Showing papers on "Cointegration published in 2020"
TL;DR: There is a need to strengthen innovation and transportation infrastructure to achieve environmental sustainability targets and the findings from a wavelet power spectrum reveal that there is a significant vulnerability in innovation, financial development, transportation infrastructure, and CO2 emissions at different time frames and frequencies.
306 citations
TL;DR: The empirical findings of this study indicate profound implications for policy makers, which recommend governments to consider the role of finance and governance in order to ensure that energy consumption, financial development, and sustainable economic growth are in harmony with the environment in the globalization era.
Abstract: The main objective of this study is to examine the impacts of globalization, financial development, government expenditures, and institutional quality on CO2 emissions, incorporating energy consumption, and GDP per capita in the Environmental Kuznets Curve (EKC) model for 47 Emerging Market and Developing Economies (EMDEs) between 1990 and 2014. Owing to the presence of cross-sectional dependence and slope heterogeneity in the panel data, CADF and CIPS unit root tests are employed to validate the stationarity of the variables. Westerlund (Oxf Bull Econ Stat 69:709-748, 2007) and Banerjee and Carrion-i-Silvestre (J Time Ser Anal 38:610-636, 2017) cointegration tests denote the occurrence of cointegration among the variables. We employed CCEMG, AMG, and DCCE estimators to estimate heterogeneous parameters. The findings demonstrate that globalization, financial development, and energy consumption increase CO2 emissions. Besides, the EKC hypothesis is affirmed in EMDEs. The accrual of governments' financial and governance activities also boosts carbon dioxide emissions. Moreover, the analysis of Dumitrescu and Hurlin causality provides evidences for the feedbacks among the variables and CO2 emissions. From the aforementioned results, there exists the trade-off effect between economic growth and environmental quality in EMDE countries. Finally, the empirical findings of this study indicate profound implications for policy makers, which recommend governments to consider the role of finance and governance in order to ensure that energy consumption, financial development, and sustainable economic growth are in harmony with the environment in the globalization era.
246 citations
TL;DR: In this article, the authors investigated the relationship between CO2 emissions in China and its prospective determinants, namely economic growth, globalization, financial development, and natural resources during the period from 1980 to 2017.
Abstract: This study aims to investigate the relationship between CO2 emissions in China and its prospective determinants, namely economic growth, globalization, financial development, and natural resources during the period from 1980 to 2017 We present more detailed analyses across multiple econometric approaches within a multivariate system, eg, the Bayer‐Hanck combined cointegration approach, the ARDL bounds test approach, ARDL estimates in short run and long run, robustness check by cointegration regressions (ie, FMOLS, DOLS, CCR), and Granger causality approach in the frequency domain Our results show that economic growth and natural resources have a positive impact on CO2 emissions in China, although globalization contributes to improving its environmental quality Meanwhile, there is no statistical evidence that CO2 emissions in China could be affected by financial development The causality analysis reveals that globalization, economic growth and natural resources all lead to CO2 emissions in the long run, while financial development only causes the short‐run CO2 emissions, which further demonstrate our findings Such findings are meaningful for policymakers to achieve the sustainable development in China
231 citations
TL;DR: In this article, the authors used an augmented Dickey-Fuller unit root test with and without structural breaks and Carrion-i-Silvestre et al. this article generalized least squares based test to examine the stationary properties of the variables.
216 citations
TL;DR: The findings have the following important policy implications for Turkey and other countries with high records of carbon emissions; the so-called fossil fuel capitalism needs to be overhauled, and a switch to low carbon, eco-friendly, energy mix content is required.
192 citations
TL;DR: The need for a paradigm shift from fossil fuel sources to renewables is encouraged in the region and the need to embrace carbon storage and capturing techniques to decouple pollutant emissions from economic growth on the continent's growth trajectory is suggested.
191 citations
TL;DR: The empirical results reveal that there is a long-term association among these variables; and electricity consumption and economic growth positively and significantly affect theCO2 emissions in these countries; and globalisation has significant negative impact on the CO2 emissions implying the improvement of environmental quality.
185 citations
TL;DR: The results showed an inverted U-shaped EKC behavior in ASEAN countries, hence a negative relation between tourism and natural resources with the ecological footprint, which implies that tourism andnatural resources help to improve the environmental quality in AseAN countries.
Abstract: This study examines the impacts of economic growth, energy consumption, tourism, and natural resources on the ecological footprint in the ASEAN countries for spanning from 1995 to 2016. For this purpose, the cross-sectional dependent test, the second-generation unit root test, and the Westerlund cointegration test have been applied. The Driscoll-Kraay panel regression model has been used to check the long-run relationship among the series. Also, the Dumitrescu-Hurlin panel causality test is used to determine the paths of causal interactions. These tests help to overcome the problem of cross-sectional dependence in panel data analysis. The results showed an inverted U-shaped EKC behavior in ASEAN countries, hence a negative relation between tourism and natural resources with the ecological footprint. This implies that tourism and natural resources help to improve the environmental quality in ASEAN countries.
