The environmental Kuznets curve for Turkish provinces: a spatial panel data approach

Uncovering the drivers of CO2 emissions in the United States: The hidden spillover effects

This study explores the applicability of the Environmental Kuznets Curve (EKC) hypothesis in the United States (US) from 2006 to 2020, employing the Spatial Durbin Model (SDM) to analyze the cross-border effects of pollution among states. The results indicate that although economic growth initially decreases environmental degradation, it subsequently contributes to more significant environmental degradation, challenging the EKC hypothesis's validity at the US state level. Factors such as higher energy prices and reliance on fossil fuels are also identified as significant drivers of environmental deterioration, with varying impacts observed across states. Conversely, adopting renewable energy sources is crucial in mitigating pollution levels. The study underscores the importance of coordinated state-level efforts to harmonize economic growth with sustainable environmental practices. It highlights the complexities of policymaking in balancing economic development with environmental conservation and emphasizes the need for targeted interventions to address environmental challenges effectively. This research enhances our understanding of sustainable development pathways amidst diverse regional dynamics within the US by providing empirical evidence and policy insights.

Spatial effects of renewable and fossil energy consumption on the ecological footprint for the EU Countries

This study examines the spillover of pollution among the 26 European Union (EU) countries from 1995 to 2020. In order to quantify pollution spillovers among the countries, we estimated the Environmental Kuznets Curve (EKC) using spatial econometric methods. Our research is unique in that it investigates ecological footprint spillovers for EU countries. This study also considers the direct and indirect effects of renewable and fossil energy consumption and globalization on environmental degradation in EU countries. The empirical results favor the validity of the EKC hypothesis. Our results support the presence of positive and significant ecological footprint spillovers among EU countries. Our spatial estimates also reveal the significant spillover impact of explanatory variables on the ecological footprint. The ecological footprint of the local country is declining owing to the consumption of renewable energy in neighboring countries. Furthermore, the fossil energy consumption of the local and neighboring countries has a positive impact on the ecological footprint. Evidence obtained from our spatial estimates provides useful insights to policymakers in developing appropriate environmental policies to combat climate change.

Environment-growth nexus and corruption in the MENA region: Novel evidence based on method of moments quantile estimations

This study contributes to the environment-growth nexus literature by examining corruption's effect on environmental quality in 17 Middle East and North Africa (MENA) countries between 1984 and 2018. We use four different indicators of environmental degradation (ecological footprint, carbon dioxide emissions, greenhouse gas emissions, and carbon emission intensity) to gain a comprehensive view of the relationship. This study's methodological value added is the application of the method of moments quantile regression, which enables us to account for different relationships between the independent variables and environmental quality at different levels of environmental degradation. The results indicate that corruption worsens environmental quality based on three of the four indicators of environmental degradation, while the impact appears to become less severe at higher levels of environmental deterioration. The results also indicate that traditional mean-based panel data estimation methods provide an incomplete picture of the factors behind environmental problems: The explanatory variables' impacts tend to vary at different levels of environmental quality, and the impact's sign can even change when moving from the lowest to the highest environmental degradation quantiles. Overall, the results highlight the importance of curbing corruption to enable enforcement of more stringent environmental regulations.

Environmental sustainability through aggregate demand and knowledge economy interaction-a case of very high-HDI countries

The magnitude of the economic activities is immense in very high-Human Development Index (HDI) countries, leading to environmental degradation, a crucial problem. This study is aimed at testing aggregate demand's role in the environmental Kuznets curve (EKC) perspective and explores the role of four pillars of the knowledge economy, viz., technology, innovations, education, and institutions, as proposed by World Bank, in maintaining sustainable development of environmental quality in these countries. The analysis covers the period ranging from 1995 to 2022. The departure of normality of the variables provides a solid base for panel quantile regression (PQR). Unlike ordinary least squares (OLS) regression, which estimates the conditional mean of the dependent variable, PQR estimates the conditional quantiles. The estimated results using PQR confirm both U and inverted U-shaped aggregate demand-based EKC. In fact, these knowledge pillars in the model determine the shape of EKC. Results also reveal that two knowledge pillars, i.e., technology and innovations, are responsible for significantly reducing carbon emissions. In comparison, education and institutions are responsible for expanding carbon emissions. As a moderator, all knowledge pillars except institutions are shifting the EKC downward. The key lessons from these findings are that technology and innovation can reduce carbon emissions, while education and institutions may have a mixed impact. The relationship between knowledge pillars and emissions may be moderated by other factors, underscoring the need for further research. Moreover, urbanization, energy intensity, financial development, and trade openness significantly contribute to environmental deterioration.

Green aid, aid fragmentation and carbon emissions

The existing studies that examined the green aid effectiveness in reducing carbon dioxide (CO2) emissions found mixed results; however, neither of these studies considered the role of aid fragmentation in the effectiveness of green aid flows. By using the dynamic panel generalized method of moments (GMM) methodology to panel data of 92 countries covering the period between 2002 and 2018, this study examines the impact of green aid fragmentation on the effectiveness of green aid flows in reducing CO2 emissions. Using different fragmentation measures, this paper finds that green aid fragmentation is detrimental to the effectiveness of green aid flows in reducing CO2 emissions per capita. The findings also highlight that the damaging impact of green aid fragmentation is lower in countries with stronger institutions. This paper highlights the need for better coordination of the green aid flows by having less fragmented green aid flows.

