The impact of aggregated and disaggregated fisheries production and licensed fishermen on fishing grounds footprint: A time series analysis.

This study has examined the factors of fishing grounds footprint in Malaysia during 1961-2018, which has been used as the indicator of environmental degradation. The main contribution of this paper is that we have considered the role of aggregated and disaggregated fisheries production on pollution in the fishing industry. Another contribution of this study is that the environmental impact of activities of licensed fishermen has been examined. The results suggest that the total fisheries production and its components- capture fisheries production and aquaculture production generate an increase in fishing grounds footprint in Malaysia. The results suggest that an increase in total licensed fishermen facilitate an increase in fishing grounds footprint. There is mixed evidence on the impact of local fishermen on fishing footprint. The results indicate that an increase in foreign fishermen facilitate an increase in fishing grounds footprint. The results suggest mixed evidence for Environmental Kuznets Curve (EKC) hypothesis.

COVID-19 pandemic, Russia-Ukraine conflict and shale gas development: Evidence from fractional integration.

Although there are papers on the persistence of energy series including the persistence of shale gas, the impact of recent developments such as the Covid-19 pandemic and Russia-Ukraine conflict have been rarely explored in the existing literature. This paper examines the structure of shale gas production in the U.S. by looking at the degree of persistence across different areas, with the aim to determine if shocks in the series are permanent or transitory. Using fractional integration methods (which unlike the conventional methods, allow for the determination of the persistence of energy and non-energy series in a robust manner), and different subsamples that include the Covid-19 pandemic and the Russia-Ukraine war, our results indicate that there is a substantial decrease in the integration order in the total shale gas production in the U.S. as well as in four other plays-Haynesville, Permian, Utica and Eagle Ford. However, no differences are observed with respect to the Russia-Ukraine war. There is another group of four series (Marcellus, Niobrara-Codell, Woodford and Rest of US 'shale') with a very small reduction in the degree of persistence and another group of three series with almost no reduction at all in the order of integration (Barnett, Mississippian and Fayetteville). Several implications in terms of policy are reported at the end of the manuscript.

Sectoral foreign direct investment and environmental degradation: new insights from diversification of energy mix containing fossil fuels and renewable energy.

The objective of the study is to extend the existing literature by investigating the effects of foreign direct investment, gross domestic products and per capita and energy diversification on the nitrogen oxide emissions in Brazil, Russia, India, China and South Africa (BRICS) by using annual data during the period 1992-2019. As per our knowledge, the present study is a first of its kind to examine the impact of a new energy diversification index, based on Herfindahl-Hirschman framework on pollution. This study has adopted a new quantile regression augmented method of moments, which is capable of producing the total impacts of the independent variables across the entire distribution of nitrogen oxides emissions. The findings suggest that an increase in foreign direct investment leads to a decrease in nitrogen oxides emissions at the aggregate level and in both manufacturing and service sectors. We observe that foreign direct investment leads to an increase in nitrogen oxides emissions in the agricultural sector in most of the quantiles. Diversification towards renewable energy causes a decrease in nitrogen oxides emissions in most quantiles at aggregate level, agricultural and manufacturing sectors, whilst diversification leads to an increase in nitrogen oxides emissions in the service sector. The findings also suggest that GDP per capita leads to an increase in NOx emissions in all the quantiles. The study suggests the policy to use and attract more clean energy through foreign direct investment for towards the achievement of sustainable development.

Probing environmental sustainability pathways in G7 economies: the role of energy transition, technological innovation, and demographic mobility.

Global warming remains the most devastating environmental issue embattling the global economies, with significant contributions emanating from CO2 emissions. The continued rise in the level of greenhouse gas (GHG) emissions serves as a compelling force which constitutes the core of discussion at the recent COP26 prompting nations to commit to the net-zero emission target. The current research presents the first empirical investigation on the roles of technological advancement, demographic mobility, and energy transition in G7 pathways to environmental sustainability captured by CO2 emissions per capita (PCCO2) from 2000 to 2019. The study considers the additional impacts of structural change and resource abundance. The empirical backings are subjected to pre-estimation tests consisting of cross-sectional dependence, second-generation stationarity, and panel cointegration tests. The model estimation is based on cross-sectional augmented autoregressive distributed lag, dynamic common correlated effects mean group, and augmented mean group for the main analysis and robustness checks. The findings reveal the existence of EKC based on the direct and indirect effects of the components of economic growth. The indicators of demographic mobility differ in the direction of influence on PCCO2. For instance, while rural population growth negatively influences PCCO2 in the short-run alone, urban population growth increases PCCO2 in the short-run and long-run periods. Nonrenewable energy, information computer technology (ICT) imports, and mobile cellular subscriptions serve as positive predictors of PCCO2, while ICT exports and renewable energy moderate the surge in PCCO2. Policy implications that enhance environmental sustainability are suggested following the empirical verifications.

