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India has remarkably achieved some level of decline in infant mortality rate and increase in aged person through increase in life expectancy due to improvement on its health care sector but still remain amongst the countries with the highest rate of infant mortality within the Asian countries. Literature on environmental implication remains scarce, and for this we utilised India's data from 1975 to 2020 to research on this topic. Relevant scientific methods (residual Augmented Least Squares - RALS, Engle and Granger - EG, and its newly augmented version - RALS-EG) are adopted in this study. Further, to estimate the long-run elasticities of the regressors, the symmetric analyses, i.e., dynamic ordinary least squares (DOLS) and Engle and Granger causality test techniques, are employed. Findings according to DOLS revealed that renewable energy sources and social (GDP per capita) and public subsidies (general government final consumption expenditure) have lessening effect on infant mortality in India, whilst the private subsidies (gross capital formation), fossil fuels, and carbon dioxide cause an increase in infant mortality in India. This exposes renewable energy source as a mitigating factor in Indian environmental degradation which as well lessen the infant mortality level in India; hence, policy is suggested to be framed on improving renewable energy and health sectors. The graphical presentation of the abstract is done with the diagram below. The graph shows the interactions amongst the selected variables in this study. The impacts of the explanatory variables on the dependent variable are shown with different colours showing positive (green) and negative (red) impacts.
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Desenvolvimento Econômico , Desenvolvimento Sustentável , Humanos , Idoso , Índia , Fontes Geradoras de Energia , Energia Renovável , Política Pública , Dióxido de Carbono/análiseRESUMO
Knowledge transfer plays a prominent role in fostering innovation among multinational corporations (MNCs), however, the exploration of reverse knowledge transfer in today's digital era remains insufficient. Therefore, we explore the impact of reverse knowledge transfer on ambidextrous innovation and the process mechanism against the backdrop of digital technology. A system dynamics model of reverse knowledge transfer is constructed from three aspects: knowledge acquisition, knowledge absorption and knowledge application. Our simulation results indicate that the dual embeddedness of multinational R&D centers promotes knowledge acquisition and absorption, enhances the knowledge base of parent companies, and facilitates ambidextrous innovation. In particular, the application of digital technology further promotes the process through knowledge absorption, with the long-term impact more pronounced. This study not only enriches the literature on reverse knowledge transfer but also expands the application of digital technology in the field of MNCs' innovation.
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Exploring the effect of environmental pollution on human development does not only afford the opportunity to show how human health is impacted, it further exposes the role of environmental pollution in humans' knowledge development and living standard. To shed lighter on this perspective, we consider environmental aspects of human development by employing the national air quality standards of United States Environmental Protection Agency which outlines the main environmental pollutants (carbon monoxide, nitrogen oxides, sulfur dioxide, particulate matters less than 2.5 µm (PM2.5), particulate matters less than 10 µm (PM10)). By using series of empirical techniques for the United States' dataset that covers the period 1990-2019, the investigation revealed that economic performance improves human development (with elasticity relationship) while the square of economic performance causes a declining effect (inelasticity not more than 0.7). Thus, the relationship suggests a vicious and virtuous cycle scenarios that is characterized by economic performance threshold. Moreover, except for PM10, the examined environmental pollutants hamper human development aspects. To provide a robust perspective, a frequency domain Granger causality approach further revealed causative only from economic performance, carbon monoxide, sulfur dioxide, PM2.5, and PM10 to human development largely in the long-run at varying frequencies. Meanwhile, human development Granger causes nitrogen oxides and sulfur dioxide in the short-run and long-run respectively at different frequency magnitudes. By implication, the result of the study further highlights the criticality of sustainable development and the complexity associated with economic expansion amidst environmental factors.