Research on the impact of China's new urbanization on industrial water utilization efficiency - based on spatial spillover effects and threshold characteristics

To explore the impact of new urbanization development on industrial water utilization efficiency, the epsilon-based measure model and the entropy method were used to calculate the industrial water utilization efficiency and the development of new urbanization based on the panel data of 30 provincial cities in China from 2011 to 2020. Then the spatial Durbin and the panel threshold models were constructed to explore the spatial spillover and threshold effects of new urbanization development on industrial water utilization efficiency. The results show that there are large regional differences in the development of new urbanization and industrial water utilization efficiency. New urbanization development has a positive spillover effects on the improvement of industrial water efficiency. The promotion effect of new urbanization development on industrial water efficiency is affected by the level of new urbanization development, thus showing different results. According to the findings, it is recommended that local governments at all levels should increase their efforts to build new urbanization. And boost high-level and high-quality development of towns and cities while promoting the rationalization of industrial structure and optimizing resource allocation, thereby improving the efficiency of industrial water utilization.

How do foreign direct investment flows affect carbon emissions in BRICS countries? Revisiting the pollution haven hypothesis using bilateral FDI flows from OECD to BRICS countries

Foreign direct investment (FDI) flows from developed to developing countries may increase carbon emissions in developing countries as developing countries are seen as pollution havens due to their lenient environmental regulations. On the other hand, FDI flows from the developed world may improve management practices and advanced technologies in developing countries, and an increase in FDI flows reduces carbon emissions. Most of the existing studies examine the relationship between FDI flows and carbon emissions by using aggregate FDI flows; however, this paper contributes to the literature by analyzing the impact of FDI flows on carbon emissions in Brazil, Russia, India, China, and South Africa (BRICS) between 1993 and 2012 using bilateral FDI flows from eleven OECD countries. According to our empirical results, from which OECD country FDI flows to BRICS countries matters for carbon emissions in BRICS countries. Our results confirm that FDI flows to BRICS countries from Denmark and the UK increase carbon emissions in BRICS countries, confirming the pollution haven hypothesis. On the other hand, FDI that flows from France, Germany, and Italy reduced carbon emissions in the BRICS countries, confirming the pollution halo effect. FDI flows from Austria, Finland, Japan, Netherlands, Portugal, and Switzerland have no significant impact on carbon emissions in BRICS countries. The BRICS countries should promote clean FDI flows by reducing environmental damages, and investing countries should be rated based on their environmental damage in the host countries.

Trade, FDI, and CO2 emissions nexus in Latin America: the spatial analysis in testing the pollution haven and the EKC hypotheses

Americas have a mix of developing and developed economies. Thus, the pollution haven hypothesis (PHH) is expected in the developing countries of Latin America. Using the spatial Durbin model, the present study investigates the effects of foreign direct investment (FDI), exports, and imports on emissions in 18 Latin American countries from 1970 to 2019, including economic growth and the financial market development (FMD) in the model. The environmental Kuznets curve (EKC) is validated, and the region is found in the first stage of the EKC. Hence, Latin American economic growth has environmental consequences. Exports have a positive impact on home and neighboring countries' CO₂ emissions and pollute the whole region, which validates the PHH. Imports could not affect the home economies but have positive environmental effects on neighboring economies and the entire Latin American region. The negative coefficient of imports is larger than the positive coefficient of exports. Therefore, the net effect of trade is environmentally pleasant in Latin America. Moreover, FDI has a statistically insignificant effect and the impact of FMD is positive on CO₂ emissions. The study recommends caring the exporting, financial, and economic activities for a sustainable environment in Latin America.

Environmental consequences of foreign direct investment influx and conventional energy consumption: evidence from dynamic ARDL simulation for Turkey

The preponderance of emerging economies confronts significant trade-offs between economic growth and environmental sustainability considerations, and Turkey is no exception. This study draws strength from the United Nations Sustainable Development Goals (UN-SDGs-7,11,12 & 13). To this end, the present study explores the role of the environmental Kuznets curve (EKC) hypothesis for the case of Turkey for annual frequency data from 1970 to 2020. The present study leverages on the novel dynamic autoregressive-distributed lag (DARDL) methodology and Bayer and Hanck combined cointegration test. The combined Bayer and Hanck cointegration test alongside ARDL bounds test traces equilibrium relationship between economic growth, urbanization, FDI, energy use, and CO₂ emission over the investigated period. Empirical results from the DARDL simulation analysis validates the EKC hypothesis. These results suggest that environmental quality is being compromised for economic growth at the earlier stage of economic growth (scale stage). The EKC phenomenon is affirmed as a 1% increase in economic growth increase emission level by 0.1580% and quadratic economic growth decrease emission by 0.1095% in the short and long run, respectively. Similarly, urbanization and energy used in both the short and long run also worsen environmental quality while FDI influx in the long run improves environmental quality in Turkey. These outcomes have far-reaching environment-urbanization growth implications. From a policy lens, the current study subscribed to the environmental stick policies and investment on strategies on a paradigm shift from fossil-fuel energy consumption base to renewables. Further insights are highlighted in the concluding section.