IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v89y2024ics0301420723012564.html
   My bibliography  Save this article

Impact of regional trade integration and energy transition on natural resources footprints in Asian Countries

Author

Listed:
  • Liu, Yue
  • Lin, Zijie

Abstract

With the right policies and investments, regional trade integration and energy transition can offer a unique opportunity for economic development and environmental sustainability in Asian countries. Therefore, exploring the determinants of resource sustainability from unique perspectives is crucial. Hence, this study explores the role of regional trade integration, energy transition, and financial development on trade-adjusted resource footprints in selected Asian countries from 1990 to 2021 using Cross-Sectional Augmented Distributed Lag (CS-ARDL) estimation strategy. The preliminary findings expose that cross-sections are heterogenous and the variables are cointegrated. The long-run estimates reveal that improvement in regional trade integration (across borders), and renewable energy transition reduce resource footprints. At the same time, economic growth, financial development, and industrialization contribute to higher resource consumption in the region. These findings are consistent across alternative estimators and recommend relevant policies.

Suggested Citation

  • Liu, Yue & Lin, Zijie, 2024. "Impact of regional trade integration and energy transition on natural resources footprints in Asian Countries," Resources Policy, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:jrpoli:v:89:y:2024:i:c:s0301420723012564
    DOI: 10.1016/j.resourpol.2023.104545
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420723012564
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2023.104545?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sinha, Avik & Mishra, Shekhar & Sharif, Arshian & Yarovaya, Larisa, 2021. "Does Green Financing help to improve the Environmental & Social Responsibility? Designing SDG framework through Advanced Quantile modelling," MPRA Paper 108150, University Library of Munich, Germany, revised 2021.
    2. Alexander Chudik & Kamiar Mohaddes & M. Hashem Pesaran & Mehdi Raissi, 2017. "Is There a Debt-Threshold Effect on Output Growth?," The Review of Economics and Statistics, MIT Press, vol. 99(1), pages 135-150, March.
    3. Tamazian, Artur & Bhaskara Rao, B., 2010. "Do economic, financial and institutional developments matter for environmental degradation? Evidence from transitional economies," Energy Economics, Elsevier, vol. 32(1), pages 137-145, January.
    4. Odhiambo, Nicholas M, 2020. "Financial development,income inequality and carbon emissions in Sub-Saharan African countries: A panel data analysis," Working Papers 26645, University of South Africa, Department of Economics.
    5. Sharif, Arshian & Baris-Tuzemen, Ozge & Uzuner, Gizem & Ozturk, Ilhan & Sinha, Avik, 2020. "Revisiting the role of renewable and non-renewable energy consumption on Turkey’s ecological footprint: Evidence from Quantile ARDL approach," MPRA Paper 100044, University Library of Munich, Germany.
    6. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    7. Joakim Westerlund, 2007. "Testing for Error Correction in Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 709-748, December.
    8. Lian Xue & Mohammad Haseeb & Haider Mahmood & Tarek Tawfik Yousef Alkhateeb & Muntasir Murshed, 2021. "Renewable Energy Use and Ecological Footprints Mitigation: Evidence from Selected South Asian Economies," Sustainability, MDPI, vol. 13(4), pages 1-20, February.
    9. Destek, Mehmet & Sinha, Avik, 2020. "Renewable, non-renewable energy consumption, economic growth, trade openness and ecological footprint: Evidence from organisation for economic Co-operation and development countries," MPRA Paper 104246, University Library of Munich, Germany, revised 2020.
    10. Li, Zongyun & Rizvi, Syed Kumail Abbas & Rubbaniy, Ghulame & Umar, Muhammad, 2021. "Understanding the dynamics of resource curse in G7 countries: The role of natural resource rents and the three facets of financial development," Resources Policy, Elsevier, vol. 73(C).
    11. Sharif, Arshian & Mishra, Shekhar & Sinha, Avik & Jiao, Zhilun & Shahbaz, Muhammad & Afshan, Sahar, 2020. "The renewable energy consumption-environmental degradation nexus in Top-10 polluted countries: Fresh insights from quantile-on-quantile regression approach," Renewable Energy, Elsevier, vol. 150(C), pages 670-690.
    12. Islam, Faridul & Shahbaz, Muhammad & Ahmed, Ashraf U. & Alam, Md. Mahmudul, 2013. "Financial development and energy consumption nexus in Malaysia: A multivariate time series analysis," Economic Modelling, Elsevier, vol. 30(C), pages 435-441.
