Environmental policy stringency, related technological change and emissions inventory in 20 OECD countries

Dynamic role of medium- and high-tech industries and environmental policy stringency in environmental sustainability: fresh insights from Dynamic Seemingly Unrelated Regression (DSUR) analysis

Since the last two decades, carbon neutrality has become a primary target of all economies. Governmental environmental policies stand as the most potent tools in the arsenal when it comes to tempering the effects of climate change. Fostering the adoption of green energy sources and embracing energy efficiency principles may assume an essential role in upholding the standard of ecological integrity. The primary objective of this inquiry revolves around the meticulous analysis of the intricate interplay between economic growth, the trajectory of industrialization, the up-gradation of industrial sector structure, the integration of green energy paradigms, and the implementation of energy efficiency strategies and environmental policies in the frame spanning from 2000 to 2019. To tackle the matter of cross-sectional dependency and heterogeneity, second-generation cointegration estimators, Dynamic Seemingly Unrelated Regression (DSUR) and Augmented Mean Group (AMG), were employed to estimate long-run relationships. The consequences of DSUR and AMG indicate that while economic and industrial growth contributes to environmental degradation, renewable energy usage, and medium-high-tech industries mitigate the carbon emissions in selected countries. Further study results suggest that energy intensity positively impacts environmental degradation, which means energy efficiency helps mitigate CO2 emissions in these countries. This study also reveals that the degree of stringency in environmental policy negatively affects CO2 releases in the selected nations. Consequently, our study recommends the enhancement of the stringency of environmental policies, promoting environmentally friendly energy usage, the efficient use of energy, and the advancement of industries into medium-high-tech industries as effective ways to mitigate climate change in specific developing countries.

Can strengthening environmental justice promote carbon reduction? Evidence from environmental courts in China

Environmental justice is an important safeguard for pollution control, and this paper is interested in its ability to promote carbon emission reduction. One unique facet of reinforcing local environmental justice involves the establishment of environmental courts by Intermediate People's Courts. Taking this as the starting point, this study constructs a quasi-natural experiment to investigate the strengthening of urban environmental justice. Analyzing empirical data from 283 prefecture-level cities in China spanning 2006 to 2019, we employ multi-period and spatial difference-in-differences approaches to probe the impact of environmental justice strengthening on carbon reduction. Our results indicate a substantial contribution of strengthened environmental justice to reducing carbon emissions. Specifically, the establishment of environmental courts can curtail carbon emissions by an estimated range of 11.7 to 12.9%. Also, the mechanism analysis underscores that the carbon reduction effect primarily arises from enhanced efficiency in processing environmental cases. Moreover, this effect is notably pronounced in regions with robust governmental environmental regulations. Notably, in areas with limited public environmental concern, environmental courts effectively complement existing environmental regulations. Furthermore, a significant positive spillover effect of environmental courts on carbon emission reduction is observed in geographically adjacent economic zones.

The impact of ICT goods exports and environmental technology innovation on mineral rents: Evidence from OECD countries

This study investigates the effects of Information and Communication Technology (ICT) goods exports and environmental technology innovation (ETI) on mineral rents using a panel dataset of 23 OECD countries from 2000 to 2020. Employing a fixed-effects regression and several robustness checks (FGLS, PCSE, and DKSE), we find that ICT goods exports are positively associated with mineral rents, while ETI exerts a negative impact. Notably, the positive effect of ICT goods exports was more pronounced in countries with higher levels of ICT goods exports. Our findings underscore the complex interplay among technological advancements, environmental sustainability, and economic outcomes in resource-dependent economies, emphasizing the need for tailored policy interventions to navigate these multifaceted dynamics.

Does an environmental stringent policy really matter to achieve environmental sustainability in BRICS-T region? Evidence from novel method of moments quantile regression approach

Amidst pressing global environmental challenges, exacerbated by climate change and the imminent threat of global warming, there is a critical need to assess the efficacy of environmental policies. This study centers its attention on the pivotal role of these policies in addressing environmental concerns. Specifically, our research aims to scrutinize the impact of stringent environmental policies on environmental quality under the theoretical underpinnings of environmental Kuznets curve. To achieve this objective, the study collected data from BRICS-T economies over the period of 1990-2020. This study employed the method of moments quantile regression technique for empirical analysis. Our study validates the presence of the Environmental Kuznets curve (EKC hypothesis). Empirical findings reveal the sustained significance of environmental stringency across all quantiles, demonstrating a positive correlation in lower quantiles and a negative correlation in higher quantiles. At lower quantiles, the impact is insignificant initially, but pronounced due to efficiency improvements induced by stringent policies. The effects became negative at middle quantiles, indicating stringent policies might encounter diminishing returns where policy measures start stabilizing ecological impacts. At higher quantiles, the influence of ESI remains significant, reflecting ongoing adaptations in larger economies with higher ecological footprints. This suggests the potential effectiveness of stringent regulatory measures in mitigating environmental impacts and reducing ecological footprints. The identified inverted U-shaped curve signifies that while stringent policies may not inherently enhance environmental health, beyond a certain threshold, they can indeed contribute to its improvement. Our policy recommendation advocates for the widespread adoption and promotion of such stringent measures to safeguard environmental health.

Empirical evidence of emissions discourse related to food, beverage, and tobacco production in leading manufacturing nations

The proliferation of carbon dioxide (CO2) emissions has resulted in significant environmental challenges worldwide, particularly within industrialized nations. The present paper tries to investigate the role of food, beverages, and tobacco in mitigating CO2 emissions in the top industrial countries. Economic growth and renewable and non-renewable energy consumption are integrated as control variable in the empirical model. The study applied the pooled mean group-autoregressive distributed lag (PMG-ARDL) model proposed by (J Appl Econ, 16:289-326, 2001) and Granger causality test for causalities directions. The empirical outcomes suggest the presence of cross-sectional dependence, and variables are integrated of order one and cointegrated. Long-run estimates revealed the presence of inversed U curve proving the validity of the environmental Kuznets curve. Also, the results show that renewable energy (RE) consumption contribute in reducing emissions, while non-renewable energy (NRE) and food, beverages, and tobacco (FBT) led to increase emissions level in the long run. Granger shows bidirectional long-run relationship between CO2 emissions, non-renewable energy, and economic growth. Moreover, Granger recorded no causality between food, beverages, and tobacco and any other variable. We recommend that firms engaged in the production of food, beverages, and tobacco products are increasingly urged to make investments in clean technologies powered by renewable energy sources for their manufacturing processes. This is considered a necessary step to achieve a significant reduction in CO2 emissions over an extended period.

