Exploring the nexus between green innovations and green growth in G-7 economies: evidence from wavelet quantile correlation and continuous wavelet transform causality methods.

There are numerous studies on the nexus between technology and economic growth. However, the recent paradigm shift toward achieving green economic growth calls for divulging the important drivers of green growth to derive the salient policies for triggering the green growth process. In this context, the recent study claims green technologies (GT) as the crucial determinant of green economic growth (GG) and extends the prior literature by examining the dynamic effects of GT on GG for G-7 nations. To do so, the recent study relies on the two novel econometric methods of wavelet quantile correlation (WQC) and continuous wavelet transform causality (CWC) for robust findings. The WQC's results determine that the rise in the GT significantly triggers the GG of G7 economies. More specifically, with the exception of a few quantiles that show no significant effects of GT, Canada, Germany, Italy, and the United Kingdom enjoy significant benefits from GT across all quantiles. The remaining G-7 countries also benefit from GT, but a few quantiles show that GT has negative effects. Interestingly, the application of the CWC test supports the QWC's outcome, such that the CWC test confirms the causal nexus that runs from GT to GG for each economy. Based on the results, the study derives some salient policies for local and global authorities.

Will ASEAN countries be a potential choice for the export of pollution intensive goods?

China, being the world's largest exporter, has now certain environmental commitments such as to achieve carbon neutrality before 2060. These commitments of China has raised a reasonable concern regarding the expected reduction in the production and export of pollution intensive goods in the future. Besides China, the most efficient countries in the region to produce these goods are most of the member countries from ASEAN. The current study therefore aims to analyze if in the future, China reduces the production and export of these goods, whether the selected ASEAN countries can be the next choice for the export of pollution intensive goods. Based on the data availability for the period 1990-2019, this study considers five selected ASEAN countries (ASEAN-5). The results are based on the Auto Regressive Distributive Lag (ARDL) bound testing approach to cointegration and Error Correction Modeling (ECM). The aggregate analysis of five pollution intensive goods (pulp and paper (341), industrial chemicals (351), non-metallic minerals products (369), iron and steel (371) and non-ferrous metals (372)) suggests that Foreign direct investment (FDI) inflow can significantly increase the export of pollution intensive goods only in case of Indonesia, Malaysia and Thailand. However, there is no significant effect of FDI on the export of pollution intensive goods in case of Philippines and Singapore. The disaggregate analyses of the five pollution intensive goods suggest that in each of the ASEAN-5 countries, FDI inflow can significantly increase the export of pollution intensive goods in some of these industries rather than in all of them. In nutshell, it is concluded that ASEAN-5 countries can be a potential choice for the export of pollution intensive goods in some of the pollution intensive industries but not in all of them.

Environmental R&D and trade-adjusted carbon emissions: evaluating the role of international trade.

In the contemporary era, it is evident that consumption-based carbon emissions (CCO2e), adjusted for international trade, are a more accurate and robust measure of environmental pollution than production-based emissions. Therefore, many studies have focused on exploring the determinants of CCO2e; however, the literature could not yet discern environment-related R&D budget (ERRD) and political risk index (PRI) as a new driver. To fill this gap, the current paper aims to divulge the dynamic effects of ERRD and PRI on CCO2e while taking imports, exports, and GDP as control regressors. To do so, the G7 nations' data from 1990 to 2020 is utilized, and several advanced econometric tests and techniques are deployed to tackle the advanced issues (i.e., cross-section dependence, heterogeneity, and endogeneity) in econometrics. The CS-ARDL estimates suggest that PRI and ERRD significantly lessen the environmental quality by disrupting the detrimental effects of CCO2e. Likewise, the rise in exports possesses a negative association with the ratio of CCO2e. However, CCO2e significantly tends to surge on account of an increase in GDP and imports. GDP squared exhibits the negative link with CCO2e, confirming the EKC hypothesis in G7 nations. Besides, the AMG technique and causality test validate the robustness of our findings. In addition, the policies related to CCO2e by authorities will take approximately more than a year to absorb their effects.

