IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v201y2022ip1p514-525.html
   My bibliography  Save this article

How far renewable energy and globalization are useful to mitigate the environment in Mexico? Application of QARDL and spectral causality analysis

Author

Listed:
  • Jahanger, Atif
  • Zubair Chishti, Muhammad
  • Chukwuma Onwe, Joshua
  • Awan, Ashar

Abstract

Renewable energy is considered to be a useful tool to mitigate global carbon dioxide emissions and its benefits are linked to globalization. To investigate the heterogeneous effects of renewable energy and globalization at different levels of carbon dioxide (CO2), the present study utilized the Quantile Autoregressive Lagged (QARDL) model. In addition, data for Mexico from 1990Q1-2018Q4 is used with the framework of the Environmental Kuznets Curve (EKC). The findings show that renewable energy mitigates CO2 emissions regardless of the quantile level. However, globalization is found to raise the ratio of CO2 emissions while interacting with only the higher quantiles of CO2 emissions. Additionally, the Spectral Causal analysis reveals that the GDP and GDP squared granger cause the CO2 emissions only in the long run. Also, renewable energy and globalization significantly granger cause CO2 emissions in the short, medium, and long-run, suggesting that any policy shock in any independent series will lead to cause carbon emissions. Besides, the findings confirm the existence of the EKC hypothesis for Mexico. Some useful policy implications are suggested based on the short and long-run parameters.