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This current study seeks to investigate the policy implication of Turkey's recent energy policies on its sustainable development. This study uses Turkey's country-specific data and series of 1974 to 2018 for effective investigation and justification of the findings of this study with emphasis on both short-run and long-run implications. Three models were fitted to achieve study objectives to accommodate both environmental sustainability and economic impacts. Ecological footprint was considered better measure and used as proxy for the environment related model. In summary, with environment models, the selected series (per capita GDP, industrialization, agriculture, coal as a single energy use, and mixed energy use) except per capita GDP2 were found positively and significantly related to ecological footprint in both short run and long run which translates to poor performance of Turkey's environment. Also, using economic growth model, the selected series (industrialization, energy use, and agriculture) were all confirmed positively and significantly related to the economic growth (per capita GDP). Additionally, environmental Kuznets curve (EKC) was established for Turkey's environment and economic performance. Furthermore, using Granger causality as robust check to these findings, a nexus was found among the series confirming the validity of the cointegration (short- and long-run policies) estimations and results. In congruence with literature and hypotheses, the results from cointegration estimation shows that the twin polices may be good to the economic performance but will spark off adverse effect on environment.
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Carvão Mineral , Desenvolvimento Industrial , Agricultura , Dióxido de Carbono/análise , Desenvolvimento EconômicoRESUMO
This study is premised on Indonesia's climate goal amidst good economic performance. To test the environmental implication of this macroeconomic performance of Indonesia, we adopt Indonesian quarterly data of 1990Q1-2018Q4 for empirical analysis. Relevant instruments in the economic performance of Indonesia such as urbanization, foreign direct investment (FDI), and renewable energy source are all adopted for accurate estimations and analysis of this topic. Different approaches (structural break test, autoregressive distributed lag (ARDL)-bounds testing and Granger causality) are all adopted in this study. Our analysis and policy recommendations are based on the short-run and long-run ARDL dynamics and Granger causality. Findings from ARDL confirmed negative relationship between carbon emission and renewable energy source, FDI, and urbanization. Also, a U-shape instead of inverted U-shaped EKC is found confirming the impeding implication of Indonesian economic growth to its environmental performance if not checkmate. From Granger causality analysis, all the variables are seen transmitting to urbanization in a one-way causal relationship. Also, FDI and renewable energy prove to be essential determinants of the country's environment development; hence, FDI is seen transmitting to both energy sources (fossil fuels and renewables) in a one-way causal relationship. Renewable energy is as well seen having two ways causal relationship with both carbon emission and fossil fuels. This result has equally exposed the significant position of the three instruments (urbanization, FDI, and renewable energy source) in Indonesian environment development.
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Dióxido de Carbono , Urbanização , Carbono , Dióxido de Carbono/análise , Desenvolvimento Econômico , Combustíveis Fósseis , Indonésia , Investimentos em Saúde , Políticas , Energia RenovávelRESUMO
This study is anchored on the global best practice policies for achieving sustainable goals for Malaysia. Malaysia is among the countries that made commitment at 2015 United Nations Climate Change Conference to reduce its carbon emissions by 2030. This is expected to contribute to the country's sustainable development. Malaysian quarterly data of 1992Q1-2019Q4 with relevant policy-based instruments (renewable energy policy, technological innovations, financial development, and entrepreneur activities) are adopted in our study for explicit and clear insight on the subject. Different scientific and analytical methods are equally applied in this study, but the focus and emphasis are laid on the findings from linear (dynamic ordinary least square, DOLS) and non-linear autoregressive distributed lag (NARDL) and Granger causality. Findings from both NARDL and DOLS confirmed the positive shocks of renewable energy policy, technological innovations, financial development, and entrepreneur activities are mitigating carbon emissions. Also, inverted U shape of EKC hypothesis is found for Malaysia. Findings from Granger causality support the findings from both estimates by establishing both feedback and unidirectional causal nexus among the instruments. From the finding myms, policy-based instruments are mitigating carbon emissions in Malaysia; thus, it will be a very good idea to frame policies around these instruments.
