iRASD Journal of Energy & Environment
Not a member yet
61 research outputs found
Sort by
Does Financial Development Advanced Environmental Quality in Thailand: Evidenced from ARDL
Get PDFThis study investigates the long-term effects of financial-sector development, energy consumption, and economic growth on Thailand\u27s carbon emission from 1970 to 2018. Firstly, use the conventional unit-root test, augmented Dickey-Fuller root (ADF), and (PP) Phillips-Perron unit root tests to confirm stationarity of variables. Later, Autoregressive Distributive lag (ARDL) test used to examine the cointegration level with long and short-run estimates. ARDL bound test verifies that there exists a long-run association among the model. Empirical results indicate that the financial sector improves the quality of the environment, while energy consumption inversely affects the environment. Furthermore, they indicate the presence of EKC hypothesis validation in Thailand by confirming the negative and positive effects of economic and square economic expansion towards carbon emission levels. Financial development is proxied by domestic credit to private divisions with a detrimental impact on a carbon production level. This study could pave the way for policymakers to capture the essential environmental pollutants better and develop efficient and effective energy in the presence of well-organized economic policies. That can significantly reduce carbon dioxide (CO2) emissions in the presence of economic development. It is the only research to examine the long-term influence of the financial sector on (CO2) carbon dioxide emission, using a cointegration-approach. Therefore, this research is a moderate demand to reduce the possibility of biased estimation of econometric variables and to close gaps in the existing literature
Causality between Environment and Financial Development in case of Pakistan: A Time Series Analysis
Get PDFClimate change is now widely regarded as one of the greatest issues of our era. As a result, it is critical to study the impact of various macroeconomic variables on the environment. The purpose of this research is to look at the link between financial development and environmental (CO2 emissions) in Pakistan from 1980 to 2014. The Auto Regressive Distributed Log (ARDL) technique was employed to track both long-term and short-term association between variables in this investigation. Granger causal testing is used to examine the causal relationship. Study results suggest that there is a unidirectional causality between CO2 and the financial development Index. However, the environment (CO2 emissions) in the long run will depend on the financial development that the financial development index (domestic credit to private sector aggregate market capitalization, and FDI) has in Pakistan. In the second model, the environment (energy consumption) also depends on financial development
Examined EKC Hypothesis in the Presence of Renewable & Nonrenewable Energy and Trade & Financial Developments for Pakistan
Get PDFMost of the existing literature uses energy consumption to verify the effect of energy use on environmental degradation, but they fail to explore it. To achieve the revealed gap, the present study insists on the impact of the nonrenewable and renewable energy consumptions, financial development, trade liberalization & income on carbon dioxide (CO2) by using the environmental Kuznets curve theory. This study used Pakistan’s time series data for the time period of 1990 to 2018. This study used two famous unit root tests which are the Augmented Dickey-Fuller (ADF) and Phillips Perron (PP) test. Results confirm that RENERG has stationary at the level and NRENERG, CO2, GDP, GDP2, FINDEV, and TRD become stationary at first difference. Furthermore, ARDL bound test is used to analyze the model, the bound test indicates that there exists co-integration in the model and ARDL estimates the short and long-run estimates of the equation. The rise in renewable energy consumptions, economic developments, and trade openness reduces emanation of the carbon whereas the increase in renewable-energy consumption hints at carbon releases it also validates the EKC hypothesis in Pakistan. The study concludes that Pakistan’s government and regulatory authorities should initiate the programs by which they are aware of the public and citizens about the adoption of renewable energies and environmental protection levels
An Empirical Analysis of Energy Consumption, Environmental Emissions, and Economic Growth for Pakistan
