A step Towards Environmental Mitigation In South Africa: Does Trade Liberalisation Really Matter? Fresh Evidence From A Novel Dynamic ARDL Simulations Approach

Ngepah²

2022

Front. Environ. Sci.

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The asymmetric impact of technological innovation on carbon dioxide (CO2) emissions in South Africa from 1960 to 2020 is evaluated in this study. We apply the newly established quantile autoregressive distributed lag (QARDL) methodology to deal with distributional asymmetry based on the location of CO2 emissions within its own distribution. This distinguishes our analysis from earlier studies in the following way. In contrast to other studies, this research uses the QARDL technique to assess the long-term stability across the quantiles, resulting in a more adaptable econometric analysis than the traditional frameworks. In order to capture the trade share in South Africa’s GDP and the quantity of trade compared to world trade, we employ a novel measure of trade openness. We find that 1) technological innovation helps reduce CO2 emissions in the short term and over the long term; 2) the scale effect worsens CO2 emissions, whereas the technique effect enhances it, supporting the existence of an environmental Kuznets curve (EKC) hypothesis; 3) energy consumption, foreign direct investment (FDI), and industrial added value degrade environmental quality; and 4) increasing trade openness is glaringly harmful to the environment over the long term, despite being beneficial in the short term; 5) there are long-term, asymmetric linkages between CO2 emissions, scale effect, technique effect, technological innovation, energy use, FDI, and trade openness; 6) industrial value-added, scale effect, technique effect, technical innovation, energy usage, FDI, and trade openness Granger-cause CO2 emissions over the medium, long, and short terms indicate the significance of these variables in determining CO2 emissions. Based on our empirical findings, this study makes the case that South Africa’s government and policymakers should consider the importance of innovative technologies as a sustainable source of advancements in attaining energy security and promoting ecological integrity in the nation.

Section: Introductionmentioning

confidence: 99%

The asymmetric effect of technological innovation on CO2 emissions in South Africa: New evidence from the QARDL approach

Ngepah²

2022

Front. Environ. Sci.

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“…As income grows, the scale effect (economic growth) adds to increased environmental degradation; however, the technique effect lessens environmental decay as much stricter environmental regulations are enacted to improve environmental quality (Ling et al 2015 ; Cole and Elliott 2003 ; Udeagha and Ngepah 2021a ). As a result, the validity of the EKC hypothesis requires that and .…”

Section: Methodsmentioning

confidence: 99%

“…Global warming and climate change are currently among the world's most disputed and concerning topics, and there is growing agreement that these concerns must be addressed immediately (Udeagha and Ngepah 2021a , 2021b ). In recent years, the world has seen a rapid increase in greenhouse gas (GHG) emissions, such as carbon dioxide (CO 2 ) emissions, which are the driving forces for climate change resulting from internal changes within the climate system, from 22 billion tonnes in 1990 to over 34 billion tonnes emitted annually (World Bank 2021 ).…”

Section: Introductionmentioning

confidence: 99%

“…South Africa, on the other hand, is classified as the 15th greatest CO 2 emitter in the world (1.09 percent of global emissions) and the highest emitter in Africa, with an expected 390 million tonnes in 2020 (World Bank 2021 ). The usage of coal appears to be the primary cause of the country's ever-increasing CO 2 emissions (Udeagha and Ngepah 2021a , 2021b ). Coal is the primary source of energy in South Africa, and it is also the primary source of CO 2 emissions.…”

Section: Introductionmentioning

confidence: 99%

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Investigating the moderating role of economic policy uncertainty in environmental Kuznets curve for South Africa: Evidence from the novel dynamic ARDL simulations approach

Muchapondwa

2022

Environ Sci Pollut Res

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South Africa, one of the emerging markets and fast-developing economies in Sub-Saharan Africa recognised for varying world’s natural assets on the international market, has recorded significant economic growth in the previous several years. However, aside from the ecological repercussions of energy generation, how economic uncertainties moderate the effects of energy intensity, renewable and non-renewable energy usage, and economic complexity on the environment has largely gone unnoticed. As a result, this paper addresses an important empirical vacuum by exploring the moderating influence of economic policy uncertainty in the environmental Kuznets curve for South Africa from 1960 to 2020. Results from the novel dynamic autoregressive distributed lag simulations framework reveal the following key findings: (i) economic policy uncertainty accelerates environmental degradation in both the short and long run; (ii) economic growth (as measured by the scale effect) increases environmental degradation, whereas the square of economic growth (as measured by the technique effect) slows it down, confirming the presence of the environmental Kuznets curve (EKC) hypothesis; (iii) environmental quality is deteriorated by energy intensity, economic complexity, non-renewable energy usage, and trade openness; (iv) the use of renewable energy and technological innovation increase environmental quality; (v) whereas the moderating effects of economic policy uncertainty on the environmental impacts of energy intensity, renewable and non-renewable energy consumption result in an increase in environmental destruction, its moderating effect on environmental implication of economic complexity plays an important role in improving environmental quality. These findings permit us to draw important policy recommendations for South Africa for improving environmental quality.

“…The nation is one of the top seven most decentralized nations in the world, with a fiscal decentralization ratio that is higher on average than 58% globally in 2018 and higher than the global average (Shan et al, 2021). Third, South Africa can accomplish the Sustainable Development Goals (SDGs) to advance socio‐political, environmental, and economic goals (Udeagha & Ngepah, 2021b). These factors make it possible to look at how uncertainty in economic policy, fiscal decentralization, and green innovation all interact to affect environmental quality in South Africa.…”

Section: Introductionmentioning

confidence: 99%

Environmental sustainability in South Africa: Understanding the criticality of economic policy uncertainty, fiscal decentralization, and green innovation

Sustainable Development

Muchapondwa

2022

South Africa, like most developing nations, is confronted with choosing between the need to advance their economy and the need to protect the environment. The United Nations Sustainable Development Goals 11, 12 & 13) provide a strong foundation for this investigation. To this end, the current research investigates the combined impacts of economic policy uncertainty, fiscal decentralization, and green innovation on environmental sustainability for the instance of South Africa with yearly frequency data from 1960 to 2020. The current research leverages on dynamic ordinary least squares, fully modified ordinary least squares, and canonical cointegration regression. The Maki cointegration test shows how the variables being evaluated have an equilibrium connection across the time period under review.Empirical findings support the environmental Kuznets curve (EKC) framework. These findings imply that, in the first stages of economic expansion, ecological environment is being sacrificed for economic progress (scale stage). Based on the EKC hypothesis, long-term quadratic economic growth reduces emissions by 0.162% whereas a 1% rise in economic growth increases emissions by 0.791%. Similar to this, long-term economic globalization and economic policy uncertainty impair ecological sustainability, whereas long-term fiscal decentralization and green innovation raise it in South Africa. These results have broad environmental repercussions. The present investigation supported environmental stick measures and investment in initiatives on a fundamental change from fossil-fuel energy consumption base to renewables.The final portion highlights further insights.