Exploring the nexus between economic complexity, economic growth and ecological footprint: Contextual evidences from Japan

Self Cite

121

Sustainable development and reducing environmental pressure are major issues that concern developed as well as developing countries. Although researchers widely use carbon dioxide emissions and ecological footprint within the scope of environmental degradation, a more comprehensive ecological indicator is needed to assess environmental sustainability. In this context, the load capacity factor enables a comprehensive environmental sustainability assessment through the simultaneous analysis of biocapacity and ecological footprint. However, there are few studies analyzing the determinants of load capacity factor and this study aims to fill this gap for Indonesia. Using the recently developed Fourier quantile causality test, this study investigates the impact of income, export diversification, non-renewable and renewable energy consumption on the load capacity factor for Indonesia during 1965Q1–2014Q4. The results show unidirectional causality from non-renewable energy consumption to the load capacity factor at all quantiles, while income, export diversification, and renewable energy are the causes of environmental quality at middle and higher quantiles (within 0.5, 0.7, and 0.9). Most importantly, renewable energy and export diversification increase the load capacity factor and thus support environmental quality. In contrast, an increase in income and consumption of non-renewable energy reduces the load capacity factor. These results highlight the importance of renewable energy and export diversification for the sustainable development of Indonesia.

Section: Literature Reviewmentioning

confidence: 99%

Role of Export Diversification and Renewable Energy on the Load Capacity Factor in Indonesia: A Fourier Quantile Causality Approach

Fareed

Salem²,

Adebayo

et al. 2021

Self Cite

121

“…Third, industrial agglomeration can promote ETFP by optimizing the industrial structure. Economic structure and economic activities can have an important impact on environmental pollution and carbon emissions (Ikram et al, 2021;Sharma et al, 2021), and further affect environmental sustainability (Rafique et al, 2021). industrial agglomeration causes enterprises to obtain innovation monopoly profits, and various departments will compete to increase R and D investment to improve production efficiency and production technology level, thereby promoting the adjustment of industrial structure from the supply side.…”

Section: Mechanism Analysismentioning

confidence: 99%

Can Industrial Agglomeration Facilitate Green Development? Evidence From China

Xie

2021

Industrial agglomeration can promote economic growth through knowledge spillover and cooperation, while it may also bring serious pollution problems. Therefore, clarifying the relationship between industrial agglomeration and green development is of great significance to the realization of China’s sustainable development. In order to study the causal relationship between industrial agglomeration and green development, this paper first adopts the Overall Malquist Index method to more accurately measure the green development of Chinese cities characterized by environmental total factor productivity (ETFP). Subsequently, this paper uses the panel data of prefecture-level cities from 2003 to 2016 to study the causal relationship between industrial agglomeration and green development. We found that China’s current industrial agglomeration can promote green development. Mechanism analysis shows that industrial agglomeration can promote green development through improving the technological innovation, strengthening government intervention and optimizing the industrial structure. Finally, heterogeneity analysis shows that industrial agglomeration has a stronger role in promoting green development in areas where the economy is more developed, the degree of resource dependence is lower, and the degree of industrial agglomeration is higher. This paper not only provides theoretical and policy references for the research on industrial agglomeration and green development, but also provides experience reference for other developing countries.

“…This indicator represents human demand from the ecosystem and has six components; crop-land, forest, grazing, fishing, built-up land, and carbon emissions. As a policy tool, the ecological foot is regarded as a better proxy of environmental degradation that offers a more holistic and comprehensive measure of pressure on nature caused by human consumption (Ikram et al, 2021). If the natural resources are consumed faster than they are regenerated, an ecological footprint deficit will occur (Mrabet and Alsamara, 2017).…”

Section: Introductionmentioning

confidence: 99%

“…In the same vein, energy from fossil fuels is found as an essential source of environmental pollution. A plethora of research has documented the harm of pollution caused by burning fossil fuels (Bölük and Mert, 2014;Ikram et al, 2021). According to a recent International Energy Agency report, from 2017 to 2040, global energy consumption will increase by 30% (IEA, 2017).…”

Section: Introductionmentioning

confidence: 99%

Exploring the Effects of Economic Complexity and the Transition to a Clean Energy Pattern on Ecological Footprint From the Indian Perspective

Wan

Jahanger

Usman

et al. 2022

The study explores the association between economic complexity, globalization, renewable and non-renewable energy consumption on the ecological footprint in the case of India from 1990–2018. The autoregressive distributed lag (ARDL) is applied to measure the long-run elasticity, while the vector error correction model (VECM) is applied to classify the causal path. The empirical findings demonstrate that economic complexity, globalization process, and renewable energy consumption play a dominant role in minimizing environmental degradation. In contrast, economic growth and non-renewable energy consumption are more responsible for increasing the pollution level in both the short and long run. Furthermore, the VECM outcomes disclose that there is long-run causality between ecological footprint and economic complexity. Moreover, the empirical outcomes are robust to various robustness checks performed for analysis to the consistency of our main results. The Indian government/policymakers should encourage a more environmentally friendly production process and eco-friendly technologies in exports to minimize environmental degradation.