Exploring the asymmetric effect of fiscal policy instruments in encountering environmental degradation: proposing an SDG framework for India

Asian countries are facing difficulties in attaining sustainable development goals (SDGs), and India is not an exception to it, with environmental degradation being one of the primary issues. Therefore, a policy-level reorientation may be required to address it. From this standpoint, fiscal policy instruments may come in handy towards fully integrating the SDGs into its agenda. The present investigation designs an SDG framework for India that could serve as an example for other Asian nations. This study introduces a new investigation exploring the relationship between fiscal policy instruments and environmental quality in India by examining the environmental Kuznets curve (EKC) hypothesis from 1990 to 2021. A nonlinear autoregressive distributed lag (NARDL) model is applied for empirical examination. The findings indicate that positive and negative shocks in fiscal policy instruments have significant impact on carbon emissions in both the long and short run. The study has also found evidence of an "inverted U-shape" EKC for India. These results are valuable from a policy perspective for India and other Asian countries to address environmental issues. The study has also outlined potential outcomes that may benefit India's fiscal policy in resolving environmental issues and attaining better economic growth. In the end, the study proposes a policy framework that supports SDG 7, SDG 8, SDG 12, SDG 13, and SDG 17 objectives.

Determining the green technology innovation accelator and natural resources towards decarbonization for the EU countries: evidence from MMQR

Gearing up for green technology innovation (GTI) and natural resources has become even more important in the transition to a zero-emission life, a green economy, and sustainable development goals. This attempt has become a situation that needs to be overpowered much sooner by the European countries, which have encountered challenges in many ways, especially regarding natural resources, energy supply, and the climate crisis. In this vein, the current study follows the novel, robust Method of Moment Quantile-Regression (MM-QR), which successfully yields heterogeneous information structure across quantiles, to examine the determinants of GTI for 15 EU countries over the period of 2003-2018. MM-QR estimation results indicate that the determinants of green technology innovation are heterogeneous across the EU countries. While green growth (GG) has an adverse impact on GTI in middle- and high-GTI countries, the effect of ecological footprint on GTI is positive for countries in the highest-GTI countries. The positive effects of financial development (FD) on GTI are revealed for all countries. Remarkably, environmental taxes have an adverse and positive influence on GTI in the lowest and highest quantile countries, respectively. Finally, renewable energy and greenfield FDI have no effect on GTI. Governments can promote GTI by providing financial resources, in the most immaculate way, to firms that engage in green technology projects, as well as by encouraging these through environmental taxes.

Energy transition and environmental stability prospects for OECD economies: The prominence role of environmental governance, and economic complexity: Does the geopolitical risk matter?

The global increase in temperature and climate change signals the need for humanity to reduce greenhouse gas emissions and to adopt eco-friendly lifestyles. The 2023 United Nations Climate Change Conference (COP28) in the UAE emphasized this, urging nations to commit to the Paris Agreement and pursue a greener, carbon-free future. In recent decades, climate change has become a critical issue, primarily because of the extensive use of fossil fuels and conventional energy resources. Economic growth has led to an increase in energy consumption and widespread environmental damage. The present study empirically explores whether any changes in environmental governance, economic complexity, geopolitical risk, and the interaction term influence energy transition and environmental stability in OECD economies over the period 1990-2021. Novel econometric methods, including Westerlund co-integration and the Method of Moments Quantile Regression (MMQR), are employed to address complexities such as cross-sectional dependency and panel causality. The key findings from the MMQR technique showed a positive link between environmental governance and economic complexity in driving sustainable energy transitions, thus bolstering environmental resilience in OECD countries. However, economic complexity counterbalances environmental stability. Significantly, geopolitical risk acts as a moderating variable, enhancing the effects of governance and complexity on sustainable energy practices and environmental stability. Based on these insights, this study recommends strategic initiatives, including investment in eco-friendly technologies, to fast-track the shift to clean energy and strengthen environmental resilience in OECD countries. These strategies align with the broader objectives of global sustainable development, offering a path towards a greener and more sustainable future.

Foreign investments and load capacity factor in BRICS: the moderating role of environmental policy stringency

This research examines whether environmental regulations have a moderating effect on the link between foreign direct investment and the environment, as well as the effect of foreign capital investments on environmental quality for BRICS nations. In this approach, using second-generation panel data methodologies for the period 1992-2020, the impacts of foreign direct investments, real national income, consumption of renewable energy, and environmental stringency index on the load capacity factor are explored in the base empirical model. In order to test if there is any evidence of a potential parabolic link between economic growth and environmental quality, the model also includes the square of real national income. In addition, in the robustness model, the moderating role of environmental policy on foreign investment and environmental quality is checked. Empirical results show a U-shaped association between environmental quality and economic development. The usage of renewable energy and the environmental stringency index is also shown to improve environmental quality, although foreign direct investments decrease it. Finally, it is determined that environmental regulations are effective in undoing the negative impacts of foreign capital investments on environmental quality, demonstrating the validity of their moderating function.

