A dynamic analysis of the impact of FDI, on economic growth and carbon emission, evidence from China, India and Singapore

Dynamic nonlinear CO2 emission effects of urbanization routes in the eight most populous countries

A dynamic STIRPAT model used in the current study is based on panel data from the eight most populous countries from 1975 to 2020, revealing the nonlinear effects of urbanization routes (percentage of total urbanization, percentage of small cities and percentage of large cities) on carbon dioxide (CO2) emissions. Using "Dynamic Display Unrelated Regression (DSUR)" and "Fully Modified Ordinary Least Squares (FMOLS)" regressions, the outcomes reflect that percentage of total urbanization and percentage of small cities have an incremental influence on carbon dioxide emissions. However, square percentage of small cities and square percentage of total urbanization have significant adverse effects on carbon dioxide (CO2) emissions. The positive relationship between the percentage of small cities, percentage of total urbanization and CO2 emissions and the negative relationship between the square percentage of small cities, square percentage of total urbanization and CO2 emissions legitimize the inverted U-shaped EKC hypothesis. The impact of the percentage of large cities on carbon dioxide emissions is significantly negative, while the impact of the square percentage of large cities on carbon dioxide emissions is significantly positive, validating a U-shaped EKC hypothesis. The incremental effect of percentage of small cities and percentage of total urbanization on long-term environmental degradation can provide support for ecological modernization theory. Energy intensity, Gross Domestic Product (GDP), industrial growth and transport infrastructure stimulate long-term CO2 emissions. Country-level findings from the AMG estimator support a U-shaped link between the percentage of small cities and CO2 emissions for each country in the entire panel except the United States. In addition, the Dumitrescu and Hulin causality tests yield a two-way causality between emission of carbon dioxide and squared percentage of total urbanization, between the percentage of the large cities and emission of carbon dioxide, and between energy intensity and emission of carbon dioxide. This study proposes renewable energy options and green city-friendly technologies to improve the environmental quality of urban areas.

Analyzing the impact of industrial growth and agricultural development on environmental degradation in South and East Asia

This study aims to examine the impact of industrial growth, agricultural value added, economic growth, and renewable energy consumption on environmental pollution in South and East Asian countries using panel ARDL approach over the period 1970-2020. Furthermore, the impact of institutional quality in this relationship is uniquely explored. Baseline model suggests that environmental damage is exacerbated by agricultural value added and industrial growth in the long run, but not in the short run. The relationship between economic growth and carbon emissions is an obvious inverted U-shaped link in the long run, but it is a U-shaped association in the short run. Renewable energy consumption has significant adverse effects on environmental pollution both in the short and long term. In the long run, institutional quality plays a stronger moderating role in the association between baseline regressors and environmental pollution. Also, institutional quality helps to expand the ability of industry and agriculture to improve environmental quality. Lastly, the threshold results reflect that the impact of regressors on environmental degradation is penetrating into the level of institutional quality. The strong progressive effects of agricultural and industrial growth on environmental degradation are more similar to the existing literature in the long term, but not in the short term. In addition, the long-term condensation effect of renewable energy on CO2 emissions and the enhancing effect of economic growth on CO2 emissions are relatively similar to existing literature. In contrast to weak institutional quality, strong institutions can improve the ability of agriculture and industry to reduce environmental damage.

Does globalization matter in the relationship between renewable energy consumption and economic growth, evidence from Asian emerging economies

The study aims to investigate the impact of social, economic and political globalization on the renewable energy-economic growth nexus in a panel of six Asian emerging economies over the period 1975-2020. The results of the CS-ARDL approach show that renewable energy consumption contributes significantly to long run economic growth. Economic and political globalization firmly hold back economic growth, while social globalization directly promotes economic growth. The nonlinear effects of political, social, and economic globalization on economic growth clearly demonstrate the validity of the inverted U-shaped relationship between political globalization, economic globalization, and economic growth, and the U-shaped relationship between social globalization and economic growth. The study also found that economic, social and political globalization moderated the impact of renewable energy on boosting economic growth. Based on the renewable energy consumption model, it is revealed that economic growth significantly promotes long run renewable energy consumption. Economic, social, and political globalization have significantly boosted long run renewable energy consumption. However, the nonlinear effect model reflects a U-shaped relationship between globalization indicators and renewable energy consumption. The interaction of political, economic, and social globalization with economic growth has also witnessed an increase in renewable energy consumption, which supports the scale effect hypothesis. The causality test concludes that there is a two-way causal relationship between renewable energy consumption and economic growth, thus supporting the feedback hypothesis. The policy implications for Asian emerging economies are discussed based on the empirical analysis of this study.

Links among population aging, economic globalization, per capita CO2 emission, and economic growth, evidence from East Asian countries

Population aging, economic globalization, and economic growth simultaneously cause changes in environmental quality, but so far no studies have integrated these key factors into the same environmental policy framework. Thus, this study uses the more robust Westerlund cointegration test and the augmented mean group (AMG) estimator (robust to cross-sectional dependence (CD), heterogeneity, and endogeneity) to estimate the long-term relationship between population aging, economic globalization, economic growth, and per capita carbon emissions in East Asian countries during the period 1975-2018. The analysis results reflect that population aging significantly reduces the long-term per capita carbon emissions of specific East Asian countries. However, energy generation and economic globalization make significant contributions to long-run per capita carbon emissions. Moreover, the impact of economic growth on long-term per capita carbon emissions is significantly positive, while the impact of square of economic growth on long-run per capita carbon emissions is significantly negative, thus validating the inverted U-shaped environmental Kuznets curve (EKC) hypothesis for specific East Asian countries. The results of the causality test indicated a two-way causality between energy generation and per capita carbon dioxide emission, supporting the feedback hypothesis. There is also a two-way causal relationship between aging population and per capita carbon dioxide emission. Policy recommendations are discussed in response to the empirical findings of this study.