Exploring the dynamic effects of shocks in monetary and fiscal policies on the environment of developing economies: evidence from the CS-ARDL approach.

The literature review of ample body indicates that the majority of the studies rely on a single proxy, while exploring the determinants of environmental quality, that can produce misleading results. To subdue this exigency, the current study extends the literature by deploying three proxies (carbon dioxide, methane, and nitrous oxide emissions) for assessing the environmental quality. In this context, the current study links macroeconomic policies, economic growth, fossil fuel consumption, and renewable energy consumption with the environmental quality for selected developing countries from 1990 to 2017. The Westerlund cointegration test confirms the long-run association among the variables. The advanced econometric technique reveals the following findings. First, the expansionary monetary and fiscal policies degrade the environmental quality by escalating the ratio of carbon dioxide, methane and nitrous oxide. However, the contractionary fiscal and monetary policies serve as an effective measure to mitigate the detrimental effects of greenhouse gases. Third, gross domestic product and fossil fuels exhibit a positive association with pollution. Fourth, renewable energy enhances the atmospheric quality by disrupting carbon dioxide, methane, and nitrous oxide emissions. The Granger causality test is also employed to confirm the causal relationship between the variables. Based on the results, we claim that macroeconomic policies are highly sensitive to environmental quality; therefore, some important policies are suggested to attain sustainable and green development.

Pathways towards environmental sustainability: exploring the influence of aggregate domestic consumption spending on carbon dioxide emissions in Pakistan.

The traditional literature has explored various factors including, but not limited to, trade openness, financial development, energy consumption, foreign direct investment, globalization, and per capita income that significantly contribute to carbon emissions. However, the current study identifies aggregate domestic consumption spending as a novel driver of carbon dioxide, employing the data for the period of 1973-2018 in Pakistan. To this end, we develop the theoretical framework to illustrate the link between aggregate domestic consumption spending and carbon dioxide emissions and deploy autoregressive distributed lag (ARDL), asymmetric ARDL, and the threshold non-linear ARDL (NARDL) techniques. The results of the ARDL method suggest that only in the short run, aggregate domestic consumption spending significantly affects carbon dioxide emissions. Furthermore, the findings of the NARDL approach reveal that the positive and negative shocks significantly deteriorate and ameliorate the environmental quality by increasing and decreasing the pollution, respectively, in the short and long run. Even though the outcome of the threshold NARDL technique supports the results of the aforementioned approaches, the novelty of the current study is to find out the threshold in aggregate domestic consumption spending, which carries a significant role in determining the carbon emissions in both periods. Besides, we infer that fossil fuels energy and trade openness also degrade the Pakistani climate by boosting atmospheric pollution. Additionally, the application of the asymmetric Granger causality test validates the results by asserting the casual relationship between aggregate domestic consumption spending and carbon dioxide emissions. Based on the results, we suggest the authorities to start to promote the deployment of green products publicly to obtain green and sustainable development.

Decomposing the asymmetric effects of terrorism and FDI on carbon emission: evidence from fragile economies.

Terrorism is a universal phenomenon that creates economic, political, social, and environmental problems. The literature infers that little consideration is delivered to the nexus of terrorism and pollution emissions. To the best of the authors' knowledge, this study is a pioneer that investigates the linear/symmetric and non-linear/asymmetric impacts of foreign direct investment and terrorism on the CO2 emissions for ten fragile economies. For the empirical task, the study collected data for time 1973 to 2019 and employed ARDL and NARDL approaches. The findings demonstrate an asymmetric association between foreign direct investment (FDI), terrorism, and CO2 emissions. The findings infer that positive changes in FDI and terrorism have a significant positive impact on CO2 emissions. However, the negative changes in FDI and terrorism significantly impact CO2 emissions in most economies. Furthermore, the NARDL approach delivers more explanatory and powerful estimates for selected countries in contrast to the ARDL approach. On the basis of these findings, the study delivers some appropriate policies to combat terrorism.

The asymmetric associations between foreign direct investment inflows, terrorism, CO2 emissions, and economic growth: a tale of two shocks.