The impact of energy imports on green innovation in the context of the Russia-Ukraine war

This research paper examines the implications of energy imports on green innovation within the context of the Russia-Ukraine war. It utilizes panel data spanning EU countries from 1999 to 2022. Initially, the study explores the influence of natural gas and oil imports on the advancement of green innovation. Specifically, it reveals that the importation of natural gas facilitates progress in this area, whereas the importation of oil can impede such advancement. Following the Russia-Ukraine war, the role of gas imports in fostering green innovation within EU countries has grown, simultaneously exacerbating the adverse effects of oil imports on green innovation. Secondly, by employing a panel threshold model, the study identifies that higher energy prices make natural gas and oil imports unfavorable for the progress of green innovation in EU nations. Thirdly, an analysis of heterogeneity demonstrates that, as a result of the Russia-Ukraine war, natural gas imports have a more significant detrimental effect on the development of green innovation in EU nations with a natural gas dependency ranging from 10% to 90%. In the case of oil imports, EU nations with a dependence on Russian oil exceeding 50% experience a more pronounced negative impact on the development of green innovation. Fourthly, a mechanistic study elucidates that natural gas imports indirectly stimulate green innovation through the mechanism of energy transition, while oil imports hinder the development of green innovation by exacerbating carbon emissions. The empirical findings of this paper carry substantial policy implications for EU nations, urging the acceleration of energy transition in response to the impact of the Russia-Ukraine war on green innovation. Moreover, these findings have broader implications for global environmental management and the collective endeavor to combat climate change.

From crisis to resilience: strengthening climate action in OECD countries through environmental policy and energy transition

Climate change represents a grave challenge to the global economy, environment, and societal well-being, jeopardizing their long-term sustainability. In response to this urgent issue, the study emphasizes the significance of environmental policy and energy transitions as fundamental factors in addressing the climate change crisis. The research draws upon data from OECD countries spanning the period between 1990 and 2020, utilizing robust econometric techniques to assess data properties. The study utilizes a comprehensive CS-ARDL model, incorporating multiple control variables like non-renewable energy GDP, foreign direct investment (FDI), and research and development (R&D). The results show that environmental policy and energy transitions are effective in reducing climate change impacts in the form of CO2 emissions. The non-environmental factors like GDP and FDI are positively associated and thereby accelerate climate change processes, whereas R&D promotes environmental protection by reducing CO2 emissions. Based on these findings, the study advocates for the implementation of rigorous policy measures by OECD economies to strengthen and enforce environmental policies to ensure compliance and foster sustainable practices across sectors. The study also suggests that OECD must promote energy transitions by investing in renewable energy sources at the mass level (micro and macro) and phasing out reliance on non-renewable energy.

The influence of shadow economy, environmental policies and geopolitical risk on renewable energy: A comparison of high- and middle-income countries

Given the alarming rate of climate change and environmental degradation, major countries are seeking ways to curtail environmental damage and attain sustainability in the future. In the quest for a green economy, countries are motivated to adopt renewable energy that can assist in resource conservation and efficiency. Accordingly, this study examines the diverse effects of the underground economy, environmental policy strictness, geopolitical risk, gross domestic product, carbon emissions, population, and oil prices on renewable energy for 30 high- and middle-income countries from 1990 to 2018. The empirical outcomes based on quantile regression document significant variations across two country groups. For instance, for high-income countries, the shadow economy has a detrimental effect across all quantiles but it is statistically significant at the top quantiles. Nonetheless, the effect of the shadow economy on renewable energy is detrimental and significant statistically across all quantiles for middle-income countries. In the context of environmental policy stringency, the effect is positive across both country groups, though there is heterogeneity in outcomes. Geopolitical risk has a positive influence on the deployment of renewable energy for high-income countries but negatively impacts renewables for middle-income countries. As far as policy suggestions are concerned, the policymakers of both high- and middle-income countries need to take steps to constrain the growth of the shadow economy by adopting effective policy strategies. Policies need to be implemented for middle income-countries to reduce the unfavorable effect of geopolitical uncertainty. The findings of this study contribute to a better and more precise understanding of factors shaping the role of renewables whereby the energy crisis would be mitigated.

Does being stricter mean doing better? Different effects of environmental policy stringency on quality of life, green innovation, and international cooperation

Nowadays, when we are facing several strict regulations, the question arises - does higher strictness lead to the desired results? This study addresses the fact that less research attention has focused on the effects of environmental policy stringency (EPS) on perceived health expressing quality of life, and on green international cooperation. In addition, previous research has provided rather mixed results on the impact of EPS on green innovation. Therefore, we fill an interesting research gap and help better understand the relationship between market-based and non-market-based EPS, perceived health, green innovations, and green international cooperation in OECD (Organization for Economic Co-operation and Development) countries. Using three complementary databases provided by OECD, Eurostat, and the World Bank and the classical linear regression model, we confirm hypotheses that strong market-based EPS and green international cooperation have positive effects on perceived health. Surprisingly, contrary to the findings of prior research, we do not confirm the positive effects of market-based and non-market-based EPS on green international cooperation. This study contributes to the literature on the Porter hypothesis, technological collaborations in green technological development, and environmental innovation theory. In addition, this study provides several practical implications for policymakers across OECD countries.

Interrelationship among environmental policy stringency, financial globalization in OECD countries, and CO2 emission with the role of technological innovation and financial development

The study examines the nexus between financial globalization (FG), environmental policy stringency (EPS), financial development (FD), and technological innovation (INV) on CO2 emission with moderating effect of technological innovation on financial development and environmental degradation in 36 OECD countries with an updated dataset from the period of 1990 to 2020 using PMG (Pooled mean group) panel ARDL method. The results of stationarity tests; (Levin, Lin, and Chu test; ADF Fisher test) demonstrate that selected variables are stationary at level I(0) and first difference I(I); this confirms that PMG estimator can be employed. Cointegration tests indicate that cointegration exist among the variables. The empirical findings of the PMG estimator indicate that financial globalization and CO2 are negatively associated with each other. While financial development, environmental policy stringency, and technological innovation have positive impact on environmental degradation in OECD countries. Furthermore, technological innovation strengthens the association between financial development (FD) and environmental degradation (CO2 emission). In order to accelerate economic growth, the study recommends that policymakers should implement environmental policies to achieve low-carbon mechanisms, such as green infrastructure and renewable energy systems, which reduce energy consumption and greenhouse gas emissions. Therefore, it is crucial that the selected OECD countries should develop programs that increase awareness of the risks of carbon emissions.

