ABSTRACT
This study evaluates the impacts of renewable energy, environmental taxes, environmental technology, and financial development on carbon emissions in OECD economies from 1995 to 2015 by employing system-GMM and quantile regression approaches. Our empirical analysis indicates that environmental tax negatively affects carbon emissions; economic growth impedes environmental quality by increasing carbon emissions. Further, renewable energy consumption, environmental technology, and financial development improve environmental quality by decreasing carbon emissions. We suggest that changes in policymaking to promote sustainable economic growth and environmental quality should be prevent environmental degradation, but also inspire greater investments in new technologies and energy expertise in the renewables industry.
Subject(s)
Carbon Footprint , Conservation of Natural Resources/economics , Economic Development , Environmental Policy , Renewable Energy , Sustainable Growth , Taxes , Technology/economics , Carbon Dioxide , Climate Change , Greenhouse Gases , Inventions/economics , Investments , Models, Econometric , Renewable Energy/economicsABSTRACT
Following the adaptation of the Paris Agreement at COP21, it was noted that the traditional measures of carbon emissions have several limitations; and a reliable and relevant carbon emissions measurement is important to formulate a response to the challenge of climate change. This study, therefore, explores the relationship between international trade and consumption-based carbon emissions, which is a trade adjusted indicator; and measures the outflow and the inflow of emissions through exports and imports separately. We also include technological innovation in the model to understand its impact on consumption-based carbon emissions. The results show that exports and consumption-based carbon emissions are negatively associated, and technological innovation helps reducing the adverse effect of CO2 growth. In contrast, Imports and gross domestic product are positively linked with consumption-based carbon emissions. The findings also suggest the countries which embraced the Paris Climate Agreement must focus on consumption-based carbon emissions rather than the production-based carbon emissions.
Subject(s)
Climate Change , Commerce , Carbon , Carbon Dioxide , InternationalityABSTRACT
The role of a reliable carbon emissions measurement is important for devising a relevant climate policy to deals with environmental problems. Based on trade adjusted statistics of carbon emissions, a relevant climate policy response can be provided, especially following the conference of Paris (COP, 21). To explore the unidentified determinants of CO2 emissions in G7 countries from 1990 to 2017, this study uses second-generation panel co-integration methodologies. Results of P&Y's slope heterogeneity test and Pesaran's CD test confirm the existence of correlation among cross-sectional units and slope heterogeneity across countries. The results confirm a stable long-run relationship among CO2 emissions, trade, income, environmental innovation and renewable energy consumption. In the long run, imports and income enhance consumption-based carbon emissions, while exports, environmental innovation and renewable energy consumption are helpful in abating consumption-based CO2 emissions. The results are also reconfirmed by Augmented Mean Group (AMG) and Common Correlated Effect Mean Group (CCEMG) methods. Based on the results of the Dumitrescu and Hurlin (2012) Granger causality test, it is argued that any policy to target exports, imports, income and environmental innovation significantly changes CO2 emissions. On the contrary, any policy to support environmental degradation does not affect these variables. Moreover, any policy to target renewable energy sources significantly affects consumption-based CO2 emissions and vice versa. This might lead the policymakers to adopt strategies that are eco-friendly such as the deployment of renewable energy and environmental innovation to attain sustainable environment.
ABSTRACT
This study investigates the relationship between technological progression and ambient air pollution in top-10 polluted Middle East and North African (MENA) countries by using monthly data for the period of 1990-2017. The Quantile cointegration proposed by Xiao (2009), Quantile-on-Quantile regression (QQ) proposed by Sim and Zhou (2015), and Quantile Autoregressive Granger causality developed by Troster et al. (2018) are applied. In particular, we examine to which extent, quantiles of technological progression affect the quantiles of ambient air pollution, by developing separate indicators for both the mentioned aspects using Principal Component Analysis (PCA). Our empirical findings unfold mutual dependence between technological progression and ambient air pollution. Furthermore, the results of Quantile Autoregressive Granger causality test conclude a bidirectional causal relationship between technological progression and ambient air pollution.