Beyond the environmental Kuznets Curve in E7 economies: Accounting for the combined impacts of institutional quality and renewables

With 2.5 global hectares (gha) per capita against 2.7 gha per capita, China’s ecological footprint is desirably below the world’s average ecological footprint per capita. Undesirably, the country’s...

Examining the dynamics of ecological footprint in China with spectral Granger causality and quantile-on-quantile approaches

Does it take international integration of natural resources to ascend the ladder of environmental quality in the newly industrialized countries?

As the argument widens on the need to cut down on global carbon emissions, this study addresses environmental degradation using a combination of second-generation empirical methodologies including, quantile regression (QR), augmented mean group (AMG), fully modified ordinal least square (FMOLS), and dynamic ordinal least square (DOLS) to examine the impacts of natural resource rents alongside disaggregated energy consumption on the environmental quality of the G7 economies within the framework of the stochastic impact by regression on population, affluence, and technology (STIRPAT) model. The empirical findings reveal that the total natural resources rent indicates a positive significant relationship with pollution in all the quantiles except Q 0.05. Additionally, the findings for renewable energy consumption are adverse and significant throughout the assessed quantiles while fossil fuel energy consumption is reported to have a positive and significant effect on carbon dioxide emissions, thus, increasing environmental degradation experienced in the G7 economies. The extended findings from the Granger causality analysis also show that income levels combined with fossil fuel use have a strong effect on environmental degradation, while the total natural resources rent granger causes clean energy consumption within the G7 countries. This finding supports the assertions that natural resource revenue is mostly channeled into further productivity avenues which consequently lead to further environmental degradation. As such, while maintaining targeted revenue agenda, we strongly recommend that productivity gains from natural resource rents within the G7 economies should be harnessed for investment in clean energy for a more sustainable environment.

Accounting for the combined impacts of natural resources rent, income level, and energy consumption on environmental quality of G7 economies: a panel quantile regression approach.

More than any other nations, the crude oil-exporting countries and especially the Organization of the Petroleum Exporting Countries (OPEC) are likely to experience a more difficult energy-transitioning regime because of the economies' high dependence on crude oil revenue. By using the Pooled Mean Group (PMG) Autoregressive Distributed Lag Models (ARDL) approach, this study examines the impact of the energy transition albeit from conventional to clean energy on carbon emissions in 11 members of the OPEC. While engaging the aforementioned objective, the study further examined the validity of the Environmental Kuznets Curve (EKC) hypothesis amidst urbanization drive among the countries. The result from the long-run estimates shows that fossil fuel utilization exerts a positively significant on environmental degradation in the selected countries, while the observed negative impact of renewable energy utilization and urbanization on carbon dioxide emission (CO2) was insignificant in both the short and long run. The implication is that the current energy transition policy of the OPEC states is not sufficient at driving the states' environmental sustainability agenda. In addition, the EKC was not valid in the panel of the OPEC countries for the period of study, rather a U-shaped relation is established between income level and environmental degradation. Thus, this further posits that there is a setback in the push for environmental quality especially when there is an improvement in economic well-being through income growth in the OPEC states. Moreover, findings from the panel causality test show that there is no causality running from both fossil fuel and renewable energy consumption to the income level among the countries. On the contrary, a uni-directional causality was obtained from income level to renewable energy consumption, while urbanization strongly Granger causes fossil fuel use and CO2 emissions among the countries. As such, it is concluded that energy conservation policies can be implemented to reduce extreme dependence on fossil fuel use with little or no detrimental consequences, thus positioning the countries for economic prosperity in a sustainable environment.

