openness, population density, and carbon dioxide (CO2) emissions within the EKC framework over a period 1971-2013. The study used the autoregressive distributed lagged (ARDL) approach to investigate the long-run relationship between the selected variables. The study also employed the dynamic ordinary least squared (DOLS) technique to obtain the robust long-run estimates. Moreover, the causal relationship between the variables is explored using the VECM Granger causality test. Empirical results reveal a negative relationship between structural change and CO2 emissions in the long run. The results indicate a positive relationship between energy consumption, trade openness, and CO2 emissions. The study applied the turning point formula of Itkonen (2012) rather than the conventional formula of the turning point. The empirical estimates of the study do not support the presence of the EKC relationship between income and CO2 emissions. The Granger causality test indicates the presence of long-run bidirectional causality between energy consumption, structural change, and CO2 emissions in the long run. Economic growth, openness to trade, and population density unidirectionally cause CO2 emissions. These results suggest that the government should focus more on information-based services rather than energy-intensive manufacturing activities. The feedback relationship between energy consumption and CO2 emissions suggests that there is an ominous need to refurbish the energy-related policy reforms to ensure the installations of some energy-efficient modern technologies.
This study examines the three-way linkage relationships between CO2 emission, energy consumption and economic growth in Malaysia, covering the 1975-2015 period. An autoregressive distributed lag approach was employed to achieve the objective of the study and gauged by dynamic ordinary least squares. Additionally, vector error correction model, variance decompositions and impulse response functions were employed to further examine the relationship between the interest variables. The findings show that economic growth is neither influenced by energy consumption nor by CO2 emission. Energy consumption is revealed to be an increasing function of CO2 emission. Whereas, CO2 emission positively and significantly depends on energy consumption and economic growth. This implies that CO2 emission increases with an increase in both energy consumption and economic growth. Conclusively, the main drivers of CO2 emission in Malaysia are proven to be energy consumption and economic growth. Therefore, renewable energy sources ought to be considered by policy makers to curb emission from the current non-renewable sources. Wind and biomass can be explored as they are viable sources. Energy efficiency and savings should equally be emphasised and encouraged by policy makers. Lastly, growth-related policies that target emission reduction are also recommended.
Considering the importance of green economic growth and environmental sustainability in the discussion, it is crucial to understand its critical contributing factors and to draw results implications for the green policy. This research used the data of the South Asian Association for Regional Cooperation (SAARC) member countries for a period from 2005 to 2017. It adopted the panel autoregressive distributed lag technique to examine the hypotheses. The findings revealed that environmental sustainability is strongly and positively associated with national scale-level green practices, including renewable energy, regulatory pressure, and eco-friendly policies, and sustainable use of natural resources. Conversely, in our model, the "regulatory pressure" has an insignificant effect on economic growth. A necessary contribution of the present study is that a positive effect of green practices on national scale economic and environmental variables, particularly in the scenario of SAARC member states, can be noticed. At the end of the present study, we have provided policy implications for regulatory authorities and discussed potential areas for future research.
This study attempts to investigate the environment cleanness between the total factor productivity, natural resources and green taxation on Malaysia's clean environment. Using the environmental Kuznets curve (EKC) hypothesis, this study employs the bootstrap quantile estimates based on the annual data series covering the period of 1970-2018 to analyse the quantile effect factors affecting environment cleanness in Malaysia. The empirical estimates of this study reject the EKC hypothesis throughout the quantile levels, while the green taxation shows a negative sign which indicated government fiscal policies are reducing carbon emission in the upper quantiles. There is also homogeneity slope equality effect between total factor of productivity and green taxation on carbon emissions in the middle and upper quantile levels, while natural resources are indication heterogeneity effect on all quantile levels. From the policy point of view, if Malaysia wants to get environment cleanness, there is a need for comprehensive policies of total factor of productivity with environment innovation-friendly and technological improvement in all major economic sectors of the country.
The broad purpose of this study is to empirically explore the impact of globalization and financial development on environmental pollution by carbon (CO2) emissions in the six Middle East and North Africa (MENA) countries using balanced panel data from 1971 to 2015. We also aimed to test the legitimacy of the environmental Kuznets curve (EKC) hypothesis for this region. The fixed-effects approach preferred by the Hausman specification test is used to estimate the empirical model, and the feasible generalized least squares (F.G.L.S.) estimator is employed to cope with any issue of heteroscedasticity and serial correlation. This study found that globalization and financial development have adverse and significant effects on environmental degradation and affirm the legitimacy of the EKC hypothesis for these countries. The finding of this study suggests that the governments of MENA countries should design and implement appropriate policies for strengthening the renewable sources of energy like wind, solar, bio-fuel, and thermal to decrease CO2 emissions and boost sustainable economic development. The policymakers should focus on the efficiency of institutions and enhancement of energy-saving projects in this region.