Asymmetric effects of economic policy uncertainty and environmental policy stringency on environmental quality: evidence from China and the United States

The importance of economic policy uncertainty (EPU) and environmental policy stringency (EPS) in affecting environmental quality is gaining great attention in the literature. However, none of the existing studies has thought to investigate their combined effects on carbon dioxide (CO2) emissions. Additionally, the individual investigations into the nexuses EPU-emissions and EPS-emissions primarily took a symmetric assumption between these variables into consideration. The current paper is an early attempt to close these gaps by examining the combined effects of economic policy uncertainty and environmental policy stringency on CO2 emissions within asymmetric (nonlinear) frameworks in China and the United States (US). The empirical findings indicate that an improvement in EPU degrades the environmental quality in both countries. However, a negative shift in EPU decreases emissions in China while increasing them in the US. In terms of EPS, the estimates in the two nations led to similar results. A positive change in EPS is conducive to fewer emissions, whereas a negative change worsens environmental damage. These findings still hold with the sensitivity analysis using ecological footprint as an alternative gauge of environmental destruction. This study, therefore, suggests that both nations adopt stricter environmental policies. Additionally, Chinese policymakers should work to lessen uncertainty shocks, while the US government should promote more transparent economic policies.

Does sectoral energy consumption depend on trade, monetary, and fiscal policy uncertainty? Policy recommendations using novel bootstrap ARDL approach

Since the inception of the twenty-first century, there has been a profound upsurge in economic policy uncertainty (EPU) with several economic and environmental impacts. Although there exists a growing body of literature that probes the economic effects of EPU, the EPU-energy nexus yet remains understudied. To fill this gap, the current study probes the impact of disaggregated EPU (i.e., monetary, fiscal, and trade policy uncertainty) on energy consumption (EC) in the USA covering the period 1990M1-2020M12. In particular, we use sectoral EC (i.e., energy consumed by the residential sector, the industrial sector, the transport sector, the electric power sector, and the commercial sector) in consort with total EC. The findings from the bootstrap ARDL approach document that monetary policy uncertainty (MP) plunges EC, whereas trade (TP) and fiscal policy uncertainty (FP) escalate EC in the long run. On the contrary, there is a heterogeneous impact of FP and MP across sectors in the short run, while TP does not affect EC. Keeping in view the findings, we propose policy recommendations to achieve numerous Sustainable Development Goals.

International trade, Chinese foreign direct investment and green innovation impact on consumption-based CO2 emissions: empirical estimation focusing on BRI countries

Recently, The literature has directed concern towards the consumption-based carbon emission (CCE), which is adjusted for trade. This study aims to examine trade, Chinese foreign direct investment (CFDI), and green innovation (GI) to portray the overall impact of the factors influencing CCE in belt and road initiative (BRI) countries over the period 2003 to 2018. By employing the cross-sectional autoregressive distributed lag (CS-ARDL) model, the findings reveal that CFDI and imports positively influence the CCE both in the long run as well as in the short run. The results of GI and exports are found negatively significant in the host countries. The study further employs augmented mean group (AMG) and common correlated mean group (CCEMG) estimators for robustness. Like CS-ARDL, the outcomes of both estimators reveal the same findings that imports and CCE hold a positive relationship in all sample regions. Overall, the study exposes that strategies related to CCE accredited by trade and FDI should recognize their environmental repercussions and implement policies that are environmentally friendly such as green innovation and renewable energy sources to achieve a sustainable development.

Revealing the effectiveness of environmental policy stringency and environmental law on environmental performance: does asymmetry matter?

Environmental stringency policy shocks and environmental tax have become fundamental policy tools for mitigating the degradation of the environment. The study explores the effects of environmental tax and environmental stringency policy shocks in the reduction of pollution emissions in China for the time 1993 to 2019. This study is a pioneer in assessing the simultaneous impact of these two policy instruments on pollution emissions in China. For empirical investigation, the study employed NARDL estimation techniques. The NARDL results show that positive shocks in environmental tax reduce N2O emissions by 0.03%, PM2.5 emissions by 0.13%, CO₂ emissions by 0.18%, and GHGs emissions by 0.01%, however, negative shocks in environmental tax increase N₂O emissions by 0.01%, PM2.5 emissions by 0.07%, CO₂ emissions by 0.28%, GHGs emissions by 0.17% in the long run. The long-run results also show that positive shocks in environmental policy stringency reduced CO₂ emissions by 0.94%, GHGs emissions by 0.77%, while negative shocks in environmental policy stringency increased N₂O emissions by 0.17%, PM2.5 emissions by 0.50%, CO₂ emissions by 0.63%. The findings suggest vigorous policy implications.

Environmental regulations, political risk and consumption-based carbon emissions: Evidence from OECD economies

The staggering rise in global temperature and abrupt change of climate are the responses of nature alerting humanity to limit the emissions of hazardous gases and adopt environmentally-benign life style. The present study explores empirically whether any changes in environmental policy stringency (EPSI), political risk (PR), and the interaction term of EPSI*PR result in any alteration of consumption-based carbon emissions (CBCE) of the 24 advanced OECD economies over the period of 1990-2020. Prior to the empirical estimations, various diagnostic tests are employed. The empirical techniques include, panel cointegration check, Cross-sectional Augmented Autoregressive Distributed Lags (CS-ARDL), and Dumitrescu & Hurlin panel causality test. The findings confirm that imports, gross domestic product, and stringency of environment policies activate CBCE in short-run. Whereas, a unit improvement in political risk and its interaction with environmental policy stringency give rise to 0.231 MtCO₂ of CBCE in long run. Interestingly, the squared term of environmental policy stringency effectively tackles such emissions. Based on the findings, we conclude that the present environment related policies of OECD member states does not effectively limit CBCE. In order to achieve genuine emissions reduction goals, the selected nations should restructure their environment related policies by prioritizing increments in environmental policy stringency along with minimizing the risks involved in the political system.