Environmental aspect of energy transition and urbanization in the OPEC member states

The impacts of public expenditures on economic growth have been revisited in this paper with respect to capital expenditure, recurrent expenditure and the government fiscal expansion in line with support for the budgetary allocations to various sectors in the context of the Nigerian economy. Pesaran’s ARDL approach has been applied to carry out the impact analysis using annual time-series data from 1981 to 2017. Empirical findings support the existence of a level relationship between public spending indicators and economic growth in Nigeria. Incisively, recurrent expenditures of government were found to be significantly impacting on economic growth in a negative way while the positive impacts of public capital expenditures were not significant to economic growth over the period of the study. Further results from the Granger Causality Test reveal that fiscal expansion of the government that is hinged on debt financing is strongly granger causing public expenditures and domestic investment with the latter also Granger causing real growth in the economy. We, therefore, provide some important policy recommendations following the results of the empirical analysis.

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An empirical retrospect of the impacts of government expenditures on economic growth: new evidence from the Nigerian economy

The quest for improved environmental quality through low-carbon emission has been explored in this study in the wake of the growing call for a transition to renewable energy use amidst widening trade relations between Turkey and the countries in the Caspian region including Azerbaijan, Iran, Kazakhstan, Russia, and Turkmenistan. This study draws strength from the United Nations Sustainable Development Goals (UN-SDGs) and their impact by 2030. These SDGs encompass pertinent targets on responsible energy consumption (SDG-12), access to clean and affordable energy (SDG-7), and climate change action (SDG-13). Empirical evidence from the dynamic ordinary least squares (DOLS) technique corroborated by the fully modified ordinary least squares (FMOLS) technique shows that a percent rise in renewable energy consumption level significantly abates carbon emission among these countries by about 0.26% while growing globalization vis-a-vis a percent increase in openness to trade significantly hampers environmental quality via inducement of carbon emission level by 0.32%. Extended findings from the Granger causality analysis corroborate the significance of the long-run coefficients with regard to the double-edged benefits of renewable energy consumption in enhancing both environmental quality and income levels through lower carbon emission and sustainable economic growth stimulations among the countries. The study confirmed the inverted U-shape relation between income growth and environmental deterioration, thus validating the EKC hypothesis for Turkey and the Caspian countries. This suggests that both blocs are still at the scale stage of their growth trajectory, where the emphasis is focused on increasing income level relative to environmental sustainability. As such, important policy measures were provided in the concluding section of this study.

Renewables as a pathway to environmental sustainability targets in the era of trade liberalization: empirical evidence from Turkey and the Caspian countries

Inflation, Oil Revenue, and Monetary Policy Mix in an Oil-Dependent Economy: Empirical Insights from the Case of Nigeria

Bu calismada, dogrudan yabanci sermaye yatirimlari ve ekonomik buyume arasindaki iliski Turkiye’nin 1992-2007 donemi icin incelenmistir. Son donem uygulamali calismalarin bulgularina gore karma sonuclara ulasilmistir. Bazi calismalar dogrudan yabanci sermaye yatirimlarinin ekonomik buyume uzerindeki pozitif etkilerini desteklerken, bazi calismalarda ise iki faktor arasinda hicbir iliski bulunamamistir. Calismanin sonucunda dogrudan yabanci sermaye yatirimlari ve ekonomik buyume arasinda nedensellik iliskisi bulunamamistir. Ayrica calismada 2002-2007 donemine ait regresyon analizi incelenmistir. Modelin esneklik katsayilarina gore dogrudan yabanci sermaye yatirimlarinin ekonomik buyume uzerindeki etkisinin orta siddette oldugu sonucu bulunmustur

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Savaş Erdoğan

Papers

An empirical retrospect of the impacts of government expenditures on economic growth: new evidence from the Nigerian economy

Environmental aspect of energy transition and urbanization in the OPEC member states

Renewables as a pathway to environmental sustainability targets in the era of trade liberalization: empirical evidence from Turkey and the Caspian countries

Inflation, Oil Revenue, and Monetary Policy Mix in an Oil-Dependent Economy: Empirical Insights from the Case of Nigeria

Doğrudan Yabancı Sermaye Yatırımları ve Ekonomik Büyüme: Türkiye Deneyimi 1992-2007