Foreign direct investments can exert ambiguous effects on the environmental quality of the host economies. At the same time, terrorism is a worldwide phenomenon that affects human life, FDI inflows, economic growth, and, most importantly, environmental well-being. Hence, it can be expected that there are relationships between terrorism, foreign direct investment inflows, and carbon dioxide emissions. However, in the previous literature, less attention has been given to explore these nexuses. In addition, the possible non-linearities in data are also mostly ignored in the preceding related studies. Against this backdrop, this paper explores the linear and non-linear influences of terrorism and foreign direct investment inflows on carbon dioxide emissions, controlling for energy consumption and economic growth within the model, on carbon dioxide emissions in the context of ten global economies that are most impacted by terrorism. To this end, we used the data from 1973 to 2016 and deployed the linear and non-linear autoregressive distributed lag methods to scrutinize the environmental impacts of the explanatory variables of concern. The results confirmed the presence of non-linearities in the relationships between terrorism, inflows of foreign direct investments, and carbon dioxide emissions. Furthermore, the findings revealed that the positive shocks to terrorism and foreign direct investment inflows significantly deteriorate the environment with a dominating effect. Unlike the previous studies, this current study validates the pollution haven hypothesis for the sample economies. Energy consumption and economic growth  were also evidenced to exacerbate the carbon dioxide emission levels in all selected countries. Based on these results, we recommend that our sample economies should focus on promoting education, employment, economic stability, and public awareness to eradicate terrorism which, in turn, can mitigate the emissions of carbon dioxide further. In addition, stringent environmental regulations on foreign direct investment inflows are required to reduce the adverse environmental effects of such sources of foreign finance. Furthermore, the international firms should be encouraged to invest in cleaner technologies by offering them tax benefits and other financial incentives.

How do climatic change, cereal crops and livestock production interact with carbon emissions? Updated evidence from China.

Carbon dioxide emission and climatic variation have a detrimental influence on the atmosphere as well as on agriculture production. The key aim of the present study was to investigate the influence of carbon dioxide emission on livestock, cereal crops production, rainfall and temperature in China by utilizing the vector autoregressive model and Granger causality test for the period 1988-2017. Variables stationarity was verified by using ADF, P-P and KPSS unit root tests. The outcomes through long-run dynamics exposed that agriculture value added and rainfall have a positive influence on carbon dioxide emission, while cereal crops production, livestock production and temperature have an adverse interaction with carbon dioxide emission. Similarly, the results of the short-run analysis also demonstrate that agriculture value added, cereal crops production, livestock production, rainfall and temperature have a significant influence on carbon dioxide emission with their p-values (0.0488), (0.0885), (0.0263), (0.0096) and (0.5141) respectively. Furthermore, the Granger causality test outcomes also exposed a unidirectional linkage amid the variables. In order to improve agricultural productivity, the Chinese government should take potential steps to minimize the carbon dioxide emission from various industries that trigger climate change.

Asymmetric investigation to track the effect of urbanization, energy utilization, fossil fuel energy and CO2 emission on economic efficiency in China: another outlook.

The accelerated urbanization in China was already coupled with a steadily increasing demand for energy usage. The present study major aim was to determine the asymmetric influence of urbanization, energy utilization, fossil fuel energy and CO2 emission on economic progress in China by using an annual time series data varies from 1975 to 2017. Stationarity amid variables was verified by applying the unit root tests, while non-linear autoregressive distributed lag (NARDL) bounds testing model was used to examine the asymmetric impacts on variables with short- and long-run dynamics. Outcomes revealed that via short-run estimates, the negative shocks of energy usage cause significantly to increase the economic efficiency, but positive shocks of energy utilization display the adverse linkage with the economic progress. Similarly, the negative shocks of GDP per capita growth demonstrate a substantial upsurge in the economic progress, and the positive shocks establish the adverse influence towards economic growth. Further, the outcomes of short-run dynamics also exposed the negative shocks of urbanization significantly affected the economic growth, but positive shocks exposed the adversative influence on economic growth. The outcomes display that fossil fuel energy consumption showed a constructive impact to economic progress, and additionally, the variable CO2 emission also uncovered a positive shocks having significant impact on economic progress. Furthermore, the outcomes of long-run analysis express that energy utilization has negative and positive shocks that expose the adverse influence on economic progress of China. GDP per capita growth exposed the constructive influence on the economic growth in both shocks. The negative and positive shocks of urbanization demonstrate a noteworthy influence on economic growth. The variable fossil fuel energy consumption also exposed an optimistic influence on economic progress, and finally the influence of CO2 emission on economic growth is insignificant as the results exposed. The reducing carbon alteration target aims to be reached for China, and in the next several decades, it will encourage the green energy options in order to decrease carbon dioxide emission to avoid environmental pollution by raising its energy intensity.

