scholarly journals Mitigating Environmental Degradation With Institutional Quality and Foreign Direct Investment (FDI): New Evidence From Asymmetric Approach

2021 ◽  
Author(s):  
Edmund Ntom Udemba
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Direct Investment ◽  
Carbon Emission ◽  
Fossil Fuels ◽  
Negative Impact ◽  
Institutional Quality ◽  
Renewable Energy Consumption ◽  
The Impact

Abstract 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 the recommend the region of 20C 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 combine (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.

scholarly journals Institutions Powers, financial development and environmental factors influence on Carbon emission: Evidence from a Global Perspective

2021 ◽  
Author(s):  
hayat khan ◽  
Liu weili ◽  
itbar khan
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Financial Development ◽  
Environmental Quality ◽  
Direct Investment ◽  
Carbon Emission ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
Global Perspective

Abstract This study explores the moderating power of institutional quality on carbon emission through renewable energy consumption, foreign direct investment, economic growth and financial development in the globe for the period of 2002 to 2019. By using two Step System Generalized Method of Moments, the results illustrate that renewable energy usage and foreign direct investment inflow enhance environmental quality while financial development and economic growth lowers environmental quality in the panel. The results shows that quality institutions in countries are still not yet adequate to defend the harmful impact of every environmental factor and protect environment however, the interaction term of institutional quality confirms the significant moderating effect of all explanatory variables on environmental quality in the panel. The findings also confirm the existence of Environmental Kuznets Curve and evidence the pollution halo hypothesis. The findings of this paper can be useful for policy makers whereas conducting stricter environmental regulation.

scholarly journals Triangular Policy Inference from Renewable Energy, Foreign Direct Investment (FDI) and Urbanization Towards Climate Goal: Insight from Indonesia

2021 ◽  
Author(s):  
Edmund Ntom Udemba ◽  
Lucy Davou Philip
Keyword(s):  
Economic Growth ◽  
Energy Source ◽  
Renewable Energy Source ◽  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Causal Relationship ◽  
Granger Causality ◽  
Direct Investment ◽  
Carbon Emission ◽  
Fossil Fuels

Abstract This is an expository study towards ascertaining the ability of Indonesia in mitigating carbon emission. Indonesia is positioned as among the best performing economies in Southeast Asia because of its vigorous fiscal management and sustained economic growth over the years. The country’s foreign investment inflow increased to 14% in 2019, largely in gas, electricity, water, and transportation because of the viability of its macroeconomic reforms. To test the environmental implication of this macroeconomic performance of Indonesia and to see its ability to achieve carbon neutrality, we adopt Indonesian quarterly data of 1990Q1- 2018Q4 for empirical analysis. Relevance 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 such as 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 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-shape 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 source (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 Indonesia environment development.

scholarly journals Policy Insight from Renewable Energy, Foreign Direct Investment (FDI) and Urbanization towards Climate Goal: Insight from Indonesia

2022 ◽  
Author(s):  
Edmund Ntom Udemba ◽  
Lucy Davou Philip
Keyword(s):  
Economic Growth ◽  
Energy Source ◽  
Renewable Energy Source ◽  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Causal Relationship ◽  
Granger Causality ◽  
Direct Investment ◽  
Carbon Emission ◽  
Fossil Fuels

Abstract This is an expository study towards ascertaining the ability of Indonesia in mitigating carbon emission. Indonesia is positioned as among the best performing economies in Southeast Asia because of its vigorous fiscal management and sustained economic growth over the years. The country’s foreign investment inflow increased to 14% in 2019, largely in gas, electricity, water, and transportation because of the viability of its macroeconomic reforms. To test the environmental implication of this macroeconomic performance of Indonesia and to see its ability to achieve carbon neutrality, we adopt Indonesian quarterly data of 1990Q1- 2018Q4 for empirical analysis. Relevance 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 such as 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 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-shape 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 source (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 Indonesia environment development.

scholarly journals The Dynamic Interrelationship of Environmental Factors and Foreign Direct Investment: Dynamic Panel Data Analysis and New Evidence from the Globe

2020 ◽  
Vol 2020 ◽  
pp. 1-12
Author(s):  
Hayat Khan ◽  
Itbar Khan ◽  
Le Thi Kim Oanh ◽  
Zhang Lin
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Environmental Factors ◽  
Environmental Quality ◽  
Direct Investment ◽  
Carbon Emission ◽  
Dynamic Panel Data ◽  
Renewable Energy Consumption

Studies on the role of renewable energy consumption and other environmental factors in carbon emission have got considerable attention recently, and they are predicted to get exaggerated in the coming decades. Energy usage increases economic growth and development of a country and backs to global warming and carbon emission which affect the local environment. For the prosperity of a country, it is felt crucial to measure the unavoidable impacts which effect environmental quality. Consequently, the current study investigates the interrelationship of renewable energy consumption, carbon dioxide emission, foreign direct investment, and economic growth in 190 countries of the world for the period of 1980 to 2018. By employing both static and dynamic models, the findings indicate that carbon emission, renewable energy consumption, foreign direct investment, and economic growth affect each other significantly whereas renewable energy consumption has been found beneficial for environmental quality; however, it decreases the inflow of FDI. RE has a decreasing impact, while FDI and carbon emission promote economic growth. The study suggests the promotion of renewable energy resources and policies related to FDI to promote the quality of the environment and achieve economic growth as well.

scholarly journals Empirical Research on the Relationship amongst Renewable Energy Consumption, Economic Growth and Foreign Direct Investment in Kazakhstan and Uzbekistan

