The sustainable potential of efficient air-transportation industry and green innovation in realising environmental sustainability in G7 countries

Air transportation has a deep impact on environmental degradation due to the higher fossil fuel consumption. On the other hand, this industry also embraces the highest innovation that may alter its environmental consequences. However, there is a dearth of empirical evidence that explores the impact of air transportation and eco-innovation on environmental quality. Therefore, this study is a pioneering attempt to examine the role of air-transportation and eco-innovation in reducing environmental degradation in G7 countries using annual data from 1990 to 2019. In doing so, we employed various advance econometric approaches to handle issues arises from panel data such as Pesaran (2007) and Bai and Carrion-I-Silvestre (2009) used to examine the presence of unit root, cross-sectional dependency checked through Pesaran (2015) test, and for parameters heterogeneity through Pesaran and Yamagata (2008). Moreover, the Westerlund and Edgerton (2008) test and Cross Sectional Augmented ARDL were employed to analyse the long run and short run association among variables. The overall results show that air transportation and eco-innovation play an important role in abating environmental deterioration. Air transportation is negatively correlated with carbon emission and PM2.5 exposure (air quality) due to the improved technical structure of aircraft engines and the use of mixed ration or alternative aviation fuels. These results provide valuable suggestions for all stakeholders

Does the COVID-19 pandemic affect the tourism industry in China? Evidence from extreme quantiles approach

The tourism industry carries great significance in the economic development of any country. It has been observed that the COVID-19 crisis has affected global travel and tourism more than any other sector globally as well as in China. The travel restrictions, home isolation, and quarantine orders have given massive damage to China’s once thriving tourism industry. Despite this phenomenal impact, the existing literature has a dearth of empirical studies related to the impact of the COVID-19 pandemic on the tourism industry. This study attempts to reflect a thorough picture of the current scenario and the crisis effects under different intensities reflected through quantiles of Covid-19 related deaths. The study has utilized the QARDL model and the Wald test on the daily time series data of COVID-19 intensity, the real effective exchange rate, oil prices, and the tourism development index from January 1, 2020, to March 15, 2021. The outcomes indicate that COVID-19 related deaths have a negative, but significant impact on China’s tourism in the long run and short run. The oil prices also show a negative influence on tourism in the long run, but there is no significant impact of the oil prices on tourism in the short run. At the same time, the increase in the real effective exchange rates tends to support tourism in the long run, but does not influence tourism development in the short run

The asymmetric effect of COVID-19 outbreak, commodities prices and policy uncertainty on financial development in China: evidence from QARDL approach

COVID-19 epidemic has brought uncertainty to each sector of the global economy, including the financial sector. The widely spread disease has a drastic effect, which massively created health and financial crisis and virtually pushed the economy to the brink of recession. The study focused on the financial development of China during the COVID-19 pandemic and analyzed the long-term and short-term impact of COVID-19, oil prices, gold prices, and global economic policy uncertainty on the financial development of the country. The QARDL model, Wald test, and Granger causality tests are employed to assess the daily data of variables from January 1, 2020, to March 15, 2021. The study's empirical results revealed that an increase in the number of COVID-19 registered patients has an unprecedented negative effect on financial development, whereas the oil prices co-moved with the financial performance. On the other hand, gold prices and global economic policy uncertainty are negatively correlated with financial development. This study offers various policy recommendations to help the investors, government, and decision-makers to make better decisions for the improvement of the financial development of China

Economic complexity, greenfield investments, and energy innovation: policy implications for sustainable development goals in newly industrialised economies

DATA AVAILABILITY : Data and relevant materials will be available from the corresponding author.The crucial role of environmental assessment quality has been recognised by environmental and sustainable development goals in addressing climate change challenges. By focusing on the key identifier of environmental assessment, progress can be made towards overcoming climate change issues effectively. The current study considers environmental commitments under COP28 to study the role of economic complexity, greenfield investments, and energy innovation in environmental degradation in newly industrialised economies from 1995 to 2021. We employ novel panel estimations from CS-ARDL, CS-DL, AMG, and CCEMG to confirm that economic growth and greenfield investments degrade environmental quality. On the other hand, energy innovation and urbanisation improve environmental sustainability. Lastly, we confirm the EKC hypothesis for economic complexity as well. Given the reported empirical findings, the study suggests policymakers must focus on economic complexity to transform industrial sectors’ economic potential. Furthermore, foreign investment projects must be linked with environmental goals to increase renewable energy capacity.Project supported by Natural Science Foundation of Hunan Province.http://link.springer.com/journal/113562025-05-15hj2024EconomicsSDG-07:Affordable and clean energySDG-08:Decent work and economic growt