The effects of natural gas and oil consumption on CO2 emissions in GCC countries: asymmetry analysis

Dynamic nexus among fossil fuels utilization, economic growth, and urbanization: a tri-regional selected countries analysis

There are worldwide growing concerns about environmental issues such as global warming and climate change. Moreover, it is expected that there will be regional differences in environmental issues. Therefore, this study focuses on a tri-regional comparison: America, Europe, and Asia-Pacific. Previous literature has paid less attention to exploring regional comparisons while considering regional heterogeneity. Against this backdrop, this study delves into the dynamic relationship between fossil fuel utilization, economic growth, globalization, urbanization, and CO2 emissions to understand the environmental implications of these interconnected factors. The study period spans from 1990 to 2021. Additionally, it employed rigorous tests to confirm cross-sectional dependence and data heterogeneity, following methodologies proposed by Pesaran (2004, 2015) and Pesaran (2007), utilizing the CS-ARDL panel cointegration methodology by Chudik and Pesaran (2015). The results confirm long-term significant relationships among OC, NGC, FDI, and UR variables in both combined panels, with and without regional dummies. However, GDP and COC become insignificant in the long run in the dummy variables regression. Furthermore, the regional dummies were found to be negative but remain insignificant, possibly due to heterogeneous effects or unobserved factors influencing each region independently. Analysis by region reveals predominant coal consumption in Asia, higher oil consumption in America, and greater gas consumption in Europe. Economic growth and CO2 emissions are positive in Asia and America but negative in Europe, aligning with theories prioritizing growth over environmental concerns in Asia and America, and advocating for renewable energy adoption in Europe. Urbanization increases energy demand and emissions, supporting the environmental revolution theory, while FDI holds the potential to reduce CO2 emissions, as per the endogenous growth theory.

Time-varying impact of income and fossil fuel consumption on CO2 emissions in India

This paper investigates the time-varying effects of fossil fuel consumption on CO2 emissions in India utilizing the time-varying cointegration test, allowing for multivariate long-run time-varying cointegration parameter developed by Bierens and Martins (2010) and the time-varying vector autoregressive (TVP-VAR) model developed by Primiceri (2005). The long-run time-varying coefficients reveal that GDP has a positive and increasing impact on CO2 emissions over time. Moreover, results confirm the polluting effects of all fossil fuels. Besides, the TVP-VAR model findings also demonstrate that changes in income and fossil fuel consumption have a positive and significant impact on environmental degradation. Coal is found to be the most polluting fuel, followed by oil consumption. Furthermore, the time-varying responses show that increased natural gas consumption has the least influence when compared to other fossil fuels on CO2 emissions.

Oil and natural gas rents and CO2 emissions nexus in MENA: spatial analysis

Background

Oil rents (OR) and natural gas rents (NGR) have significant contributions to the income of the Middle East and North Africa (MENA) economies and may increase emissions. Moreover, spatial autocorrelation is expected in carbon dioxide (CO₂) emissions due to the geographically closed economies in the MENA region. Thus, we examine the impact of OR and NGR on CO₂ emissions caring spatial dimensions and analyze the environmental Kuznets curve (EKC).

Methods

We apply the spatial Durbin model technique on the effects of OR, NGR, and economic growth on CO₂ emissions in 17 MENA nations from 2000-2019, i.e., Algeria, Bahrain, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia, the United Arab Emirates (UAE), and Yemen. Moreover, diagnostic tests are applied to reach the most appropriate spatial specification and to have the most robust results.

Results

The results disclose that CO₂ emissions have spillovers and emissions of any country can damage the environment of neighboring countries. The EKC is corroborated with a turning point of 38,698 constant 2015 US dollars. Israel and Qatar are in 2^nd phase of the EKC, and 15 MENA economies are in 1^st stage. Thus, the economic expansion of most economies has ecological concerns. The effect of natural gas rents is found statistically insignificant. Oil rents have minute negative effects on emissions of local economies with an elasticity coefficient of -0.2117. Nevertheless, these have a positive indirect effect with an elasticity coefficient of 0.5328. Thus, the net effect of oil rents is positive. One percent increase in oil rents could accelerate 0.3211% of emissions. Thus, we suggest the MENA countries reduce reliance on oil rents in their income to avoid the negative environmental effects of the oil sector.

