Do government expenditure and financial development impede environmental degradation in Venezuela?

Saud, M Alotaish Mohammed; Guo, Ping; Haq, Ihtisham ul; Pan, Guoqin; Khan, Alam

doi:10.1371/journal.pone.0210255

Cited by 42 publications

(16 citation statements)

References 40 publications

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“…The Cobb–Douglas is a production approach that is widely used as an apt tool to find relations between production and economic factors:

where

and

are the elasticities of Y vis-à-vis L and PKS . Therefore, from the extended Cobb–Douglas production function, it is assumed that the levels of government finance expenditure [ 17 , 18 , 75 ] capital K it = GEX it in the model, which includes CO 2 proxying EQ, which is extended as:

where CO 2 it and GEX it of country i and time t in years. Here

and

are the elasticities of output.…”

Section: Data and Variablesmentioning

confidence: 99%

Economic Growth and Environmental Quality: Analysis of Government Expenditure and the Causal Effect

Donkor

Kong

Manu

et al. 2022

IJERPH

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Environmental expenditures (EX) are made by the government and industries which are either long-term or short-term investments. The principal target of EX is to eliminate environmental hazards, promote sustainable natural resources, and improve environmental quality (EQ). Thus, this study looks at the impact of economic growth (EG), and government finance expenditure (GEX) on EQ in Northern Africa and Southern Africa (NASA) republics from 2000–2016. The panel quantile regression (PQR) and panel vector autoregressive (PVAR) model in a generalized method of moment framework (GMM) were employed as a framework. The PQR results show that; (i) In Northern republics, GEX had a significant positive effect on EQ at 25%, 50%, and 75% quantiles levels. (ii) In the Southern republics, GEX had a significant negative impact on EQ at 25%. Moreover, the PVAR through the GMM established that EG and GEX are significantly positive while the parameter for CO2 is insignificant and negative in the North. However, in the South, GEX and CO2 were statistically significant, while EG positively impacts EQ. Lastly, the granger causality report in North indicates uni-directional causation running from LNGEX → LNGDPpc, LNCO2 → LNGDPpc, LNFF → LNGEX, and LNFDI → LNGEX. Similarly, there is uni-directional causation in South republics from LNGEX → LNGDPpc, LNCO2 → LNGEX, and LNFDI → LNGEX.

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“…The Cobb–Douglas is a production approach that is widely used as an apt tool to find relations between production and economic factors:

where

and

where CO 2 it and GEX it of country i and time t in years. Here

and

are the elasticities of output.…”

Section: Data and Variablesmentioning

confidence: 99%

Economic Growth and Environmental Quality: Analysis of Government Expenditure and the Causal Effect

Donkor

Kong

Manu

et al. 2022

IJERPH

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“…Mohammed et al [18] studied the effects of energy, financial development, and government expenditure on carbon emissions in Venezuela. This study found that variables of the study were in the long run relationship, and the long run estimates showed that the EKC hypothesis holds in Venezuela.…”

Section: Literature Reviewmentioning

confidence: 99%

Analyzing the Impact of Energy, Export Variety, and FDI on Environmental Degradation in the Context of Environmental Kuznets Curve Hypothesis: A Case Study of India

2019

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The economic size of the Indian economy and its status as one of the major global emitters of carbon emissions makes the country a good place to study the determinants of environmental degradation in India. The study aims at analyzing the impact of energy, export variety, and foreign direct investment (FDI) on environmental degradation in India in the context of environmental Kuznets curve (EKC) hypothesis. The long run relationship was found between variables of the study through a cointegration test, whereas long run estimates were obtained through cointegration and dynamic ordinary least squares (DOLS). Results of the study reveal that energy consumption, export variety, FDI, and income positively contributed to environmental degradation in India. Results also unveil that the EKC hypothesis does not exist in India. Causality analyses document unidirectional causality from income and FDI to environmental degradation, and bidirectional causality was witnessed between energy consumption and environmental degradation and between export variety and environmental degradation in the long run. The long run and the short run causality highlight that India has to forego the short run economic growth in order to improve its environmental quality and reduce global carbon emissions; however, it will not affect its long term economic development process.

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“…Green tax causes many industrialists to employ production techniques that cause less harm to the environment. López et al ( 2011 ) explain that government spending oriented on public and social goods reduces pollution because it leads to human capital that affects environmental quality positively whereas Mohammed Saud et al ( 2019 ) are of the view that government expenditure can affect the environment through three effects, that is, scale, composition and technical and the first effect results in environmental degradation while other two effects put a positive impact on the environment. The projects on water and sanitation may improve access to a clean environment for the deprived section of the economy, while green tax promotes energy-efficient technology and discourages deforestation.…”

Section: Methodology For the Construction Of Environmental Inclusionmentioning

confidence: 99%

Ensuring environmental inclusion in developing countries: the role of macroeconomic policies

Batool

Bhatti

Rehman

2022

Environ Sci Pollut Res

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In every society, there exist disadvantaged groups who have failed constantly to take part in the development of the economy and reap the benefits of economic growth as well. Along with economic and social factors, environmental factors are also accountable in making inclusion a challenge for the marginalized group. Contaminated drinking water, inappropriate sanitation systems, and pollution are the factors that affect health and wellbeing of the poor class by affecting their productivity. Thus, the lack of a clean environment leads the poor section towards further poverty and income inequality. Since the 2030 Agenda for Sustainable Development emphasizes three components to achieve sustainable development, namely economic, social, and environmental, this study inspects the role of macroeconomic policies in ensuring an inclusive clean environment in developing countries. Moreover, it considers the composite effect of fiscal policy and monetary policy on environmental inclusion by including interactive terms. This investigation uses FE-2SLS on a panel of 51 developing countries for the period of 1995–2019 to analyse the impact of macroeconomic policies on environmental inclusion. The study provides empirical evidence that fiscal and monetary policy has the potential to ensure an inclusive clean environment in developing countries. The findings imply that the macroeconomic policy actions depend on each other. Furthermore, governments in developing regions are required to cut nondeveloping expenditures and use expansionary monetary policy to promote green growth.

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Do government expenditure and financial development impede environmental degradation in Venezuela?

Cited by 42 publications

References 40 publications

Economic Growth and Environmental Quality: Analysis of Government Expenditure and the Causal Effect

Economic Growth and Environmental Quality: Analysis of Government Expenditure and the Causal Effect

Analyzing the Impact of Energy, Export Variety, and FDI on Environmental Degradation in the Context of Environmental Kuznets Curve Hypothesis: A Case Study of India

Ensuring environmental inclusion in developing countries: the role of macroeconomic policies

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