The study aims to analyze two objectives: first is to explore the non-linear relationship between tourism development, economic growth, urbanization, and environmental degradation, and also to analyze the threshold level of the contribution of tourism development on environmental degradation in top tourist arrival destinations. We applied the newly proposed econometric method panel smooth transition regression (PSTR) framework with two regimes on yearly panel data from 1995 to 2017. Findings suggest that the relationship between tourism development and environmental degradation is non-linear and regime dependent. Furthermore, the findings indicated that the relationship above the threshold level is negative and significant, while below the threshold, tourism development is positive and significant effect on environmental degradation. Tourism development and environmental degradation also exhibit the inverted U-shape relationship meaning that at a particular point, increase in tourism development increases in environmental degradation but after a particular point, increase in tourism development decreases the environmental degradation. The economic growth and urbanization also portray a non-linear and regime-dependent relationship with environmental degradation. The study assists policies and empirical information.
For an economy to excel in growth, there is usually a trade-off between financial development and environment deterioration. For a country like Singapore, which has shown a radical growth and is known for its population density, it is important to explore the role of green technology innovation in the pursuit of economic excellence with the least possible cost to the environment. By employing the novel bootstrap autoregressive-distributed lag (BARDL) technique using a time series data from 1990 to 2018, the results reported a positive and significant relationship of green technology innovation with economic growth and negative and significant relationship with carbon emissions in both long run and short run. Based on the findings, several managerial implications were discussed, whereas based on the limitations, directions for future researchers are also given.
The study aims to address the dynamic common correlated effects of trade openness, FDI, and institutional performance on environmental quality in OIC countries. Mostly, pollutants like CO2 and SO2 emissions are considered as the environmental indicators. However, for this study, we have selected ecological footprint as the indicator of environmental quality. The new econometric approach Dynamic Common Correlated Effects (DCCE) by Chudik and Pesaran (2015) has been used to measure the cross-sectional dependence among cross-sectional units. Results confirm that previous techniques for long panel data, like MG and PMG, give ambiguous outcomes in the presence of cross-sectional dependence. According to DCCE estimation, trade openness, FDI, and urbanization have a positive and significant relationship with ecological footprint while a significant and negative association is found between institutional performance and ecological footprint. The OIC countries must encourage green technology, clean production, and improved institutions for sustainable development and better environmental quality.
INTRODUCTION: Biomedical research has traditionally been the domain of developed countries. We aim to study the effects of the increased focus on biomedical and medical research on level 1-4 publications in several industrialised and newly industrialised countries endowed with petroleum and gas resources.
METHODS: We identified all level 1-4 publications from 01/01/1994 to 31/12/2013 via PubMed using advanced options. The population and GDP (current US$) data from 1994-2013 were obtained through data provided by the World Bank and the raw data was normalised based on these two indicators.
RESULTS: From 1994-2013, Saudi Arabia and Malaysia were responsible for the highest absolute number of level 1 to 4 biomedical and medical research publications with 2551 and 1951 publications respectively. When normalised to population, Kuwait and Qatar had the highest publication rates, with 7.84 and 3.99 publications per 100,000 inhabitants respectively in a five yearly average. Kuwait produced the largest number of publications per billion (current US$) of GDP, at 2.92 publications, followed by Malaysia at 2.82 publications in a five yearly average.
CONCLUSION: The population size of a country as well as GDP can influence the number of level 1-4 publications in some countries. More importantly, effective government policy which stimulates research as well as a culture which actively promotes research as shown by Malaysia have proven to have a larger influence on the amount of level 1-4 biomedical and medical publications.
The energy-growth nexus has important policy implications for economic development. The results from many past studies that investigated the causality direction of this nexus can lead to misleading policy guidance. Using data on China from 1953 to 2013, this study shows that an application of causality test on the time series of energy consumption and national output has masked a lot of information. The Toda-Yamamoto test with bootstrapped critical values and the newly proposed non-linear causality test reveal no causal relationship. However, a further application of these tests using series in different time-frequency domain obtained from wavelet decomposition indicates that while energy consumption Granger causes economic growth in the short run, the reverse is true in the medium term. A bidirectional causal relationship is found for the long run. This approach has proven to be superior in unveiling information on the energy-growth nexus that are useful for policy planning over different time horizons.