Testing the impact of renewable energy and oil price on carbon emission intensity in China's transportation sector

As the largest carbon emitter in the world, with its transportation sector contributing the largest shares of its emission, the need for a low-carbon transition economy has become a policy agenda for China because in order to reach carbon neutrality by 2050, lowering the intensity of carbon emissions in the transportation sector will be crucial. In this regard, we used the "bootstrap autoregressive distributed lag model" to explore the impact of clean energy and oil prices on the intensity of carbon emissions in China's transportation sector. The study found that an increase in oil prices decreases the intensity of carbon emissions in the short and long run. Similarly, an increase in the level of renewable energy and economic complexity declines the intensity of carbon emissions in the transportation sector. On the contrary, the research demonstrates that non-renewable energy contributes positively to carbon emission intensity. Therefore, the authorities must promote green technology to neutralize the transportation system's detrimental effects on China's environmental quality. The implications for successfully promoting carbon emission intensity mitigation in the transportation sector are examined in the conclusion.

Towards environmental degradation mitigation: The role of regulatory quality, technological innovation and government effectiveness in the CEMAC countries

The study explores the interaction between regulatory quality, economic growth, technological innovation, energy consumption, government spending on research and development, and environmental degradation (EVD) in the Economic and Monetary Community of Central Africa (CEMAC) region. The study applied the econometric approach CS-ARDL to estimate the short and long-term interaction between the regressors and the explanatory variable. The study period covers from 1990 to 2020. To summarize the findings of this research, (1) the study discovered a positive relationship between energy consumption, government effectiveness, regulatory quality, and environmental degradation. (2) Economic growth, government spending on research and development, and technological innovation, on the other hand, extensively dissipates EVD in the CEMAC economies. (3) The causality analysis espoused a bidirectional connection between energy consumption, technological innovation, and EVD. (4) Lastly, a unidirectional interplay exists between economic growth, government effectiveness, regulatory quality, and EVD. This study also serves as a reference point for policymakers and governmental institutions to invest in cleaner technologies and increase government research and development spending to mitigate environmental degradation in these areas.

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.

Evaluating the role of renewable energy and technology innovations in lowering CO2 emission: a wavelet coherence approach

Environmental sustainability is one of the most critical issues that require efficient environmental and economic policies in modern times. Advancements in renewables and green technologies contribute significantly to sustained long-term development without affecting environmental quality. Several studies focus on the association of carbon dioxide emissions (CO₂e) with economic variables. However, they ignored the impact of technological innovations and renewable energy consumption on CO₂e in developed countries. Therefore, this study examines the relationship between CO₂e, energy consumption, gross domestic product (GDP), renewable energy consumption, and technology innovations in G-7 countries by employing cross-sectionally augmented autoregressive distributed (CS-ARDL) lag and wavelet coherence techniques during 1990-2020. The results depict that GDP and renewable energy consumption are inversely related to CO₂e. A 1% increase in CO₂e will decrease GDP and renewable energy consumption by 0.459 and 0.172% in the long run and by 0.471 and 0.183% in the short run in G7 countries. Technology innovations negatively impact CO₂e in the short run while positively influencing it in the long run. Considering the advancements in green technologies in different energy-dependent and manufacturing sectors is crucial for a sustainable environment in the long run. Such initiatives ensure the effective use of energy sources by limiting CO₂e in the atmosphere. Moreover, the dynamic common correlated effects mean group model confirms the reliability and effectiveness of the CS-ARDL. The wavelet coherence approach revealed a causality relation between CO2e and technology innovation in Italy, Japan, the UK, and the USA during the study period.

