Can inequality reduction decrease carbon emissions in China? A counterfactual analysis.

The relationship between the two sustainable development goals (SDGs)-inequality reduction and carbon emission reduction is critical for governments formulating and implementing environmental and redistribution policies. This study uses micro survey data from the China Family Panel Studies (CFPS) to conduct a counterfactual analysis that decomposes and quantifies the net effects of consumption growth, redistribution, and changing patterns of consumption on household carbon emissions. The counterfactual approach helps to overcome the endogeneity concerns. The findings of our study convey a profoundly important and alarming message: the redistribution measures for inequality reduction may increase household carbon emissions. The findings attest to the need for Chinese policymakers to seriously consider the trade-off between inequality reduction and emission reduction, particularly in certain regions in China. To address the trade-off, one key measure is to encourage low-carbon lifestyles and consumption patterns to ensure that the benefits gained by poorer households from redistribution measures will not translate into higher emissions.

Environmental regulations, political risk and consumption-based carbon emissions: Evidence from OECD economies.

The staggering rise in global temperature and abrupt change of climate are the responses of nature alerting humanity to limit the emissions of hazardous gases and adopt environmentally-benign life style. The present study explores empirically whether any changes in environmental policy stringency (EPSI), political risk (PR), and the interaction term of EPSI*PR result in any alteration of consumption-based carbon emissions (CBCE) of the 24 advanced OECD economies over the period of 1990-2020. Prior to the empirical estimations, various diagnostic tests are employed. The empirical techniques include, panel cointegration check, Cross-sectional Augmented Autoregressive Distributed Lags (CS-ARDL), and Dumitrescu & Hurlin panel causality test. The findings confirm that imports, gross domestic product, and stringency of environment policies activate CBCE in short-run. Whereas, a unit improvement in political risk and its interaction with environmental policy stringency give rise to 0.231 MtCO2 of CBCE in long run. Interestingly, the squared term of environmental policy stringency effectively tackles such emissions. Based on the findings, we conclude that the present environment related policies of OECD member states does not effectively limit CBCE. In order to achieve genuine emissions reduction goals, the selected nations should restructure their environment related policies by prioritizing increments in environmental policy stringency along with minimizing the risks involved in the political system.

Trade and technological innovation: The catalysts for climate change and way forward for COP21.

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.

The effects of trade, renewable energy, and financial development on consumption-based carbon emissions (comparative policy analysis for the G20 and European Union countries).

Recently, there has been a lot of focus on global trade and consumption-based carbon (CCO2) emissions. More research, however, has examined how financial development (FD) and international trade in renewable energy affect CO2 emissions. Furthermore, there are no distinct trends in the research about how globalization affects environmental quality. Our research analyzes and empirically investigates the relationship between CCO2 emissions and renewable energy, FD, and trade. A large panel of data from 41 G20 and European Union (EU) countries is assembled for empirical analysis from 1990 to 2019. The practical outcomes of panel quantile regression and feasible generalized least square (FGLS) approaches display that renewable energy and FD positively relate to CCO2 emissions; furthermore, trade to GDP hurts CCO2 emissions; market classification has been taken as a control variable which shows that the developed countries released more carbon than non-developed countries. These results suggest that the financial sector focuses more on supporting companies that use ecologically friendly techniques and pushing them to use other energy well-organized technologies in their production processes. As a result, CCO2 emissions will be reduced, preventing environmental damage at the non-renewable energy plant.

Understanding the Role of Energy Productivity, Eco-Innovation and International Trade in Shaping Consumption-Based Carbon Emissions: A Study of BRICS Nations.

