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.

Do natural disasters affect economic growth? The role of human capital, foreign direct investment, and infrastructure dynamics

Natural disasters do occur and have become a global problem due to increasing intensity. Developing countries are mostly affected due to natural disasters owing to a poor environment, feeble adaptation, impoverished socioeconomic conditions, poor infrastructure, limited resources, and unstable institutions. The SDG 11.5 target which highlights the mitigation of loss due to natural disasters--remains crucial to achieving sustainable cities and human settlements--but the literature is limited on this scope. Thus, this research contributes to the literature by incorporating an infrastructure index, foreign direct investment (FDI), human capital index, globalization, and capital formation into the disaster-growth debate across four-income groups in 98 countries from 1995 to 2019. We developed infrastructure and human capital indices using a standard procedure across all income groups. The two-step generalized method of moments employed herein confirmed the income reduction effect of natural disasters. While the economic cost of natural disasters is relatively high in low-income countries and mild in high- and upper-middle-income countries. Besides, infrastructural development, FDI, human capital, globalization, and gross fixed capital formation also affect economic growth across income groups. Thus, the enhancement of socio-economic policies could decline economic losses, especially in vulnerable and poor settlements in developing countries.

An empirical assessment of the tripartite nexus between environmental pollution, economic growth, and agricultural production in Sub-Saharan African countries

A lot of attention has been paid to environmental pollution worldwide, due to the increase in anthropogenic activities. Massive investment in non-renewable energy options raises questions regarding environmental sustainability and how to maximize food and non-food output while still preserving a healthy ecosystem. To this end, the present study explores the three-way nexus between economic growth, CO₂ emission, and agriculture-value added will accounting for other control variables across a balanced panel of selected African economies from 1997 to 2020. Panel econometrics method of the generalized method of moments (two-step difference GMM) is used to obtain a robust result. From the present study, the environmental pollution model shows that economic growth significantly contributes to environmental pollution in Africa. Additionally, the food price index, capital, and FDI promote pollution, while agricultural production and labor decrease pollution. In the case of the economic growth model, the findings reveal that environmental pollution supports the growth-led pollution hypothesis. Also, the food price index and capital ameliorate economic growth, while foreign direct investments decrease economic growth. Finally, the agricultural production model indicates that economic growth increases agricultural production when the interaction term between GDPC and FDI is included in the model. In summary, the combination of explanatory variables, environmental pollution, capital, and foreign direct investment decreases agricultural production. On the contrary, the food price index and labor promote agricultural production in Africa. Furthermore, the study provides a lot of policies for authorities and stakeholders in Sub-Saharan African countries and other developing economies.