Heterogeneous effect of GHG emissions and fossil energy on well-being and income in emerging economies: a critical appraisal of the role of environmental stringency and green energy

The new Agenda 2030 for sustainable development call for initiatives to bridge the gap between environmental protection and socio-economic development. To provide insight on the relationship between socio-economics, and ecology, the current study examines the effectiveness of environmental stringency and green energy to mitigate the effects of fossil energy and greenhouse gas emissions on human well-being and income for 12 emerging economies. The outcomes from dynamic heterogeneous panel estimators of cross-sectional-based auto regressive distributed lag and cross-sectional-augmented distributed lag indicate that: (i) green energy consumption and electricity consumption have a substantial positive effect on well-being and per capita income. (ii) The stringent environmental policy is found to decrease per capita income, but it increases well-being, while the square of environmental stringency is found to increase per capita income. (iii) Fossil energy consumption and greenhouse gas emissions have a negative effect on well-being but a positive impact on income. The outcome of U-test confirmed the presence of a U-shaped curve with a turning point (0.433) between per capita income and environmental policy stringency. This study yielded consistent results from the panel Granger causality test. Based on our findings, we may argue that it is necessary to prioritize human well-being over economic growth, and suggest several policy implications to achieve sustainable development goals.

Hydropower, human capital, urbanization and ecological footprints nexus in China and Brazil: evidence from quantile ARDL

The relations among ecological footprints, biocapacity per capita, gross domestic product per capita, natural resources, urbanization, human capital, and hydroelectric consumption are analyzed from 1971Q1 to 2017Q4 for Brazil and China. The novel quantile autoregressive distributive lag method was employed to analyze the long-run and short-run dynamics of environmental degradation. The findings revealed that economic growth has a positive role in the environmental degradation of both countries. However, human capital, natural resources, and hydropower have heterogeneous effects across quantile distribution and between the two countries. Based on the quantile dynamics of environmental degradation, the present study mentions policy implications for sustainable development.

Sanitation, water, energy use, and traffic volume affect environmental quality: Go-for-green developmental policies

Carbon emissions are primarily the result of human activity in urban areas. Inadequate sanitary facilities, contaminated drinking water, nonrenewable energy, and high traffic congestion have all impacted the natural ecosystem. Using data from 1975 to 2019, the study assessed the impact of the aforementioned variables on Pakistan's carbon emissions in light of this crucial fact. The ARDL cointegration method was used to estimate the short- and long-run parameter estimates. Urban sanitation challenges and energy consumption increase carbon emissions, which affects the natural environment by raising a country's carbon intensity. Economic expansion confirmed the inverted U-shaped relationship between carbon emissions and economic growth to verify the Environmental Kuznets Curve (EKC) hypothesis in the long run. In contrast, the monotonically rising function of carbon emissions provides evidence of the nation's economic development in the short run. Access to clean drinking water improves population health and encourages the purchase of eco-friendly products. The government must improve sanitation services and use renewable energy sources to enhance air quality.

Does the new energy demonstration cities construction reduce CO2 emission? Evidence from a quasi-natural experiment in China

Based on the panel data of 279 cities in China from 2003 to 2017, this paper regards the new energy demonstration cities (NEDC) construction as a quasi-natural experiment, using the double-fixed effect model and the difference-in-differences (DID) method to test its local carbon emission reduction effect and transmission mechanisms and further explores the impact of NEDC on neighboring carbon emissions. Results show that (1) NEDC reduces carbon emission intensity and per capita carbon emission significantly and shows dynamic sustainability. The policy effect has shown a trend of increasing year by year. Moreover, there is significant heterogeneity in the carbon emission reduction effect of NEDC, which produces more significant policy effect in large-scale and non-resource-based cities. (2) NEDC construction reduces carbon emission through green technology innovation effect, innovative elements agglomeration effect, and total factor productivity improvement effect. In terms of the contribution of reducing carbon emission intensity and per capita carbon emission, total factor productivity accounts for 36.7% and 21.5%, respectively, green technology innovation accounts for 18.6% and 23.9%, respectively, the contribution of R&D personnel agglomeration is 7.5% and 8.3%, respectively, and the contribution of R&D capital agglomeration is 5.9% and 9.5%, respectively. (3) From the perspective of spatial effect, the impact of NEDC on carbon emissions presents a "siphon" effect; that is, although NEDC reduces local carbon emissions, it has produced the phenomenon of transfer to neighboring areas, accelerating the increase in the carbon emission intensity of neighboring areas.

Nexus between environment regulation, FDI, and green technology innovation in OECD countries

To achieve the goal of "sustainable development," a crucial way is promoting green technology innovation. This paper examines the nexus between environment regulation, FDI, and green technology innovation in OECD countries from 1998 to 2018. The study uses a pooled mean group, random effect model, and GMM model to analyze the relationship empirically. A Dumitrescu-Hurlin panel causal test also tests the causal relationship between variables. The result indicates that environment regulation significantly relates to green technology innovation and encourages the economy to adopt green technology innovation. This result further explained FDI exerts a negative effect on green technology innovation. The findings suggest that there is a need to execute a proper effective environmental policy, especially concerning FDI, to gain the spillover effect on promoting green technology in the host country, specifically in OECD countries. This study provides policy implications to effectively formulate environmental regulation and FDI inflow to gain technology spillover to promote green technology.