In recent years, addressing the issue of carbon emissions has gained significant attention in the field of environmental sustainability. This study aims to contribute to the existing literature by investigating the interplay between eco-innovation, international trade, energy productivity, and consumption-based carbon emissions in the context of the BRICS economies. Using data spanning the period from 1990 to 2020, we employ advanced methodological techniques to overcome challenges associated with cross-section dependency, non-stationarity, and heterogeneity. The results of our study provide compelling evidence of a long-term cointegrating association between eco-innovation, energy productivity, economic growth, imports, exports and consumption-based carbon emissions. The results reveal that eco-innovations, exports, and energy productivity are associated with reductions in CO2 emissions. Conversely, imports and GDP growth contribute to higher CO2 emissions. Our findings have significant implications for policymakers, businesses, and stakeholders involved in shaping environmental policies and sustainable development strategies. The observed negative correlations between eco-innovation, exports, energy productivity, and consumption-based carbon emissions offer a clear channel for mitigating environmental pollution. By prioritizing and promoting eco-innovation initiatives, encouraging sustainable exports, and enhancing energy productivity, policymakers can effectively reduce carbon emissions and foster sustainable economic growth.

The asymmetric effect of renewable energy and trade on consumption-based CO2 emissions: The case of Italy.

Although numerous studies in the literature have been conducted to model CO2 emissions, there is a lack of empirical knowledge of consumption-based CO2 emissions, which are adjusted for international trade, specifically. Therefore, the present study aims to close this gap in the literature in the case of Italy, while capturing the asymmetric effect of trade, renewable energy, and economic growth on consumption-based CO2 emissions. The present study uses the Gregory-Hansen test for cointegration with regime shifts, Markov switching regression, nonlinear autoregressive distributed lag (NARDL), and frequency domain causality test. The study's outcomes reveal that (1) the asymmetric effect of import on consumption-based CO2 emissions is positive, implying that rising import is associated with declining consumption-based environmental quality; (2) export, renewable consumption, and economic growth reduce consumption-based CO2 emissions in Italy. Moreover, these outcomes are supported by the outcomes of the frequency domain causality test. These innovative insights may prompt policy-makers to implement eco-friendly methods, such as renewable energy distribution and environmental innovation, to achieve a greener future. Integr Environ Assess Manag 2022;18:784-795. © 2021 SETAC.

The influence of renewable energy usage on consumption-based carbon emissions in MINT economies.

An accurate carbon emissions measurement is critical for developing an appropriate climate strategy to address ecological issues. A meaningful climate policy reaction can be offered based on trade adjusted statistics of carbon emissions. This research utilizes second-generation panel co-integration techniques to investigate the influence of globalization and renewable energy utilization on consumption-based carbon emissions (CCO2) as well as the role of nonrenewable energy use and economic growth in the MINT-(Mexico, Indonesia, Nigeria and Turkey) countries from 1990 to 2018. The outcomes of the cross-sectional dependency and heterogeneity tests revealed slope heterogeneity and cross-sectional units across nations. Furthermore, the outcomes of the cointegration test provided evidence of a long-run association between consumption-based CO2 emissions (CCCO2) and the regressors. Moreover, the outcomes of both common correlated effect mean group (CCEMG) and augmented mean group (AMG) unveiled that economic growth and nonrenewable energy utilization contribute to the degradation of the environment, while globalization and renewable energy utilization help to curb the degradation of the environment. Furthermore, the outcomes of the causality test showed that all the regressors can predict CCO2 emissions in the MINT nations. Thus, policy channeled towards globalization, economic growth, and renewable energy utilization will have a significant effect on CCO2 emissions. Based on the study outcomes, significant policy recommendations are made for policymakers in the MINT nations.

Toward a sustainable environment and economic growth in BRICS economies: do innovation and globalization matter?

