Financial development and environmental degradation: Do human capital and institutional quality make a difference?

Heterogeneity of pollution haven/halo hypothesis and Environmental Kuznets Curve hypothesis across development levels of Chinese provinces

Prioritizing and overcoming biomass energy barriers: Application of AHP and G-TOPSIS approaches

Since developing countries experience economic and environmental sustainability challenges, it is desirable digging into the linkages between economic and environmental parameters. The purpose of this work is to evaluate the existence of the environmental Kuznets curve (EKC) theory (i.e., the inverse U-shape connection between real GDP per capita and per capita carbon dioxide emissions) in the sample of 11 developing countries. By using balanced annual panel data in the period between 1992 and 2014 and two alternative estimation techniques, we explored the potential inverted U-shaped linkage between carbon dioxide emissions and real GDP per capita in the sample of interest. For analysis purposes, Pedroni and Westerlund co-integration techniques are employed. Then, fully modified ordinary least squares, pooled mean group methods are applied for long-run parameter estimations. And, the Dumitrescu-Hurlin causality approach is employed for causal directions. Firstly, this work’s findings provide the supportive evidence to the inverse U-shaped linkage in the long-run, indicating that an increase in real GDP per capita and electricity consumption tends to mitigate long-run carbon dioxide emissions in the developing countries, for the whole sample. Secondly, the country-specific findings suggested the presence of EKC theory for Brazil, China, India, Malaysia, the Russian Federation, Thailand, and Turkey. It implicated that these countries are on the path of attaining environmental sustainability in the long-run. However, Mexico, Philippines, Indonesia, and South Africa failed to lend credence to the EKC theory. It manifested that these countries need to design strategies directed to reduce carbon dioxide emissions from economic activity and electricity generation through efficiency improvement or promotion of renewables. Finally, bidirectional causal links are observed among all the variables of interest. The findings suggest that country-specific targeted action plans should be implemented to ensure the environmental sustainability in the developing world.

Does economic prosperity lead to environmental sustainability in developing economies? Environmental Kuznets curve theory

Do economic development and human capital decrease non-renewable energy consumption? Evidence for OECD countries

The accelerated urbanization process generates a significant increase in energy, whose sources are mainly polluting. The harmful effects of both processes are reflected in climate change. This article examines the equilibrium and causality relationship among urban concentration, non-renewable energy consumption, and the real per capita output in 110 countries during 1971–2017. Using data from the World Bank’s World Development Indicators (2018), we classify countries into four groups according to their level of development. Our evidence suggests that urban concentration has a negative effect on real per capita output in high-income countries, while non-renewable energy consumption has a positive effect on all groups of countries. The cointegration tests show that there is short- and long-term equilibrium in all groups of countries. The results of the DOLS and PDOLS models indicate that the strength of the cointegration vector is weak in most of the countries and groups analyzed. The Granger-type causality tests show that there is bidirectional causality from the real per capita output to the urban concentration in high and middle-low-income countries. There is unidirectional causality from the population concentration towards the real per capita output in the low-income countries; from the non-renewable energy consumption to the real per capita output in high-income countries; from the real per capita output to the non-renewable energy consumption in the countries of medium-high and medium-low income; and from urban concentration to non-renewable energy consumption in high- and medium-high-income countries. Our results highlight the importance of promoting policies of urban planning and generation and consumption of renewable energy without limiting the expansion of the output.

Diana Bravo

Papers

Do economic development and human capital decrease non-renewable energy consumption? Evidence for OECD countries

Urban concentration, non-renewable energy consumption, and output: do levels of economic development matter?