Pathways to carbon neutrality: how do government corruption and resource misallocation affect carbon emissions?

How do income inequality, poverty and industry 4.0 affect environmental pollution in South Asia: New insights from quantile regression

While many factors have been studied as potential causes of environmental degradation, the impact of poverty and inequality has been largely overlooked in the research. The Sustainable Development Goals are aligned with the intersection of poverty, inequality, and the environment. In addition, most previous research has used carbon dioxide (CO2) emissions as a surrogate for pollution. These gaps are filled by this study, which uses ecological footprint (a comprehensive measure of pollution) and CO2 emissions to examine the effects of income disparity and poverty on environmental pollution in 13 nations. Dynamic panel Quantile regression methods are used in this study because of their resilience to various econometric problems that can crop up during the estimate process. The empirical results reveal that the whole panel's carbon emissions and ecological footprint rise when income disparity and poverty exist. When the panel is subdivided, however, we see that income inequality reduces carbon emissions and environmental footprint for the wealthy but has the opposite effect on the middle class. While high-income households see no impact from poverty on their carbon emissions, middle-income households see an increase in both. Overall, the results of this study suggest that income disparity and poverty are major factors in ecological degradation. Therefore, initiatives to reduce environmental degradation should pay sufficient attention to poverty and inequality to achieve ecological sustainability.

How informal environmental regulations constrain carbon dioxide emissions under pollution control and carbon reduction: Evidence from China

Exploring whether informal environmental regulations (INER) can achieve carbon reduction in the context of pollution reduction and carbon reduction, as well as how to achieve carbon reduction, can help solve the dual failures of the market and government in environmental protection. Based on the polycentric governance theory and considering the characteristics of social subject environmental participation, the Stackelberg game is used to demonstrate the impact mechanism of INER on CO2. In addition, using the panel data of China's 30 provinces from 2003 to 2018, this paper validates the effectiveness of INER by Pooled Ordinary Least Square (POLS) and threshold panel model. Then, the mediating effect model is used to test the mechanism of INER's effect on carbon reduction. The results show that corruption is not conducive to CO2 reduction. The reduction effect of INER on CO2 exhibits heterogeneity with changes in other non-greenhouse gas pollutants. While INER effectively reduces local corruption, its more substantial indirect impact on CO2 reduction is prominent when levels of other pollutants are lower. Comparative analysis reveals that there are still biased governance behaviors to cope with INER's pressure in some regions nowadays. The findings show that for countries facing the dual task of pollution control and carbon reduction, the key to leveraging the supervisory role of INER should be focused on mitigating information asymmetry caused by the characteristics of CO2. Therefore, in the process of environmental protection, the public environmental participation system should be improved, and the process of disclosing polluters' carbon information should be accelerated.

Revisiting the Environmental Kuznets Curve (EKC) Hypothesis of Carbon Emissions: Exploring the Impact of Geopolitical Risks, Natural Resource Rents, Corrupt Governance, and Energy Intensity

The global imperative to mitigate carbon emissions for sustainable development has spurred extensive research into economic, social, and energy-related factors. However, prior studies present a complex landscape, yielding mixed conclusions regarding the influence of geopolitical risk, natural resource rents, corrupt governance, and energy intensity. To untangle this ambiguity, we construct a research model grounded in the Environmental Kuznets Curve, employing panel data from 38 countries spanning 2002 to 2020. Employing panel quantile regression models, we directly assess the impact of identified factors. Our findings affirm the alignment between economic growth and carbon emissions, supporting the Environmental Kuznets Curve hypothesis. Notably, increased geopolitical risk and energy intensity correlate with heightened carbon emissions over time, while corruption governance and natural resource rents exhibit a mitigating effect. Additionally, our study explores the indirect impact of these factors using a panel threshold regression model. Results indicate a diminishing influence of economic growth on carbon emissions. Intriguingly, natural resource rents initially curtail, then amplify the connection between economic growth and carbon emissions. Conversely, rising energy intensity magnifies the relationship between economic expansion and carbon emissions.

Impact of belt and road initiative policy and interacting effect of renewable energy toward carbon neutrality

The Belt and Road Initiative (BRI) represents a comprehensive developmental blueprint that has been deployed across numerous Asian, European, and African nations, aimed at fostering economic growth and enhanced regional connectivity. However, concerns have been raised about its potential impact on the environment, specifically in the context of carbon dioxide (CO2) emissions. Employing non-parametric analytical techniques, this research undertakes an empirical investigation into the relationship between economic growth (GDP), renewable energy consumption (REC), and CO2 emissions within the context of BRI participant countries, spanning the years from 2000 to 2018. The findings of this study reveal that REC exerts a pronounced and statistically significant mitigating effect on CO2 emissions, implying that an increase in REC corresponds to a reduction in CO2 emissions. In contrast, trade openness (TRADE) exhibits a positive and statistically significant influence on CO2 emissions, signifying that greater trade openness is associated with heightened CO2 emissions. However, the observed effects of GDP, fixed telephone subscriptions (FTS), and mobile cellular subscriptions (MCS) on CO2 emissions remain inconclusive, as their impact lacks statistical significance. The effect estimates of covariates on CO2 emissions using various models reveal that REC and TRADE significantly affect CO2 emissions, while GDP, FTS, and MCS still yield uncertain results. The outcomes draw attention to the necessity of implementing policies that encourage the use of REC and reducing trade openness as an efficient way of neutralizing CO2 emissions. This research provides valuable insights into the impact of the BRI on CO2 emissions and emphasizes the importance of addressing the environmental implications of this initiative. Policymakers should carefully consider these findings and develop effective strategies to foster sustainable development.

Does green credit promote firm environmental performance? A new perspective of economic growth target constraints

Green credit encompasses financial instruments and services utilized to mitigate greenhouse gas emissions and facilitate adaptation to global climate change. Establishing a long-term stable green credit institution is crucial to promoting carbon abatement goals. This study uses the difference-in-difference (DID) model to discuss the impact of green credit policy (GCP) on environmental performance based on the China industrial enterprise data. Our results show that GCP inhibits the pollution emissions and improve firm environmental performance. This improvement effect is attributed to a reduction in production scale, and financing constraints. Moreover, GCP increases the firms' exit risk from market and promotes the technological innovation of incumbent firms. Economic growth target constraints trigger a positive moderation role in the implementation of GCP. Heterogeneity results show that such improvement effect is more pronounced in state-owned firm, large-scale firms, and high R&D intensity firms. Importantly, our findings also suggest the environmental monitoring effect of green credit is dependent on the institutional quality. Only in a sound market environment can GCP effectively improve firm environmental performance. Finally, we propose to build a systematic incentives and constraints mechanism to achieve the sustainable development. The conclusions of this paper provide empirical evidence and policy implications for the implementation of GCP.