This novel research is an argumentative subject which was needed to be addressed and to fill this gap, the author examined the effect of financial development, information and communication technology, and institutional quality on CO2 emission in Pakistan by using quantile autoregressive distributed lag (QARDL) model. The data were obtained for the period from 1995Q1 to 2018Q4. In the long run, GDP and institutional quality have a positive impact on CO2 emission when this emission is already high, which shows that if the GDP and institutional quality increases, the CO2 emission also increases. Moreover, financial development and ICT has a negative impact on CO2 emission irrespective of emission level that whether it is high or low in the country, which shows that if financial enhancement and ICT increases, carbon emission decreases. The study also supported the EKC hypothesis in Pakistan.
The current study explores the relationship between water resources and tourism in South Asia for the period of 1995-2017. The study employs the CIPS unit root test for stationarity of the variables and the CD test for cross-sectional dependence among cross-sectional units. As for the long-run parameters, a novel technique, known as dynamic common correlated effect (DCCE) model, is used which was recently developed by Chudik and Pesaran (J Econ 188:393-420, 2015b). The outcomes from the DCCE method suggest that water resources have a positive impact on tourism in South Asia. It is also proven that ignoring cross-sectional dependence among the cross-sectional units may bring about misleading outcomes. The findings of the study can be helpful for policymakers to understand the role of water resources in boosting tourism and contributing to the economic prosperity of South Asian countries.
This study examines the association between transportation services (i.e., passenger and freight) and carbon emissions concerning the US economy. The monthly data for this study were collected for the period from 2000 M1 to 2019 M8. In this study, QARDL econometric approach as discussed by Cho et al. (2015) has been used to tests the relationship between transportation services and CO2 emissions. Due to the chaotic and nonlinear behavior of our concerning variables, it was quite difficult to gauge the principle properties of their variations. Therefore, we relied on QARDL, which has been missing in previous researches. By utilizing the QARDL method, this research assesses the long-term stability of the nexus across the quantiles to provide an econometric framework that is more flexible than the traditional ones. In particular, the authors have analyzed how the quantiles of transportation (i.e., passenger and freight) influence the quantiles of CO2 emissions (environmental degradation). The empirical evidence revealed the negative significant relationship of both the transportation system (i.e., passenger and freight) with carbon emissions; however, this relationship holds at low quantiles of freight transport, whereas the same relationship has been observed at the majority of quantiles of passenger transport. So, this depicts that the transportation system of the USA helps to reduce CO2 emissions. Therefore, to maintain this situation, the government shall introduce more technologies that are fuel-efficient and promote clean consumption, thus reducing CO2 emissions, boosting economic growth, and making green transportation services.
This paper uses the quantile autoregressive distributed lag (QARDL) model to analyze the impact of economic growth, tourism, transportation, and globalization on carbon dioxide (CO2) emissions in the Malaysian economy. The QARDL model is employed utilizing quarterly data from 1995Q1 to 2018Q4. The results demonstrate that economic growth is significantly positive with CO2 emissions at lower to upper quantiles. Interestingly, tourism has a negative effect on CO2 emissions at higher quantiles. Moreover, globalization and transportation services are positive, with CO2 emissions at upper-middle to higher quantiles. Furthermore, we tested the environmental Kuznets curve, and the outcomes confirm the presence of the inverted U-shaped curve in the Malaysian economy. The results of this study suggest that ecotourism is beneficial for economic growth in underdeveloped areas; it increases employment opportunities and, thus, achieves a win-win situation for protection and development. The government should encourage the low-carbon development of ecotourism and achieve green development of both tourism and the economy.
Green finance is inextricably linked to investment risk, particularly in emerging and developing economies (EMDE). This study uses the difference in differences (DID) method to evaluate the mean causal effects of a treatment on an outcome of the determinants of scaling up green financing and climate change mitigation in the N-11 countries from 2005 to 2019. After analyzing with a dummy for the treated countries, it was confirmed that the outcome covariates: rescon (renewable energy sources consumption), population, FDI, CO2, inflation, technical corporation grants, domestic credit to the private sector, and research and development are very significant in promoting green financing and climate change mitigation in the study countries. The probit regression results give a different outcome, as rescon, FID, CO2, Human Development Index (HDI), and investment in the energy sector by the private sector that will likely have an impact on the green financing and climate change mitigation of the study countries. Furthermore, after matching the analysis through the nearest neighbor matching, kernel matching, and radius matching, it produced mixed results for both the treated and the untreated countries. Either group experienced an improvement in green financing and climate change mitigation or a decrease. Overall, the DID showed no significant difference among the countries.