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Desenvolvimento Econômico , Desenvolvimento Sustentável , Carbono , Dióxido de Carbono , Invenções , Política Pública , Energia RenovávelRESUMO
We researched China's climate and sustainable development goal with relevant and susceptible instruments capable of inducing and mitigating carbon emissions. Amidst the contributor to the global carbon emissions, China is caught in between mitigating its carbon emission and aiming towards placing its national contribution of emissions to the acceptable levels of 1.5 °C and below 2 °C. Following the intricacies surrounding China's sustainable development as it contains its economic and environmental performance, we adopt China's data of 1980 and 2018 with different scientific approaches (nonlinear autoregressive distributed lag (NARDL), dynamic ordinary least square test, and bootstrap Granger causality) with different instruments (such as economic growth, financial development, renewable energy, and innovation policies) to research China's sustainable development. For clear exposition and insight into our findings with policies attached, we draw a conclusion from the outcomes of the mentioned approaches. From NARDL and dynamic ordinary least squares (DOLS), we find that economic growth through economic activities is statistically significant in determining the trend (increase) of carbon emissions in China in both periods (short run and long run). However, other selected instruments (financial, renewable, and innovation policies) tend towards controlling and moderating the carbon emissions in China. Thus, China has good prospects to mitigate its carbon emissions if considered tailoring its policies towards favorable instruments. From bootstrap Granger causality, we find similar inferential results that support previous findings thereby confirming the positive implication of the selected instruments to China's sustainable development. Hence, the nexus that is established among the selected instruments clearly show the importance of technological innovation and renewable energy in mitigating carbon emissions.
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Invenções , Desenvolvimento Sustentável , Carbono , Dióxido de Carbono , Desenvolvimento Econômico , Políticas , Energia RenovávelRESUMO
The economic structure of countries can influence economic growth, energy demand, and environmental footprints. However, the literature on economic complexity and ecological footprint (EFP) nexus is scarce. Besides, democracy is an important factor that may affect environmental policies and environmental sustainability. Hence, this paper investigates the effect of democracy, economic complexity, and renewable energy technology budgets on the EFP in G7 countries controlling income and financial development from 1985 to 2017. The findings from Westerlund (J Appl Econ 23:193-233, 2008) and other cointegration methods depict cointegration among variables. The long-run estimates from the continuously updated fully modified method unfold that economic complexity contributes to reducing the EFP. However, greater democratic accountability boosts the EFP figures rather than reducing them. On the flipside, renewable energy technology budgets and financial development are evidenced to mitigate EFP. Moreover, the study unveils a U-shaped linkage between economic growth and EFP, which indicates that an increase in income level will boost EFP. Further, the study found causality from economic complexity, democracy, and renewable energy budgets to EFP. Based on these findings, it is pertinent for the G7 countries to increase the manufacturing of sophisticated and complex products. In addition, enhancing renewable energy technology budgets is essential to ensure environmental well-being.
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Dióxido de Carbono , Desenvolvimento Econômico , Energia Renovável , Responsabilidade Social , TecnologiaRESUMO
The tourism industry is undoubtedly among the largest contributors to economic growth and employment generation in most economies of the world, and Africa is not an exception as outlined by World Tourism Organization (UNWTO). Thus, many countries in sub-Saharan Africa (SSA) are paying more attention to tourism development as alternative growth path to boost their economies. However, the tourism-induced growth is not void of its environmental issues. To this end, this study using recent econometrics analysis explored the nexus between tourism arrival GDP growth, urbanization, carbon dioxide emission, and foreign direct investment for oil and non-oil sub-Saharan Africa (SSA) countries, that is, to ascertain the real impacts of tourism and FDI on the environmental performance of the regions. Empirical results show that tourism, GDP growth, and FDI dampen the quality of the environment. For instance, a 1% increase in tourism activities worsens the quality of the environment by 1.09%. Interestingly, renewable energy shows statistical strength to improve environmental quality. The causality analysis resonates with the outcomes of the regression by giving credence to one-way causality between tourism and carbon dioxide emission. A similar trend of causality is seen between FDI and carbon dioxide emission and urbanization and carbon dioxide emission. Thus, as a policy prescription, strict environmental guidelines and regulations are necessary for controlling the unhealthy and undue economic activities that are suspected to impact environment negatively.