Energies ◽  
2021 ◽  
Vol 14 (2) ◽  
pp. 332
Author(s):  
Janusz Grabara ◽  
Arsen Tleppayev ◽  
Malika Dabylova ◽  
Leonardus W. W. Mihardjo ◽  
Zdzisława Dacko-Pikiewicz
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Direct Investment ◽  
Renewable Energy Sources ◽  
Energy Sources ◽  
Renewable Energy Consumption ◽  
Integration Test ◽  
The Relationship

In this contemporary era, environmental problems spread at different levels in all countries of the world. Economic growth does not just depend on prioritizing the environment or improving the environmental situation. If the foreign direct investment is directed to the polluting industries, they will increase pollution and damage the environment. The purpose of the study is to consider the relationship between foreign direct investment in Kazakhstan and Uzbekistan and economic growth and renewable energy consumption. The study is based on data obtained from 1992 to 2018. The results show that there is a two-way link between foreign direct investment and renewable energy consumption in the considered two countries. The Granger causality test approach is applied to explore the causal relationship between the variables. The Johansen co-integration test approach is also employed to test for a relationship. The empirical results verify the existence of co-integration between the series. The main factors influencing renewable energy are economic growth and electricity consumption. To reduce dependence on fuel-based energy sources, Kazakhstan and Uzbekistan need to attract energy to renewable energy sources and implement energy efficiency based on rapid progress. This is because renewable energy sources play the role of an engine that stimulates the production process in the economy for all countries.

The nexus between financial development and energy consumption: Estimating the role of foreign direct investment, economic growth and urbanization

2021 ◽  
pp. 0958305X2110453
Author(s):  
Jaleel Ahmed ◽  
Shuja ur Rehman ◽  
Zaid Zuhaira ◽  
Shoaib Nisar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Financial Development ◽  
Latin American ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Supply And Demand ◽  
The Impact

This study examines the impact of financial development on energy consumption for a wide array of countries. The estimators used for financial development are foreign direct investment, economic growth and urbanization. The study employed a panel data regression on 136 countries with time frame of years 1990 to 2019. The model in this study deploys system GMM technique to estimate the model. The results show that financial development has a significant negative impact on energy consumption overall. Foreign direct investment and urbanization has significant impact on energy consumption. Also, economic growth positive impact on energy consumption its mean that economic growth promotes energy consumption. When dividing further the sample into different groups of regions such as Asian, European, African, North/Latin American and Caribbean countries then mixed results related to the nexus between financial development and energy consumption with respect to economic growth, urbanization and foreign direct investment. The policymakers in these different groups of countries must balance the relationship between energy supply and demand to achieving the sustainable economic development.

scholarly journals Do High Oil Prices Obstruct the Transition to Renewable Energy Consumption?

2020 ◽  
Vol 12 (11) ◽  
pp. 4689 ◽  
Author(s):  
Shahriyar Mukhtarov ◽  
Jeyhun I. Mikayilov ◽  
Sugra Humbatova ◽  
Vugar Muradov
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Negative Impact ◽  
Oil Prices ◽  
Oil Price ◽  
Renewable Energy Consumption ◽  
Long Run ◽  
Carbon Dioxide Co2 ◽  
The Impact

The study analyzes the impact of economic growth, carbon dioxide (CO2) emissions, and oil price on renewable energy consumption in Azerbaijan for the data spanning from 1992 to 2015, utilizing structural time series modeling approach. Estimation results reveal that there is a long-run positive and statistically significant effect of economic growth on renewable energy consumption and a negative impact of oil price in the case of Azerbaijan, for the studied period. The negative impact of oil price on renewable energy consumption can be seen as an indication of comfort brought by the environment of higher oil prices, which delays the transition from conventional energy sources to renewable energy consumption for the studied country case. Also, we find that the effect of CO2 on renewable energy consumption is negative but statistically insignificant. The results of this article might be beneficial for policymakers and support the current literature for further research for oil-rich developing countries.

scholarly journals Modeling the impact assessment of agricultural sector on economic development as a basis for the country’s investment potential

2019 ◽  
Vol 16 (3) ◽  
pp. 229-240
Author(s):  
Alina Bukhtiarova ◽  
Arsen Hayriyan ◽  
Victor Chentsov ◽  
Sergii Sokol
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Agricultural Sector ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Value Added ◽  
The Cost ◽  
The Impact

In the context of countries integration into the world economic space, agricultural sector is one of the priorities and strategically important sectors of the national economy. Development of instruments aimed to increase investment potential of this sector is therefore an important component of the country’s economy growth. The article proposes a science-based model of the impact of the agricultural sector on the economic development level of countries trying to move towards European integration.It was found that the employment rate (+58.4) has the largest influence on the rate of GDP change in the studied group of countries (Ukraine, Moldova, Georgia, Armenia). The impact of the gross value added of the manufacturing sector on its economic growth is positive (+44.6). The negative foreign direct investment ratio in the model (–40.3) may be due to the fact that the indicator in the studied countries is still largely influenced by the intervention of the state mechanism, significant uncertainty and risk, which is a deterrent to the overall economic development. An important result of the study was that foreign direct investment had a negative impact on economic growth in developing countries. Further development of the investment potential of a country’s agricultural sector provides for a radical acceleration of scientific and technological progress and, on this basis, a reduction in the cost of a unit of agricultural products and food and an increase in their competitiveness in the domestic and world markets.

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