Environmental consequences of population, affluence and technological progress for European countries: A Malthusian view

A comparative analysis of the relationship between innovation and transport sector carbon emissions in developed and developing Mediterranean 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.

Dynamic Nexus between Technological Innovation and Building Sector Carbon Emissions in the BRICS Countries

The greatest contribution to global CO₂ emissions comes from the BRICS countries (Brazil, Russia, India, China, and South Africa). The building sector in these countries is one of the sectors that increases CO₂ emissions significantly. Increasing CO₂ emissions in the building sector adversely affects sustainable development. Therefore, measures to mitigate environmental damage become substantially important. Improvements in technological innovation can be among the measures considered to mitigate CO₂ emissions. In this study, the effects of technological innovation on the carbon emissions caused by the building sector are examined by panel data methods for the BRICS countries in the period 1992-2018. It has been observed that there is a long-term relationship between the series. As the results of Dynamic Common Correlated Effects indicated, increased technological innovation reduces carbon emissions. This result is meaningful to encourage investments related to technological innovation.

Does green financing help to improve environmental & social responsibility? Designing SDG framework through advanced quantile modelling

Striving to achieve the Sustainable Development Goals (SDGs), countries are increasingly embracing a sustainable financing mechanism via green bond financing. Green bonds have attracted the attention of the industrial sector and policymakers, however, the impact of green bond financing on environmental and social sustainability has not been confirmed. There is no empirical evidence on how this financial product can contribute to achieving the goals set out in Agenda 2030. In this study, we empirically analyze the impact of green bond financing on environmental and social sustainability by considering the S&P 500 Global Green Bond Index and S&P 500 Environmental and Social Responsibility Index, from October 1, 2010 to 31st July 2020 using a combination of Quantile-on-Quantile Regression and Wavelet Multiscale Decomposition approaches. Our results reveal that green financing mechanisms might have gradual negative transformational impacts on environmental and social responsibility. Furthermore, we attempt to design a policy framework to address the relevant SDG objectives.

The impact of innovation on environmental quality: Evidence for the non-linear relationship of patents and CO2 emissions in China

We seek to test whether innovation, measured by the number of accepted patents improves or worsens the environment in China. We hypothesize the existence of an inverse U-shaped curve, which differs by industry and provincial level of development. In that context, we test for a quadratic relationship between accepted patents and CO2 emissions per capita in 30 provinces and 32 economic sectors of China. We use a novel fixed effect panel data quantile (FEQR) regression estimator and differentiate between energy-intensive and non-energy intensive sectors, as well as between more and less-developed provinces of China. We find evidence for an inverse U-shaped relation between patent generation and CO2 emissions for both, more and less energy-intensive sectors, suggesting that at low levels of innovation new technologies tend to be "dirty", but at high levels of innovation new technologies tend to be "green". The same relationship holds for less-developed provinces as well. For more-developed provinces, we find the opposite relation, which we explain with a "rebound effect".

Convergence in renewable energy sources diffusion worldwide

The diffusion of renewable energy sources (RES) is a fundamental objective of the worldwide policy actions for sustainable development, at the UN level with the sustainable development goals (SDG) recommendations, to ensure access to affordable, reliable, sustainable and modern energy for all (SDG 7). Also, primary attention to RES has been given at the EU level with the new Green Deal and the new objectives of the Next Generation EU after the Covid pandemic, and at the level of national Governments worldwide. So far, there has not been an analysis of the RES convergence process across countries worldwide, given that the issue of climate change is a global externality. Previous analyses have focused on specific regions, such as EU, OECD, provinces of China. This paper fills this gap, providing new evidence on the convergence process of RES for the 176 countries that account for more than 98% of the world population, from 1990 to 2018. A common panel data set has been used to take into account countries' specific effects. Several socio-economics and political variables are introduced to test conditional convergence such as openness to trade, developments in financial markets, income distribution, level of education. The results of this new contribution reveal that there is evidence of sigma-absolute and conditional beta-convergence process for several groups of countries. Moreover, the conditional convergence analysis shows that spatial spillover effects exert rich and complex impact on convergence speed. Finally, we provide policy recommendations, highlighting that the decarbonization target in 2050 needs additional mobilization of public and private resources to pursue a common, convergence path worldwide.

