Does US monetary policy uncertainty affect returns of Asian Developed, emerging, and frontier equity markets? Empirical evidence by using the quantile-on-quantile approach.

This paper examines the impact of the Monetary Policy Uncertainty (MPU) of the United States on Asian developed, emerging, and frontier stock markets using a Quantile-on-Quantile (QQR) approach by using monthly data from January 2006 to December 2022 of 14 Asian countries. The study finds that US monetary policy significantly negatively influences Asian stock markets. This is primarily due to the widespread use of the US dollar as a universal currency, resulting in substantial ripple effects on other nations through trade relationships. In Asian developed markets, MPU is negatively related to Australia and New Zealand. At the same time, it has a positive relationship with Hong Kong and Japan at the upper quantiles. Among Asian emerging markets, MPU negatively impacts Taiwan's, India's, and China's returns, increasing this negative relationship at higher MPU quantiles. Additionally, MPU has a significant negative relationship with Thailand, Indonesia, Korea, and Malaysia returns. In contrast, higher quantiles of MPU have no discernible impact on the Philippines stock returns. In Asian frontier markets, MPU negatively impacts Pakistan's and Sri Lanka's returns. The implications of these findings are twofold: for investors, this study provides valuable insights for hedging activities, allowing for more informed decisions based on the MPU of other countries to identify profitable stocks. For policymakers, this research aids in formulating effective monetary policy strategies. Furthermore, future studies can build upon these results by exploring other markets and comparing their outcomes with the findings presented in this study.

Comparative investment analysis between crypto and conventional financial assets amid heightened geopolitical risk.

This empirical research study aims to investigate the asymmetric spillovers among crypto and key financial assets such as gold, equity, bonds, and the dollar-to-ruble exchange rate volatility, focusing on new developments during the Russia-Ukraine conflict in 2022. Utilizing time- and frequency-domain methodologies, this study conducts an in-depth analysis employing daily frequency data from January 01, 2018, to May 30, 2023. The study employs value at risk and conditional value at risk estimations to assess potential losses in the portfolio during the crisis. The findings reveal that Bitcoin exhibits hedging ability, enabling investors to diversify risk among the underlying financial assets. The study observes a significant increase in Bitcoin investments during the crisis, leading to heightened volatility and uncertainty. Negative news has a stronger impact compared to positive news, underscoring the importance of prudent asset allocation for risk mitigation. The implications of our findings are particularly significant for financial policymakers and trade partners of Russia. The study urges them to differentiate their short- and long-term strategies and procurement contracts. In the long run, policymakers should be cognizant of the influence of the riskiness of crypto assets during economic crises, guiding the formulation of prudent policies and investment decision-making initiatives.

The responsiveness of renewable energy production to geopolitical risks, oil market instability and economic policy uncertainty: Evidence from United States.

This paper aims to investigate the responsiveness of renewable energy production (REP) to fluctuations in geopolitical risks, oil prices and economic policy uncertainty (EPU). It applies a cross-quantilogram framework to examine monthly data of the US economy for the period of 1986-2022. The findings illustrate the asymmetric effect of historical geopolitical risk (GPRH) on REP under long memory. The findings also hold after different subcategories of GPRH, including geopolitical threats and geopolitical acts, are considered. A positive shock in GPRH has the most decisive positive impact on REP when the policies are driven by both energy security and environmental commitments. A positive shock in GPRH can negatively impact REP when policies are driven by energy security causes only. EPU exerts strong negative effects on REP in bearish and bullish states of the market under medium and long memory across different measures of EPU. Dynamic connectedness analysis applying TVP-VAR method between pairwise variables indicates that net REP is a volatility receiver to the changes in GPRH, its subcomponents, oil prices and different measures of EPU.

Changes in environmental degradation parameters in Bangladesh: The role of net savings, natural resource depletion, technological innovation, and democracy.

Most researchers consider CO2 emissions to be the primary indicator of environmental degradation. Similarly, ecological footprint appears to be a significant proxy for environmental degradation in recent research due to its multifaceted impact on the natural environment. With this in mind, this study investigates fluctuations in CO2 emissions and ecological footprint as indicators of environmental degradation in Bangladesh from 1980 to 2020, and how they are influenced by net savings, natural resource depletion, technological innovation, and democracy. The non-linear ARDL (NARDL)-based asymmetric analysis finds that positive changes in net savings, natural resource depletion, and democracy positively impact both parameters of environmental degradation in the long run. On the other hand, a positive change in technological innovation reduces these parameters in the long run. Likewise, negative changes in net savings and technological innovation reduce environmental degradation. In contrast, negative changes in natural resource depletion and democracy exacerbate these two parameters and degrade environmental quality in the long run. However, there are some variations in the short-run influence of the predictors on the predicted variable. Overall, the findings of this study suggest that policymakers must strategically exploit natural resources, net savings, technology diffusion, and democratic principles to preserve the natural environment in Bangladesh.