Over the last few decades, environmental deterioration has accelerated significantly. Environmental degradation has been a subject of research across the world because of its impact on billions of people. However, there has been no international agreement on lowering the utilization of energy and CO2 emissions (CO2), while demand for fossil fuels grows in emerging economies. On the other hand, the recent COP26 summit brought all parties together to accelerate action toward reaching the goals of the Paris Agreement and the UN Framework Convention on Climate Change. Although previous research shows that international trade promotes positive socioeconomic outcomes, other experts argue that it contributes to natural resource shortages and ecological deterioration. Thus, the current research considers the effect of international trade, renewable energy use and technological innovation on consumption-based carbon emissions (CCO2), coupled with the role of financial development and economic growth in the BRICS economies between 1990 and 2018. Moreover, this research utilizes the common correlated effects mean group (CCEMG), augmented mean group (AMG) and Dumitrescu and Hurlin (2012) causality methods to assess these interrelationships. The study findings reveal that renewable energy use, exports and technological innovation mitigate CCO2, whereas economic growth and imports trigger CCO2 in the BRICS economies. The panel causality outcomes also reveal that all the variables except financial development can predict CCO2 emissions. Based on the study findings, we recommend the adoption of policies, regulations and the development of legislative frameworks that promote technological innovation and the shift toward sustainable energy.

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.

Urbanization and carbon emissions: looking at the role of mobile phone adoption in Sub-Saharan African countries.

Despite the plethora of studies on urbanization-carbon dioxide emissions relationship, studies that consider the role of mobile phone adoption are limited in the ecological literature. This study relied on the stochastic impacts by regression on population, affluence and technology (STIRPAT) analytical framework for modelling environmental impacts and adopted fixed effects ordinary least squares with Driscoll and Kraay standard errors (FE-DK) and the novel method of moments quantile regression (MM-QR) estimation techniques to examine the role of mobile phone adoption in the urbanization-carbon dioxide emissions link for 21 SSA economies, spanning 1995-2017. Results of estimation based on FE-DK statistically provide support for population size, per capita income, energy intensity, urbanization and mobile phone adoption as determinants of the two forms of carbon dioxide emissions (consumption-based carbon dioxide emissions and production-based carbon dioxide emissions). Distributional effects of these factors explain that (i) urbanization has heterogeneous positive effect on the two forms of carbon dioxide emissions, with higher impact in economies with relatively lower level of carbon dioxide emissions and (ii) mobile phone adoption has heterogeneous negative effect on the two forms of carbon dioxide emissions, with greater impact in economies with relatively higher level of carbon dioxide emissions. The study discussed the policy implications of these results in the context of SSA countries.

Assessing the distributional effects of financial development on consumption-based carbon emissions in Sub-Saharan Africa: a quantile-based analysis.

This study assessed the role of financial development (FD) and its distributional effects in explaining consumption-based carbon (ConCO2) emissions, in a framework that also examined the environmental Kuznets curve (EKC) hypothesis, in the context of 19 Sub-Saharan African countries. A composite index was used as measure of FD in a set of data spanning over the period 1995-2017, while controlling for population size (PS), energy intensity (EI) and natural resource rents (Nrr). Given that the variables deviate from expected normal distribution as adjudged by results of pre-estimation tests, the method of moments quantile regression (MM-QR) estimation technique was used to account for distributional effects of FD on ConCO2. Results of the fixed-effect regression based on Driscoll-Kray standard errors (FE-DK) which was validated by three other estimators (fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS), canonical cointegration regression (CCR)) statistically provided support for FD, PS and EI as drivers of ConCO2. Distributional effects of this show that FD exerts significant positive effect on ConCO2 among countries in the higher quantiles, but insignificant positive effect among those at the lower quantiles. The model provided no support for the EKC hypothesis for SSA; policy implications of these results were presented.

International trade and consumption-based carbon emissions: evaluating the role of composite risk for RCEP economies.