Effect of foreign direct investment on CO2 emission with the role of globalization, institutional quality with pooled mean group panel ARDL.

This study utilized the Pooled Mean Group estimator to investigate the effect of renewable energy consumption, electricity consumption, economic growth, institutional quality, and globalization on carbon dioxide emission with an updated dataset for 10 economies for the time period from 1985 to 2018. Results of Harris-Tzavalis's test and Levin-Lin-Chu's test show that the utilized regressand and regressors are stationary at I(0) and I(I) that conform that the pooled mean group estimator panel ARDL can be utilized. Results of Kao and Pedroni cointegration tests show that cointegration exists amongst the variables. Empirical results of pooled mean group (PMG) revealed that renewable energy consumption helps to diminish the environmental degradation while foreign direct investment, electricity consumption, and economic growth and institutional quality positively affect the degradation of the environment. The findings show that globalization in the long run adversely and significantly influences the environmental degradation; globalization reduces the environmental degradation in the long run while in the short run, globalization positively and significantly influences the environmental degradation. Results of the panel VAR and VECM model indicate electricity consumption and institutional quality, and globalization positively affects environmental degradation. Further policies are recommended based on the findings.

Asymmetric effects of militarization on economic growth and environmental degradation: fresh evidence from Pakistan and India.

To examine the asymmetric effects of militarization on economic growth and environmental degradation, this empirical research analyzes annual data of Pakistan and India over the period 1985-2018 using the NARDL econometric model. The empirical results show significant positive militarization effects on economic growth, while non-militarization also shows positive effects on the economic growth in Pakistan and India. Estimation showed that a 1% increase in militarization (non-militarization) led to 8.818% (3.849%) increase in GDP growth, whereas a 1% increase in militarization (non-militarization) decreased carbon emissions by - 1.034% (- 0.225%) in the long run in Pakistan, while militarization has also decreased the carbon emissions - 0.337% in India in the long run. The relationship between militarization and economic growth has an asymmetry in Pakistan and India in the short and long run, while asymmetry also exists between militarization and CO2 in Pakistan and India in the short and long run. Our findings offer significant policy implications for promoting economic growth and environmental quality in Pakistan and India.

Examining the asymmetric effects of fiscal policy instruments on environmental quality in Asian economies.

Empirical studies pertaining to the effects of fiscal policy instruments on environmental quality have provided mixed evidence. We consider the asymmetric effects of fiscal policy instruments on environmental quality for the top ten Asian carbon emitters over the period 1981-2018. We go beyond the literature and claim that the effects could be asymmetric. More specifically, we found that a positive shock in government expenditure will worsen environmental quality in Malaysia, UAE, Thailand, Indonesia, Turkey, Iran, India, and China, and improve it in Japan. On the other hand, we found that cutting government expenditure will improve environmental quality in these economies and will worsen only in Japan. Moreover, a higher government income tax revenue uniquely increases the government's spending that increases the carbon emissions in Malaysia, UAE, Thailand, Indonesia, Turkey, Iran, India, and China, and decrease in Japan. The negative shock of government revenue has adverse results on carbon emissions in these economies. However, short-run asymmetric effects translate to long-run effects in most Asian economies.

Asymmetric effects of inflation instability and GDP growth volatility on environmental quality in Pakistan.

