CO₂ emissions and sustainable economic development: New evidence on the role of human capital

Abstract

The empirical literature testing the Environmental Kuznets Curve hypothesis reports mixed results on the existence of this relationship. This study argues that the effects of economic development on CO 2 emissions are contingent upon the level of human capital. In the beginning, when human capital starts increasing from its low levels, more education accelerates the use of non-renewable resources and increases pollution emissions. However, when certain threshold levels of schooling are traversed, further enrollments reduce CO 2 emissions by promoting environmental awareness and facilitating the use of environment friendly technologies. To test these competing possibilities, we rely upon an innovative threshold technique where incomepollution relationship is piecewise linear with human capital serving as regime switching trigger. Our empirical findings using a large sample of 122 economies over the period 1980 to 2014 support the contingency effects of human capital in the income-environment relationship. These results are also supported by our findings from cross-sectional regressions in the presence of multiplicative interaction term of income and human capital. Based on these results we argue that an increase in education is necessary for reducing the environmental degradation and ensuring the sustainability of economic development.

The role of logistics performance for sustainable development in top Asian countries: Evidence from advance panel estimations

“…However there are also some other potential solutions which are helpful in eradication of carbon emissions. For instance, findings reported by Khan et al (2020) suggested the use of renewable energy, investing in human capital (Khan, 2020), and preservation of natural resources (Zafar, Saeed, Zaidi, & Waheed, 2020) in the gradual eradication of the levels of carbon emissions whereas technological innovation can also served for the said purpose (Ulucak & Khan, 2020). Besides being a cost bearing investment, sustainable logistics also helps firms to have increased profits (Prajogo, Chowdhury, Yeung, & Cheng, 2012) whereas it will also strengthen the market reputation of the firms ethically, morally and financially (Porter & Van der Linde 1995).…”

Linking Innovative Human Capital, Economic Growth, and CO2 Emissions: An Empirical Study Based on Chinese Provincial Panel Data

“…They found that there are substitutability relationships between human capital and energy utilization. Khan [21] argued that the influence of economic development on emissions is dependent upon the human capital level, after a certain level of human capital, CO 2 emissions will be reduced, and environmental awareness and friendly technologies will be promoted. Hao et al [22] specially investigated the effects of human capital on CO 2 emissions for G7 countries for the period 1991-2017 and discovered that human capital can reduce CO 2 emissions.…”

Investigating the nexus between energy, economic growth, and environmental quality: A road map for the sustainable development

“…The unfavorable influence of FFUEL on the green practices of RENG implies that an enhance in the utilization of fossil fuels, and related energy is directly linked with the decline in the RENG. According to Godil, Sharif, Agha, and Jermsittiparsert (2020); Godil, Sharif, Afshan, Yousuf, andKhan (2020) andBektas ¸, Demir, and Laporte (2016), heavy taxes need to be imposed on the vehicles to minimize their usage and ultimately discourage the increased utilization of FFUEL associated activities, and therefore enhancing the indicators of a green environment.The outcomes of this endeavor are quite in line with other endeavors and hence validate the results stated in the researches carried out previously on the utilization of eco-friendly energy sources and their crucial influence on the health of individuals and the economy(Benitez, LIorens, & Fernandez, 2015; S. A. R Khan et al, 2018;.…”