Do Financial Development and Economic Openness Matter for Economic Progress in an Emerging Country? Seeking a Sustainable Development Path

The digital economy and the green and high-quality development of the industry-a study on the mechanism of action and regional heterogeneity

Consistently rising carbon emissions in the global economy make it more challenging to meet the goals of the Paris climate agreement. Knowing what factors play a role is essential to help shape strategies to reduce carbon emissions. While there is a wealth of material on how GDP expansion correlates with increases in carbon emissions, little is known about how democracy and renewable energy could improve environmental conditions in developing nations. The purpose of this article was to use fair data to assess the effect of renewable energy and green technology advances on carbon neutrality in 23 provinces across China from 2005 to 2020. The research used the dynamic ordinary least square, the fully modified ordinary least square, and the two-step GMM to determine that digitalization, industrial development, and health expenditures result in lower carbon emissions. Urbanization, tourism, and per capita income in certain Chinese provinces also drove carbon emissions. The study also showed that the impact of these factors on carbon emissions varies depending on the amount of economic growth. Environmental pollution is reduced due to the digitalization of tourist and healthcare costs, industrial development, and urbanization. According to the study's findings, we advise these nations to seek economic growth and invest in health care and renewable energy initiatives.

Technology innovations impact on carbon emission in Chinese cities: exploring the mediating role of economic growth and industrial structure transformation

China seems ambitious to achieve a "carbon emissions peak" before 2030 and "carbon neutrality" before 2060. To deal with this emissions mitigation plan, technology innovations are regarded as a crucial factor. However, considering its rebound effect (CO₂ emissions driving effect) through economic growth, technology innovations might not prove a promising contributor to CO₂ reduction. Therefore, there is a need to investigate further the nexus between technology innovations and CO₂ emissions for conclusive debate. Based on the data of 215 cities in China, this paper uses mediating effects model to investigate the direct and indirect impacts (through economic growth and industrial structure transformation) of technology innovations on CO₂ emissions from a microeconomic perspective. The main results suggest that technology innovations generally increase CO₂ emissions in China both directly and indirectly. The impact of technology innovations and economic growth on CO₂ emissions indicated the EKC characteristics. Furthermore, the contributions of technology innovations to CO₂ emissions are distinguished in different regions. Thus, there is an urgent need for China to promote innovations in "clean technology" and to transform industrial structure to the tertiary industry to achieve the targets of carbon neutrality and emissions peaking.

Impact of the COVID-19 Pandemic on China's Stock Market Volatility, During and After the Outbreak: Evidence From an ARDL Approach

Purpose

In this study, we empirically investigate the impact of the COVID-19 pandemic on China's stock price volatility during and after its initial outbreak, using time-series daily data covering the period from July to October, 2020 and 2021, respectively.

Design/Methodology/Approach

In the estimation, the ARDL bounds test approach was employed to examine the existence of co-integration and the relationship of long-run and short-run between the new infection rates and stock price volatility, as stable and unstable variables are mixed. The inner-day and inter-day volatility, based on the Shanghai (securities) composite index, are estimated in separate empirical models. In addition, the Inter-bank overnight lending rate (IBOLR) is controlled in order to consider the effect of liquidity and investment cost.

Findings and Implications

We find that in the initial year (2020) of the epidemic, the new infection rate is negatively correlated to stock prices in the short-term, whereas no significant evidence existed in the long-term, regardless of model specifications. However, after the epidemic's outbreak (2021), the result depicts that new infections increased stock prices in the long-term, and depressed its inner-day volatility in the short-term, which is inconsistent with most investigations. This phenomenon may be due to the fact that investors were more concerned about the withdrawal of monetary easing and fiscal stimulus, which were introduced to fight against the epidemic's impact on economy, than the epidemic itself. This study complements the limitations of most existing studies, which just focus on the period of the epidemic's outbreak, and provides insight into macroeconomic policy making in the era of the post COVID-19 epidemic such as the structural and ordered exit of the stimulating policies, intervention in IBOLR and balance social and economic sustainability.

