Technical innovation, renewable energy consumption, and CO2 emissions in the USA: a cross-quantile approach.

This study investigates whether technological innovation and the consumption of renewable energy tend to reduce the emissions of CO2 in the USA by analyzing datasets from January 2010 to May 2022. The main contribution to this study is that we applied a cross-quantile approach, which possesses several strengths compared to other methods used for directional predictability. The empirical results of this research can be concluded as three points: (1) both the consumption of renewable energy and technological innovation significantly and negatively impacted the emissions of CO2 in the short run (i.e., 1 month) across high quantiles, which gradually diminished over time (i.e., 3 months, 12 months, and 24 months), implying that technological innovation and the consumption of renewable energy possess a short-lived effect on CO2 emissions, respectively; (2) this relationship remains significant for causal links spanning 1 and 3 months and 1 and 2 years when the consumption of renewable energy and technological innovation are treated as control variables respectively; (3) a recursive cross-quantilogram was constructed to support further our findings, which showed that the consumption of renewable energy and technological innovation tend to negatively impact the emissions of CO2 across all quantiles. These results imply that an increase in the consumption of renewable energy and technological innovation can curb CO2 emissions in the USA; these effects tend to be more lasting when technological innovation and the consumption of renewable energy are combined. Therefore, future policies focused on curbing the emissions of CO2 should pay attention to the combined effect, which is the promotion of technological innovation and the exploitation of renewable energy sources in the USA.

Renewable energy consumption and CO2 emissions nexus in the USA: the role of technical innovation.

Using the QARDL approach and data from January of 2010 to May of 2022, we explore how renewable energy consumption affects CO2 emissions in the USA. Long-term analysis reveals a negative link between these variables, while only lower quantile levels show short-term statistical significance. Integrating technical innovation (measured by patents) in our QARDL model shows substantial reduction in CO2 emissions, with varying effects over time. Interestingly, only renewable energy consumption, not technical innovation, significantly impacts CO2 emissions at lower quantile levels. These findings emphasize the crucial role of renewable energy in reducing both short-term and long-term CO2 emissions and offer policymakers valuable insights for shaping effective energy strategies to combat emissions and promote sustainability in the USA.

Revisiting R&D intensity and CO2 emissions link in the USA using time varying granger causality test: 1870∼2020.

R&D intensity, per capita GDP, and per capita CO2 emissions links in the USA over the period of 1870-2020 reflects the evolution of the economic development and technology for the environment benefit. Using Time varying Granger causality, the empirical results indicate both causal links between R&D intensity and per capita CO2 emissions and between per capita GDP and per capita CO2 emissions are time varying. In addition, R&D intensity significantly affects per capita CO2 emissions since 1975, and the per capita GDP significantly influences per capita CO2 emissions since 1978. That is, these findings not only in supportive of the EKC theory, but further disentangle the subtly linkages for the R&D intensity and CO2 emissions and the per capita GDP and CO2 emissions. Finally, the policy implication is that launch the new technical innovation and increase in R&D investment to maintain its sustainable economic growth are the best government strategy to reduce CO2 emissions in the USA.

Degree of persistence of energy mix diversification of the US states: fresh evidence using LM unit root tests with sharp or smooth breaks and cross-sectional dependence.

Diversification of energy mix is related to the heterogeneity of contributions of energy sources in the energy consumption basket of nations. Its persistent degree reveals the efficiency of energy-related policies or shocks to diversify the contributions of energy sources in the energy mix. For the first time, the current study measures the diversification level of energy mix of the USA and its 51 states and examines its stochastic behavior to analyze its degree of persistence. To this end, we calculated the diversification of energy mix using Herfindahl-Hirschman index over the period 1960-2020. Then, we applied two novel versions of LM unit root tests that can incorporate sharp or smooth breaks and common factors (to control for cross-sectional dependence) to quantify the stochastic behavior of time series of Herfindahl-Hirschman index. Our results indicate (i) the energy mix of most of the US states diversified over the period. (ii) Most parts of diversification of energy mix occurred from mid of the 1970s to first half of the 1990s. (iii) Sharp breaks of deterministic part (intercept and slope of the linear trend) of Herfindahl-Hirschman indexes occurred coinciding with oil prices shocks in two decades 1970 and 1980. (iv) The Herfindahl-Hirschman index of most of states display stationary behavior, which indicate the pro-diversification policies, e.g., which are implemented to develop renewable energy sources, have transitory effects and policymakers should implement long-horizon policies to achieve their targeted level of diversification.