    13. Zhang, Rui & Sharma, Rajesh & Tan, Zhixiong & Kautish, Pradeep, 2022. "Do export diversification and stock market development drive carbon intensity? The role of renewable energy solutions in top carbon emitter countries," Renewable Energy, Elsevier, vol. 185(C), pages 1318-1328.
    14. Hashem Pesaran, M. & Yamagata, Takashi, 2008. "Testing slope homogeneity in large panels," Journal of Econometrics, Elsevier, vol. 142(1), pages 50-93, January.
    15. Zhang, Yue-Jun, 2011. "The impact of financial development on carbon emissions: An empirical analysis in China," Energy Policy, Elsevier, vol. 39(4), pages 2197-2203, April.
    16. Omri, Anis & Daly, Saida & Rault, Christophe & Chaibi, Anissa, 2015. "Financial development, environmental quality, trade and economic growth: What causes what in MENA countries," Energy Economics, Elsevier, vol. 48(C), pages 242-252.
    17. Cui, Lianbiao & Weng, Shimei & Nadeem, Abdul Majeed & Rafique, Muhammad Zahid & Shahzad, Umer, 2022. "Exploring the role of renewable energy, urbanization and structural change for environmental sustainability: Comparative analysis for practical implications," Renewable Energy, Elsevier, vol. 184(C), pages 215-224.
    18. Sharif, Arshian & Raza, Syed Ali & Ozturk, Ilhan & Afshan, Sahar, 2019. "The dynamic relationship of renewable and nonrenewable energy consumption with carbon emission: A global study with the application of heterogeneous panel estimations," Renewable Energy, Elsevier, vol. 133(C), pages 685-691.
    19. Pothen, Frank & Welsch, Heinz, 2019. "Economic development and material use. Evidence from international panel data," World Development, Elsevier, vol. 115(C), pages 107-119.
    20. Muntasir Murshed & Rizwan Ahmed & Chamaiporn Kumpamool & Mohga Bassim & Mohamed Elheddad, 2021. "The effects of regional trade integration and renewable energy transition on environmental quality: Evidence from South Asian neighbors," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 4154-4170, December.
    21. Lamia Jamel & Samir Maktouf, 2017. "The nexus between economic growth, financial development, trade openness, and CO2 emissions in European countries," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1341456-134, January.
    22. Acheampong, Alex O., 2019. "Modelling for insight: Does financial development improve environmental quality?," Energy Economics, Elsevier, vol. 83(C), pages 156-179.
    23. Khan, Muhammad Asif & Khan, Muhammad Atif & Abdulahi, Mohamued Elyas & Liaqat, Idrees & Shah, Sayyed Sadaqat Hussain, 2019. "Institutional quality and financial development: The United States perspective," Journal of Multinational Financial Management, Elsevier, vol. 49(C), pages 67-80.
    24. Alexander Chudik & M. Hashem Pesaran, 2013. "Large Panel Data Models with Cross-Sectional Dependence: A Survey," CESifo Working Paper Series 4371, CESifo.
    25. Yan, Yunfeng & Wang, Ran & Zheng, Xiuxiu & Zhao, Zhongxiu, 2020. "Carbon endowment and trade-embodied carbon emissions in global value chains: Evidence from China," Applied Energy, Elsevier, vol. 277(C).
    26. Shahbaz, Muhammad & Nasreen, Samia & Abbas, Faisal & Anis, Omri, 2015. "Does foreign direct investment impede environmental quality in high-, middle-, and low-income countries?," Energy Economics, Elsevier, vol. 51(C), pages 275-287.
    27. Sinha, Avik & Sengupta, Tuhin & Saha, Tanaya, 2020. "Technology policy and environmental quality at crossroads: Designing SDG policies for select Asia Pacific countries," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    28. Eberhardt, Markus & Bond, Stephen, 2009. "Cross-section dependence in nonstationary panel models: a novel estimator," MPRA Paper 17692, University Library of Munich, Germany.
    29. Kaoru Ogino & Mikiyasu Nakayama & Daisuke Sasaki, 2019. "Domestic Socioeconomic Barriers to Hydropower Trading: Evidence from Bhutan and Nepal," Sustainability, MDPI, vol. 11(7), pages 1-19, April.
    30. Afshan, Sahar & Ozturk, Ilhan & Yaqoob, Tanzeela, 2022. "Facilitating renewable energy transition, ecological innovations and stringent environmental policies to improve ecological sustainability: Evidence from MM-QR method," Renewable Energy, Elsevier, vol. 196(C), pages 151-160.
    31. Wu, Linfei & Sun, Liwen & Qi, Peixiao & Ren, Xiangwei & Sun, Xiaoting, 2021. "Energy endowment, industrial structure upgrading, and CO2 emissions in China: Revisiting resource curse in the context of carbon emissions," Resources Policy, Elsevier, vol. 74(C).
    Full references (including those not matched with items on IDEAS)