Investigating the association among CO2 emissions, renewable and non-renewable energy consumption in Uzbekistan: an ARDL approach

This paper examines for the first time the relationship between CO2 emissions and the consumption of renewable and non-renewable energy in Uzbekistan, spanning the period 1985-2020. The analysis uses the Autoregressive Distributed Lags (ARDL) model to estimate the long-run dynamic multipliers and short-run elasticity coefficients of energy consumption variables. Economic factors, such as GDP, are excluded in the analysis as they may cause multicollinearity problems. The empirical results document that in the short- and long-run, hydropower (renewable) energy consumption negatively impacts CO2 emissions per capita, showing a unidirectional causal effect. As regards with non-renewable energy consumption, natural gas and oil energy consumption have a positive impact on CO2 emissions per capita both in the short and long run. Coal consumption positively impacts CO2 emissions in the short run, while it is negative in the long run. Policy measures to enhance the collection of energy from additional renewable energy sources, in particular hydropower, should be taken into account in order to increase the share of renewable energy, and thus, to compensate non-renewable energy consumption which is the main contributor to CO2 emissions. Moreover, solar and wind energy should be explicitly taken into consideration as an additional renewable energy source, which has the lack of attention by policymakers. Furthermore, policy actions, such as the involvement of the private sector into renewable energy projects and the implementation of effective carbon tax policies, could be further options to reduce CO2 emissions.

Role of hydroelectricity and natural gas consumption on environmental sustainability in the United States: Evidence from novel time-frequency approaches

This study analyzes time- and frequency-varying impacts of hydroelectricity energy consumption, natural gas energy consumption, and economic growth on environmental sustainability proxied by carbon dioxide (CO₂) emissions in the United States of America (the US) for the period 1965/Q1 to 2020/Q4. This study is the first of its kind to contribute to the current literature by analyzing dynamic relationships among these variables in the short-, medium-, and long-term at different time frequencies in the framework of a multivariate correlation, hence providing a more comprehensive picture about the impacts of these effective factors on CO₂ emissions. To meet the objectives of the study, Wavelet local multiple local (WLMC), which is a recent novel methodology developed by Polanco-Martínez et al. (2020), is applied. Moreover, the Wavelet coherence (WTC) approach is used for robustness check. The outcomes provide fresh insights into the long-term dynamic correlations among hydroelectricity energy consumption, natural gas energy consumption, economic growth, and CO₂ emissions. The study discovers a robust positive co-movement between natural gas energy consumption and CO₂ emissions and a negative correlation between hydro energy consumption and CO₂ emissions that is the most intense on the long-term frequencies. Furthermore, economic growth causes CO₂ emissions, which is evidenced by a positive relationship between both factors at short- and long-term time-frequencies. Supported by the outcomes of the study, the authors urge to suggest crucial insights and policy points for the US policymakers to shift from fossil energy to renewable energy sources to meet Sustainable Development Goals (SDGs), especially SDG-7 and SDG-13, since they induce lower emissions.

The evolution of the environmental Kuznets curve hypothesis assessment: A literature review under a critical analysis perspective

Environmental changes based on factors like urbanization, population, economic growth, increase in energy consumption, and agricultural intensification are never far from the top of any agenda. The topics of environmental degradation and climate change cannot be confined to a single country or region but need to be addressed on a global scale. If the focus is on the relationship between environmental degradation and economic growth, then one hypothesis that is comprehensively used as an empirically model is the widely known Environmental Kuznets Curve. A substantial amount of research has been published about the Environmental Kuznets Curve, and this present study provides a detailed and extensive literature review of more than 200 articles from 1998 to 2022 to explain and assess its evolution. This literature review provides in detail the Environmental Kuznets Curve relationship under analysis, the additional variables included, the type of analysis and methods performed, the relationships obtained, and if the turning point is calculated. Furthermore, this comprehensive literature points out critical issues and gaps in the Environmental Kuznets Curve analysis. It is important to note that there are components that are not considered in the Environmental Kuznets Curve analysis. The Environmental Kuznets Curve only focuses on production and overlooks the impact of the consumption of imported goods on the environment. Consequently, environmental improvements from technological progress will be offset, and economic growth will result in more environmental degradation. This goes against the change in consumer behaviour which occurs with a rise in income, which is one basic assumption of the Environmental Kuznets Curve. The relocation of pollutant industries and consequent relocation of emissions could distort the emissions trajectory over the economic growth path and is also not considered in the Environmental Kuznets Curve analysis. On the other hand, the growth path traced by the inverted U-shaped is not efficient, and the environmental damage provoked in the first phases of the EKC might not be repairable. Therefore, technological progress, climate finance, and energy transition could improve the Environmental Kuznets Curve assessment.

