ABSTRACT
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.
Subject(s)
Agriculture , Renewable Energy , Brazil , China , Fossil FuelsABSTRACT
In this article, we have examined the hypothesis of convergence of renewable energy consumption in 27 OECD countries. However, instead of relying on classical techniques, which are based on the dichotomy between stationarity I(0) and nonstationarity I(1), we consider a more flexible approach based on fractional integration. We employ both parametric and semiparametric techniques. Using parametric methods, evidence of convergence is found in the cases of Mexico, Switzerland and Sweden along with the USA, Portugal, the Czech Republic, South Korea and Spain, and employing semiparametric approaches, we found evidence of convergence in all these eight countries along with Australia, France, Japan, Greece, Italy and Poland. For the remaining 13 countries, even though the orders of integration of the series are smaller than one in all cases except Germany, the confidence intervals are so wide that we cannot reject the hypothesis of unit roots thus not finding support for the hypothesis of convergence.