Revisit economic growth and CO2 emission nexus in G7 countries: mixed frequency VAR model.

Applying a mixed frequency vector autoregressive (MF-VAR) approach, we examine relationships between CO2 emissions and economic growth from 1970Q1 to 2019Q4 among G7 countries. We incorporate primary energy consumption as a control variable, to avoid any bias from an omitted variable. Our empirical results, using forecast error variance decomposition and a Granger causality check, suggest that MF-VAR exhibits better explanatory ability over the more commonly used VAR model employing single frequency data. Results from LF-VAR exhibit a feedback loop connecting economic expansion and emissions of CO2 with one-way Granger causality from primary energy consumption to growth of the economies studied. MF-VAR model results also indicate that, in G7 countries, economic expansion exhibits a one-way causal link to CO2 emissions in Canada, UK, and US cases. Interestingly, MF-VAR shows feedback between economic expansion and primary energy use in Germany, while LF-VAR quantifies the link from economic growth to CO2 emissions in Canada and from CO2 to economic growth in the UK. Results raise implications for the G7 samples' policymakers.

Impact of globalization on the environment in major CO2-emitting countries: Evidence using bootstrap ARDL with a Fourier function.

Alongside sustainable development as a major global aim, the contribution made by globalization to environmental issues has become crucial in recent decades. Prior studies have focused on how trade in globalization influences the environment. However, multiple economic, social, and political factors are also important, the integration of which needs to be considered in sustainable development. Sharp and smooth breaks in time series models are the consequence of real-world structures. Using the bootstrap autoregressive-distributed lag test with a Fourier function, the present study reexamined the nexus between globalization and the environment in China, the United States, and India. The empirical results indicate that in the United States, the nexus between globalization and the environment is cointegrated in the long-term. In the short term, globalization is improving the environment in the United States and India. However, in China, globalization is resulting in environmental degradation. This research will assist policymakers in developing comprehensive strategies for sustainable development.

Revisit causal nexus between financial development and environmental quality in China: a structural shift panel data analysis.

Climate change is a challenge for all of humanity. Should financial be environmentally responsible? This paper uses the Toda-Yamamoto test and the extended Fourier Toda-Yamamoto test re-examine the relationship between financial development and environmental quality in 31 provinces and municipalities in China during the period 2000-2018. We find that financial development in certain regions has effectively reduced the concentration of PM2.5, which indicates that it has a significantly positive effect on environmental quality, though with regional differences. After considering structural shifts, the relationship between financial development and environmental improvement is found to be significant in more regions, indicating that China has undergone structural shifts in these aspects. The aforementioned conclusions are also supported by further robustness tests. China can consequently utilize the positive impact of finance for advocating carbon emission reduction and improving environment quality, therefore contributing to the response to global climate change.

The relationship between health expenditure, CO2 emissions, and economic growth in the BRICS countries-based on the Fourier ARDL model.

In this paper, we use (Yilanci et al. 2020) Fourier autoregressive distributed lag (ARDL) model to study the correlation between health expenditures, CO2 emissions, and GDP fluctuations in BRICS countries from 2000 to 2019. The Fourier ARDL model has the function of bootstrap repeated simulation calculations, so that small samples can also achieve the advantages of finer inspection results. In this paper, we find that in the long term, Brazil and China are countries that both have cointegration relationships in health expenditure, CO2 emissions, and economic growth. With CO2 emissions as the dependent variable and health expenditure and economic growth as independent variables, in the short term, there is a negative causal relationship between India's CO2 emissions and health expenditure; other countries only show the relationship between CO2 emissions, health expenditure, or economic growth one-way relationship. This paper also has some policy suggestions on health expenditures and CO2 emissions in the BRICS countries at the end.

Measuring the Impact of Health on Economic Growth Using Pooling Data in Regions of Asia: Evidence From a Quantile-On-Quantile Analysis.

