Is Bangladesh on the right path toward sustainable development? An empirical exploration of energy sources, economic growth, and CO2 discharges nexus

Hasan, Md. Bokhtiar; Ali, Md. Sumon; Uddin, Gazi Salah; Mahi, Masnun; Liu, Yang; Park, Donghyun

doi:10.1016/j.resourpol.2022.103125

Cited by 10 publications

(5 citation statements)

References 80 publications

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“…Finally, this work documents that theoretical models aiming to explain the structure of the EKC must start to consider the exposure of the population to pollution and its relationship with the preferences for clean energy (Hasan et al, 2022;Dutta et al, 2023). Empirical models related to air pollution should also consider controlling for this variable (Kahn et al, 2022), as it has an important impact on the preferences for cleaner energy (as Figure 3 illustrates).…”

Section: Discussionmentioning

confidence: 88%

“…As for other research lines in the literature, empirical studies on the existence, characteristics and underlying structure of the EKC are abundant (Lin & Liscow, 2013;Lawell et al, 2018;Villanthenkodath et al, 2021;Hu et al, 2022;Hasan et al, 2022). However, empirical studies that delve into the foundations of the EKC by using the demand for environmental quality are scarce and date back many years.…”

Section: Literature Review and Theoretical Motivationmentioning

confidence: 99%

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What drives the preferences for cleaner energy? Parametrizing the elasticities of environmental quality demand for greenhouse gases

García¹,

Gómez²

2023

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Research background: The heterogeneity in the factors that affect demand for environmental quality implicates a diverse set of policies and actions aimed at achieving cleaner production to address the challenges posed by pollution and damage to the natural environment. Even though this topic has been widely addressed, mainly from the traditional perspective of the Environmental Kuznets Curves hypothesis (EKC), it has been assumed that the environment is a luxury good with an income elasticity greater than unity. However, it has recently been recognized that the relationship between income and demand for cleaner energy may be more complex and that further inquiry may be needed for a better understanding. Purpose of the article: This research work, employing a panel of European countries, offers direct explicit parameters for the elasticity of income-environmental quality demand for Greenhouse Gases (GHG), as well as its relationship with other important factors. It provides quantitative novel insights into the complex relationship between income and the preferences for cleaner energy. Methods: A hierarchical regression equations approach is used to analyze the evolution of the elasticity of income-environmental quality demand with the inclusion of further co-variates that are relevant for the preferences side of the EKC, such as consumption, R+D investment and BERD (Business Enterprise Research and Development). The data for the empirical study comes from a panel of 16 European countries for the period from 2010 to 2020. Findings & value added: The results show robust evidence that the elasticity of environmental quality demand, which although positive and significant, does not exceed one. To obtain an elasticity above unity, two more variables are needed, namely the R+D expenditure of business enterprises and the exposure of citizens to air pollution. These two factors have a similar or even higher effect on the preferences of agents for cleaner energy, which also means that the preferences of the citizens are endogenous to technological development. At the theoretical level, this work shows that the technological and preferences arguments are not substitute explanations of the EKC, but that technological development exerts a positive effect on the preferences of inhabitants, whose demand for environmental quality is heavily conditioned by their capabilities to see pollution, even more than by their income level. This also means that public policies directed to improve environmental awareness should be directed first towards those regions where the exposure of the citizens to pollution is lower.

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Section: Discussionmentioning

confidence: 88%

Section: Literature Review and Theoretical Motivationmentioning

confidence: 99%

What drives the preferences for cleaner energy? Parametrizing the elasticities of environmental quality demand for greenhouse gases

García¹,

Gómez²

2023

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“…The World Bank database and the annual reports of respective banks are widely recognized for their comprehensive and reliable economic data sources. Several authors (da Silva et al 2018;Gazi et al 2022;Hasan et al 2022) around the world have relied on the Word Bank database in conducting research. In addition, the annual reports of banks involve a comprehensive review of the banks' financial statements, internal controls, and accounting practices to ensure compliance with regulatory requirements and generally accepted accounting principles (GAAP), which are also duly audited by independent auditors.…”