Foreign direct investment, stock market capitalization, and sustainable development: relative impacts of domestic and foreign capital.

It is well acknowledged that achieving sustainable development goals without negatively impacting a country's economic activity is complicated. The question of whether foreign or domestic capital can be used to address the financial demands of the nations who lack the financial resources for a green transformation should now be resolved. Based on this, the main goal of this research is to analyze the impacts of domestic and foreign capital on carbon emissions for a heterogeneous panel of 42 countries for the period from 1990 to 2017. Aside from capital accumulation, the environmental impact of elements such as economic growth, urbanization, trade openness, and energy usage is also studied. The newly developed quantile via moment approach is utilized to isolate the impacts according to the countries' emission levels. Finally, the impact of these variables on the recently constructed sustainable development index is investigated in order to ensure its robustness. The findings of the study reveal that the environmental efficiency of domestic capital accumulation in countries with low emission levels is higher than in countries with high emission levels. Foreign capital, on the other hand, has no substantial effect on emission levels in all quantiles.

Response of Pakistan's economic growth to macroeconomic variables: an asymmetric analysis.

This study examines the impact of several important macroeconomic variables such as quality of education, infrastructure development, foreign direct investment inflow, and green energy transitions on economic growth. We analyzed annual time series data sample for estimation of the above macroeconomic indicators during 1990 to 2020. We use nonlinear auto-regressive distributive lag model (NARDL) approach to detect the short-term and long-term effects of undermentioned macroeconomic variables on economic growth of Pakistan. The results primarily reveal that the quality education, foreign direct investment inflow, and infrastructure development are playing a significant positive role in the economic growth of Pakistan. Similarly, in short term the foreign direct investment inflow, infrastructure, and green energy transition coefficients are significantly positive related to sustainable development goals. However, the education found as unsubstantial as contributive as other variables. Moreover, the Granger causality and structural break estimations are employed to estimate the causal association between the selected parameters and unexpected change over the economy. The estimated outcomes find the unidirectional causality from education and green energy transition towards economic growth, where education is found within relation to infrastructure. Additionally, bidirectional causal relationship is found between FDI and infrastructure towards economic growth which shows that the increase in foreign investment has the potential to boost the economic growth. Finally, all the estimated indexes are considered as important sources towards the economic growth.

Customer engagement in innovative smart grid deployment projects: evidence from Russia.

In recent years, Russian power grid companies have significantly intensified their planning and implementing innovative projects to introduce various elements of smart grid technology. The global experience shows that the best potential outcome from smart grid technologies largely relies on the customers' readiness and adoption. To this end, we assess the Russian consumers' awareness and readiness regarding smart grid technologies by conducting a comprehensive survey. Our empirical study showed that, in general, Russian consumers are unaware of the various aspects of smart grid technologies. On the contrary, a significant share of respondents believes that smart grid technologies can reduce their energy consumption burden through gaining efficiency. The low level of awareness would be detrimental to accrue smart grid innovative projects' potential socio-economic and environmental benefits. We propose several recommendations for policymakers and managers of grid companies for the elimination of the identified risks.

Revising environmental Kuznets curve in Russian regions: role of environmental policy stringency.

This paper measures the effects on carbon emissions of production scale, composition, technological use, and environmental policy to elucidate the environmental Kuznets curve (EKC) hypothesis, synthesising the propositions of Grossman and Krueger, Q J Econ, 110(2), 353-377 (1995) and Brock and Taylor (2005) for the case of seventy-seven regions of the Russian Federation from 1999 to 2015. To this end, we apply dynamic threshold regression due to its robustness in addressing non-linear asymmetry and unobserved individual heterogeneity issues. Our empirical investigation demonstrates that the gross regional products (GRP) per capita play a threshold role in supporting the EKC hypothesis and non-monotonic scale effect. Modern technologies used in production appear to be the driving factor in explaining the declining portion of EKC and corroborating the technology effect proposition. Our finding also affirms the effect of composition, as the impacts of energy and technology vary with regional economic growth orientations (e.g. among manufacturing, agricultural, mining, and trade zones). Environmental policy stringency is found to be effective in curbing regional carbon emissions. We provide several policy implications based on the results.