To tackle the issue of climate change and environmental degradation debates regarding carbon neutrality is on the rise. Regional Comprehensive Economic Cooperation (RCEP), the leading trading union, covers nearly third of global economy, world population, is responsible for thirty percent of global trade and global gross domestic product. The existent study tests the impact of financial, economic, political, and composite risk on consumption-based carbon dioxide emissions (CCO2) in selected RCEP economies during the period of 1990 to 2020. The empirical analysis consists of cross-sectional dependence, slope heterogeneity, cross-sectional augmented panel unit root test, Westerlund cointegration, second-generation cross-section augmented autoregressive distributed lags model (CS-ARDL), and panel causality test. Further, we explore the role of imports, renewable energy supply, exports, and gross domestic product per-capita on CCO2. The empirical results suggest that the less political risk help to mitigate while the lower financial, economic, and composite risk increase CCO2 emissions in selected RCEP economies. Moreover, exports and renewable energy supply show mitigating effect, whereas imports show upsurge in CCO2. Additionally, a bidirectional causality exists between exports and CCO2, imports and CCO2, GDP per-capita and CCO2, political risk and CCO2, and renewable energy and CCO2 emissions, while a one-way causality from financial risk, composite risk, and economic risk to CCO2. Renewable energy supplies along with the improvement in sub-components of political risk, for instance, corruption, government stability, would help to effectively tackle the issue of CCO2 emissions.

Does technological innovation limit trade-adjusted carbon emissions?

The objective of this analysis is to examine the impact of international trade and technological innovation over the 1990-2018 period on the G7 economy's consumption-based carbon emissions. The report explores international trade by separately considering imports and exports. The results indicate that the data cross-sections are dependent and that the panel has slope heterogeneity. The results of the co-integration study indicate that imports, exports of technological innovation, GDP, and demand-related carbon emissions are co-integrated with systemic splits (2001 mild recession, 2008 financial crises, and 2011 decline of stock market, and 2014 export decline). The cross sectionally augmented autoregressive distributive lag model results show that technological innovation and exports have a negative effect on the use of carbon. Meanwhile, imports and GDP are positive associated with carbon emissions based on consumption. The analysis of the robustness test also verifies these impacts. The results of this research study show that policymakers and regulators can encourage technological innovation to reduce carbon pollution and improve the sustainability of the environment.

Assessment of the role of trade and renewable energy consumption on consumption-based carbon emissions: evidence from the MINT economies.

This research formulates a theoretical framework to investigate the impacts of trade on consumption-based carbon emissions (CCO2) and also takes into account the influence of financial development and renewable energy use utilizing panel data for Mexico, Indonesia, Nigeria, and Turkey (MINT) nations between 1990 and 2017. The study utilizes a series of second-generation techniques such as Westerlund cointegration, cross-sectional augmented autoregressive distributed lag (CS-ARDL), and augmented mean group (AMG) tests to capture the linkage between CCO2 emissions and the independent variables. The study aims to answer the following questions: (a) can exports and imports determine CCO2 emissions in the MINT nations? (b) Is there a long-run association among the variables under investigation? The results of the Westerlund cointegration reveal a long-run association among the variables. The CS-ARDL outcomes indicate that imports and economic growth increase CCO2 emissions, while renewable energy use and exports decrease CCO2 emissions. Moreover, the outcomes of the AMG test also give credence to the CS-ARDL results. Our key policy recommendations are that initiatives, rules, and regulatory mechanisms should be implemented that promote the transformation toward renewable energy.

Toward a sustainable environment: nexus between consumption-based carbon emissions, economic growth, renewable energy and technological innovation in Brazil.

This research investigates the drivers of consumption-based carbon emissions in Brazil by using a dataset covering the period between 1990 and 2018. These dynamics were examined by employing the ARDL bounds, DOLS, and gradual shift causality tests. The ARDL long- and short-run estimation outcomes reveal that: (a) renewable energy use stimulates the sustainability of the environment; (b) economic growth increases environmental degradation; and (c) technological innovation enhances the quality of the environment. In addition, the gradual shift causality test results disclosed that renewable energy consumption, economic growth, technological innovation and public-private partnership investment in energy can predict consumption-based carbon emissions in Brazil. Therefore, Brazilian policymakers should actively encourage the R&D of low-carbon technologies and renewable energy consumption. Domestic consumption levels, on the other hand, should be targeted, specifically those that are more energy-intensive and cause a rise in CO2 emissions due to consumption.

