Do trade openness and institutional quality contribute to carbon emission reduction? Evidence from BRICS countries

A sustainable study of competitive industrial performance amidst environmental quality: New insight from novel Fourier perspective

This paper uses the novel Fourier Augmented Autoregressive Distributed Lag within the load capacity curve framework to investigate the effects of economic growth, trade openness, renewable energy consumption, and competitive industrial performance on environmental sustainability. The results of the empirical analysis provide evidence that the load capacity curve is valid in Turkiye. Moreover, while trade openness jeopardizes environmental sustainability, renewable energy consumption and industrial competitiveness increase environmental quality. Policymakers should focus intensively on policies that can achieve SDG 9 and industrialization activities. It is essential to give privileges, especially to companies operating in the industrial sector, regarding the transition to renewable energy. Energy efficiency policies that will accelerate the transition to clean energy sources are also an alternative to escape from fossil energy immediately. Environmental factors should be considered when importing intermediate goods used in industry, and these policies should be guaranteed by law as soon as possible.

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.

Exploring the determinants of methane emissions from a worldwide perspective using panel data and machine learning analyses

This article contributes to the scant literature exploring the determinants of methane emissions. A lot is explored considering CO2 emissions, but fewer studies concentrate on the other most long-lived greenhouse gas (GHG), methane which contributes largely to climate change. For the empirical analysis, a large dataset is used considering 192 countries with data ranging from 1960 up to 2022 and considering a wide set of determinants (total central government debt, domestic credit to the private sector, exports of goods and services, GDP per capita, total unemployment, renewable energy consumption, urban population, Gini Index, and Voice and Accountability). Panel Quantile Regression (PQR) estimates show a non-negligible statistical effect of all the selected variables (except for the Gini Index) over the distribution's quantiles. Moreover, the Simple Regression Tree (SRT) model allows us to observe that the losing countries, located in the poorest world regions, abundant in natural resources, are those expected to curb methane emissions. For that, public interventions like digitalization, green education, green financing, ensuring the increase in Voice and Accountability, and green jobs, would lead losers to be positioned in the winner's rankings and would ensure an effective fight against climate change.

Assessing the impact of geopolitical, economic, and institutional factors on China's environmental management in the Russian-Ukraine conflicting era

In contemporary times, geopolitical risk, and natural resources prices are susceptible due to the Russian-Ukraine conflict. In the meantime, emerging economies are struggling to explore the factors that could reduce ecological challenges and enhance environmental management. This research aims to analyze several economic, environmental, political, and institutional variables to ascertain their influence on greenhouse gas emissions in China. Covering the latest period from 1990 to 2022, various time series tests, including normality, stationarity, and cointegration tests. The results confirm that the variables studied have a stable pattern over time and are connected in the long run. The non-normal distribution of variables leads to opt novel moment quantile regression, where the results are tested for robustness via parametric approaches. The empirical results asserted that economic growth, natural resource prices, and trade significantly enhance ecological challenges (emissions). However, globalization, geopolitical risk, and institutional quality significantly reduce such environmental challenges. The results are robust, and both unidirectional and bidirectional causal associations confirm the importance of these variables in environmental management. Based on the results, this study recommends engagement in environmentally-friendly trading, investment in clean and green energy, and strengthening institutional quality for the region's environmental recovery.

Revisiting the environmental Kuznets curve: assessing the impact of climate policy uncertainty in the Belt and Road Initiative

Climate change repercussions such as temperature shifts and more severe weather occurrences are felt globally. It contributes to larger-scale challenges, such as climate change and biodiversity loss in food production. As a result, the purpose of this research is to develop strategies to grow the economy without harming the environment. Therefore, we revisit the environmental Kuznets curve (EKC) hypothesis, considering the impact of climate policy uncertainty along with other control variables. We investigated yearly panel data from 47 Belt and Road Initiative (BRI) nations from 1998 to 2021. Pooled regression, fixed effect, and the generalized method of moment (GMM) findings all confirmed the presence of inverted U-shaped EKC in BRI counties. Findings from this paper provide policymakers with actionable ideas, outlining a framework for bringing trade and climate agendas into harmony in BRI countries. The best way to promote economic growth and reduce carbon dioxide emissions is to push for trade and climate policies to be coordinated. Moreover, improving institutional quality is essential for strong environmental governance, as it facilitates the adoption of environmentally friendly industrialization techniques and the efficient administration of climate policy uncertainties.

BRICS and the climate challenge: navigating the role of factor productivity and institutional quality in CO2 emissions

The BRICS countries are important contributors to global efforts aimed at preventing a climate catastrophe. These countries account for half of the total emissions generated by the G20 nations. In this context, this paper examines the relationship between total factor productivity (TFP) and CO2 emissions (CE) in BRICS countries from 1996 to 2022, with institutional quality serving as a moderating factor. Moreover, a diverse range of methodologies was employed to address the problem of cross-sectional dependence; i.e., the CS-ARDL technique is used to analyze the relationship between variables in both the long and short-run. The AMG and CCEMG methods are employed for robustness analysis, while the Dumitrescu-Hurlin causality test is used to assess causality. Our empirical analysis demonstrates that TFP is positively associated with CE. Conversely, we find that institutional quality has a negative impact on CE. Furthermore, the study confirms that the interaction between TFP and institutional quality has a negative effect on CE. This implies that an improvement in institutional quality leads to a decrease in CE, as it strengthens the regulatory system governing CE and reduces pollution. Environmental policy must include economic flexibility and policy unpredictability in order to meet CO2 reduction targets. In addition, the study has identified bidirectional causal links between CE and variables such as TFP, institutional quality, and other control variables. According to our study, the BRICS countries should encourage digitalization and renewable energy production while preserving a reasonable standard of institutional quality since they have significant resource advantages in the renewable energy sector.

