Renewable energy consumption, CO<sub>2</sub>emissions and trade balance nexus in OECD countries: evidence from ARDL bounds approach

Idris, Fawzia Mohammed; Seraj, Mehdi; Özdeşer, Hüseyin

doi:10.1108/ijesm-02-2022-0009

Cited by 15 publications

(6 citation statements)

References 39 publications

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“…Additionally, the results indicate that the variables adjust to their long‐run equilibrium at a slow rate, suggesting that short‐run disequilibria persist, which may require policy interventions to promote a more sustainable green economy in the MENA region. Previous research on the relationship between economic growth and energy consumption supports the results of this study, see (Mohammed Idris et al., 2022).…”

Section: Resultssupporting

confidence: 90%

Toward a green economy: The nexus between economic and environmental factors in MENA countries, ARDL bounds approach

Idris

Seraj

Özdeşer

2023

Environmental Quality Mgmt

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With the transition of the global economy toward a green economy, it is important to analyze the elements that can either support or impede this transformation. Therefore, in this study, we aimed to evaluate the potential of the green economy in the Middle East and North Africa (MENA) countries by analyzing the correlation between economic and environmental factors. The objective of this study is to explore the potential of the green economy in MENA countries by analyzing key factors such as access to clean fuel, GDP, and CO 2 emissions. The study aims to distinguish between long-and short-term effects, assess the presence of a long-run relationship or cointegration between the parameter estimates, and evaluate the progress of MENA countries toward a green economy based on the impact of economic, and environmental factors. Using quarterly and seasonally adjusted data from 2000 to 2018, the auto-regressive distributed lag (ARDL) technique was employed to examine the co-integration of the factors in the long and short terms. Multiple cointegration techniques were also used to determine the feasibility of a green economy by analyzing the relationship between access to clean fuel for technology and cooking, GDP, and CO 2 emissions. The study's findings indicate a clear long-and short-term relationship between the analyzed factors, as confirmed by the error correction model (ECM) which suggests that the variables are cointegrated and potentially relevant. Additionally, the result of the autoregressive distributed lag bound test shows that the green economy variables, GDP, CO 2 emissions, and access to clean fuel, are cointegrated in the long-term.

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Section: Resultssupporting

confidence: 90%

Toward a green economy: The nexus between economic and environmental factors in MENA countries, ARDL bounds approach

Idris

Seraj

Özdeşer

2023

Environmental Quality Mgmt

Self Cite

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“…Upon examination of the estimated results, it can be observed that there is a negative correlation between renewable energy sources and carbon emissions. Previous studies that have yielded comparable outcomes lend support to this perspective [14,16,21,[23][24][25]27,44]. These findings indicate that the development of sustainable green energy sources (renewable energy sources) should be prioritized over the use of fossil fuels to reduce CO 2 emissions.…”

Section: Discussionsupporting

confidence: 57%

“…Looking at similar studies on the topic, it can be seen that many comprehensive studies have been conducted on the relationship between carbon emissions as the dependent variable and economic development, renewable energy, and non-renewable energy sources. However, most studies examining the relationship between carbon emissions and energy focus on energy consumption [9,14,16,21,27], and very few studies [22] examined the impact of the type of energy generation (renewable and non-renewable) on carbon emissions.…”

Section: Introductionmentioning

confidence: 99%

Formulating Eco-Friendly Strategies: Transition to Green Economy

Kadioglu,

Gurbuz

2024

Sustainability

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Turkey is attempting to achieve carbon neutrality targets by implementing environmentally friendly techniques. This study aims to assess the short- and long-term relationships between Turkey’s annual carbon emissions and economic growth, as well as annual electricity generation from renewable fossil fuels. Data for this study were obtained from the World Bank and the official website of the Turkish Statistical Institute (TURKSTAT) from 1986 to 2020. The Autoregressive Distributed Lag Bound Test (ARDL) technique was used to estimate variable cointegration. The cointegration test shows a long-run relationship between the selected variables. A 1% increase in the GDP, COAL, and PTRLGZ variables increases CO2 emissions by 0.65%, 33%, and 7%, respectively. The RE variable was found to have a negative effect on CO2 emissions. The effect of the RE variable on CO2 emissions is −0.10. This result indicates that a 1% increase in the RE variable reduces CO2 emissions by 0.10%. Looking at the short-term data, the error correction coefficient (CointEq (−1)) was found to be negative (−0.832) and significant. Based on the error correction variable, it is expected that the short-run deviations from equilibrium will be corrected and that a long-run equilibrium will be reached in less than one year. The long-run results also suggest that the factors used in the model have a statistically significant effect on the dependent variable. While this effect is negative for annual electricity production from renewable energy sources, it is positive for annual electricity production from fossil fuels and gross domestic product (GDP).

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“…The minute cointegration is confirmed, and the model specifies an error correction form (Aluwani 2023 ). That combines short-run coefficients and long-run adjustments in the single error correction model ( ECM ), which helps to analyse both long-run and short-run parameters simultaneously(Mohammed Idris et al 2023 ). The lag length can be selected by the Akaike information criterion (AIC) and other criteria (Bunnag 2023 ).…”

Section: Methodsmentioning

confidence: 99%

Financial health and economic growth responsiveness as solution to environmental degradation in Pakistan

Golo,

Han,

Balsalobre-Lorente

et al. 2024

Environ Sci Pollut Res

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This study analyses the impact of GDP per capita, domestic credit, savings, and population on the environment in Pakistan from 1995 to 2019. The country has consistently been ranked eighth, fifth, and eight as an environmentally vulnerable nation from 1998 to 2017, 1999 to 2018, and 2000 to 2019, respectively. Therefore, the study explores the role of environmental awareness as a potential strategy for making peace with nature. Findings of the ARDL bounds testing approach confirm the long-run cointegration among variables of concern. In further assessment, the study determines that increased per capita income is detrimental to environmental quality in the long run. However, in the short run, it shows a favourable impact. On the other hand, domestic credit worsens the environment in the long and short runs. However, savings are positively insignificant in this regard. Furthermore, the total population significantly harms the environment in the long and short run. Fortunately, environmental awareness has emerged as a key solution to environmental degradation in Pakistan. Findings show that an increase in the dissemination of environmental awareness through the Internet, mobile, and landline phones, as well as by increasing education expenditures, mitigates the populations’ detrimental impact on the environment and improves environmental quality in the long run. Graphical Abstract

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Renewable energy consumption, CO₂emissions and trade balance nexus in OECD countries: evidence from ARDL bounds approach

Cited by 15 publications

References 39 publications

Toward a green economy: The nexus between economic and environmental factors in MENA countries, ARDL bounds approach

Toward a green economy: The nexus between economic and environmental factors in MENA countries, ARDL bounds approach

Formulating Eco-Friendly Strategies: Transition to Green Economy

Financial health and economic growth responsiveness as solution to environmental degradation in Pakistan

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Renewable energy consumption, CO2emissions and trade balance nexus in OECD countries: evidence from ARDL bounds approach

Cited by 15 publications

References 39 publications

Toward a green economy: The nexus between economic and environmental factors in MENA countries, ARDL bounds approach

Toward a green economy: The nexus between economic and environmental factors in MENA countries, ARDL bounds approach

Formulating Eco-Friendly Strategies: Transition to Green Economy

Financial health and economic growth responsiveness as solution to environmental degradation in Pakistan

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Product

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Renewable energy consumption, CO₂emissions and trade balance nexus in OECD countries: evidence from ARDL bounds approach