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A EKC literature survey of more than 200 articles from 1998 to 2022.

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Comprehensive description of the EKC evolution and its functional specification.

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Three dilemmas of the EKC are explained by the Green Solow Model.

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EKC estimation is sensitive to functional specification.

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Climate finance and technological progress could influence EKC assessment.

The marginal effects of economic growth, financial development, and low-carbon energy use on carbon footprints in Oman: fresh evidence from autoregressive distributed lag model analysis

Oman is committed to turning carbon neutral by 2040 whereby identifying the environmental sustainability-stimulating factors has become a critically important agenda for the nation. Against this backdrop, this study attempts to evaluate the marginal effects of economic growth, financial development, and low-carbon energy use on Oman's carbon footprint levels using quarterly frequency data spanning from 1984Q1 to 2018Q4. Controlling for structural break concerns in the data, the results from the empirical analysis verify the carbon footprint-related environmental Kuznets curve hypothesis for Oman in the long-run. In this regard, the threshold level of per capita real GDP level of Oman is predicted at around US $23,500 which is below the average and maximum per capita real GDP level of Oman during the period considered in this study. Besides, the development of the financial sector and scaling up consumption of low-carbon energy resources are evidenced to boost and curb Oman's short- and long-run carbon footprint figures, respectively. More importantly, the joint carbon footprint-mitigating impact of financial development and low-carbon energy use is also unearthed from the findings. In line with these major findings, a couple of relevant policy interventions are suggested to help Oman accomplish its 2040 carbon-neutrality agenda.

A step towards green economic policy framework: role of renewable energy and climate risk for green economic recovery

According to the World Bank, energy efficiency is a critical facilitator of most Sustainable Development Goals. Its contribution to CO2 emission reduction is astounding. Environmentalists have recently emphasized the essential need to determine energy efficiency causes. This research broadens the debate's horizons by proposing additional possible energy efficiency factors using data from the Chinese economy. From 1990 to 2020, we examined the influence of investment in renewable energy resources, financial inclusion, industrial production, and trade openness on China's energy efficiency and climate risk. Additionally, this study is added to the literature by examining the causal relationships between variables while considering the temporal dimension. The findings indicate that industrial production, financial inclusion, public R&D on renewable energy, and trade openness contribute significantly to China's energy efficiency and climate risk. All other factors, except industrial production, are positively associated with energy efficiency. The path of causality is established from energy efficiency and climate risk to financial inclusion, industrial production, renewable energy, public research and development budgets, and trade openness. According to the findings, changes in energy performance have frequency-changing impacts on all variables. Policymakers believe that the financial system must be strengthened since this will significantly influence renewable energy.

Impact of Oil Price, Economic Growth and Urbanization on CO2 Emissions in GCC Countries: Asymmetry Analysis

Oil prices and rapidly increasing urbanization could have a long-lasting impact on the environment in oil-abundant Gulf Cooperation Council (GCC) countries. Therefore, the environmental role of oil price, economic growth, and urbanization on CO2 emissions should be tested. The present study investigates the impact of oil price, economic growth, and urbanization on CO2 emissions in those countries, considering asymmetrical relationships. For this purpose, a nonlinear autoregressive distributive lag cointegration approach is applied in GCC countries during the 1980–2019 period, and cointegration is corroborated in all investigated models. Long-run results show that rising economic growth positively affects CO2 emissions in Kuwait, Oman, Qatar, and Saudi Arabia. Decreasing economic growth positively affects CO2 emissions in Bahrain, Kuwait, Qatar, and the United Arab Emirates (UAE). Moreover, the rising oil price has a positive impact on CO2 emissions and shows a scale effect in Oman, Qatar, and Saudi Arabia. Moreover, it has a negative effect and corroborates technique and composition effects in Kuwait and the UAE. Further, decreasing oil prices has a positive impact on CO2 emissions in Bahrain and has a negative effect in Kuwait and the UAE. Lastly, urbanization positively affects CO2 emissions in Bahrain, Oman, Qatar, and the UAE. Economic growth is found asymmetrical in all GCC countries, and the asymmetrical effect of oil price is also observed in all GCC countries except the UAE.