Convergence of Income Inequality in OECD Countries Since 1870: A Multi-Method Approach with Structural Changes.

This paper aims to examine convergence of income inequality in 21 OECD countries using several empirical techniques. In particular, we have used a new panel stationarity test, which allows for structural changes and cross-sectional dependence to examine the stochastic convergence of income inequality. We also employed a time series approach, residual augmented least squares-Lagrange multiplier unit root test. The empirical results show evidence for absolute, conditional, and sigma convergence. The conditional convergence test results suggest that countries are converging, but conditional on the two structural factors-economic and population growth. The stochastic convergence test results indicate the existence of convergence at the country-specific level. The results further confirm the existence of convergent clubs among OECD countries.

Persistence of shocks on sectoral non-methane volatile organic compound from 1820 to 2019: Insights from a fourier quantile unit root test.

Despite being directly related to anthropogenic consumption and production, researchers have paid less attention to understanding the dynamics of non-methane volatile organic compounds. The primary objective of this research is to investigate the persistence of potential shocks to non-methane volatile organic compounds in 20 developed from 1820 to 2019 performing traditional unit root approaches and a newly developed Fourier quantile unit root test. Great portion of the empirical results obtained by traditional unit root tests reveal that the sectoral non-methane volatile organic compounds follow a non-stationary process, while the Fourier quantile unit root test indicate quite different results. The Fourier quantile test shows that non-methane volatile organic compounds are stationary in the United Kingdom, Ireland, Germany, France and Austria. In the other 15 countries, government interventions to reduce non-methane volatile organic compounds can have lasting effects and success. The inferences and policy outcomes of the empirical results are discussed in the main body of the paper.

Inequality Persistence of 21 OECD Countries from 1870 to 2020: Linear and Non-Linear Fractional Integration Approaches.

This paper investigates inequality persistence in a group of 21 OECD countries using linear and non-linear fractionally integrated methods. Using linear models, the results show that the series are strongly persistent which implies lack of average reversal and permanency of shocks. Mean reversion is only found in the case of Finland and partial evidence of mean reversion is detected for Belgium, Greece, Austria and the Netherlands. The results are similar using non-linear methods. Mean reversion is only found in the case of Finland, Belgium, Greece and Spain. Although, most countries show no evidence of non-linear structures except for four countries, namely, Finland, Spain, the United Kingdom and the United States. The implications of the empirical findings are reported at the end of the manuscript.

The impact of technological innovation on renewable energy production: accounting for the roles of economic and environmental factors using a method of moments quantile regression.

Advancement in renewables is one of the most effective techniques for sustained long-term development, and nations across the globe are making efforts to change their economic and industrial structures in a bid to boost green growth. With the advent of the Fourth Industrial Revolution (4IR), the availability, access, and use of green technologies including renewable energy have significantly improved. Researches on the factors that influence renewable energy production are available. However, we are unaware of any previous research that examines the role of renewable energy innovation in the promotion of renewable energy production. As a result, this study evaluates the impact of technical innovation on green growth from 1993 to 2018, while accounting for real GDP, producer price index, and CO2 emissions. Due to their pivotal status among the developing countries, our study has focused on the BRICS countries. By using a new panel quantile regression augmented with the method of moments, the empirical findings suggest that the influence of renewable energy innovation on renewable energy production is significantly positive across all quantiles. Moreover, the coefficients are generally bigger at the small quantiles, which suggests that countries with smaller renewable energy production per capita (India and South Africa) have a higher probability to experience a greater impact of renewable energy innovation per capita than countries with bigger renewable energy production per capita (Brazil and Russia).

On the persistence of shocks to global CO2 emissions: a historical data perspective (0 to 2014).

