Impacts of human capital, exports, economic growth and energy consumption on CO2 emissions of a cross-sectionally dependent panel: evidence from the newly industrialized countries (NICs)

Rahman, Mohammad Mafizur and Nepal, Rabindra and Alam, Khosrul (2021) Impacts of human capital, exports, economic growth and energy consumption on CO2 emissions of a cross-sectionally dependent panel: evidence from the newly industrialized countries (NICs). Environmental Science and Policy, 121. pp. 24-36. ISSN 1462-9011


Abstract

Environmental problem is a great concern world-wide which has been researched from various angles, including via the environmental Kuznets curve (EKC) hypothesis. EKC shows a hypothesized inverted U-shaped relationship between economic growth and environmental quality. As the severity of problem grows with industrial activities, this paper explores the impacts of economic growth, energy use, exports and human capital on the environmental quality of newly industrialised countries (NICs) over the period of 1979− 2017. We have considered the cross-sectional dependence (CSD) issue, often ignored by most of the panel data studies. Using panel cointegration estimation technique, we have applied Dynamic Ordinary Least Squares (DOLS), Fully Modified Ordinary Least Squares (FMOLS), and Pooled Mean Group (PMG) estimation methods that address the CSD problem. Our findings exhibit the existence of CSD and long-run nexus among the variables used. In the long run, economic growth and human capital improved, and energy consumption and exports deteriorated environmental quality. The long-run elasticity for the energy variable is around one. DOLS and PMG methods provide similar results exhibiting that the effect of economic growth on CO2 emissions is the highest followed by energy use, human capital, and exports. The study found no evidence of the presence of the EKC hypothesis in NICs. Policy suggestions are made based on the findings.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to Published version, in accordance with the copyright policy of the publisher.
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Date Deposited: 20 Apr 2021 00:19
Last Modified: 20 Apr 2021 00:19
Uncontrolled Keywords: CO2 emissions; human capital; industrialization; economic growth; energy consumption; exports
Fields of Research (2008): 05 Environmental Sciences > 0502 Environmental Science and Management > 050204 Environmental Impact Assessment
14 Economics > 1402 Applied Economics > 140205 Environment and Resource Economics
14 Economics > 1403 Econometrics > 140304 Panel Data Analysis
Fields of Research (2020): 41 ENVIRONMENTAL SCIENCES > 4101 Climate change impacts and adaptation > 410199 Climate change impacts and adaptation not elsewhere classified
38 ECONOMICS > 3802 Econometrics > 380204 Panel data analysis
38 ECONOMICS > 3801 Applied economics > 380105 Environment and resource economics
Socio-Economic Objectives (2008): D Environment > 96 Environment > 9601 Air Quality > 960199 Air Quality not elsewhere classified
Identification Number or DOI: https://doi.org/10.1016/j.envsci.2021.03.017
URI: http://eprints.usq.edu.au/id/eprint/41794

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