• Energy Research

This paper explores the asymmetric relationship between renewable energy consumption, non-renewable energy, and terrorism on economic growth of Pakistan. We applied a novel econometric cointegration method known as a nonlinear autoregressive distributed lag modeling (NARDL). Our empirical findings indicate that positive and negative changes have a significant long-run asymmetric relationship between renewable energy, and terrorism on economic growth. We also found a negative and significant effect of non-renewable energy consumption on economic growth. To keep our environment clean and free of emissions, the study specifies policies that rely on renewable energy sources to boost economic growth. However, reduces terrorism has a positive impact on economic growth in the long-run and shows as an influential tool to combat terrorism in Pakistan. These novel results will help policy-makers and government officials to understand better the role of renewable energy and economic growth in Pakistan's development.

The swift advancement of information technology has significantly impacted the energy transition. Being the largest energy consumer globally, China’s acceleration of the urban energy transition will promote sustainable development and pave the way for future development. This study examines the impact of the digital divide between cities regarding the energy transition by using panel data for 271 Chinese cities from 2006 to 2021. We found the following results. (1) The digital divide has an inhibitory effect on the energy transition of cities, hindering their development towards green and low-carbon development. (2) Further analyses found that the negative impact of the digital divide on energy transition can be effectively mitigated by strengthening urban infrastructure construction, promoting emerging technological innovation, and cultivating and attracting talent in the digital industry. (3) The results of the subsample analyses show that the inhibitory effect of the digital divide on energy transition is more significant in densely populated cities, economically and technologically developed cities, and non-resource-based cities. The above findings hold significant practical implications for overcoming the digital divide and the stagnation of energy transition, and for the scientific implementation of China’s “Carbon Neutrality” initiative.

Abstract This study investigates how energy and stock markets affect the dynamics of green stock price returns considering recent periods of crises and increased uncertainty. Particularly, following the 21st Conference of the Parties (COP21)-Paris agreement and global financial crisis, it is important to assess the causal relationship between energy market, stock market, and green stock returns. Accordingly, this study employed different quantile-causality approaches to conduct a detailed analysis of the asymmetric causal relationship associated with different market regimes (normal, bad, and good). Overall, our parametric Granger-causality findings show that clean energy markets react to crude oil and stock markets depending on the market regime. Additionally, the cross-correlogram test revealed that there are negative and significant cross relations when the stock market is in bullish condition and clean energy indices in bearish conditions. These findings have important implications for portfolio diversification and hedging decisions of environmentally concerned investors. This also supports policymakers in articulating policies that seek to avoid the contagion risk to ensure financial stability.

Abstract Globally, all countries are worried about rising carbon emissions (greenhouse gas emissions), it leads environmental degradation, increase sea level and reduce agriculture output due to large use of traditional energy resource. As a result, international organizations have begun to pressurize countries to reduce their carbon emissions by increasing the use of clean energy sources. In such circumstances, this study examines the extent to which foreign direct investment (FDI) inflows, stock market capitalization, and research & development expenditures affect clean energy demand in the major investment countries, spanning the period from 1996 to 2017. The empirical results of long-run elasticities show that FDI inflows and research & development expenditures play a considerable role in promoting clean energy consumption. Further, it is indicated that clean energy consumption has a negative effect on carbon emissions, but a positive effect on economic growth. Research & development expenditures and FDI inflows, meanwhile, have a significant negative impact on CO2 emissions. Based on the results, the study recommends that policy makers in the major investment countries should understand that it is worth investing research & development expenditures as it is encouraging the use of clean energy and supporting lower carbon emissions. These empirical findings offer increased understanding for policy makers, enabling them to utilize research & development expenditures as a tool in the energy sector for the improvement of environmental quality.

This paper explores the relationship between ‘public-private partnerships investment in energy sector and carbon emissions’ considering the vital role of technological innovations in carbon emissions function for China. In doing so, we apply bootstrapping autoregressive distributed lag modeling (BARDL) for examining the cointegration between carbon emissions and its determinants. The empirical results reveal that public-private partnerships investment in energy impedes environmental quality by increasing carbon emissions. On contrary, technological innovations have negative effect on carbon emissions. The relationship between economic growth and carbon emissions is inverted-U shaped i.e. environmental Kuznets curve hypothesis. Exports are positively linked with carbon emissions. Foreign direct investment impedes environmental quality by stimulating CO2 emissions. The empirical findings provide new insights for policy makers to direct public-private partnerships investment in energy for the betterment of environmental quality in China.

This study investigates the relationship between technological progression and ambient air pollution in top-10 polluted Middle East and North African (MENA) countries by using monthly data for the period of 1990-2017. The Quantile cointegration proposed by Xiao (2009), Quantile-on-Quantile regression (QQ) proposed by Sim and Zhou (2015), and Quantile Autoregressive Granger causality developed by Troster et al. (2018) are applied. In particular, we examine to which extent, quantiles of technological progression affect the quantiles of ambient air pollution, by developing separate indicators for both the mentioned aspects using Principal Component Analysis (PCA). Our empirical findings unfold mutual dependence between technological progression and ambient air pollution. Furthermore, the results of Quantile Autoregressive Granger causality test conclude a bidirectional causal relationship between technological progression and ambient air pollution.

Abstract This paper aims to revisit Chinese resource curse hypothesis in the recent era of globalization. The study used provincial panel data of China ranging from year 2005–2018. Spatial regression partial differential method has been employed to test the resource curse hypothesis to reveal the relationship between China's economic growth and natural resources with new features in recent era of globalization. Empirical findings show that there is significant spatial dependence and spatial heterogeneity in China's provincial economic growth under the spatial correlation model; the intra-regional spillover effect, regional spillover effect and total spatial spillover effect of natural resources on economic growth are significantly negative. Similarly, it confirms the existence of resource curse hypothesis. Moreover, the total effect, indirect effect and direct effect of material capital investment and technological innovation on economic growth are positive. It means that the regional economy will grow due to technological innovation and physical capital investment. Correspondingly, this growth will radiate to the surrounding areas. However, the decomposition effect of the labor supply situation on economic growth is negative. So, it can be pointed out that the regional economic growth rate will slow down due to the expansion of the labor force population. But, the overall effect of human capital investment is positive, which means it can significantly promote economic growth. Although, the direct effect of opening to the outside world on economic growth is negative, but its overall effect on economic growth is positive which shows whether opening to the outside world can stimulate the economy varies from different places.

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.