The Role of Technological Innovation in a Dynamic Model of the Environmental Supply Chain Curve: Evidence from a Panel of 102 Countries

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The severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) spread to more than 200 countries with a current case fatality ratio (CFR) of more than 2% globally. The concentration of air pollutants is considered a critical factor responsible for transmitting coronavirus disease among the masses. The photochemical process and coal combustions create respiratory disorders that lead to coronavirus disease. Based on the crucial fact, the study evaluated the impact of nitrous oxide (N 2 O) emissions, coal combustion, and traffic emissions on COVID-19 cases in a panel of 39 most affected countries of the world. These three air pollution factors are considered to form a lethal smog that negatively affects the patient’s respiratory system, leading to increased susceptibility to coronavirus worldwide. The study used the Markov two-step switching regime regression model for obtaining parameter estimates. In contrast, an innovation accounting matrix is used to assess smog factors’ intensity on possibly increasing coronavirus cases over time. The results show that N 2 O emissions, coal combustion, and traffic emissions increase COVID-19 cases in regime-1. On the other hand, N2O emissions significantly increase coronavirus cases in regime-2. The innovation accounting matrix shows that N2O emissions would likely have a more significant share of increasing coronavirus cases with a variance of 33.902%, followed by coal combustion (i.e., 6.643%) and traffic emissions (i.e., 2.008%) over the time horizon. The study concludes that air quality levels should be maintained through stringent environmental policies, such as carbon pricing, sustainable urban planning, green technology advancement, renewable fuels, and pollution less accessible vehicles. All these measures would likely decrease coronavirus cases worldwide.

Section: Resultsmentioning

confidence: 99%

The impact of coal combustion, nitrous oxide emissions, and traffic emissions on COVID-19 cases: a Markov-switching approach

Anser

Godil

Khan

et al. 2021

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“…After that, the H.A.R. model is described by (Anser et al 2020d), (Anser et al 2020c), (Anser et al 2020e), (Anser et al 2020a), and (Anser et al 2020b) as:…”

Section: Empirical Estimationmentioning

confidence: 99%

COVID-19 fear and volatility index movements: empirical insights from ASEAN stock markets

Sadiq

Hsu

Zhang

et al. 2021

This research aims to look into the effect of COVID-19 on emerging stock markets in seven of the Association of Southeast Asian Nations' (ASEAN-7) member countries from March 21, 2020 to April 31, 2020. This paper uses a ST-HAR-type Bayesian posterior model and it highlights the stock market of this ongoing crisis, such as, COVID-19 outbreak in all countries and related industries. The empirical results shown a clear evidence of a transition during COVID-19 crisis regime, also crisis intensity and timing differences. The most negatively impacted industries were health care and consumer services due to the Covid-19 drug-race and international travel restrictions. More so, study results estimated that only a small number of sectors are affected by COVID-19 fear including health care, consumer services, utilities, and technology, significance at the 1%, 5%, and 10%, that measure current volatility's reliance on weekly and monthly variables. Secondly, it is found that there is almost no chance that the COVID-19 pandemic would positively affect the stock market performance in all the countries, mainly Indonesia and Singapore were the countries most affected. Thirdly, results shown that Thailand's stock market output has dropped by 15%. Results shows that COVID-19 fear causes an eventual reason of public attention towards stock market volatility. The study presented comprehensive way forwards to stabilize movement of ASEAN equity market's volatility index and guided the policy implications to key stakeholders that can better help to mitigate drastic impacts of COVID-19 fear on the performance of equity markets.

“…Third, the square of oil rents was used to verify the hump-shaped relationship with financial development. The previous studies largely confined the nexus with some other macroeconomic factors, including globalization and human capital (Zaidi et al 2019 ), economic growth (Erdoğan et al 2020 ), price volatility and Islamic financing (Gazdar et al 2019 ), technological innovation (Murad et al 2019 ; Anser et al 2020 ; Khan et al 2019 ), sustainable innovation (Awan 2020b ), institutional quality (Khan et al 2019 ), and renewable energy (Ozcan and Ozturk 2019 ; Ji and Zhang 2019 ). Thus, this study included the COVID-19 pandemic in the given nexus that will fill the literature gap.…”

Section: Introductionmentioning

confidence: 99%

Financial development, oil resources, and environmental degradation in pandemic recession: to go down in flames

Anser

Khan

Zaman

et al. 2021

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The novel coronavirus disease-2019 (COVID-19) is a deadly disease that increases global healthcare sufferings. Further, it affects the financial and natural resource market simultaneously, as both are considered complementary goods. The volatility in the oil prices deteriorates the global financial market to substantiate the “financial resource (oil) curse” hypothesis primarily filled with earlier studies. In contrast, this study moved forward and extended the given relationship during the COVID-19 pandemic in a panel of 81 different countries. The study’s main objective is to examine the volatility in the domestic credit provided to the private sector due to oil shocks and the COVID-19 pandemic across countries. The study is essential to assess the healthcare vulnerability in the COVID-19 pandemic, leading to the damage of financial stability, causing deterioration in the oil rents to affect the global sustainability agenda. The study employed statistical techniques to get sound inferences of the parameter estimates, including robust least squares regression, seemingly unrelated regression, and innovation accounting matrix to get a variable estimate at the level and inter-temporal framework. The results confirmed the U-shaped relationship between oil rents and financial development during the COVID-19 pandemic. Thus, it verifies the “financial resource (oil) curse” hypothesis at the initial stage of the COVID-19 pandemic. Later down, it supports the capital market when economies are resuming their economic activities and maintaining the SOPs to restrain coronavirus at a global scale. The qualitative assessment confirmed the negative effect of financial development and oil shocks on environmental quality during the pandemic crisis. The innovation accounting matrix shows that the COVID-19 pandemic will primarily be the main factor that intervenes in the relationship between oil rents and financial development, which proceed towards the “resource curse” hypothesis during the following years’ time period. Therefore, the need for long-term economic policies is highly desirable to support the financial and resource market under the suggested guidelines of restraining coronavirus worldwide.