The nexus between environmental regulation and ecological footprint in OECD countries: empirical evidence using panel quantile regression

Environmental regulation is an important tool for policymakers to achieve environmental goals. To better understand the role of environmental regulation in protecting the ecosystem, this paper offers a new perspective on exploring the heterogeneous impact of environmental policy stringency on the ecological footprint in 27 OECD countries during the period 1990-2015. An advanced economic method, panel quantile regression, is conducted to deal with the non-normality and unobserved individual heterogeneity across countries. The estimation outcomes indicate that the environmental effect of policy stringency is heterogeneous along the quantiles and different between the ecological footprint of consumption and production. The beneficial role of environmental regulation in reducing consumption ecological footprint is achieved at quantiles under 80th but the harmful effect starts occurring at extreme high quantiles. In contrast, environmental policy stringency plays a consistently useful role in mitigating production ecological footprint. In addition, the results disclose that the effects of other driving factors such as international trade, energy efficiency, renewable energy, and income are heterogeneous at different quantiles of ecological footprint. These findings help explain the inconsistencies in previous empirical studies on the nexus between environmental regulation and environmental quality in OECD countries. Finally, the current study gives policymakers useful recommendations on how to strengthen the beneficial impacts of environmental policies on the ecosystem.

How do imports and exports affect green productivity? New evidence from partially linear functional-coefficient models

Globalization and income disparities have raised an urgent need to re-examine the environmental consequences of international trade. Using a global panel dataset covering 93 economies from 1980 to 2017, this paper explores the heterogeneous impacts of international trade on green productivity. Unlike previous studies that impose strict linear assumptions on functional forms, we adopt a newly developed partially linear functional-coefficient model to estimate the specific response functions of green productivity to imports and exports at different income levels, thus emphasizing the potential role of income heterogeneity. The results demonstrate that (1) imports and exports have different non-linear effects on green productivity; (2) imports do not significantly affect green productivity in lower-income countries (relative income level is less than 0.5), but imports increasingly promote green productivity in high-income countries; (3) exports hinder green productivity in extremely low-income countries (relative income level is less than 0.1), while gradually improving green productivity in high-income countries (relative income level is larger than 0.6); and (4) imports and exports promote green productivity more significantly by technological progress rather than efficiency improvements. The stimulus effect from induced technological progress is only observed in higher-income countries.

Determinants of ecological footprint in OCED countries: do environmental-related technologies reduce environmental degradation?

The world is in a clash between the perspectives of economic expansion and sustainable environment. The high pace of technological progress opens space for fostering economic growth but at the same time, it creates a big dilemma for humans in protecting the environmental quality. The environmentally specific technologies are expected to help human beings to achieve dual objectives of economic prosperity and environmental sustainability. Despite its importance, attention to the role of environmental-related technologies in reducing environmental degradation is limited. This paper, therefore, intends to discover the impact of environmental-related technologies on the ecological footprint for 20 OECD from 1990 to 2015. The results endorse a long-run relationship between ecological footprint and green technologies, renewable energy, international trade, energy intensity, and real income. Environmental-related technologies and renewable energy consumption are found to be impetuous to sustainable development. The study provides relevant implications for policymakers to support the development and adoption of green technologies.

The asymmetric effect of environmental policy stringency on CO2 emissions in OECD countries

This paper uses a quantile fixed-effect panel data approach to investigate how environmental policy stringency affects CO₂ emissions in a set of 32 countries from 1990 to 2015, using OECD data. This approach allows us to identify the asymmetric impact of policy stringency on emissions, considering the emission level recorded in each analysed country. More precisely, we posit that the effectiveness of environmental regulations and policies is influenced by the air pollution level. Our results show that an increase in policy stringency has a negative impact on emissions and that environmental stringency has a more powerful impact in the countries with lower levels of carbon emissions. In addition, we show that policy stringency measures only became effective after the implementation of the Kyoto agreement, whereas the policy stringency effect is stronger for EU countries at high risk of missing the 20-20-20 target in terms of greenhouse gas emissions. Lastly, policy implications refer to the need to adapt policy stringency measures to emission levels to increase their effectiveness. At the same time, the setting up of emission targets determines policymakers to be more engaged in the fight against carbon emissions.

Impact of uncertainty on regional carbon peak paths: an analysis based on carbon emissions accounting, modeling, and driving factors

Regional carbon emission paths have an important impact on the realization of China's carbon emission peak target. Due to the uncertainty of future development model, the change of carbon emissions will also face uncertainty, which will make achieving the peak target challenging. Taking Shandong, Henan, and Guangdong, three of China's most populous provinces, as examples, this study analyzed the impacts of uncertainties in carbon accounting principles, driving factors, and simulation mechanism on achieving the peak target. The results show that (1) under the baseline scenario, the accounting principles based on primary energy consumption and IPCC sector consumption will make the peaking time of Guangdong be evaluated as 2018 and 2030, respectively, and the simulation based on IPCC sector accounting will advance the peaking time of Shandong by at least 5 years, while Henan will be less affected. (2) When considering the impact of the energy structure, Guangdong and Henan are estimated to peak in 2011 and 2018, while without considering the impact of the energy structure, the peak in the two provinces may be after 2035. Energy structure has no effect on the estimation of peaking time for Shandong. In addition, the k value in the ridge regression method also has no effect on the peaking time for the three provinces; it only affects the simulations of annual carbon emissions. This study also presented the carbon emission trajectory under different scenarios; from the simulation results, environmental regulation measures such as accelerating industrial structure transformation and increasing energy consumption intensity may help to achieve the peak carbon emission target as soon as possible. It also suggests that uncertainty should be included in future carbon assessments to present a more complete carbon emission trajectory.

Environmental regulation, import trade, and green technology innovation

To further clarify the relationship between environmental regulation and green technology innovation and discuss how environmental regulation affects green technology innovation through import trade, this paper analyzes the impacts of environmental regulation and import trade on green technology innovation and the transmission effect of import trade based on panel data for 30 provinces in China for 2008 to 2017. The results show that (1) environmental regulation first plays a role in promoting green technology innovation and then restrains it, and import trade can significantly promote green technology innovation; (2) under the constraints of stronger environmental regulations, import trade has a significantly positive effect on green technology innovation; and (3) environmental regulation can further enhance the technology spillover effects of import trade in regions with high absorptive capacity and regions with high levels of R&D investment. This paper analyzes the impact of environmental regulation on green technology innovation from the perspective of import trade and makes up for the deficiencies of existing research. It also lays a foundation for scholars to study the relationship between environmental regulation and green technology innovation in the midst of heterogeneous government regulation capabilities and industries in the future.

