Does democracy improve environmental quality of GCC region? Analysis robust to cross-section dependence and slope heterogeneity

Šatrović, Elma; Ahmad, Munir; Muslija, Adnan

doi:10.1007/s11356-021-15020-z

Cited by 50 publications

(28 citation statements)

References 90 publications

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“…The results indeed support a view of researchers such as Can and Gozgor ( 2017 ), Neagu ( 2019 ), Chu ( 2020 ) and Satrovic and Ahmad ( 2021 ). This means that as economic growth and carbon emission increase, it gets to a certain threshold carbon emission decline while observing a continuous increase in economic growth.…”

Section: Conclusion and Policy Implicationssupporting

confidence: 88%

“…Transportation and energy consumption are mutually interdependent with each other. Energy consumption may increase carbon emissions while transportation contributes to the energy-environmental degradation nexus (Satrovic and Abul, 2020). The intensive use of trains offers ecofriendly transportation methods and aims to reduce the travel cost and support environmental protection.…”

Section: Introductionmentioning

confidence: 99%

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The anthropogenic consequences of energy consumption in the presence of uncertainties and complexities: evidence from World Bank income clusters

Adedoyin

Šatrović

Kehinde

2021

Environ Sci Pollut Res

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In environmental management, many studies have examined the energy consumption-emission nexus in detail. However, for the first time in the literature, this study considers how the Economic Complexity Index (ECI) and economic policy uncertainty (EPU) moderate the contribution of energy consumption to emissions for the four World Bank Income clusters. The system generalised methods of moments are applied to data for 109 countries from 1996 to 2016. Based on the main model (grouped clusters) estimations, the result revealed the existence of the environmental Kuznets curve (EKC) hypothesis. Also, an increase in air transport and consumption of energy releases more carbon emissions to the climate. Interestingly, ECI decreases carbon emission significantly while EPU does not have a significant impact. Moreover, the study revealed that ECI moderated the impact of other variables on emission, but EPU is not a significant moderator. Furthermore, a comparative analysis among the four incomes suggests that the EKC hypothesis holds only in the high-income clusters; ECI is a significant predictor of carbon emission in the four clusters, but it only decreases the emission in high-income clusters. This corroborates the debate on climate change and the productive capacity of high-income countries. Given the foregoing, several policy measures were recommended.

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Section: Conclusion and Policy Implicationssupporting

confidence: 88%

Section: Introductionmentioning

confidence: 99%

The anthropogenic consequences of energy consumption in the presence of uncertainties and complexities: evidence from World Bank income clusters

Adedoyin

Šatrović

Kehinde

2021

Environ Sci Pollut Res

Self Cite

View full text Add to dashboard Cite

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“…Environmental degradation poses multifaceted detrimental effects on sustainable economic development (Murshed et al 2021a;Rehman et al 2021a). Although environmental pollution embodies many different forms, most of the previous studies have expored the environmental impacts of various macroeconomic indicators using Carbon dioxide (CO2) emissions as a proxy (Ahmed et al 2019;Adebayo et al 2021;Satrovic et al 2021). Among the various factors determining CO2 emissions and other aspects of environmental quality, the use of non-renewable energy is referred to as the predominant contributor to the aggravation of environmental well-being worldwide (Murshed and Dao 2020;Rehman et al 2021b;Tillaguango et al 2021).…”

Section: Introductionmentioning

confidence: 99%

The asymmetric associations between foreign direct investment inflows, terrorism, CO2 emissions, and economic growth: a tale of two shocks

Chishti

Ahmed

Murshed

et al. 2021

Environ Sci Pollut Res

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Foreign direct investments can exert ambiguous effects on the environmental quality of the host economies. At the same time, terrorism is a worldwide phenomenon that affects human life, FDI inflows, economic growth, and, most importantly, environmental well-being. Hence, it can be expected that there are relationships between terrorism, foreign direct investment inflows, and carbon dioxide emissions. However, in the previous literature, less attention has been given to explore these nexuses. In addition, the possible nonlinearities in data are also mostly ignored in the preceding related studies. Against this backdrop, this paper explores the linear and nonlinear influences of terrorism and foreign direct investment inflows on carbon dioxide emissions, controlling for energy consumption and economic growth within the model, on carbon dioxide emissions in the context of ten global economies that are most impacted by terrorism. To this end, we used the data from 1973 to 2016 and deployed the linear and non-linear autoregressive distributed lag methods to scrutinize the environmental impacts of the explanatory variables of concern. The results confirmed the presence of non-linearities in the relationships between terrorism, inflows of foreign direct investments, and carbon dioxide emissions. Furthermore, the findings revealed that the positive shocks to terrorism and foreign direct investment inflows significantly deteriorate the environment with a dominating effect. Unlike the previous studies, this current study validates the pollution haven hypothesis for the sample economies. Energy consumption and economic growth were also evidenced to exacerbate the carbon dioxide emission levels in all selected countries. Based on these results, we recommend that our sample economies should focus on promoting education, employment, economic stability, and public awareness to eradicate terrorism which, in turn, can mitigate the emissions of carbon dioxide further. In addition, stringent environmental regulations on foreign direct investment inflows are required to reduce the adverse environmental effects of such sources of foreign finance. Furthermore, the international firms should be encouraged to invest in cleaner technologies by offering them tax benefits and other financial incentives.

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“…This result is informative because it conditions the use of the unit root and second-generation cointegration tests. Both tests were systematically estimated as the starting point for subsequent econometric models [5,[12][13][14]. In practice, the results indicate that on average, the changes in the values of the series in a country are associated with the changes in the values of the series in the rest of the countries.…”

Section: Introductionmentioning

confidence: 99%

Effect of Agricultural Employment and Export Diversification Index on Environmental Pollution: Building the Agenda towards Sustainability

et al. 2022

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Agricultural activities have a significant impact on environmental quality, because they generate waste that pollutes water and soil. In parallel, the supply of products has diversified in recent years to meet growing demand, exerting strong pressure on nature’s capacity for regeneration and absorption of waste. This research aims to examine the impact of agricultural employment and the export diversification index on ecological footprints, using advanced techniques of panel data econometrics. This relationship is moderated by population density and real per capita product. Cross-section dependence and slope homogeneity were included in the econometric models. The cointegration and causality analysis was reinforced by estimating the short- and long-term elasticities, using the AMG, CCE-MG, FMOLS, and DOLS models. Using annual data for 96 countries, we found a heterogeneous impact of agricultural employment and the export diversification index on ecological footprint, between the short and long term. The findings reveal that the increase of the product increases the pressure on the ecological footprint. The achievement of SDGs must include joint efforts between countries, and not in isolation. Those responsible for environmental policy should promote the idea that production must be friendly to the environment and promote the green growth of countries. The adoption of new technology, higher productivity agricultural employment, and the regulation of exports of sustainable products can contribute to achieving environmental sustainability.

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Does democracy improve environmental quality of GCC region? Analysis robust to cross-section dependence and slope heterogeneity

Cited by 50 publications

References 90 publications

The anthropogenic consequences of energy consumption in the presence of uncertainties and complexities: evidence from World Bank income clusters

The anthropogenic consequences of energy consumption in the presence of uncertainties and complexities: evidence from World Bank income clusters

The asymmetric associations between foreign direct investment inflows, terrorism, CO2 emissions, and economic growth: a tale of two shocks

Effect of Agricultural Employment and Export Diversification Index on Environmental Pollution: Building the Agenda towards Sustainability

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