The present study investigates the effect of institution quality, technological innovation, and financial development on environment quality using 37 OECD nations from 1998 to 2018. The cross-sectional dependence (CD) and Lagrange multiplier (LM) techniques are used to measure the cross-sectional dependence. The second-generation panel unit root tests and panel cointegration tests are applied to examine the unit-root properties and long-run association existence between variables. Finally, we employed the two-step (SYS-GMM) methodology to estimate the coefficient values. The findings showed that financial development has a positive effect on selected carbon (CO2) emission dimensions. When the moderating term is introduced, it was identified that institutional quality and technology innovation conditioning effects are crucial between financial development and CO2 emission. Our evidence-based study provides significant results for technology innovation and institutional quality moderating role in reducing CO2 emissions in OECD economies. Our findings are also robust to alternative measures, which could be useful for policymakers to formulate long-term and short-term strategies and policies for a better sustainable environment.

Green investment and technology innovations are generally considered as an effective factor to mitigate CO2 emissions as these enhance cleaner production and energy efficacy. Thus, this study investigated the influence of green investment, technology innovations, and economic growth on CO2 emissions in selected Asian countries for the period 2001 to 2019. The Cross-Section dependency (CSD) signified the cross-section dependence in the panel countries, whereas CIPS and CADF testing affirmed the stationarity of all variables at the first difference. Consequently, the Westerlund cointegration method recognized a long-term association among variables. The outcomes of Panel Fully Modified OLS and Panel Dynamic OLS results indicated that green investment and technology innovations are helpful in mitigating CO2 emissions in selected Asian countries. In addition, the Environmental Kuznets Curve (EKC) postulate is validated for the given time period and indicated inverted U-shaped linkages between the economic growth and CO2 emission. The outcomes of the remaining variables, including population growth, energy consumption, FDI inflow, and trade, are estimated to have an augmenting influence on CO2 emission. Our results regarding the FDI–CO2 emissions nexus support the presence of the pollution-haven hypothesis. Moreover, the estimated results from PFMOLS and PDOLS are validated by Granger Causality, and AMG and CCEMG tests. The study suggests the adoption of renewable sources as energy input and the promotion of innovations for energy efficiencies to reduce CO2 emissions in Asian economies.

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Environmental consequences of financial aspects, policy uncertainties and rapid globalization is the topic of intense debate in present years. However, this study contribute to existing literature in an innovative way. We classified the 33 OECD economies in two group’s lower globalized economies (LGE) and highly globalized economies (HGE), based on their level of globalization. Considering the cross-sectional dependency and slope heterogeneity in the data this study employed the Augmented Mean Group method to estimate the influence of financial inclusion, economic policy uncertainty and globalization on the environment quality of both groups for the period 1996–2019. The results revealed a negative significant impact of financial inclusion, while a positive significant impact of economic policy uncertainty on CO2 emissions in both groups, LGE and HGE. However the globalization estimated to have positive impact on CO2 emission in LGE’s, in HGE’s it is significantly impeding the CO2 emission. The interaction of globalization with financial inclusion and economic policy uncertainty respectively found negative and positive to effect the CO2 in both LGE’s and HGE’s. The study suggests that, LGE’s are need to prepare for economic globalization, move toward adopting energy-efficient technology and promote trade in less-polluting products in order to sustain their environment quality. The outcomes of this study are robust by employing different model specifications.

PurposeIn this paper, the authors investigate that the increasing level of fossil fuel combustion in the industrial sector has been considered the prime cause for the emissions of greenhouse gas. Meanwhile, the research focusing on the impact of fossil fuel consumption on the emission of CO2 is limited for the developing countries containing Vietnam. This study applied the autoregressive distributed lag (ARDL) approach with structural breaks presence, and the Bayer–Hanck combined cointegration method to observe the rationality of the environmental Kuznets curve (EKC) hypothesis in the dynamic relationship between the industrialization and carbon dioxide (CO2) emission in Vietnam, capturing the role of foreign direct investment (FDI) inflows and the fossil fuel consumption over the period of 1975–2019. The outcomes revealed the confirmation of cointegration among the variables and both short and long-run regression parameters indicated the evidence for the presence of a U-shaped association between the level of industrial growth and CO2 emission that is further confirmed by employing the Lind and Mehlum U-test for robustness purpose. The results of Granger causality discovered a unidirectional causality from FDI and fossil fuel consumption to CO2 emission in the short run. For the policy points, this study suggests the use of efficient and low carbon-emitting technologies.Design/methodology/approachIn order to test for consistency and robustness of the cointegration analysis, this study also applied the ARDL bound testing method to find out long-run association among variables with the existence of the structural break in the dataset. The ARDL method was preferred to other traditional cointegration models; because of the smaller dataset, the results obtained from the ARDL method are efficient and consistent and equally appropriate for I(1) and I(0) variables.FindingsThe short-run and long-run causal associations among variables have been observed by employing the error correction term (ECT) augmented Granger-causality test that revealed the presence of the long-run causality among variables only when the CO2 emission is employed as a dependent variable. The outcomes for short-run causality indicated the presence of unidirectional causality between consumption of fossil fuel and CO2 emission, where the fossil fuel consumptions Granger-cause CO2 emission. Industrial growth has also been found to have an impact on fossil fuel consumptions, however not the opposite. This advocates that the policies aimed at reducing the fossil fuel consumptions would not be harmful to industrial growth as other energy efficient and cleaner technology could be implemented by the firms to substitute the fossil fuel usage.Originality/valueThe study explored the dynamic relationship among FDI, consumption of fossil fuel, industrial growth and the CO2 emission in Vietnam for the time period 1975–2019. The newly established Bayer–Hanck joint cointegration method and the ARDL bound testing were employed by taking into account the structural breaks in the dataset.

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Regulations and taxes are considered essential drivers for climate change policies and improving ecological quality. The prior research primarily relies on regulatory or noneconomic measures to ensure ecological sustainability, while the role of marketbased or economic measures in ecological sustainability is yet to be investigated.Hence, realizing the need for policy shift, this study is an effort to determine the dynamics between environmental taxes and ecological sustainability for the period between 1995/Q1 and 2018/Q4 using data of top-seven green economies by employing novel Quantile-on-Quantile (QQ) regression approach. The outcomes from the QQ approach indicate the mixed and asymmetric impact of the environmental taxes on ecological sustainability in sample countries over different quantiles.However, a higher ecological promoting impact is observed at upper-middle quantiles in most of the sample countries. The robustness of the study's results is validated by Quantile Regression (QR) approach and the nonparametric quantile causality test.The study's outcomes provide significant suggestions to formulate policies for helping sample economies to accomplish Sustainable Development Goals (SDGs) 7 and 13 while ensuring ecological sustainability.