• Energy Research

AbstractVenezuela is among the several countries of the world endowed with natural resources such as oil rent and others. The influence of these resources, which can be felt in both economic and environmental development, is capable of impacting sustainable development goals of any country rich in them. Considering the global climate goals, it is essential to investigate the impact of natural resource rent on its sustainable development goals. We applied Venezuelan country‐specific data of 1972–2014 for an insightful study of the country's sustainable development amidst high resource rent with regard to both economic and environmental performance. The principles of the environmental Kuznets curve (EKC) and pollution haven and halo hypothesis (PHH) were considered to ascertain the pattern and effect of the economic growth and foreign direct investment (FDI) on Venezuelan environmental performance. Different methods such as the autoregressive distributed lag (ARDL) dynamics and bounds, structural break, and Granger causality test were applied for an accurate estimation and insightful analysis. From the ARDL estimations, we found an N‐shaped Kuznets curve, which counters the U‐shaped Kuznets, for the case of Venezuela. Both natural resources and FDI are found to impact positively on the environment, and this confirmed the pollution halo hypothesis for Venezuela. Fossil fuel energy source is found to impact negatively Venezuela's environment with positive relationship between energy use and CO2. From the Granger causality finding, a unidirectional Granger causality is found to transmit from FDI to environment, while bidirectional Granger causality is found to transmit between economic growth and environment. With the findings from both analyses, especially from the vector error correction model (VECM) Granger causality, a nexus is established among economic growth, environment, and FDI, which confirmed the pollution halo hypothesis.

Abstract This current study seeks to investigate the policy implication of Turkey’s recent energy policies on its sustainable development. This study uses Turkey’s country-specific data and series of 1974 to 2018 for effective investigation and justification of the findings of this study with emphasis on both short run and long run implications. Three models were fitted to achieve study objectives to accommodate both environmental sustainability and economic impacts. Ecological footprint was considered better measure and used as proxy for the environment related model. In summary, with environment models, the selected series (per capita GDP, Industrialization, agriculture, coal as a single energy use and mixed energy use) except per capita GDP2 were found positively and significantly related to ecological footprint both in short run and long run which translates to poor performance of Turkey’s environment. Also, using economic growth model, the selected series (Industrialization, energy use and agriculture) were all confirmed positively and significantly related to the economic growth (per capita GDP). Additionally, Environmental Kuznets Curve (EKC) was established for Turkey’s environment and economic performance. Furthermore, using Granger causality as robust check to these findings, a nexus was found among the series confirming the validity of the cointegration (short and long run policies) estimations and results. In congruence with literature and hypotheses, the results from cointegration estimation shows that the twin polices may be good to the economic performance but will spark off adverse effect on environment.JEL Classification: C1, C32, E6, L7, O4, Q3, Q4, Q5

Recently, China is named among the most carbon dioxide (CO2)-emitting countries in the world after the United State of America (USA). A major part of Chinese carbon dioxide emissions is as a result of offshore industrial activities which come into the economy as foreign direct investment (FDI). Following this, the present study seeks to investigate the nexus between CO2 emissions, FDI, energy use, and tourism arrivals, and possibly to advise on who will bear the responsibility of offshore CO2 emissions. Utilizing ARDL-bound testing and Granger causality approaches for both short- and long-run effects the author found that economic growth (GDP) has a positive relationship with both tourism arrivals, energy use, FDI, and CO2.This contributes to heavy CO2 emissions which the author classified as the outsourced/offshore CO2emissions in China's FDI. Tourism arrivals have a bi-directional (feedback) causal relationship with energy use and a uni-directional causal relationship with CO2(transmitting from tourism to CO2). Both FDI and energy use have a bi-directional (feedback) causal relationship; CO2, energy use, and tourism arrivals have a unidirectional relationship with GDP which established the triangular nexus causality among the variables and the impact on GDP. Hence, the policy implication should be geared towards implementing the policies and regulations that will checkmate and reduce the excesses of foreign firms to the environment quality of China and promote environmentally friendly economic activities.

This is a sustainable study of China amidst high carbon emissions. China has experienced tremendous increase in its economic operations and development which involve the excessive utilization of fossil fuel energy sources. This has put China in the list of nations that contribute towards global warming via carbon emission. On this note, data from China over the period 2002Q1–2019Q4 is analyzed, using multiple techniques (nonlinear autoregressive distributed lag-NARDL, fully modified ordinary least square-FMOLS, and bootstrap approach of Granger causality) for clear insight into China's sustainable development. Relevant instruments (technological innovation, entrepreneurial activities, economic growth proxied by GDP, fossil fuel energy consumption, and FDI) are used to measure China's economic and environmental performance to determine the level of sustainable development of the country. NARDL and FMOLS results reveal that technological innovation and entrepreneurial activity mitigate carbon emissions, while fossil fuels and economic growth induce China's carbon emissions. Also, findings from the bootstrap approach affirm the NARDL and FMOLS outcomes, with both two-way and one-way nexus established among the selected variables. Policies targeting the reduction of fossil fuel consumption in China despite the technological innovations and entrepreneurial activities are thus recommended.

