• Energy Research

AbstractThe relentless devastating impacts of global warming and other climate change effects leading to incessant ecological damages have compelled governments across the globe to rethink the pattern of natural resource depletion. This has motivated policymakers, governments, international organizations, and research pundits alike to advocate for a transition to sustainable consumption and production of natural resources. Consequently, there is a growing call for sustainable production and consumption practices, as outlined in Sustainable Development Goal 12 (SDG‐12). This research probes how natural resource production and consumption facilitate or hinder environmental sustainability in G7 economies from 1996 to 2020. The empirical evidence incorporates green energy, green technology, green finance, environmental tax, financial development, economic growth, and population as control variables within the STIRPAT theoretical framework. Second‐generation estimating techniques are utilized for empirical verification. An outstanding contribution of this study among others is the estimation of the moderating effects of green energy in mitigating the ensuing impact of natural resources on environmental sustainability. The results indicate that both production and consumption of natural resources, particularly coal and oil negatively affect environmental sustainability. Furthermore, green technology, energy, and finance as well as environmental tax are found to play a crucial role in promoting environmental sustainability. Green technology plays significant part in subduing the deteriorating effects of natural resources on the ecosystem. The robustness analyses further buttress the main analyses. Policy recommendations are proposed based on the empirical results.

AbstractThe relentless devastating impacts of global warming and other climate change effects leading to incessant ecological damages have compelled governments across the globe to rethink the pattern of natural resource depletion. This has motivated policymakers, governments, international organizations, and research pundits alike to advocate for a transition to sustainable consumption and production of natural resources. Consequently, there is a growing call for sustainable production and consumption practices, as outlined in Sustainable Development Goal 12 (SDG‐12). This research probes how natural resource production and consumption facilitate or hinder environmental sustainability in G7 economies from 1996 to 2020. The empirical evidence incorporates green energy, green technology, green finance, environmental tax, financial development, economic growth, and population as control variables within the STIRPAT theoretical framework. Second‐generation estimating techniques are utilized for empirical verification. An outstanding contribution of this study among others is the estimation of the moderating effects of green energy in mitigating the ensuing impact of natural resources on environmental sustainability. The results indicate that both production and consumption of natural resources, particularly coal and oil negatively affect environmental sustainability. Furthermore, green technology, energy, and finance as well as environmental tax are found to play a crucial role in promoting environmental sustainability. Green technology plays significant part in subduing the deteriorating effects of natural resources on the ecosystem. The robustness analyses further buttress the main analyses. Policy recommendations are proposed based on the empirical results.

AbstractStudying environmental quality is essential for promoting sustainable development and ensuring a healthy and prosperous future for all, as it directly affects human health, well‐being, and quality of life. This paper looks at how globalisation, remittances, human capital, foreign direct investment, and financial growth affect carbon dioxide emissions in landlocked African countries from 1980 to 2018. The study looks at the elasticities between study factors by using second‐generation tests, as well as Continuously‐updated and Fully Modified (Cup‐FM) and Continuously‐updated and Bias‐Corrected (Cup‐BC) tests. The results show that remittances, human capital, natural resources, and income growth all make the environment worse by increasing CO2 emissions, whilst globalisation, foreign direct investment, and financial development all make it better by reducing emissions. The panel causality analysis shows that there are two ways in which transfers and CO2 emissions cause each other, but only one way in which CO2 emissions cause globalisation. Globalisation should be implemented sustainably to avoid irreversible long‐term environmental impacts that deprive future generations of the chance to prosper or maintain their quality of life. It should also empower people and reduce inequality in landlocked countries.

AbstractStudying environmental quality is essential for promoting sustainable development and ensuring a healthy and prosperous future for all, as it directly affects human health, well‐being, and quality of life. This paper looks at how globalisation, remittances, human capital, foreign direct investment, and financial growth affect carbon dioxide emissions in landlocked African countries from 1980 to 2018. The study looks at the elasticities between study factors by using second‐generation tests, as well as Continuously‐updated and Fully Modified (Cup‐FM) and Continuously‐updated and Bias‐Corrected (Cup‐BC) tests. The results show that remittances, human capital, natural resources, and income growth all make the environment worse by increasing CO2 emissions, whilst globalisation, foreign direct investment, and financial development all make it better by reducing emissions. The panel causality analysis shows that there are two ways in which transfers and CO2 emissions cause each other, but only one way in which CO2 emissions cause globalisation. Globalisation should be implemented sustainably to avoid irreversible long‐term environmental impacts that deprive future generations of the chance to prosper or maintain their quality of life. It should also empower people and reduce inequality in landlocked countries.

Although available statistics reveal Africa as an insignificant contributor to the devastating global climate condition, the succeeding impacts seem to hit the region harder than others. Efforts to address the environmental issues have seen the transition from carbon-intensive to carbon-abating sectors. Hence, this study makes the first empirical attempt to probe the ecological effects of structural transition and demographic mobility amidst the presence of technological innovation, foreign direct investment, and renewable energy. The empirical evidence focuses on the five highest emitters in Africa from 1990 to 2019 using advanced estimators, including cross-sectional autoregressive distributed lag (CS-ARDL), augmented mean group (AMG), common correlated effect mean group (CCEMG), and method of moment quantile regression (MMQR). For easy tracking of emanating effects, structural transition is captured by agriculture, manufacturing, and service sectors’ value added, whereas demographic mobility vectors rural and urban population. The results reveal agriculture sector, manufacturing sector, rural population, and urban population as amplifiers of CO2 emissions. Conversely, the moderating roles of technological innovation amidst service sector, foreign direct investment, and renewable energy are confirmed. Besides, Granger causality uncovers unidirectional and bidirectional causality in the model. Promoting developments in research and development and adopting carbon tax policies are among the emanating policies on the findings.