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Dióxido de Carbono , Turismo , África Subsaariana , Dióxido de Carbono/análise , Desenvolvimento Econômico , Investimentos em Saúde , Energia RenovávelRESUMO
Chile is currently rated among the performing countries towards the achievement of the global goals of reducing carbon emission. It is on recorded that Chile as a country has moved from highly insufficient to insufficient and still working towards conforming to recommend the region of 2°C in quest of controlling climate change through carbon emission reduction. From this development, it is essential to investigate on the country's strategies in achieving this success and equally make recommendation for other countries to adopt Chile's strategy as a blue print in controlling carbon emission. To effectively do this and achieve the objective of this study, I adopt nonlinear and asymmetric approaches to have a combined (positive and negative) view of the reactions of the selected variable towards determining the impact of each variable towards curbing emission in Chile. Also, a careful selection of variable which includes economic growth (GDP per capita-Y), institutional quality, foreign direct investment (FDI), fossil fuels, and renewable energy consumption was undertaken in this study. The focus was on the interaction of institutional quality and FDI towards ascertainment of environment performance. Chile's quarterly data of 1996Q1 to 2018Q4 was utilized, and the following findings were made: positive and negative shocks to the economic growth, institutional quality, and renewable energy impacted favorably and negatively on Chile's environment through reduction and promotion of emission, respectively. In contrast, positive and negative shocks to FDI and fossil fuels impact both negatively on the Chile's environment through increase in carbon emission. So institutional quality is vital in controlling the negative impact from FDI and fossil fuels.
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Dióxido de Carbono , Desenvolvimento Econômico , Internacionalidade , Investimentos em Saúde , Energia RenovávelRESUMO
Carbon neutral is among the possible ways of solving the problem of climate change. Many scholars have utilized different single indicators such as CO2 and methane with different variables to mitigate the possible ways of solving the problem of global warming. The present study employs a specific country (UAE) approach to investigate the possible way of solving climate change. The author utilized 1980-2018 annual data of the UAE to investigate the possibility of carbon neutral in the UAE as to suggest ways of limiting climate change. Both linear and non-linear (squared) foreign direct investment (FDI) and GDP per capita were added to the study and considered as the variables of interest and other control variables (energy use and population). Among the findings of this study are inverted U-shaped relationship between economic growth (GDP per capita) and ecological footprint which confirms EKC for the UAE, positive relationship between energy use and ecological footprint, negative relationship between FDI and ecological footprint in all stages which established a flat pattern of relationship, and a positive relationship between the population and ecological footprint. Findings from causal analyses exposed a two-way direction or feedback (bidirectional) between economic growth (GDP) and urban population, and between energy use and urban population both in the short and long run. Also, a one-way transmission (unidirectional) is found transmitting from ecological footprint and FDI to population both in the short run and long run; from the ecological footprint, energy use, and FDI to economic growth; from the ecological footprint and FDI to energy use in the long run; and from ecological footprint to FDI and energy use in the short run. The policy focus should be towards the improvement on the urban population. FDI pattern suggests the pollution halo hypothesis which is a pointer towards its (FDI) crucial contribution to environmental performance. Hence, FDI should be encouraged through relaxing of some laws that are preventive in nature towards FDI so as to maintain this positive trend towards sustainable development. The analytical abstract demonstrates the interactions that exist among the employed variables in Granger causality analysis. The big arrows denote two-way transmission while the small arrows show one-way causal transmissions passing to the variables where they are pointing at.