Innovation, militarization, and renewable energy and green growth in OECD countries.

Within a framework that includes economic activity, real interest rate, grants, and subsidies, we aim to explore the role of renewable energy, technological innovation, and particularly the environmentally damaging militarization in driving green growth, which fosters sustainable economic growth by ensuring the values of natural assets, considering OECD countries. Our examination affirms a positive proposition between the development of renewable energy, technological innovation, and green growth in the long run by implementing the cross-sectional dependency panel autoregressive-distributed lags (CS-ARDL) framework in a dynamic heterogeneous panel setting. The findings also suggest that militarization is antagonistic to green growth. Our decomposed analysis is compatible with our premier analysis, indicating a conducive impact of both biomass and non-biomass types of renewable energy on green growth. We also document a negative association between the real interest rate (RIR) and green growth, while income muddles the results. The robustness tests confirm the sensitivity of our main findings to the magnitude of the subsidies and grants provided to renewable energy. The paper concludes with several policy recommendations.

The financial development-environmental degradation nexus in the United Arab Emirates: the importance of growth, globalization and structural breaks.

This article revisits the nexus between financial development and environmental degradation by incorporating economic growth, electricity consumption and economic globalization in the CO2 emissions function for the period 1975QI-2014QIV in the United Arab Emirates. We apply structural break and cointegration tests to examine unit root and cointegration between the variables. Further, the article also uses the Toda-Yamamoto causality test to investigate the causal relationship between the variables and tests the linkages of the robustness of causality by following the innovative accounting approach. Our empirical analysis shows cointegration between the series. Financial development increases CO2 emissions. Economic growth is positively linked with environmental degradation. Electricity consumption improves environmental quality. Economic globalization affects CO2 emissions negatively. The relationship between financial development and CO2 emissions is U-shaped and inverted N-shaped. Further, financial development leads to environmental degradation, and environmental degradation in turn leads to financial development in the Granger sense.

Re-visiting environmental Kuznets curve: role of scale, composite, and technology factors in OECD countries.

This study assesses environmental Kuznets curve (EKC) hypothesis corroborating the role of scale, composite, and technology effects in OECD countries. To this end, we analyze the panel time series data from 1980 to 2017 using cross-sectional-autoregressive distributed lags (CS-ARDL). We document that economic growth and carbon emissions follow a U-shaped relationship, contrary to the EKC hypothesis, which our analysis attributes to the substantial contributions of the industrial, manufacturing, and service sectors to GDP. Technological progress has a somewhat marginal impact in reducing carbon emissions through energy efficiency but is unable to validate the existence of EKC hypothesis.

Renewable and non-renewable energy use and its relationship with economic growth in Myanmar.

This study aims to investigate the dynamic relationship between renewable and non-renewable energies, CO2 intensity and economic growth for the period of 1990-2016 using a case study of Myanmar. Autoregressive distributed lag, dynamic OLS, fully modified OLS and Gregory-Hansen co-integration are applied to analyse a time series dataset over the specified time period. The analysis shows that total energy use plays an insignificant role in promoting economic growth. However, decomposition analysis reveals that only renewable energy use significantly promotes, whereas non-renewable energy negatively influences, economic growth. Furthermore, non-renewable energy use is counterproductive in the presence of technological inefficiency, and the size of the overall labour force fosters economic growth. Overall results are robust under different estimation scenarios, including structural break, endogeneity and mixed order of integration. This study presents a new avenue of knowledge by investigating the role of decomposed energy use and technological efficiency in promoting economic growth in the context of Myanmar. Results emphasise the production and use of renewable energy to achieve sustainable economic development in Myanmar.

Sectoral output, energy use, and CO2 emission in middle-income countries.

Middle-income countries are currently undergoing massive structural changes towards more industrialized economies. In this paper, we carefully examine the impact of these transformations on the environmental quality of middle-income countries. Specifically, we examine the role of sector value addition to GDP on CO2 emission nexus for middle-income economies controlling for the effects of population growth, energy use, and trade openness. Using recently developed panel methods that consider cross-sectional dependence and allow for heterogeneous slope coefficients, we show that energy use and growth of industrial and service sectors positively explain CO2 emissions in middle-income economies. We also find that population growth is insignificantly associated with CO2 emission. Hence, our paper provides a solid ground for developing a sustainable and pro-growth policy for middle-income countries.