Health improvement has become a significant social priority since a moderately good human capital condition improves the workforce's abilities, efficiency, and quality of life. A rapid increase in healthcare expenditure is a trend in major developing and developed countries; however, healthcare expenditure widely varies among most Asian countries. Asian countries contribute a significant amount of output to economic development worldwide. The statistical test power is more efficient for the pooling of national data than individual national data because of the economic value and trade integration of regional nations. This is the first study that applies the quantile-on-quantile approach to investigate the influence of the quantiles of healthcare on the quantiles of the economy's growth for pooling forty countries in the Asian region. As the quantile of healthcare expenditure increases in the countries, the impact of healthcare expenditure on the economy's growth does not guarantee an increase. The positive and negative effects of healthcare expenditure on developing the economic relationship will repeatedly occur when the quantiles of the economy's growth increase in the countries. One implication is that the governments should account for problems such as corruption, bureaucracy, underinvestment, and inefficiency in health-related resource utilization.

Are Healthcare Expenditures Related to Economic Growth in China? Bootstrap ARDL Approach.

This study attempts to investigate whether healthcare expenditures (HCE) are related to economic growth in China using a newly developed Bootstrap autoregressive distributed lag (ARDL) test for China over the period of 1990-2019. To avoid omitted variable bias, we use the ratio of the population of 65 years old over the total population (aging ratio) as a control variable. Empirical result indicates that no cointegration among these three variables. Granger causality test based on Bootstrap ARDL model demonstrates that one-way Granger causality running from HCE to aging ratio and from economic growth to both HCE and aging ratio. Empirical results have important policy implications for China understudy.

A Dynamic Relationship between Environmental Degradation, Healthcare Expenditure and Economic Growth in Wavelet Analysis: Empirical Evidence from Taiwan.

This paper analyzes the co-movement and causal linkages between environmental pollution and healthcare expenditure, taking economic growth as a control variable by using wavelet analysis for Taiwan over the period 1995 Q1-2016 Q4. The results show that there exists co-movement and causality between environmental pollution and healthcare expenditure at different frequencies and times. The changes in the relationships of the two variables are observed in certain events such as the period of the expansion stage, the policy of environmental pollution, and the issue of the National Health Insurance Integrated Circuit card (NHI-IC) in Taiwan. In the short-term, positive causality runs from healthcare expenditure to environmental pollution before 2004, while negative causality runs from healthcare expenditure to environmental pollution before 2007 in the long-term. After adding economic growth as a control variable, positive causality runs from healthcare expenditure to environmental pollution in the period 2009-2011 in the short-term, while negative causality running from healthcare expenditure to environmental pollution is shown in 2008 in the long-term. The results indicate that "higher government health expenditure leading to higher demand for environment quality" exists in different sub-periods and the argument may concern the factor of economics in the long-term. The positive healthcare lead in the short-term may be based on economics in the expansion stage. Also, the issue of NHI-IC possibly affects the dynamic relationship between healthcare expenditure and environmental pollution without considering economics. Based on empirical analysis, certain policy and managerial implications are addressed for decision-makers at macroeconomic and microeconomic levels.

Non-linear Impact of China's Economic Growth on the Health of Residents-An Empirical Study Based on TVP-FAVAR Model.

This paper uses the 74-dimensional macroeconomic data set from 2005 to 2017 as a sample to construct a TVP-FAVAR model to empirically study the impact of China's economic growth on the health of residents. The study found that China's economic growth has an impact on the health of residents and is transformed into changes in the macroeconomic environment that exhibit non-linear time-varying characteristics. Specifically: (1) During the period of steady economic growth, China's economic growth has caused a significant increase in population mortality rate, infectious disease mortality rate, medical expenses of residents, traffic accident rate, neonatal mortality rate, and tumor mortality rate; (2) During the financial crisis, the positive impact of economic growth on population mortality rate, infectious disease mortality rate, traffic accident rate, and neonatal mortality rate was significantly reduced, while the medical expenses of residents, tumor mortality rate, and cardiovascular morbidity rate and the incidence of mental illness rate has a more obvious inhibitory effect; (3) In the period of sustained economic downturn, the positive impact of economic growth on overall population mortality rate, infectious disease incidence rate, traffic accident rate, and neonatal mortality rate continues to decrease, still negatively affecting the incidence of mental illness rate and cardiovascular morbidity rate. In this paper, we suggested that the Chinese government further promote the transformation of the economic growth model in the new normal economic stage, increase public health fiscal expenditure, and realize an economic development evaluation system that is oriented toward improving the health of residents.