The role of economic policy uncertainty in the energy-environment nexus for China: Evidence from the novel dynamic simulations method

Even though a great number of researches have explored the determinants of carbon emissions, the impact of economic policy uncertainty (EPU) on the environment has not been fully investigated in the energy-environment literature. Since recent studies show a strong relationship between the external environment and uncertainty, the present study for the first time in the literature aims to explore the function of EPU in the energy-environment nexus for China by using the novel bounds testing with dynamic simulations. The empirical results indicate that increases in the real income and energy intensity contribute to environmental pollution while increases in renewable energy lower the level of emissions. Besides, an increase in EPU causes an increase in the volume of carbon emissions. As EPU increases, the government's attention to implement environmental protection policies decreases, and the execution of the environment-related strategies is likely directed in an expected way. The empirical findings suggest that the government should establish consistency in economic and environmental policies to mitigate environmental pollution and thus to reach environmental sustainability.

Renewable Energy, Economic Growth and Economic Development Nexus: A Bibliometric Analysis

The present research aims to conduct a systemic review on Renewable Energy, Economic Growth and Economic Development and look for links between the papers published between 2008 and May 2021. Using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) methodology, it was possible to reach a sample of 111 articles selected by Web of Science and a sample of 199 academic articles selected by Scopus in that specific period. The analysis of the group of Renewable and Non-renewable Energy Consumption, Economic Growth and Economic Development shows that most of the articles published in this subsample use the quantitative methodology in economic sciences. The results indicate that research on the subject has a growing trend and that most of the articles are post-2015 publications. In addition, China has been the leading nation in published works. The journal Renewable and Sustainable Energy Reviews is considered the most relevant in this category, and Sustainability has the most publications. Finally, a research gap was identified to be explored, lacking studies aimed at understanding the consumption of renewable energies and economic development and studies that focus on renewable energies and economic growth in less developed economies.

Spatial Disparity and Influencing Factors of Coupling Coordination Development of Economy-Environment-Tourism-Traffic: A Case Study in the Middle Reaches of Yangtze River Urban Agglomerations

In the process of rapid development of economic globalization and regional integration, the importance of urban agglomeration has become increasingly prominent. It is not only the main carrier for countries and regions to participate in international competition, but also the main place to promote regional coordination and sustainable development. Coordinated economic, environmental, tourism and traffic development is very necessary for sustainable regional development. However, the existing literature lacks research on coupling coordination of the Economy-Environment-Tourism-Traffic (EETT) system in urban agglomeration. In this study, in order to fill this gap, we establish the index system from four dimensions of economy, environment, tourism and traffic, and select the influencing factors from the natural and human perspectives to exam the spatio-temporal changes and influencing factors in the coupling coordination of the EETT system using an integrated method in the Middle Reaches of Yangtze River Urban Agglomerations (MRYRUA), China. The results indicate that the coupling coordination degree of the EETT system transitioned from the uncoordinated period to the coordinated period, while it showed an increasing trend on the whole from 1995 to 2017. The spatial agglomeration effect has been positive since 2010, while "High-High" and "Low-High" agglomeration regions were transferred from the east to the south. Land used for urban construction as a percentage of the urban area and vegetation index has a great impact on the coupling coordination degree. These results provide important guidance for the formulation of integration and coordinated development policy in the MRYRUA, and then increase China's international competitiveness by improving the contribution of urban agglomerations to GDP.

Does Foreign Direct Investment Influence Renewable Energy Consumption? Empirical Evidence from South Asian Countries

In selected South Asian countries, the study intends to investigate the relationship between urban population (UP), carbon dioxide (CO2), trade openness (TO), gross domestic product (GDP), foreign direct investment (FDI), and renewable energy (RE). Fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) models for estimation were used in the study, which covered yearly data from 1990 to 2019. We used Levin–Lin–Chu, Im–Pesaran–Shin, and Fisher PP tests for the stationarity of the variables. The outcomes of the panel cointegration approach looked at whether there was a long-run equilibrium nexus between selected variables in Pakistan, Bangladesh, India, and Sri Lanka. The FMOLS approach was also used to assess the relationship, and the results suggest that there is a significant and negative nexus between FDI and renewable energy in south Asian nations. The study’s findings reveal a strong and favorable relationship between GDP and renewable energy use. In South Asian nations (Sri Lanka, Pakistan, India, and Bangladesh), the FMOLS and DOLS findings are nearly identical, but the authors used the DOLS model for robustification. According to the findings, policymakers in South Asian economies (Sri Lanka, Pakistan, India, and Bangladesh) should view GDP and FDI as fundamental policy instruments for environmental sustainability. To reduce reliance on hazardous energy sources, the government should also reassure financial sectors to participate in renewable energy.

Impact of Covid-19 outbreak on Turkish gasoline consumption

This paper investigates the effects of Covid-19 outbreak on Turkish gasoline consumption by employing a unique data set of daily data covering the 2014-2020 period. Forecast performance of benchmark ARIMA models are evaluated for both before and after the outbreak. Even the best-fit model forecasts fail miserably after the Covid-19 outbreak. Adding volatility improves forecasts. Consumption volatility increases due to the outbreak. Policies targeting volatility can reduce adverse impacts of similar shocks on market participants, tax revenues, and vulnerable groups.

