Does trade openness mitigate the environmental degradation in South Africa?

Udeagha, Maxwell Chukwudi; Ngepah, Nicholas

doi:10.1007/s11356-021-17193-z

Cited by 74 publications

(31 citation statements)

References 126 publications

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“…The predicted long- and short-run coefficients for trade openness (InOPEN) are both positive and statistically significant, meaning that a 1 percent increase in trade openness results in 0.105 and 0.214 percent increases in CO 2 emissions in the long and short run, respectively. Udeagha and Ngepah ( 2022 , 2021c ) agreed with our findings, stating that trade openness has a significant negative impact on environmental quality in South Africa. The pollution-raising role of trade openness naturally raises worries about South Africa's government and policymakers' escalating trade liberalisation initiatives.…”

Section: Empirical Results and Their Discussionsupporting

confidence: 89%

“…As a result, we propose the typical EKC hypothesis as follows, based on Udeagha and Ngepah ( 2022 , 2021c ), Udeagha and Breitenbach ( 2021 ), and Cole and Elliott ( 2003 ): where CO 2 denotes the CO 2 emissions, a proxy for environmental quality; SE is a scale effect that captures economic growth (income); and TE is a technique effect that captures the square of economic growth. Log-linearising Eq.…”

Section: Methodsmentioning

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

Udeagha

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.

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Section: Empirical Results and Their Discussionsupporting

confidence: 89%

Section: Methodsmentioning

confidence: 99%

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

Udeagha

Muchapondwa

2022

Environ Sci Pollut Res

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“…One of the reasons attributed to this is that, as people’s awareness of the environment/income grows, environmental restrictions are enacted to encourage the use of renewable energy/energy-efficient technologies to mitigate CO 2 emissions. This finding concurs with Udeagha and Breitenbach’s ( 2021 ) research in the Southern African Development Community (SADC), Udeagha and Ngepah’s ( 2021 ) in SA, Alharthi et al’s ( 2021 ) in the MENA countries, and Bibi and Jamil’s ( 2021 ) in six regions, and among others. The long-run finding supports Meadows et al’s ( 1992 ) argument that growth may be required to maintain environmental quality.…”

Section: Empirical Results and Discussionsupporting

confidence: 88%

CO2 emissions-energy consumption-militarisation-growth nexus in South Africa: evidence from novel dynamic ARDL simulations

Saba

2022

Environ Sci Pollut Res

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This study draws ardent attention to the Sustainable Development Goal 13 (climate change mitigation) of the United Nations by investigating the CO 2 emissions-energy consumption-militarisation-economic growth nexus for South Africa (SA) from 1960 to 2019. The researcher applied frequency domain causality and the novel dynamic autoregressive distributed lag (ARDL) simulation approaches to achieve the research objective. The main findings reflected that (i) there is a long-run equilibrium relationship between the variables; (ii) there is no causality between militarisation and energy consumption; (iii) unidirectional causality runs from militarisation to economic growth; (iv) there is no causality between militarisation and CO 2 emissions; and (v) unidirectional causality runs from energy consumption to economic growth. The dynamic ARDL simulations’ main results suggest that (i) in the short-run, a positive and insignificant relationship exist between militarisation and CO 2 emissions. Conversely, a negative and significant relationship was recorded in the long-run. Thus, the treadmill theory of destruction is not valid for SA. (ii) In the short-run, economic growth has a positive and significant impact on CO 2 emissions, while in the long-run, economic growth has a negative and significant impact on CO 2 emissions. This implies the environmental Kuznets curve (EKC) hypothesis holds for SA. Overall, this research suggests a synergy between defence, energy, growth, and environmental policies in the short- and long-run to promote and maintain environmental quality in SA.

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“…A sustainable economic growth in the country results in a higher national income and more employment, resulting in a higher standard of living (Mohamed et al 2022 ). Therefore, the literature review part is broken down following (Udeagha and Ngepah 2022a , b , c ) into four sub-sections. For a full understanding of the relationship between technological innovation, foreign direct investment, trade openness, human capital, and economic growth, in context of Bangladesh, this research has considered them simultaneously.…”

Section: Literature Reviewmentioning

confidence: 99%

Do technological innovation, foreign investment, trade and human capital have a symmetric effect on economic growth? Novel dynamic ARDL simulation study on Bangladesh

Rahman

Zhang

Musa

2023

Econ Change Restruct

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Bangladesh's economy has flourished a great deal during recent years, establishing itself as an enthralling market. This country's remarkable growth trajectory can be attributed to technological innovation, foreign direct investment, trade and human capital, all of which have significant impacts on its economic growth. Bangladesh's economic development has been poorly explored in previous studies due to the lack of integration between these dynamics. Does the question arise whether this growth factors have a symmetrical or non-symmetrical effect on Bangladesh's economic growth and policymaking? We conducted this study with the primary objective of evaluating how technological innovation, foreign direct investment, trade, and human capital affect Bangladesh's economic development. Based on time series data years spanning 1990 to 2020, this study used the dynamic ARDL simulation method to accomplish its objective. This novel approach allows users to examine possible counterfactual changes in variables based on the ceteris paribus theory, as well as to test cointegration, long- and short-run symmetric associations between variables. Research findings indicate that technological innovation and human capital have a long-run symmetric relationship with Bangladesh’s economic development. There is a significant correlation found between economic growth and all variables in the short run. To further check the robustness of the study we employed the nonlinear ARDL approach. Therefore, this study can undoubtedly be used by policymakers and the government as a basis for prioritizing and encouraging critical policy changes that will improve Bangladesh's economic development.

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Does trade openness mitigate the environmental degradation in South Africa?

Cited by 74 publications

References 126 publications

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

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

CO2 emissions-energy consumption-militarisation-growth nexus in South Africa: evidence from novel dynamic ARDL simulations

Do technological innovation, foreign investment, trade and human capital have a symmetric effect on economic growth? Novel dynamic ARDL simulation study on Bangladesh

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