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Dióxido de Carbono , Carbono , Dióxido de Carbono/análise , Desenvolvimento Econômico , Investimentos em Saúde , Emirados Árabes UnidosRESUMO
In recent years, a growing number of scholars have employed various proxies of environmental degradation to understand the reasons behind rising environmental degradation. However, very few studies have considered consumption-based carbon emissions, even though a clear understanding of the impact of consumption patterns is essential for redirecting the pattern to more sustainable consumption. Thus, this study takes a step forward by using consumption-based carbon emissions (CCO2) as a proxy of environmental degradation using the novel non-linear ARDL technique for Chilefrom 1990 to 2018. To the best understanding of the investigators, no prior studies have investigated the drivers of consumption-based carbon emissions utilizing non-linear ARDL. The study employed ADF and KSS (non-linear) tests to check the data series' stationary level. Additionally, the symmetric and asymmetric ARDL approaches are utilized to explore cointegration and long-run linkages. According to the results, there is no symmetric cointegration among the variables; however, the empirical estimates reveal a long-run asymmetric connection between the indicators and CCO2 emissions. The novel results from the asymmetric ARDL indicate that negative and positive changes in economic growth deteriorate the quality of the environment. Interestingly, a reduction in economic growth makes a more dominant contribution to environmental degradation. Moreover, positive changes in renewable energy usage improve the quality of Chile's environment, inferring that the country can achieve a reduction in environmental degradation by boosting renewable energy consumption. Surprisingly, the study found that technological innovation is ineffective in reducing consumption-based carbon emissions, which implies that Chile's technological innovation is not directed towards manufacturing green technology. Finally, the policy implications are discussed with respect to reducing consumption-based carbon emissions.
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Dióxido de Carbono , Carbono , Dióxido de Carbono/análise , Chile , Desenvolvimento Econômico , Energia RenovávelRESUMO
Turkish place in industrial activities is strategic, and its involvement in oil and gas importation because of high energy utilization in manufacturing sector is susceptible to high emission. For this, it is required that the economy be researched towards its involvement in both emission inducement and abatement globally. The author adopts ecological footprint and offshored economic activities as proxies to both environment and foreign direct investment (FDI) in ascertainment of Turkish involvement in global emission and decarbonization. Structural break analysis, autoregressive distributed lag-bound testing, and Granger causality were utilized for the effective analysis of the offshore implication of environmental performance in Turkey. The author's findings are as follows: a positive relationship between economic performance (GDP per capita) and ecological footprint, hence giving credence to growth-induced pollution. Also, a positive relationship is established among foreign offshored economic activities (FDI), energy use, and ecological footprint which shows that both energy use and foreign offshored economic activities are positively related to the ecology which established unfavorable impact on the environment. This supports the pollution haven hypothesis (PHH) which is among the theoretical backgrounds of this study. Among the findings established in this study is from Granger causality method which supports the pollution haven hypothesis. They are as follows: a feedback causal transmission between FDI and the ecological footprint, and a one-way causal relationship passing from energy use to ecological footprint. With these findings, it can be said that the environmental implication of foreign offshored economic activities in Turkey is unfavorable. Policy implication of Turkey should be towards moderation of economic growth and the activities of foreign investors for sustainable energy, environment, and growth. Graphical abstract A display of the author's findings which are as follows: a positive relationship between economic performance (GDP per capita) and ecological footprint. Also, a positive relationship is established among foreign offshored economic activities (FDI), energy use, and ecological footprint which shows that both energy use and foreign offshored economic activities are positively related to the ecology (this relationship is shown on the graph with red colored arrows moving from independent variables to the dependent variable). From Granger causality method, the author found a feedback causal transmission between FDI and the ecological footprint, and a one-way causal relationship passing from energy use to ecological footprint (this relationship is shown with blue arrows showing either two-way transmission for the case of FDI and ecology or one-way transmission for the case of energy use to ecology).
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Dióxido de Carbono/análise , Investimentos em Saúde , Desenvolvimento Econômico , Internacionalidade , TurquiaRESUMO
According to the Carbon Brief Profile report by Timperley (2019), India has been identified as the world's 3rd largest emitter of greenhouse gases (GHGs) after China and the USA. Following the Paris Agreement and India's pledge as among the stakeholders at the global climate talks and how fast India ratified the Paris Agreement within a year on the 2nd of October 2016, it is essential to investigate the country's (India) commitment in reducing its emission towards enhancing a positive environmental performance. Both structural breaks, linear autoregressive distributed lag (ARDL) and nonlinear autoregressive distributed lag (NARDL), were selected simultaneously for this study, but at a later stage, after being bound to cointegration estimation, the NARDL was dropped because of its inability to sustain the claim of cointegration in the analysis. The rest of the analyses were based on liner ARDL model (short-run and long-run) with diagnostic tests, Granger causality estimation. Ecological Footprint (EFP) was chosen as an indicator to environment because of its richness in measuring the environmental performance. The linear (ARDL) output affirms a positive and significant link among ecological footprint and agriculture, energy use, and population with a negative link between ecological footprint (EFP) and foreign direct investment (FDI). The Granger causality test indicates a one-way transmission passing from agriculture, foreign direct investment, energy use, and population to ecological footprint. Also, a one-way transmission was found passing to economic growth (GDP) from foreign direct investment (FDI) and feedback transmission was found between FDI and energy use. This finding has an implication to both economic and environmental performances; hence, the policy framework should be targeting the enhancement of economy via the foreign direct investment and agriculture with a focus on energy use and environmental performance.