Carbon emissions determinants and forecasting: Evidence from G6 countries

We examine the explanatory and forecasting power of economic growth, financial development, trade openness and FDI for CO₂ emissions in major developed economies within the context of the debate on curbing CO₂ emissions Post-Paris Agreement (COP21). Using data from G-6 countries from 1978 to 2014 and employing a set of empirical approaches, we find weak evidence of the Environmental Kuznets Curve, while economic growth, capital market expansion, and trade openness are found to be major drivers of carbon emissions. Carbon emissions are also weakly and negatively affected by stock market capitalization and FDI. Moreover, the forecasting performance is quite good, particularly by augmenting the model with energy consumption and oil prices. With respect to climate commitments, our empirical findings reveal important policy implications.

Fuel subsidies and carbon emission: evidence from asymmetric modelling

It is expected that fuel subsidy removal should hinder carbon emissions growth through low energy consumption channels amid higher energy prices. However, outliers in this theoretical disposition make empirical proof of the fuel subsidy-carbon intensity apt and primitive. Despite established fuel subsidy abolishment gains for climate and economic welfare, the relevance, magnitude and policy implications remain dimly. This paper employs the non-linear autoregressive distributed lag (NARDL) estimation procedure to gauge the contemporaneous influence of fuel subsidy for carbon intensity in Nigeria. Findings revealed that fuel subsidy removal inversely relates to Nigeria's carbon emission in the short run and long run. The study recommends a complementary policy option that ensures additional financial savings to the government should be invested in public sector growth that can cushion the effect of relative income loss to the citizenry. The Nigerian government should ensure measures are kept in place to discourage overconsumption of alternative energy (for example coal) that could also threaten the green economy paradox.

The role of financial efficiency in renewable energy demand: Evidence from OECD countries

This study searches the role of the financial system efficiency in renewable energy demand for the case of the 36 OECD countries. Numerous financial system proxies are used between 1990 and 2017. Results show that financial system proxies generally are poorly linked to the renewable energy demand of the OECD member states. Although the coefficient of the overall financial development proxy is positively significant for renewable energy demand, the coefficients of financial efficiency are insignificant. The present study finds significant effects of the overall financial markets and institutions on renewable energy demand; however, any vital link between financial system efficiency and renewable energy demand could not be obtained in the OECD countries. Policy implications regarding this major finding are provided in the current study.

Economic Role of Population Density during Pandemics-A Comparative Analysis of Saudi Arabia and China

As a novel infection with relatively high contagiousness, the coronavirus disease emerged as the most pertinent threat to the global community in the twenty-first century. Due to Covid-19's severe economic impacts, the establishment of reliable determining factors can help to alleviate future pandemics. While a population density is often cited as a major determinant of infectious cases and mortality rates, there are both proponents and opponents to this claim. In this framework, the study seeks to assess the role of population density as a predictor of Covid-19 cases and deaths in Saudi Arabia and China during the Covid-19 pandemic. With high infectivity and mortality being a definitive characteristic of overpopulated regions, the authors propose that Henry Kissinger's population reduction theory can be applied as a control measure to control future pandemics and alleviate social concerns. If high-density Chinese regions are more susceptible to Covid-19 than low-density Saudi cities, the authors argue that Neo-Malthusian models can be used as a basis for reducing the impacts of the coronavirus disease on the economic growth in countries with low population density. However, the performed correlation analysis and simple linear regression produced controversial results with no clear connection between the three studied variables. By assessing population density as a determinant of health crises associated with multiple socio-economic threats and epidemiological concerns, the authors seek to reinvigorate the scholarly interest in Neo-Malthusian models as a long-term solution intended to mitigate future disasters. The authors recommend that future studies should explore additional confounding factors influencing the course and severity of infectious diseases in states with different population densities.

Socially responsible investing: from the ethical origins to the sustainable development framework of the European Union

In this work, we present an overview of the historical development of socially responsible investing (SRI). We will argue that such a financial activity has been boosting in recent decades from a niche, mainly as a religious-led exclusionary practice, towards a mainstream strategy of risk analysis for institutional and retail investors. We also discuss the advances and possible drawbacks that regulatory activity and harmonization process on such industry have achieved at international level in recent years, with a special focus on the European Union. The study shows that the lack of a globally accepted taxonomy on what constitutes sustainable activities, of regulatory clarity and of high-quality data allowing for comparisons across industries and regions, together with practical and behavioural complexities are major critical issues that discourage SRI industry at the global level.