Battling for net zero carbon: the position of governance and financial indicators

Africa, over the past years, has put various measures in place in the fight against carbon emissions. Achieving net zero carbon has caused the continent researchers to investigate various conditions required for a successful transition. Therefore, the political system cannot be left out since it plays a major role in decision-making. This study contributes to previous literature analyzing the empirical effect of financial development and governance quality on carbon emissions. The study is focused on 52 African countries with data from 1996 to 2021. Panel quantile and generalized method of moments are used for the analysis. The result indicates that financial development contributes to environmental degradation, government effectiveness, rule of law, and political stability which promote environmental pollution; however, control of corruption, renewable energy, and economic growth promote ecological sustainability. According to the aforementioned, it is crucial for governments to include financial development plans in national environmental strategies, particularly for those in African nations. Furthermore, governments should put restrictions on trade to control the trade of high-carbon technologies.

The impacts of renewable energy and institutional quality in environmental sustainability in the context of the sustainable development goals: A novel approach with the inverted load capacity factor

It is crucial to fulfill sustainable development goals in combating environmental pollution. Recently, there has been a growing literature on environmental pollution; however, while many proxies represent environmental pollution, few proxies represent environmental sustainability. In this paper, we examine the effects of institutional quality (SDG-16), economic growth (SDG-8), and renewable energy (SDG-7) on the inverted load capacity factor (SDG-13) in OECD countries from 1999 to 2018. The objective is to ensure environmental sustainability within the Sustainable Development Goals (SDGs) framework. In this respect, the study differs from the existing literature by approaching the sustainable environment literature from a broader perspective. Long-term empirical estimates from the PMG-ARDL technique have shown that institutional quality, reel income, and population increase the inverted load capacity factor, that is, decrease environmental sustainability. However, on the contrary, renewable energy decreases the inverted load capacity factor. Therefore, renewable energy consumption helps reach SDG-7 and SDG-13 in OECD countries. In addition, it is found that economic growth is significant both in the long run and in the short run, and the impact of economic growth on the environment is greater in the short run than in the long run. This result supports the environmental Kuznets curve (EKC) hypothesis for OECD countries. The panel causality test results find a bidirectional causality relationship from renewable energy and population to inverted load capacity factor and a unidirectional causality relationship from institutional quality to inverted load capacity factor. This study argues that policymakers should concentrate on deploying environmentally friendly technology to slow down environmental degradation, increase the usage of renewable energy sources, and promote sustainable development in line with the SDGs.

The role of quality institutions and technological innovations in environmental sustainability: Panel data analysis of BRI countries

The majority of countries struggle to accomplish sustainable development and environmental sustainability; nevertheless, environmental degradation issues can be resolved by enhancing technological innovations and institutional effectiveness. This study assesses the impact of technological innovations and institutional quality on carbon dioxide emission in the Belt and road initiative countries for the time period of 2002 to 2019. Fixed effect, OLS, and generalized method of moment estimators were applied to the panel data for analysis. The results shows that energy from fossil fuels, economic growth and technological innovations increase environmental degradation by rising carbon dioxide emission. Renewable energy consumption, the rule of law, and the quality of institutions make a significant contribution to the improvement of environmental quality. In particular, the Environmental Kuznets Curve and Innovation Claudia curve is valid in the Belt and Road Initiative countries. In the presence of quality institutions, countries can achieve sustainable growth and environmental sustainability by expanding their use of green technology and renewable energy. The findings provide suggestions to the sample countries on the improvement of institutional framework and technological innovations in order to achieve sustainable development.

Impact of regional energy allocation distortion on carbon emission efficiency: Evidence from China

The free flow of energy cannot be fully achieved in China's energy market because of incomplete market-oriented reform, resulting in energy allocation distortion, which has hampered carbon emissions reduction. However, the extent of energy allocation distortion and its role in carbon emission efficiency remain unexplored. Therefore, this study aims to measure energy allocation distortion and investigate its impact on carbon emission efficiency. For this purpose, first, we derive energy allocation distortion based on a production function and carbon emission efficiency using a meta-frontier non-radial Malmquist index. To effectively address the endogeneity issue, we use a generalized method of moments model to estimate the impact of energy allocation distortion on carbon emission efficiency. Second, we further explore the distortionary mechanism of carbon emission efficiency associated with energy allocation and analyze the asymmetric effect of energy allocation distortion on carbon emission efficiency. The results show a certain degree of energy allocation distortion throughout the country, and disparity exists among different regions. The average value of carbon emission efficiency in the eastern region is 1.0286, well ahead of the national average, demonstrating better performance than other regions. Energy allocation distortion negatively affects carbon emission efficiency, with a 1% increase in energy allocation distortion leading to a 0.251% decrease in carbon emission efficiency. Technological progress, the structure of energy consumption, and industrial structure are important transmission channels through which energy allocation affects carbon emission efficiency. The study contributes to uncovering regional energy allocation distortion and its impacts on carbon emission efficiency and providing strategic policy recommendations for improving energy allocation efficiency.