Abstract Considering the strategic position of Algeria both in the global and regional economic complexities through economic liberalization, much has been said about oil shock and economic performance of Algeria but little has been done towards ascertaining the impact of natural resources and foreign direct investment inflow (FDI) on its environmental performance. For this purpose, we adopt Algeria 1970–2018 data to study its sustainable development with focus on its environmental performance. Nonlinear and long run asymmetric cointegration were utilized for a comprehensive research on this topic. Our findings are as follows: positive and negative shocks to the economic growth and fossil fuels on the Algerian environment increases and reduces carbon emission respectively, positive and negative shocks to FDI and natural resources decrease the carbon emission thereby impacting positively on the environment. Hence, pollution halo hypothesis is confirmed for Algeria meaning FDI is impacting positively on the environment and should be encouraged through policy framing and implementation for the case of Algeria.

Most nations are predominately preoccupied with the need to increase economic growth amidst pressure for increased energy consumption. However, higher energy consumption from fossil fuel has its environmental implication(s) especially in a high industrial economy like China. In this context, the current study explores the interaction between pollutant emission, foreign direct investment, energy consumption, tourism arrival, and economic growth for quarterly frequency data from 1995Q1 to 2016Q4 for econometrics analysis. Pesaran's autoregressive distributed lag-bound test traces long-run relationship between all outlined variables over the investigated period. Empirical results show positive relationship between pollutant emissions with all other variables with the exception of economic growth. This further exposes the environmental degradation in China with the curtailing strength from the GDP. The Granger causality analysis detects that CO2 emissions and energy consumption show a two-way causality observed. Also, one-way causality existing between growth and foreign direct investment is seen running to pollutant emission. Furthermore, one-way causality is observed among foreign direct investment, energy consumption, pollutant emission, and tourism arrivals with economic growth, and this established their impact on the economic growth which will be a guide to the policy implication on how to ameliorate environmental degradation from the effect of consumption of fossil energy sources and foreign direct investment-induced pollutant emission.

We studied Malaysia’s ability to achieve its climate goal amidst high rate of entrepreneurial activities and influx of people from rural to urban cities (urbanization) due to massive and prospective economic activities in the cities. We investigate the impact of urbanization, entrepreneurial activities, and economic growth on its environmental performance. Renewable energy and financial development were also incorporated in the analyses to see if they have mitigating effect of carbon emissions of the country. Malaysian data of 1992Q1 to 2017Q4 were adopted for this study, and we also adopt both linear (dynamic ordinary least square-DOLS) and non-linear (nonlinear autoregressive distributed lag-NARDL) scientific and analytical approaches for better and clear insight from our study. Granger causality is equally applied as a robust check to the findings from DOLS and NARDL. Findings from NARDL exposed significant impacts of the selected variables on the carbon emissions. Specifically, entrepreneur, urbanization, financial development and renewables are mitigating carbon emissions, while economic growth is increasing emissions. Inverted U-Shape EKC hypothesis is established for Malaysia with DOLS. Granger causality established a nexus among the variable of interest in this study. From the findings, policy to mitigate carbon emissions can be framed within renewables, urbanization, entrepreneur and finance.

This is a comparative study between two resource endowed economies, Norway and Nigeria towards ascertaining the impact of the resources in the sustainable development (SD) of the countries. The findings are expected to be a highlight for the poor performing economy (Nigeria) and to replicate the tested and workable policies of Norway to Nigeria economic performance. Separate empirical estimates and analyses with quarterly data of (1992QI-2018QIV and 1992QI-2019QIV) for both countries (Nigeria and Norway) respectively are done for each in a time series manner. The results from the both autoregressive distributed lag (ARDL) and granger causality for both countries are as follows: Dutch disease is found via government spending effects and crude oil price on agriculture. Foreign direct investment (FDI), real gross domestic product (GDP) and real exchange rate are found positively impacting Nigerian agricultural sectors. The findings for the Norway’s case are as follows: Dutch disease symptom is found via government spending effects, real exchange rate and crude oil price on manufacturing sector. From granger causality findings, there is a clear exposition of nexus among the government spending, oil price, FDI and real exchange rate which shows implication of government spending and oil price in both studies. This is a pointer towards existence of Dutch disease in both countries. This, notwithstanding, Norway as a country is among the best performing economies of the world due to efficient and effective policies. Nigeria having performed so poor is expected to consider Norway as a model in mitigating her Dutch diseases.