This study inspects the empirical association between inflation instability, GDP growth volatility, and the environmental quality in Pakistan, covering the period 1975-2018 by using an asymmetric autoregressive distributed lag (ARDL) methodological approach. The asymmetric ARDL results document that positive and negative shocks of inflation instability have different effects on environmental quality. Negative shocks of inflation instability have a positive influence on carbon dioxide emissions (CO2) and nitrous oxide emissions (N2O), while positive shocks of inflation instability have insignificant effects in the long run. Asymmetric findings also suggest that positive and negative fluctuations in GDP growth volatility affect CO2 and N2O emissions differently, while they have insignificant results on methane emissions (CH4) in the long run. Additionally, in the short run, positive and negative shocks of inflation instability and GDP growth volatility behave differently in terms of their impact on pollution emissions. Based on these findings, the study opens up innovative intuitions for policymakers to support a robust role of economic stability in attaining targets relevant to pollution reduction.

The asymmetric effects of oil price changes on environmental pollution: evidence from the top ten carbon emitters.

The basic purpose of this study is to scrutinize the asymmetric effect of oil price changes on environmental pollution in Canada, China, India, Iran, Germany, Japan, Russia, South Korea, Saudi Arabia, and the USA. The study uses time series annual data of selected courtiers from 1981 to 2018 and applies non-linear ARDL (NARDL) model to examine the long- and short-run asymmetries. The results show that positive shocks in diesel prices in the USA, India, Japan, Germany, South Korea, Iran, and Canada, while negative shocks in China and India reduce carbon emissions in the long run. However, an increase in gasoline prices in Russia and Iran while the decrease in gasoline prices in the USA, Russia, Japan, and Canada decreases in carbon emissions in the long run. Asymmetric findings also suggest that positive and negative changes in oil prices affect carbon emissions differently in China, the USA, India, Russia, Japan, Germany, South Korea, Iran, Saudi Arabia, and Canada in the short and long run. However, sign and magnitude of positive and negative shocks of oil prices are more important in environmental economics polices. Therefore, based on sign and magnitude, more taxation of fossil fuel and clean energy subsidies are recommended for the top carbon-emitting economies.

Examining the asymmetric effects of globalization and tourism on pollution emissions in South Asia.

The asymmetrical impacts of globalization and tourism on pollution emissions of 5 South Asian countries for the period from 1980 to 2018 are examined through a non-linear autoregressive distributed lag (NARDL) technique, which shows that both short and long-run coefficients are asymmetric. The findings suggest that positive and negative shocks in globalization affect carbon emissions differently in the case of Bangladesh, India, and Pakistan, while similar results are found in the case of Nepal and Sri Lanka in the long run. Furthermore, positive tourism shock, in the long run, ameliorates the environmental quality by reducing carbon emissions in Nepal and Sri Lanka, however, increases the carbon emissions in Bangladesh, India, and Pakistan. While negative tourism shock has an adverse effect on positive shock on carbon emissions in South Asia. The phenomena of globalization and tourism can exert a severe impact in aggravating the pollution emissions that policymakers should forecast and oppose. Based on these findings, some policy suggestions are proposed for South Asian economies.

Analysis of asymmetries in the nexus among clean energy and environmental quality in Pakistan.

This study examines the short-run and long-run asymmetric effects of clean energy consumption on carbon emission in Pakistan, over the annual time period 1975-2018, by using a non-linear ARDL approach. The findings of the study confirm the existence of asymmetries, in the nexus between the clean energy consumption and carbon emission in the short and long run. The findings of non-linear model confirm that carbon emission responded contrary to positive shocks of energy variables as compared with their negative shocks. Asymmetric findings recommend that positive and negative shocks of the alternative and nuclear energy and combustible and waste energy have affected differently. Although, short- and long-run results suggest an insignificant positive and negative relationship between electric power consumption and carbon emissions. Therefore, more taxation of non-renewable energy and clean energy supports are suggested for the Pakistan economy. We concluded that Pakistan has potential in clean energy which will improve environmental quality in the near future.