155 citations
TL;DR: The results show that income, human capital, energy productivity, energy prices, and eco-innovation are important factors in explaining renewable energy consumption.
141 citations
TL;DR: In this article, the authors investigate the stochastic properties of six major cryptocurrencies and their bilateral linkages with six stock market indices using fractional integration techniques and provide evidence of no cointegration between the six cryptocurrencies.
140 citations
TL;DR: In this paper, the authors investigated the resource curse hypothesis in the presence of globalization, human capital, and economic growth in China during the period 1971-2017 and provided more rigorous analysis through several econometric methods, for instance, the Bayer and Hanck cointegration, the Autoregressive Distributed Lag (ARDL), robustness check by fully modified ordinary least squares (FMOLS), DOLS, canonical cointegrating regression (CCR), and Breitung-Candelon spectral Granger causality testing.
TL;DR: In this article, the authors examined and explored the impact of global climate change on agricultural output in China over the period of 1982-2014, using different unit root tests including augmented Dickey-Fuller, Phillips-Perron and Kwiatkowski, Phillips, Schmidt and Shin to check the order of integration among the study variables.
Abstract: The climate change effects on agricultural output in different regions of the world and have been debated in the literature of emerging economies. Recently, the agriculture sector has influenced globally through climate change and also hurts all sectors of economies. This study aims to examine and explore the impact of global climate change on agricultural output in China over the period of 1982-2014.,Different unit root tests including augmented Dickey–Fuller, Phillips–Perron and Kwiatkowski, Phillips, Schmidt and Shin are used to check the order of integration among the study variables. The autoregressive distributed lag (ARDL) bounds testing approach to cointegration and the Johansen cointegration test are applied to assess the association among the study variables with the evidence of long-run and short-run analysis.,Unit root test estimations confirm that all variables are stationary at the combination of I(0) and I(1). The results show that CO2 emissions have a significant effect on agricultural output in both long-run and short-run analyses, while temperature and rainfall have a negative effect on agricultural output in the long-run. Among other determinants, the land area under cereal crops, fertilizer consumption, and energy consumption have a positive and significant association with agricultural output in both long-run and short-run analysis. The estimated coefficient of the error correction term is also highly significant.,China’s population is multiplying, and in the coming decades, the country will face food safety and security challenges. Possible initiatives are needed to configure the Chinese Government to cope with the adverse effects of climate change on agriculture and ensure adequate food for the growing population. In concise, the analysis specifies that legislators and policy experts should spot that the climate change would transmute the total output factors, accordingly a county or regional specific and crop-specific total factor of production pattern adaptation is indorsed.,The present empirical study is the first, to the best of the authors’ knowledge, to investigate the impact of global climate change on agricultural output in China by using ARDL bounds testing approach to cointegration and Johansen cointegration test.
TL;DR: In this paper, the relationship between trade openness, renewable and non-renewable energy consumption for the top emerging countries of the world in 1980-2015 period is investigated, and the results of the study provide valuable information on how to increase the use of renewable energy for a sustainable economy in the long term for decision-makers, as well as for investors on the future of energyrelated investments.
TL;DR: This article revisits the nexus between financial development and environmental degradation by incorporating economic growth, electricity consumption and economic globalization in the CO 2 emissions function for the period 1975Q I –2014Q IV in the United Arab Emirates and shows cointegration between the series.
Abstract: This article revisits the nexus between financial development and environmental degradation by incorporating economic growth, electricity consumption and economic globalization in the CO2 emissions function for the period 1975QI-2014QIV in the United Arab Emirates. We apply structural break and cointegration tests to examine unit root and cointegration between the variables. Further, the article also uses the Toda-Yamamoto causality test to investigate the causal relationship between the variables and tests the linkages of the robustness of causality by following the innovative accounting approach. Our empirical analysis shows cointegration between the series. Financial development increases CO2 emissions. Economic growth is positively linked with environmental degradation. Electricity consumption improves environmental quality. Economic globalization affects CO2 emissions negatively. The relationship between financial development and CO2 emissions is U-shaped and inverted N-shaped. Further, financial development leads to environmental degradation and environmental degradation in turn leads to financial development in the Granger sense.
TL;DR: In this paper, the impact of oil prices on the Dow Jones (DJ) Islamic index and sectoral stock indices was examined by using quantile-on-quantile approach to examine the impact across diverse quantiles of explanatory and outcome variables.