A dynamic relationship between renewable energy, agriculture, globalization, and ecological footprint of the five most populous countries in Asia

This study aims to examine the impact of globalization, renewable energy consumption, and agricultural value addition on the ecological footprint of selected five most populous countries in Asia during the period 1975-2020. The Westerlund cointegration test supports long-term cointegration relationships among the considered variables in selected countries. The long-term resilience results of the second-generation cross-sectionally augmented autoregressive distributed lag approach evidently demonstrate that agricultural value addition and globalization contribute significantly to the long-term ecological footprint of the five most populous countries in Asia. However, renewable energy consumption significantly reduces the ecological footprint. Moreover, the impact of economic growth on ecological footprint is significantly positive, while the square of economic growth had a significantly negative impact on ecological footprint, thus validating the inverted U-shaped environmental Kuznets curve hypothesis for specific Asian densely populated countries. The causality test results of Dumitrescu and Hurlin support the feedback hypothesis by showing a two-way causal relationship between renewable energy consumption and economic growth. There is also a two-way causal relationship between agricultural value added and ecological footprint. Strategically, specific densely populated countries in Asia should encourage clean energy production and consumption in the agricultural sector, and the adoption of environmentally friendly technologies can improve environmental quality and agricultural production.

An empirical analysis of the impact of renewable and non-renewable energy consumption on economic growth and carbon dioxide emissions: evidence from seven Northeast Asian countries

Oil and natural consumption are non-renewable energy sources that are the main drivers of economic growth, but these energy sources are also the main causes of environmental degradation in Northeast Asian countries. The main objective of this study is to examine the impact of renewable energy consumption, non-renewable energy consumption on CO₂ emissions, and economic growth in seven selected Northeast Asian countries during the period 1970-2020. First, the cross-sectional dependence test recommended by Pesaran, Ullah, and Yamagata (2008) concludes that there is no cross-sectional dependence in the panel data model, so it is feasible to use the first-generation panel data methods. Later, cointegration tests proposed by Pedroni (Oxford Bull Econ Stat 61:653-670, 1999, Economet Theor 20:597-625, 2004), Kao (J Econom 90:1-44, 1999), and Westerlund (2007) were adopted, revealing long-term cointegration relationships among model panel variables. Long-term variable coefficient elasticities were detected using the estimation techniques of panel fully modified ordinary least squares (FMOLS) and panel dynamic ordinary least squares (DOLS). Two-way causality of variables was detected using the Dumitrescue-Hurlin (Econ Model 29:1450-1460, 2012) panel causality test. The results of the analysis highlight the significant progressive effects of renewable energy consumption, nonrenewable energy consumption, employed labor force, and capital formation on long-run economic growth. The study also concluded that renewable energy consumption significantly reduced long-term CO₂ emissions, while non-renewable energy consumption significantly contributed to long-term CO₂ emissions. Estimates from the FMOLS technique reflect a significant progressive effect of GDP and GDP³ on CO₂ emissions, while GDP² has a significant adverse effect on CO₂ emissions, thus validating the N-shaped EKC assumption in selected group of countries. Furthermore, the feedback hypothesis is supported based on the two-way causality between renewable energy consumption and economic growth. Strategically, this evidence-based empirical study demonstrates that renewable energy is a valuable process that can protect the environment and contribute to future economic growth in selected countries by addressing energy security and reducing carbon emissions.

The effect of transport infrastructure (road, rail, and air) investments on economic growth and environmental pollution and testing the validity of EKC in China, India, Japan, and Russia

A key factor in social development and sustainable urban expansion is the establishment of sustainable and affordable transport systems. This study aims to investigate the impact of transport infrastructure investment on environmental degradation and economic growth and to test the validity of the EKC hypothesis in China, India, Russia, and Japan over the period 1995-2020. The results show that GDP has a significant positive effect, and GDP² and GDP³ have significant adverse effects on environmental degradation, respectively. These results confirm the validity of the inverted U-shaped EKC hypothesis in selected emerging Asian economies. Rail infrastructure investment has significant adverse effects, while road infrastructure investment and aviation infrastructure investment have significant positive effects on environmental degradation. Likewise, the impact of investment in transport infrastructure system (roads, rail, and aviation) on economic growth is positive and statistically significant. Country-level estimates confirm the validity of the inverted U-shaped EKC hypothesis in China, India, and Russia, while the N-shaped EKC is only valid in Japan. Investments in rail infrastructure based on modern rail systems that run on electricity are believed to be less polluting in the transport mix, help create sustainable and safe transport systems, and reduce emissions at the urban and intercity levels in emerging Asian countries. In addition, the growing impact of free trade on environmental pollution should be strengthened to harmonize the strict enforcement of environmental conditions dominated by trade agreements.