Testing Non-Linear Nexus between Service Sector and CO2 Emissions in Pakistan

Xia, Enjun; Fan, Hongzhong; Fareed, Zeeshan; Bannya, Roksana

doi:10.3390/en13030526

Cited by 46 publications

(25 citation statements)

References 83 publications

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“…The coefficient of TOP signifies that the level of CO 2 emissions raises by 0.0208% due to a 1% increase in TOP. The results of TOP is congruent to the outcomes of Danish et al [35] and Hashmi et al [96]; they confirm the existence of a significant association between TOP and CO 2 emissions. The outcomes for 47 emerging economies can be vindicated that the size of economic growth is expanding through scale effect, which may raise the deterioration of the environment.…”

Section: Empirical Results and Discussionsupporting

confidence: 86%

Income Inequality and CO2 Emissions in Developing Countries: The Moderating Role of Financial Instability

et al. 2020

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This paper studies the effects of income inequality and financial instability on CO2 emissions in the presence of fossil fuel energy, economic development, industrialization, and trade openness. Moreover, the present study is the first to examine the moderating role of financial instability between income inequality and CO2 emissions. We utilized panel data of forty-seven developing countries for the period 1980–2016 by utilizing the stochastic impacts by regression on population, affluence, and technology (STIRPAT) model. The empirical outcomes in all models indicate that income inequality and industrialization significantly reduce environmental degradation, while fossil fuel, trade openness, and economic growth decrease the quality of the environment. However, financial instability (with interaction term) shows no significant link to environmental quality, whereas (with interaction term) it shows a significant negative effect on CO2 emissions. In addition, the result of the interaction variable reveals that an increase in inequality, ceteris paribus, in combination with the rise in financial instability, is expected to increase pollution. Furthermore, there exists a bidirectional causal association among income inequality, financial instability, fossil fuel, trade openness, industrialization, economic growth, and the interaction variable with CO2 emissions.

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Section: Empirical Results and Discussionsupporting

confidence: 86%

Income Inequality and CO2 Emissions in Developing Countries: The Moderating Role of Financial Instability

et al. 2020

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“…Based on the results of the estimation, initially, the service output proxy by the services value-added was found to positively influence the CO 2 emissions and later reduced as there was an increase in the service sector as indicated by the inclusion of the square term of services value-added. This finding is similar to Hashmi et al (2020) and Taghvaee and Parsa (2015). Although our result asserted the existence of an inverted-U shaped between the services value-added and CO 2 emissions, as the service sector grows, the later phase of the services sector will rebound the e CO 2 missions.…”

Section: Discussionsupporting

confidence: 91%

“…In single country studies, Alam (2015) deduced that the services sector intensify the CO 2 emissions in Bangladesh, India, Nepal, and Sri Langka, while Okamoto (2013) and Li et al (2017) argues that tertiarisation will reduce CO 2 emissions. These studies did not explicitly examine the EKC hypothesis unlike Hashmi et al (2020) who corroborated the subsistence of an inverted U-shaped in Pakistan. Withal, CO 2 emissions are global which indicates that there is a possibility that CO 2 emissions country spreads to another country especially within the same region due to the globalisation process and trade openness (Sohag et al 2017).…”

Section: Introductionmentioning

confidence: 97%

The Service Sector and Carbon Emission Nexus: Revisiting Environmental Kuznets Curve

2020

JEM

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This study aims to examine the expansion effects of the service sector on the carbon emission in a dynamic nonlinear model. Using data of 34 Asian countries ranging from 1990 to 2016, this study adopts non-linear model of the Environmental Kuznets Curve and the GMM estimator. The finding provides evidence of an N-shape association between the service sector and carbon emission which indicates that the growth of the service sector fails to reduce the carbon emission perpetually. The elasticity of urbanisation and trade openness are found to be positive which indicates that an increase in urbanisation and trade openness significantly intensifies carbon emission. Meanwhile, an increase in the ageing population tends to mitigate carbon emission in Asian countries. This current study facilitates the understanding of the impact of the services sector on carbon emission as well providing a solid ground in designing a policy that incorporates the environmental standard in line with increased economic growth.

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“…The study of for Indonesia also found that an upsurge in GDP triggers environmental degradation. Similarly, Hashmi et al (2020) contemplated that trade openness positively influences the environment in the short and long run by using the ARDL model for Pakistan over 1971-2014.…”

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

Front. Environ. Sci.

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121

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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.

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Testing Non-Linear Nexus between Service Sector and CO2 Emissions in Pakistan

Cited by 46 publications

References 83 publications

Income Inequality and CO2 Emissions in Developing Countries: The Moderating Role of Financial Instability

Income Inequality and CO2 Emissions in Developing Countries: The Moderating Role of Financial Instability

The Service Sector and Carbon Emission Nexus: Revisiting Environmental Kuznets Curve

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

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