The interrelationships among financial development, economic growth and environmental sustainability: evidence from Ghana

A well established and developed financial system encourages savings and investment which stimulates economic growth. However, the link between financial development and the environment is ambiguous. In general, the role that the environment plays in the finance-growth nexus has received less attention, to the best of our knowledge. Against this backdrop, this study aims to examine the interrelationships among economic growth, financial development and carbon dioxide emissions for Ghana over the period of 1971-2018. To correct for a possible endogeneity problem, the three-stage least-square (3SLS) technique was employed. The results revealed that there is a bidirectional relationship between financial development and economic growth; and a unidirectional relationship from financial development to carbon dioxide emission. However, carbon dioxide emission has a neutral effect on economic growth and financial development. Economic growth exhibits an inverted U-shaped relationship with carbon dioxide emission, confirming the existence of the environmental Kuznets curve hypothesis in Ghana. Policymakers should consider the critical roles of financial development in achieving environmentally friendly growth in Ghana.

Energy financing for energy retrofit in COVID-19: Recommendations for green bond financing

The aim of study is to estimate the role of energy financing for energy retrofit in COVID-19, with the intervening role of green bond financing. For this, Kalman technique is applied to infer the empirical findings. It is found that energy financing is significantly dependent on green bonds, and green bonds have a significant role in energy retrofit in E-7 economies specifically. It is further found that E-7 economies gained significant rise in energy efficiency financing green bonds financing, that has supportively extended energy retrofit - before and during COVID-19 crises. It is further found significant that the E-7 nations have to put alot of money into hydro and nuclear energy for energy retrofit, with low carbon emissions. In the light of COVID-19 crises, this study offers policy recommendations for effective energy management. However, such policy recommendations are expected to finely serve the financial intermediaries and national governments of E-7 economies to better optimize energy financing through green bond financing. The novelty of the study exists in topical framework and research directions, talking about the way forwards for energy efficiency financing - which is one of the latest issue of the recent times. Hence, this research provides some empirical verifications about energy financing in COVID-19 crises for energy retrofit, and shares some suggestions for stakeholders.

Combined role of industrialization and urbanization in determining carbon neutrality: empirical story of Pakistan

A rapid process of industrialization, on the one hand, transformed the economies from agrarian to industrial societies to improve the living standards and welfare of people. On the other hand, the urbanized and industrialized economies have posed challenging threats to environmental sustainability. The query at hand is whether the growing environmental emissions are driven by industrialization and urbanization or not. This research aims to empirically examine the combined role of industrialization and urbanization in achieving carbon neutrality in Pakistan by considering foreign direct investment and economic growth as control variables in the model. The core empirical results are the following: firstly, industrialization and economic growth exhibit negative but statistically insignificant impacts on CO₂ emissions, imparting a neutral role in determining the environmental degradation in Pakistan. Secondly, urbanization and foreign direct investment disclose positive and statistically significant (at 1% level of significance) impacts on CO₂ emissions, manifesting an environmental degradation driving impact in the country. Thirdly, given the slope coefficients of urbanization and foreign direct investment (0.058 and 0.035), urbanization proved to be a stronger driver than foreign direct investment. Finally, foreign direct investment is revealed to make the Pakistani economy a "Pollution Haven" for the foreign enterprises in the country. Based on empirical results, none of the variables predicted the support for carbon neutrality in Pakistan.