TL;DR: Using econometric methods which can solve the problem of cross-sectional dependence and heterogeneity of slope such as CIPS and CADF unit root tests, LM bootstrap panel cointegration test, Continuously-Updated Fully-Modified (CUP-FM) estimators, and Dumitrescu-Hurlin panel causality test, the authors reveal that biomass energy usage increase human development in BRICS countries and bidirectional causality exists between these two variables.
TL;DR: In this article, the authors empirically analyze the compatibility of national trade liberalization policies with regards to promoting widespread use of renewable energy resources across 71 low, lower-middle and upper-middle income countries from South Asia, East Asia, Pacific, Central Asia, Latin America, Caribbean islands and Sub-Saharan Africa.
TL;DR: Shahbaz et al. as discussed by the authors examined the relationship between renewable energy consumption, non-renewable energy consumption and foreign direct investment, economic growth and carbon emissions for the nine countries (i.e., Denmark, Finland, France, India, Italy, Morocco, Norway, Portugal, Sweden) identified in the Climate Change Performance Index (CCPI) 2018 report.
TL;DR: Though urbanization is a good predictor of Nigeria's economic growth, however, the adjustment of the energy portfolio to meet the growing urban demand will curtail the adverse and far-reaching impact of urbanization on the economy.
TL;DR: In this paper, the authors analyzed the energy-institutional stability-economic growth nexus, as well as the energyinstitutional instability-environmental quality nexus, by incorporating the Cobb Douglas production function and the Diet and Rosa environmental function respectively.
TL;DR: In this paper, the authors explored the dynamic relationship between financial development, globalization, energy consumption, economic growth, and ecological footprint in G7 countries over the period 1980-2015, using a recently introduced threshold cointegration test with an endogenous structural break.
Abstract: This paper empirically explores the dynamic relationships between financial development, globalization, energy consumption, economic growth, and ecological footprint in G7 countries over the period 1980–2015. Using a recently introduced threshold cointegration test with an endogenous structural break, the paper aims primarily to determine the effects of financial development and globalization on environmental degradation. The results confirm the presence of cointegration in Canada, Italy, and Japan. The long-run estimates indicate that globalization significantly reduces ecological footprint in Canada and Italy, while financial development reduces pollution in Japan. The findings also demonstrate that energy consumption stimulates environmental degradation in these three countries. Furthermore, the causality test that considers smooth structural breaks via a fractional frequency flexible Fourier function indicates that globalization causes ecological footprint in all the G7 countries except France, while financial development causes ecological footprint in France, Japan, and the United Kingdom. Finally, the overall results suggest that globalization is a more effective tool than financial development in regulating ecological footprint for G7 countries. Therefore, we recommend that policymakers should make use of the opportunities that globalization offers to solve environmental problems.
TL;DR: The empirical results confirm the presence of cointegration among the variables, and thus validate the EKC hypothesis for South Africa, and suggest that globalization condenses environmental degradation.
Abstract: This study investigates the effects of energy consumption, democracy and globalization on environmental degradation in the context of the environmental Kuznets curve (EKC) for South Africa between 1971 and 2014. To this end, the study applies the combined Bayer-Hanck cointegration test and the fully modified ordinary least squares (FM-OLS) estimation approach. The empirical results confirm the presence of cointegration among the variables, and thus validate the EKC hypothesis for South Africa. In addition, while energy consumption increases environmental degradation, the effect of democracy is positively insignificant. The finding also suggests that globalization condenses environmental degradation. The results of the long-run causal relationship divulge that economic growth, energy consumption, democracy and globalization Granger-cause environmental degradation. The results also find causality running from CO2 emissions, economic growth, democracy and globalization to energy consumption. In the short run, a causality is found running from globalization to CO2 emissions, energy consumption to CO2 emissions and globalization to energy consumption. In addition, economic growth is said to Granger-cause democracy while democracy Granger-causes CO2 emissions. These results are validated by the innovation accounting tests.
TL;DR: In this paper, the link between economic growth, renewable energy, tourism arrivals, trade openness, and carbon dioxide emissions in the European Union (EU-28) was evaluated using panel data.