Anthropogenic emissions of carbon dioxide (CO2) are the most important greenhouse gas. However, until now, no research has investigated the persistence of global CO2 emissions over a very long period of time. This work aims to fill this gap by examining the persistence of shocks to global CO2 emissions with a dataset of more than 2000 years. To this end, the study applies a battery of unit root tests by considering sharp and smooth structural shifts as well as the frequency domain properties of the series. Lee-Strazicich method results reveal that sharp break dates relate to the influenza pandemic of 1557 and the invention of the steam engine in 1712, and these historical events led to changes in the trend function of CO2 emissions. The findings of the Fourier Lagrange Multiplier and Fourier wavelet unit root tests illustrate that global CO2 emissions contain a unit root and do not exhibit mean-reverting behavior, thus external shocks have permanent effects on CO2 emissions. The results suggest that a reduction in global CO2 emissions is possible if effective environmental and energy policies established in international meetings such as Rio Conference, Kyoto Protocol Paris Agreement, and the United Nations Sustainable Development Summit are properly implemented.

Convergence analysis of ammonia emissions by sector and fuel source in OECD countries from 1750 to 2019 using a new Fourier-centric wavelet approach.

Although ammonia emissions are not as huge as carbon and methane emissions, they pose significant threats to ensuring environmental sustainability and productivity. However, the existing literature has paid less attention to the underlying characteristics of ammonia emissions. The chief target of this study is to investigate the stochastic convergence of ammonia emissions at the aggregate level, by sector, and by fuel source in 37 Organization for Economic Cooperation and Development countries for more than two centuries of data. Using a newly proposed Fourier-augmented wavelet unit root test, the empirical findings reveal that the relative ammonia emissions series in most Organization for Economic Cooperation and Development countries follow the unit root process in the aggregate, sectoral, and fuel-specific analyses. Therefore, these findings refer to the existence of divergence, while stochastic convergence does not exist in most cases. Having a divergent pattern of ammonia emissions has several policy implications for policymakers in the context of environmental sustainability. (i) Relative ammonia emission cannot revert to its steady-state path without policy intervention, (ii) policymakers have a chance of affecting the dynamics of ammonia emissions in Organization for Economic Cooperation and Development countries. (iii) As a policy response, the study recommends the pursuant of national environmental policies with consideration to the unique characteristics of the individual countries as the non-existence of convergence of environmental series could result in a diverse level of consciousness of environmental degradation among countries with divergent patterns on emissions levels.

Wavelet and Fourier augmented convergence analysis of methane emissions in more than two centuries: implications for environmental management in OECD countries.

Addressing the challenges posed by pollutants is necessary to achieve Sustainable Development Goal 13, which involves climate change mitigation and enhancement of environmental quality. The convergence analysis of a pollutant provides information that can be useful to how to handle that pollutant across countries or regions, and previous studies mainly focused on carbon emission. However, the second most significant greenhouse gas, methane emission, was mostly ignored. The primary objective of this research is to investigate whether stochastic convergence of methane emissions is valid in 37 OECD (Organisation for Economic Co-operation and Development) countries using a dataset of more than two centuries. The results obtained by using a set of traditional unit root tests and a newly proposed wavelet unit root test with a Fourier function provide overwhelming evidence for these countries' divergence of methane emissions. The policy implications resulting from the empirical findings for environmental management are discussed in the relevant sections of the paper.

Dynamic causality interplay from COVID-19 pandemic to oil price, stock market, and economic policy uncertainty: evidence from oil-importing and oil-exporting countries.

In this study we examine the time-varying causal effect of the novel COVID-19 pandemic in the major oil-importing and oil-exporting countries on the oil price changes, stock market volatilities and the economic uncertainty using the wavelet coherence and network analysis. During the period of the pandemic, we explore such relationship by resorting to the wavelet coherence and gaussian graphical model (GGM) frameworks. Wavelet analysis enables us to measure the dynamics of the causal effect of the novel covid-19 pandemic in the time-frequency space. Regarding the findings displayed herein, we first found that the COVID-19 pandemic has a severe influence on oil prices, stock market indices, and the economic uncertainty. Second the intensity of the causality effect is stronger in the longer horizon than in the short ones, suggesting that the causality exercise continues. Our findings also provide evidence that the COVID-19 pandemic and oil price changes in oil-importing countries mirror those in oil-exporting countries and vice versa. Further, the COVID-19 pandemic has a profound immediate time-frequency effect on the US, Japanese, South Korean, Indian, and Canadian economic uncertainties. A better understanding of oil and stock market prices in the oil-importing and oil-exporting countries is vital for investors and policymakers, specially since the novel unprecedented COVID-19 crisis has been recognized among the most serious ever happened. Thus, the findings suggest that the authorities should strongly take efficient actions to minimize risk.