The role of innovation investment and institutional quality on green total factor productivity: evidence from 46 countries along the "Belt and Road"

Based on the panel data of 46 countries in "Belt and Road" (B&R) from 2004 to 2016, this paper studies the impact of innovation investment and institutional quality on green total factor productivity (GTFP). Firstly, the ICRG database, World Bank WDI database, Traditional Foundation database, and Wind database are matched to obtain the balanced panel data of 46 countries along the B&R from 2004 to 2016. Secondly, the Malmquist-Luenberger index, which can be included in the unexpected output, is used to calculate the GTFP of countries along B&R. Thirdly, the evaluation system of national institutional quality of B&R is constructed from three dimensions (political institutional quality, economic institutional quality, and legal institutional quality), and the overall system quality of different countries is measured by entropy method. Finally, an empirical study is made on the relationship among innovation investment, institutional quality, and green total factor productivity. The results show that innovation investment has significantly promoted the GTFP of the B&R countries. It is worth noting that there is a non-linear relationship between innovation investment and GTFP in the B&R countries. With the improvement of overall system quality, political system quality, economic system quality, and legal system quality, the promotion effect of innovation investment on GTFP is further enhanced. In addition, the heterogeneity regression results show that the impact of innovation investment on GTFP is significantly heterogeneous in different regions of the B&R countries. Specifically, innovation investment has the greatest impact on GTFP in South Asia, followed by East Asia and Pacific, Europe and Central Asia, Middle East, and North Africa.

Heterogeneous Effects of Urban Sprawl on Economic Development: Empirical Evidence from China

Identifying the effects of urban sprawl on urban development is of strategic importance. This study takes 285 prefecture-level and above cities in China as research samples and empirically analyzes the heterogeneous impact of urban sprawl on economic development from 2009 to 2018. Results indicate the threshold effect of urban sprawl on economic development. That is, moderate urban sprawl has a significantly positive influence on economic development, whereas excessive urban sprawl has a significantly negative impact on economic development. The empirical analysis also identifies heterogeneities in the effects of urban sprawl on economic development. Compared with the sprawls of small- and medium-sized cities, those of large cities have a greater negative impact on economic development. Compared with the sprawls of cities dominated by the tertiary industry, those of cities dominated by the secondary industry have a greater negative impact on economic development. Findings of this study have important policy implications for scientific urban expansion, reasonable urban spatial layout, and sustainable urban economic development.

Development of Photovoltaic Energy in EU Countries as an Alternative to Fossil Fuels

The aim of the article is to present the development of photovoltaic energy in the EU countries as one of the alternatives to fossil fuels. The article was prepared on the basis of secondary information and statistical data on the photovoltaic energy market in EU countries, and three hypotheses were formulated: H1—There is a statistically significant correlation between a country’s long-term orientation and its use of photovoltaic energy in European Union countries; H2—There is a statistically significant correlation between GDP per capita and photovoltaic energy use in European Union countries; and H3—There is a relationship between climate and photovoltaic energy use in European Union countries. Correlation coefficients and the Guilford classification were used to analyse the data. Data analysis has shown that photovoltaic energy is the second fastest-growing energy source in the EU, after wind energy. In 2020, 134 TWh of solar energy was produced in the EU countries. Based on the analysis, it can be concluded that there is a statistically significant correlation between the production of photovoltaic energy per person and the level of GDP per capita in the EU countries (Hypothesis 2). Germany and the Netherlands produce the most solar energy. The studies did not confirm Hypothesis 3; however, it can be seen that countries such as Germany, Belgium and the Netherlands have the highest PV energy efficiency compared to average temperature values. A data analysis showed statistically significant correlations between the country’s long-term orientation in the use of photovoltaic energy (Hypothesis 1). In the case of Germany and Belgium, the long-term orientation indicator is very high above 80, while Portugal, Poland and Finland have the lowest indicator, from 30 to 40.