Does technology advancement reduce aggregate carbon dioxide emissions? Evidence from 66 countries with panel threshold regression model

The influence of technology advancement on carbon dioxide (CO₂) emissions is complex and controversial, yet existing literature ignores the level of economic development in regard to its influential effect. With the panel threshold regression model, this research investigates the marginal and non-linear impacts of technology advancement on CO₂ emissions along with the changes of economic development and presents the heterogeneity between different countries. The results are as follows: First, technology advancement and CO₂ emissions have a non-linear inverted U-shaped relationship, which is significantly affected by different levels of economic development. When economic development exceeds a certain threshold, the impact turns from positive to negative. Second, the impact varies remarkably among different countries. We provide evidence for inverted U-shaped and N-shaped correlations in the Organization for Economic Co-operation and Development (OECD) countries and high-income countries (non-OECD), respectively. Although technology advancement always promotes CO₂ emissions in middle- and low-income countries, its marginal effect is decreasing. This study not only indicates the dynamic impacts of technology advancement on CO₂ emissions in different countries, but also contributes to policymakers' understanding of the "common but differentiated responsibilities" involved in mitigating CO₂ emissions.

Renewable and non-renewable energy consumption, economic complexity, CO2 emissions, and ecological footprint in the USA: testing the EKC hypothesis with a structural break

The economic complexity index, which indicates the level of knowledge and skills needed in the production of the exported goods, is a measure of economic development. Some researchers have investigated the validity of the environmental Kuznets curve (EKC) hypothesis by considering the effect of economic complexity on environmental pollution. This study, for the first time, examines the impact of economic complexity, globalization, and renewable and non-renewable energy consumption on both CO₂ emissions and ecological footprint within the framework of the EKC hypothesis in the USA. To this end, the combined cointegration test and three different estimators are utilized for the period from 1980 to 2016. The main finding of the study indicates that the inverted U-shaped EKC relationship between economic complexity and environmental pollution holds for the USA. In addition to this finding, globalization and renewable energy consumption play a dominant role in reducing environmental pollution, while non-renewable energy consumption contributing factor to environmental pressure. Overall, the outcomes indicate that increasing economic complexity helps to minimize environmental degradation after a threshold, and the US government can provide a better environment by using renewable energy sources and globalization. Graphical abstract.

Environmental degradation & role of financialisation, economic development, industrialisation and trade liberalisation

This paper is a pioneering endeavour to investigate the determinants of environmental degradation in Australia through a comprehensive framework of EKC and STIRPAT. Specifically, the impacts of multiple factors of socio-economic development including economic growth, trade openness, industrialization, energy consumption on CO₂ emissions are analysed. Furthermore, the influences of financial development through different dimensions (financial efficiency, access and depth) in two subsectors (financial markets and institutions) and other proxies of financial development are focused over the period 1980-2014. Empirical results show short as well as long-run differences in the association among the variables. Short-term bidirectional causality prevails between economic growth, energy consumption, industrialization, and stock market development with carbon dioxide (CO₂) emissions. However, there is no significant evidence found on EKC. This is due to the long-run positive impact of financial development, energy consumption, and trade openness on CO₂ emissions. Interestingly, the industrialization process is found to does not affect CO2 emissions. Empirical findings provide insight into why the quality of the Australian environment is truncated with frequent and widespread bushfires and suggest policymakers to have selective and strict environmental-friendly strategies to fulfil a sustainable development goal.

Nexus between financial development & energy intensity: Two sides of a coin?

This study examines the multidimensional impact of financial development (FD) on consumption energy intensity and production energy intensity. A global sample of 81 economies consisting of three subsamples (29 high income [HIEs], 21 upper middle income [UMEs] and 31 low and lower middle income [LMEs]) from 1997 to 2013 is analyzed by employing several estimators and an inclusive estimation strategy for empirical robustness. Our key findings suggest that: First, FD is broadly found to increase production energy intensity except for the negative effects of financial institutions' efficiency. The results also confirm the long-run relationship. The financial depth and financial access appear to reduce consumption energy intensity, while financial efficiency has the opposite effect. Financial institutions have increasing, while financial markets have decreasing impact on consumption energy intensity in the long run. Second, in the face of an oil price shock, countries with higher levels of FD experience a reduce production energy intensity, while the countries with stronger financial institutions experience a reduction in consumption energy intensity, however, opposite is true in the case of financial markets. Third, the FD appears to decrease production energy intensity in HIEs, while it has increasing effect in UMEs and mixed effects in LMEs. Meanwhile, the FD induces higher consumption energy intensity in LMEs, which is same for the impacts of financial markets in UMEs and HIEs. Lastly, financial institutions appear to reduce consumption energy intensity in UMEs and HIEs. Our findings have profound policy implications in the context of the debate on the role of finance in energy efficiency.