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Dióxido de Carbono/análise , Desenvolvimento Econômico , Agricultura , China , Índia , ParisRESUMO
The current study presents the mitigation of Nigerian economic performance and ecological footprint with other selected variables in ascertainment of the contribution of the country in global fight to reduce global warming amidst competitive economic operations. The motivation behind this is due to the fact that the country's economy is majorly relying on two major sectors which are considered as emission-induced sectors. These sectors (petroleum and agricultural sector) are characterized by the excessive utilization of non-renewable sources of energy in operations. The findings from this study, both from the Autoregressive Distributed Lag (ARDL) and Granger Causality (GC) perspectives aligns with the first stage of the theory (scale effect). Hence, both the economic growth and ecological footprint are increasing in the same pace. Among the findings from the ARDL regression are: a positive relation among income (GDP per capita) and the selected independent variables (ecological footprint, agric, FDI, energy use). Also, a negative relationship is revealed amid income and population of the country The findings from the causality test are: A one-way (Uni-directional) transmission is passed from economic growth (GDP per capita) to ecological footprint, from energy use to ecological footprint, from population to ecological footprint, from economic growth to energy use and from population to economic growth. It is evident that almost all the variables are causing the ecological footprint which aligns with the findings on ARDL regression. This has paved way for a well-articulated policy framing from the authorities of Nigeria with focus on the operations of both petroleum and agriculture. From the findings of this study, a well-structured policy is expected to be framed to curtail the growth based emissions in the Nigeria.
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Following the global alertness and consciousness over the increasing warming and heating on the ground of climate change, over 200 countries including Nigeria have committed themselves in reducing this global phenomenon. Nigeria being among the countries placed with individual country's task and also known as a one-economy operating county because of its oil and gas gifting is subject to investigation of its efforts and result in decarburization of its economy and environment. The oil and gas sector of Nigeria has been identified as the major sector where the heavy utilization of energy is centered on through mining and exploration activities of these foreign companies who have investments and stakes in the main stream sector. This is the major reason of adopting FDI as a major variable to test the performance of the environmental condition of the country. To effectively carry this research, the authors, adopt, cointegration test and the linear ARDL test to unveil the true picture of the foreign investors impact on carbon emission reduction. Among the findings is the positive but not significant interaction between economic growth and carbon emission which infers the capability of the economic operation to initiate the degradation in the environment via pollutant emission. Energy use depicts inducement to carbon emission with positive association with carbon emission. FDI established both negative and positive relationship with carbon emission at initial stage and lag 1 respectively. All the variables point towards carbon emission increase in the country which call for serious attention towards decarburization of the country to fall in line with the agreed policy of Paris formation.
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Dióxido de Carbono/análise , Poluentes Ambientais , Desenvolvimento Econômico , Investimentos em Saúde , NigériaRESUMO
Most nations are predominately preoccupied with the need to increase economic growth amidst pressure for increased energy consumption. However, higher energy consumption from fossil fuel has its environmental implication(s) especially in a high industrial economy like China. In this context, the current study explores the interaction between pollutant emission, foreign direct investment, energy consumption, tourism arrival, and economic growth for quarterly frequency data from 1995Q1 to 2016Q4 for econometrics analysis. Pesaran's autoregressive distributed lag-bound test traces long-run relationship between all outlined variables over the investigated period. Empirical results show positive relationship between pollutant emissions with all other variables with the exception of economic growth. This further exposes the environmental degradation in China with the curtailing strength from the GDP. The Granger causality analysis detects that CO2 emissions and energy consumption show a two-way causality observed. Also, one-way causality existing between growth and foreign direct investment is seen running to pollutant emission. Furthermore, one-way causality is observed among foreign direct investment, energy consumption, pollutant emission, and tourism arrivals with economic growth, and this established their impact on the economic growth which will be a guide to the policy implication on how to ameliorate environmental degradation from the effect of consumption of fossil energy sources and foreign direct investment-induced pollutant emission.
