Dynamic impact of urbanization, economic growth, energy consumption, and trade openness on CO2 emissions in Nigeria

The objective of this paper is to examine the dynamic impact of urbanization, economic growth, energy consumption, and trade openness on CO2 emissions in Nigeria based on autoregressive distributed lags (ARDL) approach for the period of 1971–2011. The result shows that variables were cointegrated as null hypothesis was rejected at 1 % level of significance. The coefficients of long-run result reveal that urbanization does not have any significant impact on CO2 emissions in Nigeria, economic growth, and energy consumption has a positive and significant impact on CO2 emissions. However, trade openness has negative and significant impact on CO2 emissions. Consumption of energy is among the main determinant of CO2 emissions which is directly linked to the level of income. Despite the high level of urbanization in the country, consumption of energy still remains low due to lower income of the majority populace and this might be among the reasons why urbanization does not influence emissions of CO2 in the country. Initiating more open economy policies will be welcoming in the Nigerian economy as the openness leads to the reduction of pollutants from the environment particularly CO2 emissions which is the major gases that deteriorate physical environment

Dynamic relationship of exchange rates and crude oil prices in South Africa: Are there asymmetries?

We estimated the relationship between the exchange rates and crude oil prices for the period of 1960 to 2013. Based on Engle-Granger we found that the variables are cointegrated means there exist long-run relationship. However, when we move on to TAR and MTAR models the findings are opposite as there is no element of cointegration and the speed of adjustment is symmetric. This shows that based on TAR and MTAR models the effects of exchange rates on crude oil prices is insignificant. The policy relevance is that South African authority need to monitor its exchange rates persistently related to other currencies more especially American dollar because it determined the crude oil prices that might have greater influences on other macroeconomic variables. Keywords: Exchange rates, Oil prices, Asymmetry, South Africa, Error correction model

Dynamic relationship of exchange rates and crude oil prices in South Africa: are there asymmetries?

We estimated the relationship between the exchange rates and crude oil prices for the period of 1960 to 2013. Based on Engle-Granger we found that the variables are cointegrated means there exist long-run relationship. However, when we move on to TAR and MTAR models the findings are opposite as there is no element of cointegration and the speed of adjustment is symmetric. This shows that based on TAR and MTAR models the effects of exchange rates on crude oil prices is insignificant. The policy relevance is that South African authority need to monitor its exchange rates persistently related to other currencies more especially American dollar because it determined the crude oil prices that might have greater influences on other macroeconomic variables

Dynamic Impact of Income Inequality on Carbon Dioxide Emissions in Africa: New Evidence from Heterogeneous Panel Data Analysis

We extended the study of Zhang and Zhao (2014) for China, which examines the regional impact of carbon dioxide emissions on income inequality. The present article examine the dynamic impact of income inequality on carbon dioxide emissions in Africa. We applied heterogeneous panel ARDL techniques of Mean Group (MG) and Pooled Mean Group (PMG) suggested by Pesaran et al. (1999), during 1984-2001. The main empirical result reveals that; the relationship between income inequality and carbon dioxide emissions is negative and statistically significant. This means that; widening income inequality could lead to the reduction of carbon dioxide emissions in the sampled countries. Moreover, the variables of trade openness, per-capita GDP, and urbanization are positive and statistically significant; this means that increase in any of these variables could lead to overall increase in the level of carbon dioxide emissions. Therefore, in providing policies that will be used to improve environmental quality in Africa, income inequality should not be considered because it is reducing the level of environmental degradation through reduction of carbon dioxide emissions. Hence, policy makers should not consider income inequality when formulating environmental policies among the selected sample countries. Keywords: Income inequality,  emissions, Mean Group, Pooled Mean Group, Panel ARDL, Africa JEL Classifications: F64, Q54, Q5

Stock Prices and Exchange Rates Dynamics in South Africa: An application of Asymmetric Co-integration Approach

Abstract. We applied asymmetric cointegration approachtoinvestigate the impacts of stock prices on exchange rates in South Africa using monthly data from January 1980 to May 2014. The empirical finding shows that the two macroeconomic variables are cointegrated using traditional Engle-Granger approach. While TAR model shows no element of cointegration, MTAR model revealsthat there is long-run relationshipbetween the variables and they are asymmetrically cointegrated as signifies by both F-equality and F-joint respectively. Using Enders & Siklos (2001) table we reject null hypothesis of no cointegration at 5% significance level. This means that stock prices influences exchange rates in South Africa and the speed of adjustment is non-linear, when share price changes exchange rates equally changes but not in the same proportion with that of share prices. The policy implication is that the authorities in this country should focus more on stabilizing their exchange rates in relation to other major global currencies more especially American dollar. When the value of Rand continues to increase the economy will be less competitive internationally at the same time the value of the stocks might be unattractive even to international investors.Keywords. Stock prices, Exchange rates, Cointegration, Asymmetric, TAR, MTAR.JEL. D51, H54, O24

Asymmetric co-integration analysis of exchange rates and crude oil prices: evidence from India

Using monthly data from January, 1980 to July 2013, the aim of the article is to find out whether there is cointegrating relationship between exchange rates and crude oil prices in India. The result indicates that there exists cointegration between the variables and speed of adjustment shows symmetric based on TAR model, while MTAR model exhibit asymmetric adjustment. The findings indicated that exchange rates have significant influence on crude oil prices in India and the adjustment to equilibrium when variables deviated is non-linear. The implication is that Indian policy makers should focus more on their exchange rates dynamics in line with the persistent rises of crude oil prices that affects other macroeconomic variables specifically exchange rates that have significant influence on international trade considering the relevance of India in the international export market

Trivariate modelling of the nexus between electricity consumption, urbanization and economic growth in Nigeria : fresh insights from Maki Cointegration and causality tests

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Urbanization and carbon dioxide emissions in Singapore: evidence from the ARDL approach

The main aim of this article is to examine empirically the impact of urbanization on carbon dioxide emissions in Singapore from 1970 to 2015. The autoregressive distributed lags (ARDL) approach is applied within the analysis. The main finding reveals a negative and significant impact of urbanization on carbon emissions in Singapore, which means that urban development in Singapore is not a barrier to the improvement of environmental quality. Thus, urbanization enhances environmental quality by reducing carbon emissions in the sample country. The result also highlighted that economic growth has a positive and significant impact on carbon emissions, which suggests that economic growth reduces environmental quality through its direct effect of increasing carbon emissions in the country. Despite the high level of urbanization in Singapore, which shows that 100 % of the populace is living in the urban center, it does not lead to more environmental degradation. Hence, urbanization will not be considered an obstacle when initiating policies that will be used to reduce environmental degradation in the country. Policy makers should consider the country’s level of economic growth instead of urbanization when formulating policies to reduce environmental degradation, due to its direct impact on increasing carbon dioxide emissions