IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2023-01-21.html
   My bibliography  Save this article

Long-Term Implications of Economic Complexity and Energy Intensity on the Environment in Lower-Middle-Income Countries in Asia

Author

Listed:
  • Heru Wahyudi

    (University of Lampung, Bandar Lampung, Indonesia.)

  • Suripto Suripto

    (University of Lampung, Bandar Lampung, Indonesia.)

  • Widia Anggi Palupi

    (University of Lampung, Bandar Lampung, Indonesia.)

Abstract

This study aims to determine the long-term impact of Foreign Direct Investment (FDI), Population (POP), Economic Complexity Index (ECI), and Energy Intensity (EI) on environmental quality as measured by carbon dioxide (CO2). The objects of this research are lower-middle income countries in the Asian region during the 2000-2018 range. The method used in this research a is Fully Modified Ordinary Least Square (FMOLS). The results of this study indicate that FDI, population, economic complexity, and energy intensity increase the amount of CO2. These results produce policies related to the environment, where the government, the private sector, and the community have the same vision to improve the quality of the environment. The policy that can be taken is by setting strict regulations for investors so that the pollution haven hypothesis does not occur in lower-income countries in Asia. The policy was adopted by imposing a carbon tax. This policy is accompanied by reducing the birth rate, increasing innovation and economic complexity by paying attention to environmental sustainability, as well as carrying out energy transformation. Thus, it is expected to reduce the spread of CO2 that lower-middle-income countries are ready to become upper-middle-income countries or even high-income countries.

Suggested Citation

  • Heru Wahyudi & Suripto Suripto & Widia Anggi Palupi, 2023. "Long-Term Implications of Economic Complexity and Energy Intensity on the Environment in Lower-Middle-Income Countries in Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 164-171, January.
    • Handle: RePEc:eco:journ2:2023-01-21
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/13737/7126
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/13737
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Abbasi, Faiza & Riaz, Khalid, 2016. "CO2 emissions and financial development in an emerging economy: An augmented VAR approach," Energy Policy, Elsevier, vol. 90(C), pages 102-114.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gyanendra Singh Sisodia & Hemant Kumar Sah & Hajer Kratou & Rajesh Mohnot & Alberto Ibanez & Bhumika Gupta, 2023. "The Long-Run Effect of Carbon Emission and Economic Growth in European Countries: A Computational Analysis through Vector Error Correction Model," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 271-278, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shahbaz, Muhammad & Hoang, Thi Hong Van & Mahalik, Mantu Kumar & Roubaud, David, 2017. "Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis," Energy Economics, Elsevier, vol. 63(C), pages 199-212.
    2. Liu, Yaping & Sadiq, Farah & Ali, Wajahat & Kumail, Tafazal, 2022. "Does tourism development, energy consumption, trade openness and economic growth matters for ecological footprint: Testing the Environmental Kuznets Curve and pollution haven hypothesis for Pakistan," Energy, Elsevier, vol. 245(C).
    3. Lin, Boqiang & Okoye, Jude O., 2023. "Towards renewable energy generation and low greenhouse gas emission in high-income countries: Performance of financial development and governance," Renewable Energy, Elsevier, vol. 215(C).
    4. Skare, Marinko & Gavurova, Beata & Sinkovic, Dean, 2023. "Regional aspects of financial development and renewable energy: A cross-sectional study in 214 countries," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1142-1157.
    5. Jaison Chireshe, 2021. "Finance and Renewable Energy Development Nexus: Evidence from Sub-Saharan Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 318-325.
    6. Acheampong, Alex O., 2019. "Modelling for insight: Does financial development improve environmental quality?," Energy Economics, Elsevier, vol. 83(C), pages 156-179.
    7. Vikniswari Vija Kumaran & Siti Nurul Munawwarah & Mohd Khairi Ismail, 2021. "Sustainability in ASEAN: The Roles of Financial Development towards Climate Change," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 8(1), pages 1-9.
    8. Zhang, Yingying & Wang, Xinpeng & Feng, Nianqiao, 2024. "The path of green finance to promote the realization of low-carbon economic transformation under the carbon peaking and carbon neutrality goals: Theoretical model and empirical analysis," International Review of Financial Analysis, Elsevier, vol. 94(C).
    9. Wei, Shuxin & Wei, Wenshan & Umut, Alican, 2023. "Do renewable energy consumption, technological innovation, and international integration enhance environmental sustainability in Brazil?," Renewable Energy, Elsevier, vol. 202(C), pages 172-183.
    10. Yi-Bin Chiu & Wenwen Zhang, 2023. "Moderating Effect of Financial Development on the Relationship between Renewable Energy and Carbon Emissions," Energies, MDPI, vol. 16(3), pages 1-18, February.
    11. Guangyang Chen & Kai Dong & Shaonan Wang & Xiuli Du & Ronghua Zhou & Zhongwei Yang, 2022. "The Dynamic Relationship among Bank Credit, House Prices and Carbon Dioxide Emissions in China," IJERPH, MDPI, vol. 19(16), pages 1-18, August.
    12. Chien, Fengsheng & Anwar, Ahsan & Hsu, Ching-Chi & Sharif, Arshian & Razzaq, Asif & Sinha, Avik, 2021. "The role of information and communication technology in encountering environmental degradation: Proposing an SDG framework for the BRICS countries," Technology in Society, Elsevier, vol. 65(C).
    13. Keyi Duan & Mingyao Cao & Nurhafiza Abdul Kader Malim & Yan Song, 2022. "Nonlinear Relationship between Financial Development and CO 2 Emissions—Based on a PSTR Model," IJERPH, MDPI, vol. 20(1), pages 1-15, December.
    14. Vaishali S. Dhingra, 2023. "Financial development, economic growth, globalisation and environmental quality in BRICS economies: evidence from ARDL bounds test approach," Economic Change and Restructuring, Springer, vol. 56(3), pages 1651-1682, June.
    15. Shiwen Liu & Hongyuan Li, 2020. "Does Financial Development Increase Urban Electricity Consumption? Evidence from Spatial and Heterogeneity Analysis," Sustainability, MDPI, vol. 12(17), pages 1-17, August.
    16. Raghutla, Chandrashekar & Shahbaz, Muhammad & Chittedi, Krishna Reddy & Jiao, Zhilun, 2021. "Financing clean energy projects: New empirical evidence from major investment countries," Renewable Energy, Elsevier, vol. 169(C), pages 231-241.
    17. Shahbaz, Muhammad & Haouas, Ilham & Hoang, Thi Hong Van, 2019. "Economic growth and environmental degradation in Vietnam: Is the environmental Kuznets curve a complete picture?," Emerging Markets Review, Elsevier, vol. 38(C), pages 197-218.
    18. Muhammad Khan & Arslan Tariq Rana & Wafa Ghardallou, 2023. "FDI and CO2 emissions in developing countries: the role of human capital," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 117(1), pages 1125-1155, May.
    19. Marc Audi & Marc Poulin & Amjad Ali, 2024. "Environmental Impact of Business Freedom and Renewable Energy: A Global Perspective," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 672-683, May.
    20. Gerui Li & Yalin Lei & Jianping Ge & Sanmang Wu, 2017. "The Empirical Relationship between Mining Industry Development and Environmental Pollution in China," IJERPH, MDPI, vol. 14(3), pages 1-20, March.

    More about this item

    Keywords

    CO2; Economic Complexity; Energy Intensity; FMOLS;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2023-01-21. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.