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Desenvolvimento Econômico , Poluentes Ambientais , Dióxido de Carbono/análise , China , Investimentos em SaúdeRESUMO
Recently, China is named among the most carbon dioxide (CO2)-emitting countries in the world after the United State of America (USA). A major part of Chinese carbon dioxide emissions is as a result of offshore industrial activities which come into the economy as foreign direct investment (FDI). Following this, the present study seeks to investigate the nexus between CO2 emissions, FDI, energy use, and tourism arrivals, and possibly to advise on who will bear the responsibility of offshore CO2 emissions. Utilizing ARDL-bound testing and Granger causality approaches for both short- and long-run effects the author found that economic growth (GDP) has a positive relationship with both tourism arrivals, energy use, FDI, and CO2.This contributes to heavy CO2 emissions which the author classified as the outsourced/offshore CO2emissions in China's FDI. Tourism arrivals have a bi-directional (feedback) causal relationship with energy use and a uni-directional causal relationship with CO2(transmitting from tourism to CO2). Both FDI and energy use have a bi-directional (feedback) causal relationship; CO2, energy use, and tourism arrivals have a unidirectional relationship with GDP which established the triangular nexus causality among the variables and the impact on GDP. Hence, the policy implication should be geared towards implementing the policies and regulations that will checkmate and reduce the excesses of foreign firms to the environment quality of China and promote environmentally friendly economic activities.
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Desenvolvimento Econômico , Fontes Geradoras de Energia , Gases de Efeito Estufa/análise , Investimentos em Saúde , Dióxido de Carbono/análise , China , Desenvolvimento Econômico/estatística & dados numéricos , Fontes Geradoras de Energia/estatística & dados numéricos , Política Ambiental , Gases de Efeito Estufa/economia , Internacionalidade , Investimentos em Saúde/economia , Investimentos em Saúde/estatística & dados numéricosRESUMO
Global warming issues have become a pertinent theme for many economies and policy initiatives. The Indonesian economy is no exception as government officials and stakeholder are working seriously to decouple carbon emission from economic growth. It is on this premise that the present study attempts to investigate the nexus between the environmental implication of offshore economic activities, economic growth, energy use, and environment (CO2) with the integration of foreign direct investment (FDI) and trade openness over recent time series data from 1980 to 2017. A series of analysis were conducted with Pesaran's autoregressive distributed lag (ARDL) methodology and the Granger causality test as estimation techniques over the outlined variables. Empirical findings from ARDL long-run (elasticity) shows that economic growth is significantly positively associated with carbon emissions at the initial stage but a negative association is established at lags 1 and 2. A significant positive relationship is witnessed between economic growth and FDI. Also, statistical positive relationship is observed between economic growth and energy use, while an inverse relationship is observed between openness and economic growth. For causality analysis, we observe that a uni-directional causality is running from economic growth to foreign direct investment at 5% significant level. This outcome is in support of the growth-induced FDI hypothesis in Indonesia. Furthermore, a one-way causality is seen from energy to openness, CO2 emissions, and from FDI to CO2 emissions while there is a feedback causality between openness and CO2 emissions. The findings of this study have implications to the environmental quality of Indonesia via economic growth; hence, the higher and better the economic growth of the country, the lesser the carbon emissions and the better the environmental quality. This proposition aligns with the pollution halo hypothesis (PHH), where FDI inflow enhances economic growth as well as impacts energy consumption and reduces carbon emissions in the host country.