Although available statistics reveal Africa as an insignificant contributor to the devastating global climate condition, the succeeding impacts seem to hit the region harder than others. Efforts to address the environmental issues have seen the transition from carbon-intensive to carbon-abating sectors. Hence, this study makes the first empirical attempt to probe the ecological effects of structural transition and demographic mobility amidst the presence of technological innovation, foreign direct investment, and renewable energy. The empirical evidence focuses on the five highest emitters in Africa from 1990 to 2019 using advanced estimators, including cross-sectional autoregressive distributed lag (CS-ARDL), augmented mean group (AMG), common correlated effect mean group (CCEMG), and method of moment quantile regression (MMQR). For easy tracking of emanating effects, structural transition is captured by agriculture, manufacturing, and service sectors’ value added, whereas demographic mobility vectors rural and urban population. The results reveal agriculture sector, manufacturing sector, rural population, and urban population as amplifiers of CO2 emissions. Conversely, the moderating roles of technological innovation amidst service sector, foreign direct investment, and renewable energy are confirmed. Besides, Granger causality uncovers unidirectional and bidirectional causality in the model. Promoting developments in research and development and adopting carbon tax policies are among the emanating policies on the findings.

AbstractThe transition to renewable energy is critical for environmental sustainability, consistent with sustainable development goals (SDGs) 7, 8, 11, 12, and 13 of the United Nations Development Programme (UNDP). Scholars have identified financial development and institutional quality as significant factors determining the renewable energy transition in developing countries. This study opines that the efficiency of the financial system in supporting and providing the substantial financial implications that a switch to renewable energy necessitates depends on the quality of the institutional framework. Weak institutions in developing countries produce loopholes and inherent flaws in the financial system that facilitate corruption and opportunism, ultimately promoting dirty energy usage and technology at the expense of renewable energy. This process suggests that the interaction between financial development and institutions can either accelerate or impede the transition to renewable energy, depending on an economy's institutional architecture. Considering Africa's enormous renewable energy resources, previous research has overlooked the implications of the interplay between institutional quality and financial development in spurring Africa's transition to renewable energy. Thus, this study looks at the role of institutions in moderating the relationship between financial development and renewable energy in Africa from 1990 to 2019, using first‐ and second‐generation estimators to capture econometrics' pitfalls such as endogeneity, cross‐sectional dependence, and heterogeneity inherent in the panel dataset. This study departs from previous research in that it uses a dynamic panel threshold to determine the threshold of institutions beyond which financial development is stimulated to spur Africa's transition to renewable energy. The findings show that institutions create loopholes that allow rent‐seeking, opportunism, and sharp practices in the African financial system. These inherent flaws divert financial resources to support dirty energy and undermine the financial sector's ability to support a renewable energy transition on the continent. Also, the findings from the threshold of institutions affirm that African countries operate predominantly below the threshold of institutions, over which institutions enable financial development to expedite the continent's transition to renewable energy. The study suggests that institutional quality is essential in the relationship between financial development and Africa's shift to renewable energy. The findings' policy implications are discussed and outlined.

AbstractThe transition to renewable energy is critical for environmental sustainability, consistent with sustainable development goals (SDGs) 7, 8, 11, 12, and 13 of the United Nations Development Programme (UNDP). Scholars have identified financial development and institutional quality as significant factors determining the renewable energy transition in developing countries. This study opines that the efficiency of the financial system in supporting and providing the substantial financial implications that a switch to renewable energy necessitates depends on the quality of the institutional framework. Weak institutions in developing countries produce loopholes and inherent flaws in the financial system that facilitate corruption and opportunism, ultimately promoting dirty energy usage and technology at the expense of renewable energy. This process suggests that the interaction between financial development and institutions can either accelerate or impede the transition to renewable energy, depending on an economy's institutional architecture. Considering Africa's enormous renewable energy resources, previous research has overlooked the implications of the interplay between institutional quality and financial development in spurring Africa's transition to renewable energy. Thus, this study looks at the role of institutions in moderating the relationship between financial development and renewable energy in Africa from 1990 to 2019, using first‐ and second‐generation estimators to capture econometrics' pitfalls such as endogeneity, cross‐sectional dependence, and heterogeneity inherent in the panel dataset. This study departs from previous research in that it uses a dynamic panel threshold to determine the threshold of institutions beyond which financial development is stimulated to spur Africa's transition to renewable energy. The findings show that institutions create loopholes that allow rent‐seeking, opportunism, and sharp practices in the African financial system. These inherent flaws divert financial resources to support dirty energy and undermine the financial sector's ability to support a renewable energy transition on the continent. Also, the findings from the threshold of institutions affirm that African countries operate predominantly below the threshold of institutions, over which institutions enable financial development to expedite the continent's transition to renewable energy. The study suggests that institutional quality is essential in the relationship between financial development and Africa's shift to renewable energy. The findings' policy implications are discussed and outlined.