Role of foreign direct investment interaction to energy consumption and institutional governance in sustainable GHG emission reduction

Dose institutional quality influences the relationship between urbanization and CO2 emissions?

As a result of rapid economic expansion, increased energy use, and urbanization, global warming and climate change have become serious challenges in recent decades. Institutional quality can be the remedy to impede the harmful effect of factors on environmental quality. This study investigates the impact that urbanization and institutional quality on environmental quality in in the Belt and Road Initiative (BRI) countries from 2002 to 2019. By using two step generalized method of moment, the findings shows that urbanization leads to an increase in carbon dioxide emissions and a decline in environmental quality. On the other hand, the square term of urbanization indicates that an increase in urbanization leads to a reduction in emissions at a later stage after reach a certain level. Education, on the other hand, has the reverse impact of increasing carbon emissions; economic growth, foreign direct investment, and government effectiveness all boost carbon emissions. In a similar vein, the interaction between urbanization and the effectiveness of the government is unfavorable, underscoring the transformative role that the effectiveness of the government plays in leading to environmental sustainability. Finally, the findings of this study have considerable policy implication for the sample countries.

Bicycle industry as a post-pandemic green recovery driver in an emerging economy: a SWOT analysis

The COVID-19 pandemic has exposed socioeconomic vulnerabilities around the world. After fighting the coronavirus for more than 1 and a half years now, the countries are recovering from the epidemic with the help of cutting-edge medical research. The policymakers are implementing stimulus packages for post-pandemic economic recovery. However, sustainable "green recovery" plans are yet to get adequate attention. Sustainable investment in green industries can create green jobs, promote a low-carbon economy, and foster long-lasting economic growth in the post-pandemic world. COVID-19 affected countries with emerging economies call for even more focus on such investments. In Bangladesh, the bicycle industry - a growing low-carbon industry - has been showing promising potential for growth since the beginning of the pandemic. Both the local and global markets of Bangladeshi bicycles have seen substantial growth during the epidemic. In this paper, we analyze the potential of the Bangladeshi bicycle industry as an effective green recovery driver. We conduct semi-structured interviews with relevant experts and professionals, analyze their opinions, and perform a "strengths, weaknesses, opportunities, and threats (SWOT)" analysis. The analysis reveals valuable insights regarding post-pandemic sustainable economic and environmental recovery which will be beneficial to the policymakers of Bangladesh and similar developing countries.

Unintended consequences of COVID-19 public policy responses on renewable energy power: evidence from OECD countries in the EU

Since 2020, governments around the world have implemented many types of public policies in response to the outbreak of COVID-19. These dramatic public policies have substantially changed production and consumption activities, thereby temporarily lowering electricity use and greenhouse gas emissions. This study argues that pandemic-induced public policies have unintentionally slowed the transition to renewable energy use in the EU since the decline in greenhouse gas emissions due to the lockdowns helped countries temporarily reduce their total emissions. We employ a fixed-effect model to investigate the effects of different types of COVID-19 public policy responses on electricity production, consumption, and net imports in 12 OECD countries in the EU, and we mainly focus on the share of electricity production from renewable energy sources. Among several public policy responses, stringent lockdown policies, such as workplace closures, stay-at-home requirements, and restrictions on gathering size, have negative and statistically significant impacts on electricity generation and consumption. Furthermore, countries with stringent lockdown policies are more likely to import electricity from other countries to mitigate the electricity shortages in their domestic markets. Importantly, we find that lockdown events have negative and statistically significant effects on the share of renewables in electricity production while increasing the share of fossil fuels in electricity production. In contrast, economic support policies such as income support, debt relief, and economic stimulus programs help reduce the share of fossil fuels in electricity production and decrease the net import of electricity from other countries. Our results indicate that the public policies implemented in response to the outbreak of COVID-19 have mixed effects on the transition to renewable energy sources in the EU, suggesting that the current decline in greenhouse gas emissions comes from the reduction in electricity use due to lockdown events instead of the adoption of renewable energy use and discouraging the transition to renewable energy sources.

The spatial impact of digital economy on energy intensity in China in the context of double carbon to achieve the sustainable development goals

Using the provincial panel data of China during 2012-2019, the present study employed spatial Durbin error model to explore the spatial effect of the digital economy on energy intensity. The results show that both digital economy and energy intensity have spatial autocorrelation, showing the distribution characteristics of spatial aggregation. The digital economy has a significant negative influence on energy intensity. The result shows a significant spatial spillover effect of digital economy on energy intensity, and the development of the digital economy in neighboring regions reduces energy intensity in the central region. Additionally, industrial structure, urbanization, energy price, and foreign direct investment have a heterogenous impact on energy intensity. Thus, it is crucial to give importance to the development of the energy intensity, plan the spatial layout of the digital industry as a whole, drive the coordinated growth of the regional digital economy, quicken the upgrading of industrial structure, promote urbanization, perfect the energy price formation mechanism, raise the entry threshold for foreign direct investment, to effectively reduce the energy intensity, and facilitate the smooth realization of the "double carbon" goal.

The effects of ICT and FDI on CO2 emissions in China

With the rapid development of information and communication technology (ICT) and counter-cyclical expansion of foreign direct investment (FDI), most foreign-invested companies in China are highly polluting. Meanwhile, new research shows that the impact of ICT on the environment is uncertain. This study is an effort in dividing ICT into hardware and software, aiming to explore its effects on carbon (CO₂) emissions from 2003 to 2017 in 31 provinces, autonomous regions, and municipalities in China and further explore the impacts of its application to foreign-invested enterprises on environmental quality. The findings show that ICT software has a significant negative effect on CO₂ emissions, but ICT hardware and FDI have significant positive effects on CO₂ emissions. However, when ICT software and hardware are applied to foreign-invested enterprises, they can significantly improve the environmental quality. Moreover, the durative innovation of ICT software ensures environmental sustainability. A set of government measures are published to help stimulate the positive effect of ICT software on CO₂ emissions, such as taxes and fees cuts, and no-interest loans. This could provide guidelines for other countries.