Abstract: This paper evaluates the link between economic growth, renewable energy, tourism arrivals, trade openness, and carbon dioxide emissions in the European Union (EU-28). As an econometric strategy, the research uses panel data. In the first step, we apply the unit root test, and the results demonstrated that the variables used in this study are integrated I (1) in the first difference. In the second step, we apply the Pedroni cointegration test, and Kao Residual cointegration test, and we observe that the variables are cointegrated in the long run. The panel fully modified least squares (FMOLS), panel dynamic least squares (DOLS), and generalized moments system (GMM-System) estimator are considered in this research. The econometric results proved that trade openness and renewable energy decreased climate change and environmental degradation. The empirical study also found a positive effect of economic growth on carbon dioxide emissions. Moreover, tourism arrivals are negatively correlated with carbon dioxide emissions, showing sustainability practices of the tourism sector on the environment. Furthermore, carbon dioxide emissions in the long run present a positive impact, indicating that climate change increases. In this study, we also consider the recent methodology of Dumitrescu–Hurlin to observe the causality and the relationship between renewable energy, trade openness, economic growth, tourism arrivals, and carbon dioxide emissions.
TL;DR: Empirical findings suggest that economic policy reforms are required to channelise foreign capital inflows to a more environmentally healthy direction and the governments of Asian countries should chalk out policies on FDI inflows and the environment in order to achieve sustainable economic growth and development.
Abstract: This study investigated the causal linkage between environmental pollution by carbon dioxide (CO2) emissions and net foreign direct investment (FDI), along with some other variables, namely economic growth by real per capita income and trade openness, using balanced annual data of 17 countries from Asia for the period from 1980 to 2014. Panel cointegration tests confirm the long-run association among the variables. After checking the panel data for stationarity properties, the method panel fully modified ordinary least squares (FMOLS) is implemented. The FMOLS estimates on CO2 emission model reveal that inward FDI has a significantly positive impact on environmental pollution, supporting the pollution haven hypothesis (PHH). Likewise, FDI model results imply that CO2 emissions represent environmental pollution; economic growth and trade openness are the pivotal determinants of FDI. Panel causality results suggest bidirectional linkages between CO2 emissions and inward FDI. Empirical findings suggest that economic policy reforms are required to channelise foreign capital inflows to a more environmentally healthy direction. The governments of Asian countries should chalk out policies on FDI inflows and the environment in order to achieve sustainable economic growth and development.
TL;DR: In this paper, the linkages among CO2 emissions, tourist arrivals, energy consumption, and economic growth for the period 1960-2014 in Turkey were analyzed, using three cointegration models.
Abstract: This study analyzes the linkages among CO2 emissions, tourist arrivals, energy consumption, and economic growth for the period 1960–2014 in Turkey. The study employed three cointegration te...
TL;DR: The causality tests suggest that a one-way causal link running from FDI to industrialization and from industrialization to coal consumption exists, and FDI inflow drives total natural resource rents in South Africa.
Abstract: This study examines the role of industrialization in the energy-growth-FDI nexus for the case of South Africa using data over the period 1970 to 2018. The empirical exercise was conducted using Pesaran Autoregressive Distributed Lag (ARDL) bounds testing approach. To accomplish our study objective, we analyze stationarity properties of the series using the unit root test after which we applied Bayer-Hanck (B-H) combined technique to cointegration to assess whether a long-run relationship exists among the series. Empirical results show that a 1% change in FDI account for 0.002% and 0.013% increase in economic expansion in the short- and long- run respectively. Also, a 1% increase in coal consumption influence GDP negatively by 0.083% and 0.207% in the short and long run respectively. Furthermore, a 1% increase in total natural resource rent positively affects GDP by 0.02% and 0.05% respectively in the short and long run. Industrialization, on the other hand, demonstrates a positive and significant impact on the economic growth process both in the short and long run. Industrialization contributes 0.506% and 1.274% to economic expansion both in the short and long run respectively. The causality tests suggest that a one-way causal link running from FDI to industrialization and from industrialization to coal consumption exists. Finally, FDI inflow drives total natural resource rents in South Africa. This study also gives reliable growth and energy policy proposals to policymakers applicable to countries around the globe.
TL;DR: In this paper, the authors revisited the natural gas-economic growth nexus hypothesis in the case of Malaysia, with data from 1980 to 2014 in a multivariate framework with the inclusion of capital formation, globalization, and CO2 emissions.
TL;DR: In this paper, the authors investigate possible determinants of CO2 emissions caused by transport sector activity for 12 European countries from 1994 to 2014, and examine the effects of environmental policy stringency, climate change mitigation technologies related to transportation, and the share of value added by the transport sector and infrastructure investments (rail, inland waterways, and roads).
TL;DR: In this article, the authors investigated the relationship between economic activities such as energy production, trade, and economic growth in Brazil and found that electricity generation, GDP, and trade liberalization have both positive and negative effects on Brazil's economy.
TL;DR: In this paper, the authors examined the dynamic relationship between energy consumption, CO2 emissions and economic output in ASEAN for the period 1971-2015 using cointegration and causality models.