Suggested Citation

  • Jahanger, Atif & Zubair Chishti, Muhammad & Chukwuma Onwe, Joshua & Awan, Ashar, 2022. "How far renewable energy and globalization are useful to mitigate the environment in Mexico? Application of QARDL and spectral causality analysis," Renewable Energy, Elsevier, vol. 201(P1), pages 514-525.
    • Handle: RePEc:eee:renene:v:201:y:2022:i:p1:p:514-525
    DOI: 10.1016/j.renene.2022.10.081
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148122015762
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2022.10.081?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. Cho, Jin Seo & Kim, Tae-hwan & Shin, Yongcheol, 2015. "Quantile cointegration in the autoregressive distributed-lag modeling framework," Journal of Econometrics, Elsevier, vol. 188(1), pages 281-300.
    2. Anne Morrison Piehl & Suzanne J. Cooper & Anthony A. Braga & David M. Kennedy, 2003. "Testing for Structural Breaks in the Evaluation of Programs," The Review of Economics and Statistics, MIT Press, vol. 85(3), pages 550-558, August.
    3. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
    4. Abbasi, Kashif Raza & Hussain, Khadim & Radulescu, Magdalena & Ozturk, Ilhan, 2022. "Asymmetric impact of renewable and non-renewable energy on the industrial sector in Pakistan: Fresh evidence from Bayesian and non-linear ARDL," Renewable Energy, Elsevier, vol. 187(C), pages 944-957.
    5. Yang, Qiang & Huo, Jiale & Saqib, Najia & Mahmood, Haider, 2022. "Modelling the effect of renewable energy and public-private partnership in testing EKC hypothesis: Evidence from methods moment of quantile regression," Renewable Energy, Elsevier, vol. 192(C), pages 485-494.
    6. Wang, Jing & Rickman, Dan S. & Yu, Yihua, 2022. "Dynamics between global value chain participation, CO2 emissions, and economic growth: Evidence from a panel vector autoregression model," Energy Economics, Elsevier, vol. 109(C).
    7. Zhang, Dongyang & Kong, Qunxi, 2022. "Green energy transition and sustainable development of energy firms: An assessment of renewable energy policy," Energy Economics, Elsevier, vol. 111(C).
    8. Sarkodie, Samuel Asumadu & Ozturk, Ilhan, 2020. "Investigating the Environmental Kuznets Curve hypothesis in Kenya: A multivariate analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 117(C).
    9. Acheampong, Alex O. & Opoku, Eric Evans Osei & Dzator, Janet, 2022. "Does democracy really improve environmental quality? Empirical contribution to the environmental politics debate," Energy Economics, Elsevier, vol. 109(C).
    10. Chen, Wenhui & Lei, Yalin, 2018. "The impacts of renewable energy and technological innovation on environment-energy-growth nexus: New evidence from a panel quantile regression," Renewable Energy, Elsevier, vol. 123(C), pages 1-14.
    11. Chishti, Muhammad Zubair & Sinha, Avik, 2022. "Do the shocks in technological and financial innovation influence the environmental quality? Evidence from BRICS economies," Technology in Society, Elsevier, vol. 68(C).
    12. Muhammad Shahbaz & Syed Jawad Hussain Shahzad & Mantu Kumar Mahalik & Perry Sadorsky, 2018. "How strong is the causal relationship between globalization and energy consumption in developed economies? A country-specific time-series and panel analysis," Applied Economics, Taylor & Francis Journals, vol. 50(13), pages 1479-1494, March.
    13. Bilgili, Faik & Koçak, Emrah & Bulut, Ümit, 2016. "The dynamic impact of renewable energy consumption on CO2 emissions: A revisited Environmental Kuznets Curve approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 838-845.
    14. Xu, Deyi & Sheraz, Muhammad & Hassan, Arshad & Sinha, Avik & Ullah, Saif, 2022. "Financial development, renewable energy and CO2 emission in G7 countries: New evidence from non-linear and asymmetric analysis," Energy Economics, Elsevier, vol. 109(C).
    15. Xiao, Zhijie, 2009. "Quantile cointegrating regression," Journal of Econometrics, Elsevier, vol. 150(2), pages 248-260, June.
    16. Ehigiamusoe, Kizito Uyi & Dogan, Eyup, 2022. "The role of interaction effect between renewable energy consumption and real income in carbon emissions: Evidence from low-income countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    17. Fang, Jianchun & Gozgor, Giray & Mahalik, Mantu Kumar & Mallick, Hrushikesh & Padhan, Hemachandra, 2022. "Does urbanisation induce renewable energy consumption in emerging economies? The role of education in energy switching policies," Energy Economics, Elsevier, vol. 111(C).
    18. Wang, Xiaoling & Zhang, Tianyue & Nathwani, Jatin & Yang, Fangming & Shao, Qinglong, 2022. "Environmental regulation, technology innovation, and low carbon development: Revisiting the EKC Hypothesis, Porter Hypothesis, and Jevons’ Paradox in China's iron & steel industry," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    19. Khan, Irfan & Zakari, Abdulrasheed & Dagar, Vishal & Singh, Sanjeet, 2022. "World energy trilemma and transformative energy developments as determinants of economic growth amid environmental sustainability," Energy Economics, Elsevier, vol. 108(C).
    20. Pata, Ugur Korkut, 2021. "Linking renewable energy, globalization, agriculture, CO2 emissions and ecological footprint in BRIC countries: A sustainability perspective," Renewable Energy, Elsevier, vol. 173(C), pages 197-208.
    21. Dogan, Eyup & Chishti, Muhammad Zubair & Karimi Alavijeh, Nooshin & Tzeremes, Panayiotis, 2022. "The roles of technology and Kyoto Protocol in energy transition towards COP26 targets: Evidence from the novel GMM-PVAR approach for G-7 countries," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    22. Tomiwa Sunday Adebayo & Abraham Ayobamiji Awosusi & Jamiu Adetola Odugbesan & Gbenga Daniel Akinsola & Wing-Keung Wong & Husam Rjoub, 2021. "Sustainability of Energy-Induced Growth Nexus in Brazil: Do Carbon Emissions and Urbanization Matter?," Sustainability, MDPI, vol. 13(8), pages 1-21, April.
    23. Habiba, Umme & Xinbang, Cao & Anwar, Ahsan, 2022. "Do green technology innovations, financial development, and renewable energy use help to curb carbon emissions?," Renewable Energy, Elsevier, vol. 193(C), pages 1082-1093.
    24. Abdul Majid Awan & Muhammad Azam, 2022. "Evaluating the impact of GDP per capita on environmental degradation for G-20 economies: Does N-shaped environmental Kuznets curve exist?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(9), pages 11103-11126, September.