Wind energy and sustainable electricity generation: evidence from Germany.

Wind energy is one of the renewable energy sources that has been touted to address the challenges of energy security and environmental degradation. This is only attainable if countries with substantial wind energy potential use it in significant proportion to satisfy their energy needs. One promising sector where wind energy can be employed to actualize this potential is the electricity sector. However, the current reality is that fossil fuels still dominate the energy profiles of most economies of the world, including the advanced economies, with wind renewable energy source accounting for a very small proportion of the energy mix. Germany is one of the few countries that offers promising opportunities in deploying wind energy to its full potentials. This study therefore explores the feasibility of substituting wind energy for nuclear energy and other fossil fuels using Germany as a country of focus. We use the ridge regression procedure to analyse yearly time series data for the German power sector that spans the period 1986 to 2018. With respect to output elasticities of the energy inputs, the results reveal that wind and natural gas have positive output elasticity estimates while the estimates for nuclear and coal are negative. We also found that all the inputs pairs have positive substitution elasticity estimates between them. With respect to wind energy, the highest substitutability estimate occurred with nuclear power which is followed by natural gas and then coal. The study recommended that policies such as granting of tax credit for wind energy technology, reduction in property taxes for wind power facilities, and allocation of fund for research and development (R&D) in wind energy technology are recommended to promote the use of wind energy in the economy.

Investigating the asymmetry effects of crude oil price on renewable energy consumption in the United States.

The reduction in oil prices might make crude oil a cheaper alternative to renewable energy (RE). Given this, the present paper examines the effect of fluctuation of oil prices on the use of RE in the United States (US) during the period 1970 to 2018. We constructed two nonlinear autoregressive distributed lag (NARDL) models to examine the effect of the positive and negative oil price shocks on the use of RE in the US. The RE consumption is taken as the dependent variable and the gross domestic product (GDP), Brent crude prices, population density, trade openness, and price index as independent variables. The result revealed that the rise in crude oil price, GDP, and population density will increase RE use in the short run and in the long run as well. Moreover, the study finds that any decrease in oil prices will decrease RE use in the short run and its effect will eventually diminish in the long run. On the policy front, it is suggested that US should raise its energy security by reducing its dependency on imported crude oil and increase the role of RE through the imposition of taxes on oil and increase the base of production and consumption through a series of measures.

Output and substitution elasticity estimates between renewable and non-renewable energy: implications for economic growth and sustainability in India.

The energy profile of India is dominated by fossil fuels, which create concerns over resource and environmental sustainability as fossil fuels are non-renewable and high carbon emitting. This scenario has necessitated the call for more renewables to replace fossil fuels to address resource and environmental sustainability concerns. This study, therefore, investigates the possibility of switching the fossil fuels of oil, coal, and natural gas for renewable energy in India. Using annual Indian data spanning more than four decades, a transcendental logarithmic production function based on a second-order Taylor Series approximation is estimated with the ridge regression technique. To achieve robustness, two equations with gross domestic product and adjusted net savings as regressands are estimated to proxy economic growth and sustainable development, respectively. The empirical results show substantial substitution possibilities between the fuels for both gross domestic product and adjusted net savings equations. The empirical findings show that India has the capacity to satisfy its energy needs through renewables to pursue not only economic growth but sustainable development. To actualize this potential, the Indian government should promote investment in renewables as this also promotes economic growth and development.

Towards achieving environmental sustainability: environmental quality versus economic growth in a developing economy on ecological footprint via dynamic simulations of ARDL.