The Belt and Road Initiative (BRI) is closely linked to the ecological sustainability of the infrastructure ventures that intrinsically include the aspects of climate change and pollution. Though there exists literature on the environmental Kuznets curve (EKC) and pollution haven hypothesis (PHH), very few explore the scope in the light of Belt and Road host countries (B&RCs). Therefore, the study examines the income-induced EKC and Chinese outward foreign direct investment (FDI)-based PHH in the multivariate framework of people's connectivity and technology innovation in B&RCs from 2003 to 2018. The outcome of the study reveals that the observed relationship is quantile-dependent, which may disclose misleading results in previous studies using traditional methodologies that address the averages. Utilizing the novel "Method of Moments Quantile Regression (MMQR)" of Machado and Silva (J Econom 213:145-173, 2019), the findings confirm an inverted U-shape association between economic growth and CO2 emissions only at lower to medium emission countries, thus validating the EKC hypothesis. The Chinese outward FDI flows increase carbon emissions at medium to high emission countries, thereby confirming PHH. The findings also indicate that people's connectivity contributes to increasing emissions while innovation mitigates carbon emissions at lower to medium polluted countries. Moreover, the outcomes of Granger causality confirm one-way causality between economic growth and CO2 emissions, between FDI and CO2 emissions, between people's connectivity and CO2 emissions, and between innovation and CO2 emissions. The results offer valuable insight for legislators to counteract CO2 emissions in B&RCs through innovation-led energy conservation in infrastructure projects while adopting green and sustainable financing mechanisms to materialize mega construction projects under the BRI.
Economic integration in the form of Belt and Road Initiative project opens many opportunities and hazards, especially of the participating nations' environment. The current study attempted to empirically test the economic and energy usage (renewable and non-renewable) impact on some selected countries of belt and road projects. For this purpose, the panel data set of twenty-four emerging economies of belt and road projects was selected from 1995 to 2014. The autoregressive distributed lags technique of econometric applied to determine the effect of renewable and non-renewable energy, GDP and GDP2 for EKC, and gross fixed capital formation on carbon emission in the selected countries of Belt and Road Initiative project. The outcomes of this study confirm the existence of EKC in these underlined countries. Here, fossil fuel-based energy consumption is a source of environmental degradation, while renewable and clean energy usage can help sustain environmental conditions without affecting economic growth progress. Capital fixed formation in these economies can enhance economic growth and help to sustainable environmental conditions in the belt and road countries. Thus, based on these empirical outcomes, this study suggests economic and financial assistance in green renewable energy sources and clean technological innovation to enhance economic benefits of Belt and Road Initiative project without compromising the environmental conditions of the region.
Given the economic growth and energy consumption patterns, most countries are striving to solve the problems of CO2 emissions reduction to achieve sustainable development. This paper employs an improved DEA model to measure energy and environmental efficiency for some selected countries in central and western Europe. In addition, the DEA window evaluation technique is applied to measure cross-sectional efficiency using two inputs (energy consumption, labor force), a desirable output (gross domestic product), and an undesirable output (CO2 emission) for the period from 2010 to 2014. The study finds that the UK ranks the highest position in term of energy and environmental efficiency. This shows that the UK has more effective policies regarding energy efficiency, consumption, production, import and energy intensity measures for sustainable economic growth as well as environmental protection. Ireland is the second-best country after the United Kingdom. The efficiency scores of the two countries are 0.99 and 0.89 respectively. On the empirical outcomes, this study suggests effective reforms in energy sector for countries with less energy efficiency that are still facing the problem of environmental degradation.
Greenhouse gasses have adverse effects on global warming and air pollution and need to be optimized by minimizing the contributing factors. This work analyzes the effects of economic growth and energy resources (renewable and nonrenewable) on the emissions of greenhouse gasses (GHG). A 2000-2016 panel data from 25 developing Asian countries is analyzed through a robust Random Effect (RE) approach and Hausman Taylor Regression (HTR). Findings show a positive correlation between economic growth and energy consumption, while a 1% increase in renewable energy consumption results in a 0.193% decrease in carbon emissions. Economic growth and renewable energy are positively correlated in both the short and long term, which implies a valid feedback hypothesis. The findings indicate the significant contribution of nonrenewable energy resources to greenhouse gas emissions and the positive impact of renewable resources on greenhouse gas emissions' control. Furthermore, this study highlights the potential of developing Asian economies to preserve the environment through more robust regional environmental policies and renewable energy resources. In light of this study's findings, policymakers in Asian developing economies should develop policies on Renewable Energy infrastructure (RE) to improve GDP and reduce greenhouse gas emissions.