Environmental policy stringency and comparative advantage of environmental sensitive goods: a study of textile exports in G20 countries

Purpose

Textile, listed as one of the highly environmentally sensitive goods, its trade is susceptible to be influenced by the implementation of stringent environmental policies. This paper aims to investigate the long-run relationship between revealed comparative advantage (RCA) and Environmental Policy Stringency Index (EPSI) for textile exports of G20 countries in panel data setup.

Design/methodology/approach

Apart from trend analysis, the authors have employed Pedroni and Westerlund panel cointegration method and fully modified ordinary least square (FMOLS) method to study the long-run relationship between RCA and EPSI in presence of cross-sectional dependence.

Findings

A strong link between trade and environmental stringency is observed for textile in the present study. For G20 countries, slight evidence of the Pollution Haven Hypothesis has also been witnessed in the study. Correspondingly, the results reveal the presence of long-run association between the variables under study, implying that stringent environmental policies reduce RCA for some countries, whereas some countries witness the Porter hypothesis.

Research limitations/implications

The results imply that policy formulation should not aim at limiting the efforts of connecting RCA to environmental stringency but to set trade policies in a wider framework, considering environmental concerns, as these are inseparable subjects. However, this study also provides relevant real-world implications that can support further research.

Practical implications

The present study has important implications for textile exporters such as green innovations. The Porter hypothesis can be a beneficial tool for G20 exporters in enhancing their export performance, especially for the ones dealing in environmentally sensitive goods. This study offers relevant policy implications and provides directions for future research on global trade and environment nexus.

Originality/value

This study deals in a debatable area of research that evaluates the interlinkages between environmental stringency and global trade flows in the G20 countries. An important observation of the study is the asymmetrical nature of policy stringency across different countries and its impact on trade. The unavailability of updated data is the limitation of the present study.

Where is the gray side of green growth? Theoretical insights, policy directions, and evidence from a multidimensional approach

Addressing the geographical relocation of the pollution-intensive gray side of low-carbon green production, our study analyzes potential determinants of green and gray growth performance of industrialized/developed countries (IDCs) and industrializing/emerging economies (IEEs) over the 1996-2015 period. We define green growth by low-carbon output, while we link gray growth to comparative advantages of pollution havens. Green and gray growth models include such predictors as domestic income and foreign direct investment (FDI) together with composite indices for globalization, environmental policy stringency (EPS), industrialization, and control of corruption. Considering non-stationarity, cross-section dependency, endogeneity, and heterogeneity concerns, we employ bootstrap and residual-based cointegration analyses followed by long-run estimations using the Common Correlated Effects Mean Group (CCEMG) and Dynamic Ordinary Least Squares (DOLS) estimators and causality examination through Dumitrescu-Hurlin and Emirmahmutoglu-Kose tests. The key findings of the study are as follows: (i) income is positively associated with green growth for both IEEs and IDCs, whereas the income-gray growth nexus is negative for IEEs. (ii) Although inward FDI stocks are positively related to green and gray growth of IEEs and outward FDI stocks are negatively associated with green and gray growth of IDCs, these relationships are mediated by EPS. (iii) Globalization encourages both green and gray growth for IDCs. (iv) Even though EPS inhibits green growth and encourage gray growth in IEEs, these direct effects widely depend on the indirect effects of control of corruption. (v) IEEs' higher gray growth performance is substantially explained by their increased industrial competitiveness, whereas the link is negative for IDCs. (vi) Control of corruption fosters both green and gray growth in IEEs. Overall, "growing gray" does not necessarily mean "not growing green" and vice versa. Globally, the low-carbon benefits of greening countries may be counterbalanced by the environmental costs of graying economies. From a policy perspective, IEEs need to reinforce environmental policies by green efficiency, green industrialization, and anti-corruption plans to decouple economic growth from carbon dioxide emissions.

The mediating role of ICTs in the relationship between international tourism and environmental degradation: fit as a fiddle

The United Nations sustainable development goals (SDGs) proposed 17 effective plans linked with three principal aims, i.e., eradicating poverty, conserving the natural environment, and ensuring prosperity for all. Travel and tourism are the leading stream sector through which all the three stated United Nations themes could be achieved efficiently. The future project of Saudi Arabia's vision is also in line with the United Nation SDGs that much emphasized on tourism expansion, innovation, and sustainable development, which directly supports the SDG-8 (i.e., decent work and economic growth), SDG-9 (i.e., industries, innovation, and infrastructure), SDG-12 (i.e., responsible consumption and production), and SDG-13 (i.e., climate change). The study's objective is to evaluate the country's e-tourism initiatives and green development agenda in the long-run by using the quarterly data from 1995Q1 to 2018Q4. The study employed the autoregressive distributed lag (ARDL) model for estimating the short- and long-run relationship between the variables. Further, the study developed an "e-tourism index" that combines ICT's share in tourism income and expenditures items by principle component matrix (PCM). The results show that oil rents, ores and metal exports, and railways goods transportation depleted natural resources, while ICT's share in energy demand, inbound tourism, and trade openness conserve natural resources via the adoption of advanced technologies, eco-tourism knowledge, and green technology imports in a country. The results confirmed the U-shaped relationship between the country's per capita income and natural resource depletion in a given period. The positive relationship (negative impact) of air transportation freight and trade openness with carbon emissions is evident in the short-run; however, the result is insignificantly determined in the long-run. The industry value-added and ICT's share in energy demand substantially delimit carbon emissions through cleaner production techniques and green innovation. The U-shaped relationship in the short- and flat relationship in the long-run is found for carbon-growth nexus. In the long-run, inbound tourism has a positive (negative impact) relationship with carbon emissions that need sustainable tourism policies to delimit carbon emissions. The air-railways passengers carried and trade openness is the main antecedents that influenced fossil fuel energy consumption in the short- and long-run, while in the long-run, tourism income, ICT's share in energy demand, and industry value-added delimit fossil fuel combustion. The study confirmed the inverted U-shaped relationship between carbon emissions and per capita income in a country. The e-tourism index positively influences the country's economic growth, mobile share in the energy demand, industry value-added, and railways goods transportation. In the long-run, the mobile share in energy demand and railways goods transported increase while air transport freight decreases economic growth. Finally, the e-tourism index is positively influenced by industrial value-added and ICT's share in fossil fuel energy demand. Simultaneously, air transportation passengers carried and ICT's share in carbon emissions negatively affected the e-tourism index in a country. The study concludes that Saudi Arabia's vision 2030 of e-tourism and green sustainable development could be achieved by promoting green ICTs, cleaner production technologies, sustainable consumption and production, tight environmental regulations, and green travel and tourism infrastructure, which ultimately will support the Saudi's vision realization programs towards the country's prosperity.

