A step towards environmental mitigation: How do economic complexity and natural resources matter? Focusing on different institutional quality level countries

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 (CO 2 ) 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 CO 2 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.

Section: Resultsmentioning

confidence: 99%

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

Assamoi

Wang

2022

“…For example, it is established by Chen et al ( 2022 ) that cleaner production, decreased energy intensity, and sustainable practice of renewable energy resources are likely to create a circle of cost reduction and competitive advantages. Additionally, policies should be more appealing for renewable energy investment, replacement of fossil energy resources with renewable ones (Rafei et al 2022 ), development of environmentally friendly technology (Jahanger et al 2022 ; Rafei et al 2022 ) and include relevant structural changes (Balsalobre-Lorente et al 2022 ).…”

Section: Discussionmentioning

confidence: 99%

Climate change: north and south EU economies—an application of dynamic asymmetric panel data models

Adam

Drakos

2022

The need for a cleaner environment and wealthier economies has been highly recognized by European Union (EU) policymakers of the last years, as evidenced by the creation of a plethora of laws and regulations for reducing carbon dioxide emissions while promoting the economic prosperity of EU countries. Indeed, many works have been done in this field, remarking on climate change’s impacts on economies and the need for determinant environmental policies inside the EU. This paper investigates the effect of climate change on economic growth using nonlinear dynamic panel methods for 15 countries of the EU in the period 1981–2019. Specifically, it is examined the impact of temperature, precipitation, and CO2 emissions on economic growth. So, autoregressive distributed lags (ARDL) methods were employed, overcoming cross-dependency and also considering linearity and nonlinearity. The results showed that economic growth has positive nonlinear relationship with long-run temperature, but in short-run they have a symmetric negative association. Moreover, precipitation has long-run negative and a short-run positive relationship with economic growth. However, when CO2 emissions are added, then model’s performance is decreased, and precipitation has a positive effect on economic growth, but all others, except from temperature increase, become insignificant. Finally, actions should be taken for more stable climate conditions and consistent environmental policies by EU countries. Graphical abstract

“…To deepen the understanding of the drivers of CO 2 emissions, the effect that other sectors of the economy have on carbon dioxide emissions have also been explored in recent times. These include natural resources, political regime, and financial development (Kwakwa et al 2018;Jahanger et al 2021;Rafei et al 2022;Huang et al 2021;Alhassan et al 2022;Jahanger et al 2022). Very recently, the CO 2 emission effects of Information and Communication Technologies (ICTs) and transportation are gaining the attention of researchers (Batool et al 2022;Weili et al 2022;Usman et al 2021;Chatti 2021;Haini 2021;Xie et al 2017;Zaman et al 2017).…”

Section: Introductionmentioning

confidence: 99%

The effect of transport services and ICTs on carbon dioxide emissions in South Africa

Kwakwa

Adjei‐Mantey²,

Adusah‐Poku

2022

The rising trend in carbon dioxide emissions has implications on economic livelihoods through global warming and climate change. Attaining lower carbon dioxide emissions is therefore crucial for the realization of the sustainable development goals. South Africa happens to be one of the leading countries in ICT and transport infrastructure in the sub-Saharan African region. Oppossing arguments on how ICT and tranport services affect carbon dioxide emissions exist. However, their effects on the rising trend in carbon emissions in the country has not received much empirical attention. The study analyses the role ICTs and the transportation sector play in the carbon dioxide emissions of South Africa. Regression analysis of data for the 1989–2018 period shows mobile adoption, internet usage, and telephone usage increases carbon dioxide emissions while transportation services in the country helps reduce carbon dioxide emissions. Income positively affects carbon dioxide emissions while urbanization has negative effects. Implications from the findings include the urgent need to have electricity that power ICT devices and equipment be generated from renewable and sustainable sources rather than from heavy polluting sources.