Environmental Kuznets curve in Indonesia, the role of energy consumption and foreign trade

This study examines the dynamic relationship among carbon dioxide (CO2) emissions, economic growth, energy consumption and foreign trade based on the environmental Kuznets curve (EKC) hypothesis for Indonesia during the period 1971–2007. The Auto regressive distributed lag (ARDL) methodology is used as an estimation technique. The results do not support the EKC hypothesis, which assumes an inverted U-shaped relationship between income and environmental degradation. The long-run results indicate that foreign trade is the most significant variable in explaining CO2 emissions in Indonesia followed by Energy consumption and economic growth. The stability of the variables in estimated models is also examined. The result suggests that the estimated models are stable over the sample period.Environmental Kuznets curve; CO2 emissions; energy consumption

The Relationship Between Economic Growth, Energy Consumption And Trade With Environmental Degradation: The Case Study Of Five Asean Countries

Recent studies in examining the Environmental Kuznets Curve (EKC) emphasized the lack or even negligence of the energy consumption and trade openness role in shaping the EKC. Previous empirical studies, to certain degree have not considered the effect of dirty industry import and dirty industry export in examining the EKC model. This study examined the relationship between economic growth and CO2 emissions based on the EKC hypothesis in the five selected ASEAN countries namely Indonesia, Malaysia, the Philippines, Singapore and Thailand or also known as the ASEAN-5. The study also investigated the effect of total energy consumption and trade openness on these ASEAN countries’ emissions and in shaping the EKC. The study further included the effect of dirty industry import to the ASEAN-5 countries and dirty industry export from these countries to their main trading partners to the framework to examine the effect of Pollution Haven Hypothesis (PHH) on the existence of the EKC. Employing the Autoregressive Distributed Lag (ARDL) approach, the reduced-form EKC model was not able to demonstrate the accurate relationship between CO2 emissions and economic growth. Energy consumption and trade openness played a significant role in shaping the EKC in Malaysia, Singapore and Thailand. In Singapore, the EKC existed based on the reduced-form model. In Thailand there was evidence of the EKC when energy consumption was included to the model. However, when the model was further extended by trade openness, evidence of the EKC also existed in Malaysia

Environmental Kuznets curve in Indonesia, the role of energy consumption and foreign trade

This study examines the dynamic relationship among carbon dioxide (CO2) emissions, economic growth, energy consumption and foreign trade based on the environmental Kuznets curve (EKC) hypothesis for Indonesia during the period 1971–2007. The Auto regressive distributed lag (ARDL) methodology is used as an estimation technique. The results do not support the EKC hypothesis, which assumes an inverted U-shaped relationship between income and environmental degradation. The long-run results indicate that foreign trade is the most significant variable in explaining CO2 emissions in Indonesia followed by Energy consumption and economic growth. The stability of the variables in estimated models is also examined. The result suggests that the estimated models are stable over the sample period

Revisiting the Environmental Kuznets Curve Hypothesis in the MENA Region: The Roles of International Tourist Arrivals, Energy Consumption and Trade Openness

This paper employed advanced panel methods to examine the effects of international tourist arrivals on CO2 emissions in the Middle East and North Africa (MENA) region over the period of 1995–2018. To analyze the predictive power of tourist arrivals for CO2 emissions, the panel Granger non-causality test was employed. Employing the common correlated effects mean group estimator showed that tourist arrival reduces CO2 emissions, while energy consumption and trade openness are the main contributors of CO2 emissions. Results also showed that although first-generation estimators confirmed the Environmental Kuznets Curve (EKC) hypothesis, according to the CCE-MG estimator, an inverted U-shaped association between economic progress and CO2 emissions does not exist. Furthermore, the null hypothesis of non-Granger causality from tourist arrivals to CO2 emissions was rejected. The findings suggest taking a more sustainable approach to tourism development and energy conservation in the long run

Economic growth and carbon emissions

In this paper, we investigate the dynamic relationship between economic growth and carbon dioxide (CO2) emissions for 181 countries. We propose a new approach based on the cross-correlation estimates to understand how economic growth and CO2 emissions are related. Our proposal is that if there is a positive cross-correlation between the current level of income and the past level of CO2 emissions and a negative cross-correlation between the current level of income and the future CO2 emissions, then CO2 emissions will decline with an increase in income over time, consistent with the environmental Kuznets curve (EKC) hypothesis. Our main findings can be summarized as follows. First, for 21 out of 181 countries (12%), there is clear evidence supporting the EKC hypothesis. Second, we ask whether a rise in income reduces emissions in the future. We find that for 49 countries (27%), income growth will reduce emissions in the future

Investigating the environmental Kuznets curve hypothesis: the role of tourism and ecological footprint

The main objective of this study is to examine the environmental Kuznets curve (EKC) hypothesis by utilizing the ecological footprint as an environment in- dicator and GDP from tourism as the economic indica- tor. To achieve this goal, an environmental degradation model is established during the period of 1988 – 2008 for 144 countries. The results from the time series general- ized method of moments (GMM) and the system panel GMM revealed that the number of countries that have a negative relationship between the ecological footprint and its determinants (GDP growth from tourism, energy consumption, trade openness, and urbanization) is more existent in the upper middle- and high-income countries. Moreover, the EKC hypothesis is more present in the upper middle- and high-income countries than the other income countries. From the outcome of this research, a number of policy recommendations were provided for the investigated countries

Agricultural products diversification-food security nexus in the GCC countries; introducing a new index

Due to its significance in achieving the Sustainable Development Goals (SDGs), food security has gained considerable attention from governments and policymakers worldwide. Since agricultural production primarily contributes to food security success, efforts have been directed toward it. Consequently, this study aims to examine the effects of agricultural product diversification strategies on food security in the Gulf Cooperation Council (GCC) Countries over the period 2002–2018. Agricultural product diversification is computed through three indexes, namely the Herfindahl-Hirschman concentration index, Theil, and Gini inequality indexes. On the other hand, actual values of food production, protein supply, and dietary energy supply adequacy are three proxies for food security. Furthermore, the Dumitrescu and Hurlin (2012) panel Granger non-causality test used to test the non-causality between agricultural product diversification and food security. As a result, our statistical findings prove a causal relationship between all agricultural product diversification indexes and food security. This paper will significantly contribute to policymakers and governments upgrading and introducing efficient strategies to encourage farmers toward agricultural product diversification

The dynamics of the relationship between foreign exchange reserves and import demand function

AbstractThis study empirically investigates the dynamics of the relationship between import demand and foreign exchange reserves for an oil-rich and high-income developing country, Oman. This study employs the Autoregressive Distributed Lag (ARDL) model to investigate the impact of real income, domestic prices, and foreign exchange reserves on aggregate and disaggregated import demand function. Results reveal that total imports are significantly affected by domestic prices only; whereas, demand for goods import is influenced by income. The level of foreign exchange reserves does not influence import demand function. These findings indicate that currency peg stabilization efforts, foreign asset leakages and varying sources of foreign currency could have weakened the link between foreign reserves and import levels. Considering domestic prices and income, competition and efficient production of local goods and services should be further encouraged, especially concerning ongoing issues like food security. Understanding import dynamics enhances robust import forecasts, international trade planning and policy formulation