Exploring the consumption-based carbon emissions of industrial cities in China: a case study of Tianjin.

Cities are usually the final destination for consumable goods and services produced along supply chains and the most appropriate scale to implement policy. Consumption-based policies could complement current carbon emissions mitigation actions, but such studies at the city level are relatively rare. We used a demand-driven input-output model to explore a historical time series (1987-2012) of consumption-based emissions in Tianjin for the first time, a typical industrial city which has the largest carbon footprint in China. The results reveal the differences between consumption- and production-based emissions, and Tianjin has transformed from a producer city into a typical consumer city since 2000s, mainly due to infrastructure construction. There is more capital investment in industrial infrastructures than in real estate in Tianjin, causing the largest carbon footprint. The trade deficit and different carbon intensity have substantial influences on consumption-based emissions. Finally, population, income, and urbanization could enable a more accurate interpretation of urban carbon footprint growth. Demand-driven policy implications for addressing these emissions in booming industrial cities are discussed and provide a new perspective on carbon emissions mitigation. Our results offer valuable lessons on industrial cities' strategies and initiatives for climate change mitigation worldwide, particularly in developing countries.

Determinants of consumption-based carbon emissions in Chile: an application of non-linear ARDL.

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.

An asymmetric analysis of the role of exports and imports in consumption-based carbon emissions in the G7 economies: evidence from nonlinear panel autoregressive distributed lag model.

A genuine concern faced by the present world is global warming. Millions of human and animal lives are at risk due to global warming. Therefore, the subject has gained enormous attention from research and academia around the world. Literature shows that the primary cause of global climate change or global warming is carbon (CO2) emissions. Hence, the role of a reliable carbon emission measurement is important for devising a relevant climate policy to deal with environmental problems. Based on trade-adjusted statistics of carbon emissions, a relevant climate policy response can be provided. Unlike the previous studies, this study examines the asymmetric impact of international trade on consumption-based carbon emissions from 1990 to 2017 in the G7 economies. To get empirical estimates, the study applies second-generation co-integration technique and nonlinear panel autoregressive distributive lag (NPARDL) model for estimating the relevant coefficients. The empirical results show that positive growth of exports significantly decreases consumption-based carbon emissions both in the short and long run, whereas the impact of negative growth of exports is insignificant. For imports, the results show that, over time, positive growth of imports significantly increases consumption-based carbon emissions in the long run, while the impact of negative growth of imports is insignificant. Finally, it is recommended for the policymakers to target the export industries for relevant policy interventions, which are less polluting and can generate other economic benefits as well.

Do public-private partnerships in energy and renewable energy consumption matter for consumption-based carbon dioxide emissions in India?

The present study explores the effect of renewable energy consumption and public-private partnership investment in energy on consumption-based carbon dioxide emissions for India from 1990Q1 and 2015Q4 whilst controlling technology innovation and economic growth. The study employs the Maki cointegration, Bayer-Hanck cointegration, fully modified ordinary least squares, dynamic ordinary least squares, and frequency-domain causality tests to explore these dynamics. The outcomes of the present study reveal that (i) there is a long-run cointegration equation between consumption-based carbon dioxide emissions and its possible determinants; (ii) whilst renewable energy consumption is beneficial for lowering consumption-based carbon dioxide emissions, public-private partnership investment in energy makes a positive contribution to consumption-based carbon dioxide emissions in the long-run; and (iii) public-private partnership investment in energy and renewable energy consumption also significantly causes consumption-based carbon dioxide emissions at different frequency levels in India. The present study recommends that policymakers in India should apply a series of policies to discourage the use of non-renewable energy and raise the share of renewable energy in order to reduce consumption-based carbon dioxide emissions in the country. The present study also recommends that public-private partnership investment in renewable energy should increase to achieve cleaner production processes.

Consumption-based carbon emissions and International trade in G7 countries: The role of Environmental innovation and Renewable energy.

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.