Evaluating Green Technology Strategies for the Sustainable Development of Solar Power Projects: Evidence from Pakistan

Energy is the main element for a modern lifestyle that must be considered in economically reliable and sustainable development dialogues. The financial performance of solar power projects has become the main issue, especially in developing countries such as Pakistan, where it has gained the special attention of government and regulatory authorities. The present study evaluates green technology strategies for the sustainable development of solar power projects in Pakistan. We examine the moderating role of cost and riskiness of the methods between the nexus of capital budgeting techniques and the financial performance of solar power projects. The analysis is performed on data collected from 44 respondents (chief financial officers and chief executive officers) by accompanying an inclusive questionnaire survey. Partial least squares structural equation modeling (PLS-SEM) is used to assess the formulated suppositions. The results reveal that green technology strategies positively impact the sustainable development of solar power projects. The profitability index is a good source of higher financial performance of the solar power projects. The results further demonstrate that the cost and riskiness of the methods significantly moderate the nexus of capital budgeting techniques and the financial performance of solar power projects. These findings provide a valuable manual for policymakers, government institutions, and regulators to select the appropriate green technology strategy to increase cleaner production and sustainable development of solar power projects.

Does temperature matter for COVID-19 transmissibility? Evidence across Pakistani provinces

The outbreak of novel coronavirus (COVID-19) has become a global concern that is deteriorating environmental quality and damaging human health. Though some researchers have investigated the linkage between temperature and COVID-19 transmissibility across different geographical locations and over time, yet these studies are scarce. This study aims to bridge this gap using daily temperature and COVID-19 cases (transmissibility) by employing grey incidence analysis (GIA) models (i.e., Deng's grey incidence analysis (DGIA), the absolute degree GIA (ADGIA), the second synthetic degree GIA (SSDGIA), the conservative (maximin) model) and correlation analysis. Data on temperature are accessed from the NASA database, while the data on COVID-19 cases are collected from the official website of the government of Pakistan. Empirical results reveal the existence of linkages between temperature and COVID-19 in all Pakistani provinces. These linkages vary from a relatively stronger to a relatively weaker linkage. Based on calculated weights, the strength of linkages is ranked across provinces as follows: Gilgit Baltistan (0.715301) > Baluchistan (0.675091) > Khyber Pakhtunkhwa (0.619893) > Punjab (0.619286) > Sindh (0.601736). The disparity in the strength of linkage among provinces is explained by the discrepancy in the intensity of temperature. Besides, the diagrammatic correlation analysis shows that temperature is inversely linked to COVID-19 cases (per million persons) over time, implying that low temperatures are associated with high COVID-19 transmissibility and vice versa. This study is among the first of its kind to consider the linkages between temperature and COVID-19 transmissibility for a tropical climate country (Pakistan) using the advanced GIA models. Research findings provide an up-to-date glimpse of the outbreak and emphasize the need to raise public awareness about the devastating impacts of the COVID-19. The educational syllabus should provide information on the causes, signs, and precautions of the pandemic. Additionally, individuals should practice handwashing, social distancing, personal hygiene, mask-wearing, and the use of hand sanitizers to ensure a secure and supportive atmosphere for preventing and controlling the current pandemic.

Does temperature matter for COVID-19 transmissibility? Evidence across Pakistani provinces

The outbreak of novel coronavirus (COVID-19) has become a global concern that is deteriorating environmental quality and damaging human health. Though some researchers have investigated the linkage between temperature and COVID-19 transmissibility across different geographical locations and over time, yet these studies are scarce. This study aims to bridge this gap using daily temperature and COVID-19 cases (transmissibility) by employing grey incidence analysis (GIA) models (i.e., Deng's grey incidence analysis (DGIA), the absolute degree GIA (ADGIA), the second synthetic degree GIA (SSDGIA), the conservative (maximin) model) and correlation analysis. Data on temperature are accessed from the NASA database, while the data on COVID-19 cases are collected from the official website of the government of Pakistan. Empirical results reveal the existence of linkages between temperature and COVID-19 in all Pakistani provinces. These linkages vary from a relatively stronger to a relatively weaker linkage. Based on calculated weights, the strength of linkages is ranked across provinces as follows: Gilgit Baltistan (0.715301) > Baluchistan (0.675091) > Khyber Pakhtunkhwa (0.619893) > Punjab (0.619286) > Sindh (0.601736). The disparity in the strength of linkage among provinces is explained by the discrepancy in the intensity of temperature. Besides, the diagrammatic correlation analysis shows that temperature is inversely linked to COVID-19 cases (per million persons) over time, implying that low temperatures are associated with high COVID-19 transmissibility and vice versa. This study is among the first of its kind to consider the linkages between temperature and COVID-19 transmissibility for a tropical climate country (Pakistan) using the advanced GIA models. Research findings provide an up-to-date glimpse of the outbreak and emphasize the need to raise public awareness about the devastating impacts of the COVID-19. The educational syllabus should provide information on the causes, signs, and precautions of the pandemic. Additionally, individuals should practice handwashing, social distancing, personal hygiene, mask-wearing, and the use of hand sanitizers to ensure a secure and supportive atmosphere for preventing and controlling the current pandemic.

