Abstract:Historically, academia has paid much attention to environmental Kuznets curve (EKC) associated hypotheses, and the EKC per se has triggered conflicting reactions since first posited. Yet, all controversies seem not to have any base framework to address further pollution-related strategies. Built upon an extensive critical review of the extant EKC literature, this paper attempts to address the gap by introducing the theory of wicked problems that can be used to reframe the extant EKC research. Integrating and s… Show more
“…While some studies validate the EKC, others reject this concept. For instance, while Sarkodie and Strezov [22] in their study of three prominent developed economies reported findings that validate the EKC hypothesis using a linear model, Chen et al [23] in their study considered the model inadequate due to the bound rationality of humans. Yet, in all cases, the fact that economic development impacts carbon emissions has never been denied.…”
In recent years, the developed, emerging, and developing economies have prioritized environmental sustainability attainment. In an attempt to offer some potential policy choices towards the achievement of sustainable development, this paper shifts emphasis from the popularly discussed economic development and carbon emissions nexus. Instead, we examine the impact of the banking and financial system’s activities on carbon emissions for a sample of 45 countries. These are comprised of developed, emerging, and developing countries between 1990 and 2017. To fill the gap in the literature, the nexus is examined in seven different phases. This study exposes robust and reliable empirical results with the use of Feasible General Least Squares, random effects with regards to the Durbin–Wu–Hausman test, and Difference General Method of Moments panel data estimation models. Our findings indicate that the increase of domestic credit to the private sector and commercial bank lending consistently contributes towards aggravated carbon emissions in all economic types. Additionally, increased deposit rates in developing economies, increased lending rates in developed economies, and increased deposit rates in emerging economies contribute towards the overall reduction of carbon emissions. The decrease in lending to high GHG emitting members of the private sector by financial institutions in all economies is recommended based on the results of this study.
“…While some studies validate the EKC, others reject this concept. For instance, while Sarkodie and Strezov [22] in their study of three prominent developed economies reported findings that validate the EKC hypothesis using a linear model, Chen et al [23] in their study considered the model inadequate due to the bound rationality of humans. Yet, in all cases, the fact that economic development impacts carbon emissions has never been denied.…”
In recent years, the developed, emerging, and developing economies have prioritized environmental sustainability attainment. In an attempt to offer some potential policy choices towards the achievement of sustainable development, this paper shifts emphasis from the popularly discussed economic development and carbon emissions nexus. Instead, we examine the impact of the banking and financial system’s activities on carbon emissions for a sample of 45 countries. These are comprised of developed, emerging, and developing countries between 1990 and 2017. To fill the gap in the literature, the nexus is examined in seven different phases. This study exposes robust and reliable empirical results with the use of Feasible General Least Squares, random effects with regards to the Durbin–Wu–Hausman test, and Difference General Method of Moments panel data estimation models. Our findings indicate that the increase of domestic credit to the private sector and commercial bank lending consistently contributes towards aggravated carbon emissions in all economic types. Additionally, increased deposit rates in developing economies, increased lending rates in developed economies, and increased deposit rates in emerging economies contribute towards the overall reduction of carbon emissions. The decrease in lending to high GHG emitting members of the private sector by financial institutions in all economies is recommended based on the results of this study.
“…Consequently, developed countries become specialized in clean and service intensive production without changing their consumption patterns, whereas poor countries are concentrated on dirty and material-intensive production (Cole et al, 2000). This argument raises multifaceted questions about scale, composition and technique effects and income elasticity of environmental quality demand of EKC (Chen et al, 2019). Thus, the progress of technological structure would be offset when final consumption grasps pollution haven (Wagner, 2010).…”
Section: Displacement and Pollution Haven Hypothesismentioning
PurposeDue to large amounts of coal burning, huge carbon dioxide emission and poor environmental quality, it is important to identify whether environmental Kuznets curve exists in China and India since in downward period of environmental Kuznets curve, economic growth in these countries will largely contribute to world environmental quality. Further, it helps to make a comparative analysis between China and India on how economic growth will contribute to the environmental quality in both upward and downward period of environmental Kuznets curve due to energy consumption.Design/methodology/approachThis study uses the data of carbon dioxide emission, per capita GDP and energy consumption from 1972 to 2017 to identify individual and panel-level environmental Kuznets curve of China and India. Before going to regression and causality analysis, unit root and cointegration tests are performed.FindingsThis study finds the existence of environmental Kuznets curve in China and India at both individual and panel level. Further, due to high energy consumption, environmental quality in China will deteriorate at a lower rate in the long run than that of India. Next, the increase in economic growth or per capita GDP in the long run will deteriorate environmental quality at a lower rate in China than that of India. Besides, with the zero level of energy consumption and per capita GDP, the environmental quality of China will be worse than that of India. However, increase in per capita GDP after threshold level will improve environmental quality in India at a higher rate than that of China.Research limitations/implicationsIt helps to formalize the comparative relationship between the two large Asian economies by knowing the influence of economic growth on environmental degradation due to energy consumption. However, this study cannot conclude exactly when China and India can avail the downturn in environmental Kuznets curve.Originality/valueIt firstly establishes a link among energy consumption, economic growth and environmental quality between China and India including comparative pace in both upward and downward period of environmental Kuznets curve.
“…Being aware of the importance of involving others in the game is the starting point for this attitude. The more systemic the sustainability challenges are, the more individuals and organizations are required to pool efforts to establish the sustainable solutions [21].…”
Section: Sources Of Motivation and Attitude Formingmentioning
The promise-implementation gap is a particularly salient feature in promoting individuals’ pro-environmental behavior (PEB). Many individuals are becoming aware that their past behavior has not actually been in line with the norms they have made promise to. Prior studies have suggested an array of constraints restricting individuals’ pro-environmental involvement. In addition to individuals’ behavioral incapability, the said inconsistency can also be traced back to the affected willingness, hard trade-off decisions, and/or the failure of stakeholders’ collaboration. Based on the line of reasoning, this research develops an attitude model and frames the potential types of gaps from the perspective of attitude formation and transition surrounding PEBs. The promise-implementation gap is closely related to a sequence of attitudes showing great motivation differences from being reactive to reactive-active transition and to the active-proactive transition. The paper contextualizes the model to examine the promise-implementation gap in the Chinese environmental context. Importance of this context is high with quite mixed economic and social development across the country, which is the same across the world. The application of the model in the Chinese context justifies the validity and generalizability of the theoretic framework. The paper contributes a novel understanding of the promise-implementation gap, and illuminates potential analytic measures and managerial implications for literature of this stream.
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