Decomposing the asymmetric effects of terrorism and FDI on carbon emission: evidence from fragile economies

Asymmetric impact of technological innovation, foreign direct investment and agricultural production on environmental degradation: evidence from Pakistan

The present study analyzes the asymmetric effects of technical innovation, foreign direct investment, and agriculture productivity on Pakistan's environmental degradation from 1990 to 2020. A non-linear autoregressive model (NARDL) has been used for the analysis. The asymmetric effects have been computed for both the long and short run. The empirical results show that there is equilibrium long-run relationship among the variables. Moreover, it is found that the effect of FDI on CO2 emission is positive regardless of whether there are positive or negative shocks to FDI in the long run. The short-run results are similar except for the positive shocks to FDIat lag one, which reduces environmental degradation in Pakistan. However, in the long run, population growth and positive (negative) shocks to technical innovation have a negative and significant impact on CO2, whereas agriculture productivity is the main source of environmental degradation in Pakistan. The asymmetric tests show that FDI and agriculture productivity have strong asymmetric effects on the CO2 emissions in the long run, whereas there is weak evidence of, in the short and long run, asymmetric effects of technical innovations in Pakistan. These results are statistically significant, valid, and stable as per most of the diagnostic tests conducted and reported in the study.

Climate change mitigation role of renewable energy consumption: Does institutional quality matter in the case of reducing Africa's carbon dioxide emissions?

Renewable energy and institutions have emerged among other variables touted to address climate change problems. However, empirical results have been conflicting. With a relatively poorer state of institutional quality and a lower level of renewable energy development amidst rising carbon dioxide (CO₂) emissions in Africa, the study assesses: a) the direct effect of renewable energy and institutional quality on CO₂ emissions in Africa; and b) the moderation role of institutional quality on the effect of renewable energy on CO₂ emissions in Africa. The study relies on panel data covering 2002-2021 for 32 African countries. The Fully-Modified OLS regression method is employed to analyze the data based on the environmental Kuznets curve (EKC) hypothesis and Stochastic Impacts by Regression on Population, Affluence, & Technology (STIRPAT) model. The results show that urbanization and trade openness increase CO₂ emissions. Although income has a positive effect on carbon emissions, the square term has a negative confirming the EKC hypothesis. Renewable energy also reduces CO₂ emissions. Institutional quality variables of control of corruption, rule of law, regulatory quality, political stability and absence of violence, voice and accountability, government effectiveness and institutional index created from the above indicators reduce CO₂ emissions. In addition, except government effectiveness, the remaining indicators of institutional quality negatively moderate the effect of renewable energy on CO₂ emissions. The results among other things imply that intensifying the development and usage of renewable energy would help address the rising carbon dioxide emissions trend in Africa. Also, strengthening institutions promises to reduce CO₂ emissions.

Analysis of how environmental degradation affects clean energy transition: evidence from the UAE

Considering the alarming rate of environmental degradation, all countries are looking for solutions to close their environmental gaps in order to ensure long-term sustainability. In order to achieve green ecosystems, economies seeking clean energy are motivated to embrace environmentally friendly practices that can support resource efficiency and sustainability. In this sense, the current paper addresses measuring the link between CO₂ emissions, economic growth (GDP), renewable and non-renewable energy (RE), tourism, financial development, foreign direct investment, and urbanization in the United Arab Emirates (UAE). The aim of this paper is to empirically evaluate the link between CO₂ emissions and macroeconomic factors in the UAE. The UAE was chosen as the country for the case study as the UAE is one of the world's richest oil-based economies and one of the countries with the highest per capita income, adopts sustainable technologies, and has signed the Paris agreement supporting the transition to clean energy. To verify the environmental Kuznets curve (EKC) for UAE, the timespans for the years 1990-2021 have been chosen according to data availability. The long-run coefficients supported the EKC hypothesis of an inverted U shape for income and CO₂ emissions, according to the findings. Notably, urbanization and financial development both reduce pollution while foreign direct investment increases environmental pollution. The study recommended the creation of more environmental policies to promote sustainable business operations and nationwide green awareness, increase the use of clean energy technology, reduce energy intensity, and achieve a net zero carbon target.

Does foreign direct investment asymmetrically influence carbon emissions in sub-Saharan Africa? Evidence from nonlinear panel ARDL approach

In recent decades, the relationship between foreign direct investment (FDI) and carbon emissions has garnered the extensive attention by researchers and governments across the globe. Also, for most part, empirical studies on this nexus have assumed a symmetric relationship through the imposition of linear specifications. However, such relationships do not account for asymmetries in the impact of FDI on carbon emissions. In the case of sub-Saharan Africa, such relationships are crucial and need more careful analysis given the important role FDI plays in the development of the sub-region. Thus, this paper examines the asymmetric effect of FDI on carbon emissions in 41 selected sub-Saharan African countries spanning from 1996 to 2018. In order to decompose FDI into positive and negative partial sum and examine possible asymmetric effects of the variables on carbon emissions, we used the panel nonlinear autoregressive distributed lag (NARDL) approach. This method accounts for cross-sectional variances. Our results show that in the long run, a positive shock in FDI increases carbon emissions while a negative shock lowers them. Our results also show that carbon emissions respond asymmetrically to changes in FDI. It is recommended that comprehensive investment policies aimed at encouraging clean technology and environmentally friendly investments be implemented to ensure environmental sustainability.