Studies have shown that factors like trade, urbanization, and economic growth may increase the ecological footprint (EFP) since ecological distortions are mainly human-induced. Therefore, this study explores the effect of economic growth and urbanization on the EFP, accounting for foreign direct investment and trade in Nigeria, using data from 1977 to 2016. This study used the EFP variable as against the CO2 emissions used in the previous studies since the former is a more comprehensive and extensive measure of environmental quality. We apply the novel dynamic autoregressive distributed lag (ARDL) simulations for model estimation, the Bayer and Hanck J Time Ser Anal 34: 83-95, (2013) combined cointegration, and the ARDL bounds test for cointegration. Although the results affirmed the presence of long-run relationship among the variables, economic growth deteriorates the environment in the short run, while urbanization exacts no harmful impact. In the long run, FDI and trade deteriorate the environment while economic growth adds to environmental quality. It is recommended that policymakers strengthen the existing environmental regulations to curtail harmful trade and provide rural infrastructures to abate urban anomaly.

Stochastic convergence in carbon emissions based on a new Fourier-based wavelet unit root test.

Most of the existing studies on stochastic convergence of emission have not adequately considered smooth structural changes. The primary purpose of this paper is to examine the validity of stochastic convergence at different income levels by recently proposed Fourier-based wavelet augmented Dickey-Fuller test with smooth shifts. Empirical results can be summed up as follows: (i) carbon emission per capita follows the stationarity process in 35 high-income countries, while carbon emission per capita follows the stationarity process in 27 upper-middle-income countries; (ii) besides, carbon emission per capita follows stationarity process in 30 lower-middle-income countries, while carbon emission per capita follows stationarity process in 13 low-income countries; (iii) in light of these findings, it can be said that stochastic convergence among different income groups is valid. The implications of the empirical findings for environmental planning and management are discussed in the body of the paper.

Persistence and sustainability of fishing grounds footprint: Evidence from 89 countries.

This paper focusses on the examination of the fishing ground footprint in a group of 89 countries using fractional integration. The fishing ground footprint is one of the components of the ecological footprint. Nevertheless, it has not been investigated very much from an empirical viewpoint. We contribute to the existing literature on fishing ground footprint by using fractional integration techniques to examine the persistence of the series. Our results are very heterogeneous across countries though we find that most of the series are nonstationary and non-mean reverting, with most of the countries belonging to the upper-middle and high income levels. On the other hand, most of the 14.4% of countries that show a stationary pattern belong to lower-middle and low income countries. One of the implications of the study is that policies aimed at reducing fishing grounds footprint are likely to be effective in most of the investigated countries.

Interfuel substitution, hydroelectricity consumption and CO2 emissions mitigation in Malaysia: evidence from a transcendental logarithm (trans-log) cost function framework.

The main objective of this paper is to estimate the interfuel substitution elasticities between hydropower and the fossil fuels of coal and natural gas used in the generation of electricity for Malaysia. Due to the violation of the assumption behind the ordinary least squares (OLS) method on account of the correlated error terms in the system of equations, the econometrics techniques of seemingly unrelated regression (SUR) was adopted to obtain the parameter estimates using dataset that covers the period 1988 to 2016. The main finding is that there exists substantial substitution possibility between hydropower and fossil fuels in the generation of electricity for Malaysia. CO2 emissions mitigation scenarios were also conducted to explore the possible effects of substituting fossil fuels for hydropower to generate electricity. The results show that switching from high carbon-emitting fuels to renewable energy such as hydropower will substantially reduce CO2 emission and assist the country towards achieving the carbon emissions reduction targets. Policy recommendations are offered in the body of the manuscript.

Energy innovations and environmental sustainability in the U.S.: The roles of immigration and economic expansion using a maximum likelihood method.

Environmental degradation remains a huge obstacle to sustainable development. Research on the factors that promote or degrade the environment has been extensively conducted. However, one important variable that has conspicuously received very limited attention is energy innovations. To address this gap in the literature, this study investigated the effects of energy innovations on environmental quality in the U.S. for the period 1974 to 2016. We have incorporated GDP and immigration as additional regressors. Three indices comprising of CO2 emissions, ecological footprint and carbon footprint were used to proxy environmental degradation. The cointegration tests established long-run relationships between the variables. Using a maximum likelihood approach with a break, the results showed evidence that energy innovations significantly improve environmental quality while GDP degrades the quality of the environment, and immigration has no significant effect on the environment. Policy implications of the results are discussed in the body of the manuscript.