    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. Usman, Muhammad & Balsalobre-Lorente, Daniel, 2022. "Environmental concern in the era of industrialization: Can financial development, renewable energy and natural resources alleviate some load?," Energy Policy, Elsevier, vol. 162(C).
    2. Khan, Muhammad Tariq Iqbal & Yaseen, Muhammad Rizwan & Ali, Qamar, 2019. "Nexus between financial development, tourism, renewable energy, and greenhouse gas emission in high-income countries: A continent-wise analysis," Energy Economics, Elsevier, vol. 83(C), pages 293-310.
    3. Mahmood, Ahmad & Zahoor, Ahmed & Xiyue, Yang & Nazim, Hussain & Sinha, Avik, 2021. "Financial development and environmental degradation: Do human capital and institutional quality make a difference?," MPRA Paper 110039, University Library of Munich, Germany, revised 2021.
    4. Cristina Ruza & Raquel Caro-Carretero, 2022. "The Non-Linear Impact of Financial Development on Environmental Quality and Sustainability: Evidence from G7 Countries," IJERPH, MDPI, vol. 19(14), pages 1-21, July.
    5. Muhammad Shahbaz & Mehmet Akif Destek & Michael L. Polemis, 2018. "Do Foreign Capital and Financial Development Affect Clean Energy Consumption and Carbon Emissions? Evidence from BRICS and Next-11 Countries," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 68(4), pages 20-50, October-D.
    6. Gyamfi, Bright Akwasi & Agozie, Divine Q. & Bekun, Festus Victor, 2022. "Can technological innovation, foreign direct investment and natural resources ease some burden for the BRICS economies within current industrial era?," Technology in Society, Elsevier, vol. 70(C).
    7. Usman, Muhammad & Balsalobre-Lorente, Daniel & Jahanger, Atif & Ahmad, Paiman, 2022. "Pollution concern during globalization mode in financially resource-rich countries: Do financial development, natural resources, and renewable energy consumption matter?," Renewable Energy, Elsevier, vol. 183(C), pages 90-102.
    8. Sylvia Kor & Md. Qamruzzaman, 2024. "Decoding the Environmental Synergy in BRI Nations: Analyzing the Influence of Renewable Energy Adoption, Financial Evolution, FDI, and Capital Resilience on Sustainability," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 582-599, May.
    9. Zhang, Qianxiao & Shah, Syed Ale Raza & Yang, Ling, 2022. "Modeling the effect of disaggregated renewable energies on ecological footprint in E5 economies: Do economic growth and R&D matter?," Applied Energy, Elsevier, vol. 310(C).
    10. Liang, Huijun & Shi, Changkuan & Abid, Nabila & Yu, Yanliang, 2023. "Are digitalization and human development discarding the resource curse in emerging economies?," Resources Policy, Elsevier, vol. 85(PB).
    11. Najia Saqib & Ivan A. Duran & Nazia Hashmi, 2022. "Impact of Financial Deepening, Energy Consumption and Total Natural Resource Rent on CO2 Emission in the GCC Countries: Evidence from Advanced Panel Data Simulation," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 400-409, March.
    12. Ahsan Anwar & Avik Sinha & Arshian Sharif & Muhammad Siddique & Shoaib Irshad & Waseem Anwar & Summaira Malik, 2022. "The nexus between urbanization, renewable energy consumption, financial development, and CO2 emissions: evidence from selected Asian countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(5), pages 6556-6576, May.
    13. Predrag Petrović & Mikhail M. Lobanov, 2022. "Impact of financial development on CO2 emissions: improved empirical results," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(5), pages 6655-6675, May.
    14. Mrabet, Zouhair & Alsamara, Mouyad & Mimouni, Karim & Mnasri, Ayman, 2021. "Can human development and political stability improve environmental quality? New evidence from the MENA region," Economic Modelling, Elsevier, vol. 94(C), pages 28-44.
    15. Sencer Atasoy, Burak, 2017. "Testing the environmental Kuznets curve hypothesis across the U.S.: Evidence from panel mean group estimators," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 731-747.
    16. Zhongwei, Huang & Liu, Yishu, 2022. "The role of eco-innovations, trade openness, and human capital in sustainable renewable energy consumption: Evidence using CS-ARDL approach," Renewable Energy, Elsevier, vol. 201(P1), pages 131-140.
    17. Acheampong, Alex O., 2019. "Modelling for insight: Does financial development improve environmental quality?," Energy Economics, Elsevier, vol. 83(C), pages 156-179.
    18. Li, Junhui & Li, Guowei, 2023. "What drives resource sustainability in Asia? Discovering the moderating role of financial development and industrialization," Resources Policy, Elsevier, vol. 85(PA).
    19. Dogan, Eyup & Altinoz, Buket & Madaleno, Mara & Taskin, Dilvin, 2020. "The impact of renewable energy consumption to economic growth: A replication and extension of Inglesi-Lotz (2016)," Energy Economics, Elsevier, vol. 90(C).
    20. Khan, Zeeshan & Malik, Muhammad Yousaf & Latif, Kashmala & Jiao, Zhilun, 2020. "Heterogeneous effect of eco-innovation and human capital on renewable & non-renewable energy consumption: Disaggregate analysis for G-7 countries," Energy, Elsevier, vol. 209(C).

    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:eee:jrpoli:v:89:y:2024:i:c:s0301420723012564. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    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.