Section: Datamentioning

confidence: 99%

Bank-Specific and Macroeconomic Determinants of Profitability of Islamic Shariah-Based Banks: Evidence from New Economic Horizon Using Panel Data

Gazi,

Karim,

Senathirajah

et al. 2024

Economies

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The purpose of this study is to analyze significant variables that permit us to ascertain the profitability of Bangladeshi Shariah-based banks. In doing so, two profitability measurements, namely, return on asset (ROA) and return on equity (ROE), have been used as dependent variables, while capital adequacy, asset management quality, operational efficiency, credit risk, liquidity, and the size of the bank have been considered as bank-specific independent variables. In addition, the rate of interest, inflation, and GDP growth rate have also been taken as macroeconomic independent variables. This study examined panel data of eight Shariah-based Islamic banks over a thirteen-year period spanning from 2010 to 2022, applying different kinds of linear regression models, including pooled ordinary least squares (OLS), fixed effects, and random effects. Subsequently, the generalized method of moments (GMM) approach is also applied to assess the robustness of the findings. The results revealed that the profitability of Bangladeshi Shariah-based Islamic banks is positively associated with asset management quality, liquidity, and credit risk. In contrast, capital adequacy, operational efficiency, and bank size are negatively correlated with the bank’s profitability. Concerning the macroeconomic factors, the findings indicated a notable positive correlation between the profitability of Shariah-based banks in Bangladesh and both the inflation rate and the interest rate spread. However, this study has also found that the profitability of the sample banks of Bangladesh is not significantly influenced by GDP growth. By providing fresh empirical data, the current research aimed to close a significant vacuum in the body of knowledge on banks and provide important insights for policymakers, managers, and other stakeholders by focusing on particular bank-specific and macroeconomic aspects that influence the profitability of Shariah-based Islamic banks in Bangladesh.

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“…1. A survey of the mostly empirical literature is regarding renewable energy eschewed here, interested reader may refer to Reboredo and Ugolini (2020), Arif et al. (2022), Hasan et al. (2022) and therein references.…”

Section: Notesmentioning

confidence: 99%

Dynamic connectedness amongst green bonds, pollution allowance policy, social responsibility and uncertainty

Alqaralleh

2023

JRF

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PurposeThis study explores the interconnectedness and complexity of risk-varied climate initiatives such as green bonds (GBs), emissions trading systems (ETS) and socially responsible investments (SRI). The analysis covers the period from September 2011 to August 2022, using six indices: three representing climate initiatives and three indicating uncertainty.Design/methodology/approachTo achieve this, the study first examines dynamic lead-lag relations and correlation patterns in the time-frequency domain to analyse the returns of the series. Additionally, it applies an innovative approach to investigate the predictability of uncertainty measurements of climate initiatives across various market conditions and frequency spillovers in the short, medium and long run.FindingsThe findings indicate changing relationships between the series, increased linkages during turbulent market periods and strong co-movements within the network. The ETS is recommended for diversification and hedging against uncertainty indices, whereas the GB may be suitable for long-term diversification.Practical implicationsThis study highlights the role of climate initiatives as potential hedges and contagion amplifiers during crises, with implications for policy recommendations and the asymmetric effects on market connectedness.Originality/valueThe paper answers questions that previous studies have not and contributes to the literature regarding financial risk management and social responsibility.

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Is Bangladesh on the right path toward sustainable development? An empirical exploration of energy sources, economic growth, and CO2 discharges nexus

Cited by 10 publications

References 80 publications

What drives the preferences for cleaner energy? Parametrizing the elasticities of environmental quality demand for greenhouse gases

What drives the preferences for cleaner energy? Parametrizing the elasticities of environmental quality demand for greenhouse gases

Bank-Specific and Macroeconomic Determinants of Profitability of Islamic Shariah-Based Banks: Evidence from New Economic Horizon Using Panel Data

Dynamic connectedness amongst green bonds, pollution allowance policy, social responsibility and uncertainty

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