The search for a green and low-carbon economy has been a guide to current energy and environmental research. Using current panel cointegration approaches, our study examines the interaction between trade and an environmental pollution proxy of carbon dioxide (CO2) emissions by integrating economic growth and energy usage as major potential determining factors in this relationship for 49 high-emission countries in Belt and Road regions over the period of 1991–2014. For a robust analysis, we further grouped these countries into income panels (high, middle, low) and various regions (East Asia, Southeast Asia, Central Asia, South Asia, the Middle East/Africa, and Europe). The results of the panel cointegration tests revealed that the four variables were stationary in the long run. Similarly, our panel results indicated that trade openness had both positive and negative impacts on environmental pollution, but the effect varied in these different groups of nations. The results of the vector error correction model (VECM) causality also showed a long-run causal effect between trade, economic growth, energy consumption, and environmental pollution in the Belt and Road, Europe, high-income, middle-income, and low-income panels. The environmental Kuznets curve (EKC) results further indicated the existence of an inverted U-form relationship between trade and carbon emissions. Finally, certain policy implications are discussed.
This paper contributes to the existing voluminous research on energy and growth providing a dynamic and comprehensive effect of investing in clean energy and it consequences on economic growth employing the ADRL modus operandi to co-integration to estimate the reality of co-integrating among the series in the long run. The analytical tests were realized utilizing the maximum lags explicitly chosen by estimating the series at level and confirming the stability of the unrestricted VAR model. The result establishes co-integration among the variables in the long run finding an inverse relationship between alternative and nuclear energy consumption and economic growth. The other indicator of clean energy that is electricity power consumption indicates a positive significant relationship with economic growth. Further we conclude that there is a bidirectional causal relationship between these two indicators and economic growth in the long run. This endorses the prospective benefit of Vietnam to invest in clean energy.
Sustainable green environment, green innovation, and low-carbon economy are the top priorities of governments and global climate institutions. Indeed, the link between economic growth and environmental sustainability has been commonly discussed in the literature, with different outcomes. This paper endeavors to partly fill the research gap by using recent panel estimators to explore the long-run cointegration nexus between economic growth, trade openness, energy consumption, urbanization, and CO2 emissions (pollution). In terms of decision making, we further grouped the specified 25 newly emerging African nations into oil-exporting and non-oil exporting economies. The data collected are annual and cover the period from 1990 to 2015. The panel crosssectional dependency and homogeneity results indicated that our selected variables are heavily interdependent across the various cross-sections in the long-run. Similarly, the panel unit root test and bootstrap cointegration estimates showed evidence of stationarity and long-run equilibrium connection between the chosen variables for all panels. The long-run panel estimates using the common correlated effects mean group approach shows that economic growth, energy usage, trade openness, and urbanization depicted a positive and substantial impact on long-run carbon emissions for all panels. The Dumitrescu and Hurlin non-causality results indicated a bidirectional causal relationship between income and pollution, energy consumption and pollution, urbanization, and pollution for all three panels. Likewise, except for the 25-countries panel, there was evidence of a feedback causality between trade openness and pollution. Our outcome further verified the EKC framework but with distinct threshold points for all three panels. Various policy scenarios are discussed. Contribution/Originality: This is one of the very few studies which have investigated the environmental effects of economic growth considering new emerging African economies. These nations were grouped into oil-exporting and non-oil exporting to enhance decision making and applying recent panel estimators while verifying the EKC framework within these economies.
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