The impact of coal combustion, nitrous oxide emissions, and traffic emissions on COVID-19 cases: a Markov-switching approach

The severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) spread to more than 200 countries with a current case fatality ratio (CFR) of more than 2% globally. The concentration of air pollutants is considered a critical factor responsible for transmitting coronavirus disease among the masses. The photochemical process and coal combustions create respiratory disorders that lead to coronavirus disease. Based on the crucial fact, the study evaluated the impact of nitrous oxide (N₂O) emissions, coal combustion, and traffic emissions on COVID-19 cases in a panel of 39 most affected countries of the world. These three air pollution factors are considered to form a lethal smog that negatively affects the patient's respiratory system, leading to increased susceptibility to coronavirus worldwide. The study used the Markov two-step switching regime regression model for obtaining parameter estimates. In contrast, an innovation accounting matrix is used to assess smog factors' intensity on possibly increasing coronavirus cases over time. The results show that N₂O emissions, coal combustion, and traffic emissions increase COVID-19 cases in regime-1. On the other hand, N2O emissions significantly increase coronavirus cases in regime-2. The innovation accounting matrix shows that N2O emissions would likely have a more significant share of increasing coronavirus cases with a variance of 33.902%, followed by coal combustion (i.e., 6.643%) and traffic emissions (i.e., 2.008%) over the time horizon. The study concludes that air quality levels should be maintained through stringent environmental policies, such as carbon pricing, sustainable urban planning, green technology advancement, renewable fuels, and pollution less accessible vehicles. All these measures would likely decrease coronavirus cases worldwide.

Carbon neutrality target for G7 economies: Examining the role of environmental policy, green innovation and composite risk index

To achieve zero carbon or achieving carbon neutrality target is of great importance to many countries around the globe especially post Paris climate agreement. This study, unlike previous studies, evaluates the role of environmental policy, green innovation, composite risk index, and renewable energy R&D in achieving carbon neutrality targets for G7 economies from 1990 to 2019. The results confirmed the validity of the EKC hypothesis for G7 economies. Further, the result shows that environmental policy, green innovation, composite risk index, and renewable energy R&D help control carbon emissions. In contrast, income reveals a positive influence on environmental degradation. Furthermore, bidirectional causality has been reported in environmental policy, composite risk index, green innovation, and the CO₂ emissions, while unidirectional causality running from GDP and renewable energy R&D to CO₂ emissions. Based on the empirical findings, it is suggested that environmental policies should be strengthened, promote green innovation and renewable energy research and development expenditures, and political stability and institutional quality must be stabilized to lowers sectoral risks that would help a sustainable environment.

The emission reduction effect of daily penalty policy on firms

As one of the "four sharp teeth" of China's new environmental protection law, the daily penalty policy which is characterized by high deterrent effect and high violation cost plays an important role in restraining repeated violations of polluting firms. In order to further test the effectiveness of the daily penalty policy in pollution control and emission reduction, this study evaluates the policy through the time-varying difference-in-differences (DID) method using data from Chinese industrial firms from 2003 to 2012. The results show that the daily penalty policy significantly reduced industrial SO₂ emissions, which is supported by a series of robustness tests. Further mechanistic tests found that the daily penalty policy can reduce emissions by promoting the use of clean energy at the front-end prevention and increasing pollution control equipment and product innovation at end-governance. Heterogeneity analysis indicates that the daily penalty policy has a significant emission reduction effect on low energy consumption firms, large-scale firms and firms in clean industry. The SO₂ emission of foreign-funded firms is more reduced than that of state-owned and private firms. In addition, the level of emission reduction by exporting firms and firms in a mature recession are more affected by this policy. This study validates the effect of the daily penalty policy on emission reduction of firms. We found that the stringent command-and-control environmental regulations can also effectively encourage firms to control pollution and promote the transformation of firms toward long-term green development strategies and energy-saving and emission-reducing production patterns, and achieve a reasonable combination with market-based incentive environmental regulations. It provides new ideas and inspiration for implementation and improvement of the daily penalty policy and the strategic deployment of environmental governance in China.

Do Environmental Stringency Policies and Human Development Reduce CO2 Emissions? Evidence from G7 and BRICS Economies

This study explores the impact of environmental policies and human development on the CO₂ emissions for the period of 1995–2015 in the Group of Seven and BRICS economies in the long run through panel cointegration and causality tests. The causality analysis revealed a bilateral causality between environmental stringency policies and CO₂ emissions for Germany, Japan, the United Kingdom, and the United States of America, and a unilateral causality from CO₂ emissions to the environmental stringency policies for Canada, China, and France. On the other hand, the analysis showed a bilateral causality between human development and CO₂ emissions for Germany, Japan, the United Kingdom, and the United States of America, and unilateral causality from CO₂ emissions to human development in Brazil, Canada, China, and France. Furthermore, the cointegration analysis indicated that both environmental stringency policies and human development had a decreasing impact on the CO₂ emissions.