COVID-19 and stock exchange return variation: empirical evidences from econometric estimation

This research looked at the effects of COVID-19 on a number of the world's most important stock exchanges, as well as the empirical relation between the COVID-19 wave and stock market volatility. In order to plan proper portfolio diversification in international financial markets, researchers must examine COVID-19 anxiety in relation to stock market volatility. The stock market volatility connected with the COVID-19 pandemic was measured using AR(1)-GARCH(1,1). COVID-19 fear, according to our research, is the ultimate driver of public attention and stock market volatility. The findings show that throughout the pandemic, stock market performance and GDP growth both declined significantly due to average increases. Furthermore, a 1% increase in COVID-19 causes a 0.8% and 0.56% decline in stock return and GDP, respectively. The stock market, on the other hand, showed a slight movement in GDP growth. Furthermore, the COVID-19 pandemic reported cases index, death index, and global panic index all influenced public perceptions of purchasing and selling. As a result, rather than investing in stocks, it is recommended that you invest in gold. The research also makes policy recommendations for important stakeholders. We look to examine how stock returns respond dynamically to unanticipated changes in the COVID-19 scenarios, as well as the uncertainty that comes with a pandemic. Using daily data from Canada and the USA, we conclude that a spike in COVID-19 instances has a negative impact on the stock market in general. Furthermore, in both the increase and decline scenarios in Canada, the stock return reactions are asymmetric. The disparity is due to the unfavorable impact of the pandemic's unpredictability. We also discovered that uncertainty had a negative impact on the US stock market. The magnitude, however, is insignificant.

Do Perceived Risk, Perception of Self-Efficacy, and Openness to Technology Matter for Solar PV Adoption? An Application of the Extended Theory of Planned Behavior

Solar PV (photovoltaic) technology has gained considerable attention worldwide, as it can help reduce the adverse effects of CO2 emissions. Though the government of Pakistan is adopting solar PV technology due to its environmental friendliness nature, studies focusing on consumer’s acceptance of solar PV are limited in the country. This research aims to close this knowledge gap by looking into the various considerations that may influence consumers’ willingness to adopt (WTA) solar PV for household purposes. The study further contributes by expanding the conceptual framework of the theory of planned behavior by including three novel factors (perceived risk, perception of self-efficacy, and openness to technology). The analysis is based on questionnaire data collected from 683 households in Pakistan’s provincial capitals, including Lahore, Peshawar, Quetta, Gilgit, and Karachi. The proposed hypotheses are investigated using the state-of-the-art structural equation modeling approach. The empirical results reveal that social norms, perception of self-efficacy, and belief about solar PV benefits positively influence consumers’ WTA solar PV. On the contrary, the perceived risk and solar PV cost have negative effects. Notably, the openness to technology has an insignificant effect. This study can help government officials and policymakers explore cost-effective, risk-free technologies to lessen the environmental burden and make the country more sustainable. Based on research results, study limitations, as well as prospective research directions, are also addressed.