Get PDFThe use of energy plays an imperative role in the expansion of the economy so, this study examined the effect of consumption of energy and environment to economic development which derives the economic development of Pakistan’s economy. This study used the famous time series ARDL methodology to empirically determine the impact of energy and environment on Pakistan economic development. Results indicates that in both short and long-run, consumption of energy and GDP level boosts economic development. While on the other hand, FDI and non-renewable-energy (fossil fuel) create hurdles in Pakistan\u27s economic development. Due to these hurdles, increase the demand for renewable energy sources like solar and wind energy and investment in the renewable energy sector. Because it boosts economic development with the decrease in carbon emission. So, Pakistan needs to adopt these renewable energy sources which boost economic development and also mitigate the carbon emission level, which creates the environment clean and healthy
An Application of Quadratic EKC model: Energy Use, Economic Development, and Environmental Quality for Thailand
Get PDFThis study examines the validation the relationship of environmental and energy for Thailand. Further this study examined the impact of economic growth, non-renewable and renewable energy and FDI on environment, with the help of time series data from 1990 to 2018 with ecological damage indicator, i.e., emission of carbon dioxide (CO2). This study applied Autoregressive (ARDL) Distributed Lag model for testing the cointegration in the model. In the long run, the results of this study confirm the existence of cointegration in the model. However, the negative effect of growth on the environment confirms the existence of the Kuznets Environmental Curve (EKC), which means that economic growth harms Thailand’s environment. Renewable energy and foreign direct investment are the key aspects that reduce environmental degradation in Thailand during the study period. Therefore, the government must redouble its efforts to reduce carbon dioxide CO2 emissions, perhaps through regulatory intervention or mandatory renewable energy applications for individual household and industrial segments. For example, the manufacturing sectors, iron, and steel must prioritize, reducing the high non-renewable energy consumption for those which are renewable. The government must introduce specific measures and campaigns for environmental protection for future generations as well as introduce taxes for polluters. Another relevant recommendation is to create an industry that relies on low energy consumption compared to high productivity levels
Pakistan Energy Crises: Determinants and Consequences
Get PDFThe basic objective of this study is to discuss the energy crises in Pakistan, Energy or the power sector of any country is the backbone upon which whole of the economy is standing. Now a day when everything is operated on electricity, energy proved to be the major need. Without electricity there is no life, from offices to households and from shops to industries. Therefore, energy plays an important role in the working and stabilizing of any country. The number of the variables used in this study are electricity production, and other determinants of the electricity i.e gas, coal, petroleum products and oil production, GDP, industrial growth rate, and consumption of the electricity in different sector of the economy in Pakistan. The bound testing approach to cointegration and error correction models developed within ARDL framework by using data from 1990 to 2012 in order to analyze the cointegration among the variables. To check the stationary of variables the Unit root test is used at the difference 1 or sometime 2. In long run gas production raise the electricity production, the consumption of electricity in household sector raises the GDP, consumption of electricity in industry increases the industrial growth rate in the long run. Also, the inflation and GDP raise the agriculture growth rate in long run. The coefficient gas and oil shows rise in electricity production in short run, the coefficients GDP and consumption of electricity in agriculture raise the agriculture in the short run
The Effect of Financial Sector Development on Carbon Emission in Thailand
Get PDFEconomic development typically faced many hurdles, like policymakers do not focus on the potential factors which create hurdles in economic development. One of the problems of economic development is climate change, which directly caused global warming. Climate change and global warming occurred due to human induced greenhouse gas production and the use of fossil fuel (manufacturing and industrial process) which produce a massive amount of carbon emission gas. Furthermore, climate change has many side effects like the rapid loss of glaciers, rising sea levels, severe heat waves, etc. Thailand is the land of tropical beaches but even the temperature increased to a certain high level in summer due to the effect of climate change. According to the intergovernmental panel report, the sea level increased over time due to climate change which is almost the average of 1.8 mm per year. So, this situation is unpredictable and the arid zone of this country is now facing the severity of droughts with increased frequency. So, the objective of this study is to examine the long run association between carbon emission, energy consumption, and financial development in Thailand. This study used the timer series data from 1980 to 2018 which is taken from (World Bank, 2020). The autoregressive distributed lag (ARDL) model was used to examine that long run relationship and the results indicate that there exists a uni-directional and long run relationship among financial development and carbon dioxide. So, policymakers highlight the issue of global warming and serious action against the excessive use of carbon emission because it is a serious obstacle to human wellbeing which results in an unproductive capacity of the employee. Furthermore, the government needs to establish policies that help companies to adopt environmentally-friendly equipment’s which produce less carbon emission
Environmental Kuznets Curve (EKC): Empirically Examined Long Run Association Between Globalization, Financial Development and CO2 Emission for ASEAN Countries
Get PDFoai:ojs2.journals.internationalrasd.org:article/485This study mainly inspects the effect of globalization and financial expansion on CO2 emissions in the existence of the EKC (Environmental Kuznets Curve) framework for ASEAN economies, firstly the study employs the cross-sectional dependence econometric test. Results of CADF, CIPS unit root test, LM test, panel Kao Cointegration, Johansen Fisher test and Panel ARDL investigation revealed that (i) the hypothesis of EKC supports in ASEAN economies (ii) financial expansion and consumption of energy subsidize to the Co2 productions while urbanization has positive and globalization negative affiliation with carbon dioxide emissions (iii) the data is heterogeneous and cross-sectional dependence test confirms that there exit cross sections dependency (iv) Co-integration test confirms that variables are co-integrated, urbanization has an order of integration is I(0) and a square of GDP, economic development, globalization, financial expansion, use of energy and CO2 emission have an order of integration is I(1). Moreover, it is recommended that the authorities of ASEAN economies give some special consideration to the globalization level. Since better institutional reforms, institutional quality is vital to upsurge financial development and globalization improved financial growth
Analyzing the long run linkage between Population, Economic Development and Energy Consumption on Carbon emissions of ASEAN Nations
Get PDFThis study examined the effect of population, energy consumption, economic development on environment degradation in the context of ASEAN countries. For this purpose, the study used the panel data of nine ASEAN countries (Indonesia, Singapore, Malaysia, Brunei, Philippines, Cambodia, Thailand, Myanmar, and Vietnam) from 1995 to 2018 with the help of the World Development Indicators (WDI) dataset. Panel FMOLS and Panel ARDL methodology are used to examine the econometric model. ARDL results show that economic growth increases the emission of carbon dioxide which means economic development makes the environment unhealthy, moreover it confirmed the validity of the EKC hypothesis for ASEAN countries. There is a long-term positive impact of GDP and the consumption of energy on CO2 emission. In contrast, the impact of population growth is significant on the per capita emission of carbon dioxide. However, the emission of carbon dioxide hurts economic growth in the long run. Consequently, emission of carbon dioxide can be reduced, and economic growth can be sustainable by using low carbon emission technologies such as renewable energy
Does Adaptation of Renewable Energy and Use of Service Industry Growth Diminution CO2 Emissions: Evidence of ASEAN Economies
Get PDFAccording to recent years, ASEAN economies mainly focused on the development of renewable energy, which contributes to leading role of changing the economic structure towards service sector industry. So, most of the studies ignored the effect of heterogeneity and cross-sectional independence. It caused the biased and spurious results. Hence this study used the panel of 9 ASEAN economies of the time from 2000 to 2018, and Arelleno Bond Generalized Method of Moments (GMM) is used to examine the impact of renewable energy and the development of the service sector on Carbon emissions in ASEAN economies. Moreover, GMM overcomes the problem of cross-sectional dependence and heterogeneity so that the results will be unbiased and consistent. Results showed that an increase in the level of renewable energy usage and economic development leads to decrease in the level of CO2 emissions. Furthermore, development in the service sector industry and urbanization boost the level of emissions of carbon dioxide. So, the policymakers need a revolution in the renewable energy sector, which increased economic growth and total energy production and keep the environment safe, healthy and clean