    25. Wang, Lu & Wu, Jiangbin & Cao, Yang & Hong, Yanran, 2022. "Forecasting renewable energy stock volatility using short and long-term Markov switching GARCH-MIDAS models: Either, neither or both?," Energy Economics, Elsevier, vol. 111(C).
    26. Axel Dreher, 2006. "Does globalization affect growth? Evidence from a new index of globalization," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1091-1110.
    27. Chiappinelli, Olga & May, Nils, 2022. "Too good to be true? Time-inconsistent renewable energy policies," Energy Economics, Elsevier, vol. 112(C).
    28. Shahbaz, Muhammad & Nasir, Muhammad Ali & Roubaud, David, 2018. "Environmental degradation in France: The effects of FDI, financial development, and energy innovations," Energy Economics, Elsevier, vol. 74(C), pages 843-857.
    29. Balaguer, Jacint & Cantavella, Manuel, 2018. "The role of education in the Environmental Kuznets Curve. Evidence from Australian data," Energy Economics, Elsevier, vol. 70(C), pages 289-296.
    30. 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).
    31. Zhu Weimin & Muhammad Zubair Chishti, 2021. "Toward Sustainable Development: Assessing the Effects of Commercial Policies on Consumption and Production-Based Carbon Emissions in Developing Economies," SAGE Open, , vol. 11(4), pages 21582440211, December.
    32. Chen, Chaoyi & Pinar, Mehmet & Stengos, Thanasis, 2022. "Renewable energy and CO2 emissions: New evidence with the panel threshold model," Renewable Energy, Elsevier, vol. 194(C), pages 117-128.
    33. Muhammad Bilal Khan & Hummera Saleem & Malik Shahzad Shabbir & Xie Huobao, 2022. "The effects of globalization, energy consumption and economic growth on carbon dioxide emissions in South Asian countries," Energy & Environment, , vol. 33(1), pages 107-134, February.
    34. Pradhan, Basanta K. & Ghosh, Joydeep, 2022. "A computable general equilibrium (CGE) assessment of technological progress and carbon pricing in India's green energy transition via furthering its renewable capacity," Energy Economics, Elsevier, vol. 106(C).
    35. Al-mulali, Usama & Tang, Chor Foon & Ozturk, Ilhan, 2015. "Estimating the Environment Kuznets Curve hypothesis: Evidence from Latin America and the Caribbean countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 918-924.
    36. Karaaslan, Abdulkerim & Çamkaya, Serhat, 2022. "The relationship between CO2 emissions, economic growth, health expenditure, and renewable and non-renewable energy consumption: Empirical evidence from Turkey," Renewable Energy, Elsevier, vol. 190(C), pages 457-466.
    37. Jahanger, Atif & Usman, Muhammad & Murshed, Muntasir & Mahmood, Haider & Balsalobre-Lorente, Daniel, 2022. "The linkages between natural resources, human capital, globalization, economic growth, financial development, and ecological footprint: The moderating role of technological innovations," Resources Policy, Elsevier, vol. 76(C).
    38. Xu, Li & Wang, Xiuli & Guo, Wen, 2022. "Does renewable energy adaptation, globalization, and financial development matter for environmental quality and economic progress? Evidence from panel of big five (B5) economies," Renewable Energy, Elsevier, vol. 192(C), pages 631-640.
    39. Dogan, Eyup & Majeed, Muhammad Tariq & Luni, Tania, 2022. "Revisiting the nexus of ecological footprint, unemployment, and renewable and non-renewable energy for South Asian economies: Evidence from novel research methods," Renewable Energy, Elsevier, vol. 194(C), pages 1060-1070.
    40. Rahman, Mohammad Mafizur & Alam, Khosrul, 2022. "Impact of industrialization and non-renewable energy on environmental pollution in Australia: Do renewable energy and financial development play a mitigating role?," Renewable Energy, Elsevier, vol. 195(C), pages 203-213.
    41. Usman, Ojonugwa & Alola, Andrew Adewale & Sarkodie, Samuel Asumadu, 2020. "Assessment of the role of renewable energy consumption and trade policy on environmental degradation using innovation accounting: Evidence from the US," Renewable Energy, Elsevier, vol. 150(C), pages 266-277.
    42. 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.
    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. Lei Wen & Hongbing Li & Xueying Bian, 2024. "Local environmental legislation and employment growth: evidence from Chinese manufacturing firms," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 16917-16955, July.
    2. Rasheed, Muhammad Qamar & Yuhuan, Zhao & Haseeb, Abdul & Ahmed, Zahoor & Saud, Shah, 2024. "Asymmetric relationship between competitive industrial performance, renewable energy, industrialization, and carbon footprint: Does artificial intelligence matter for environmental sustainability?," Applied Energy, Elsevier, vol. 367(C).
    3. Zhenxiang Cao & Liqing Peng, 2023. "The Impact of Digital Economics on Environmental Quality: A System Dynamics Approach," SAGE Open, , vol. 13(4), pages 21582440231, December.
    4. Feng, Shanshan & Li, Jianfeng & Nawi, Hafizah Mat & Alhamdi, Fuad Mohammed & Shamansurova, Zilola, 2024. "Assessing the nexus between fintech, natural resources, government effectiveness, and environmental pollution in China: A QARDL study," Resources Policy, Elsevier, vol. 88(C).
    5. Jahanger, Atif & Hossain, Mohammad Razib & Usman, Muhammad & Chukwuma Onwe, Joshua, 2023. "Recent scenario and nexus between natural resource dependence, energy use and pollution cycles in BRICS region: Does the mediating role of human capital exist?," Resources Policy, Elsevier, vol. 81(C).
    6. Yang, Shubo & Jahanger, Atif & Hossain, Mohammad Razib, 2023. "How effective has the low-carbon city pilot policy been as an environmental intervention in curbing pollution? Evidence from Chinese industrial enterprises," Energy Economics, Elsevier, vol. 118(C).
    7. Murshed, Muntasir, 2023. "Efficacies of technological progress and renewable energy transition in amplifying national electrification rates: contextual evidence from developing countries," Utilities Policy, Elsevier, vol. 81(C).
    8. Feng, Chao & Liu, Yu-Qi & Yang, Jun, 2024. "Do energy trade patterns affect renewable energy development? The threshold role of digital economy and economic freedom," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    9. Huang, Lihua, 2024. "Fintech inclusion in natural resource utilization, trade openness, resource productivity, recycling and minimizing waste generation: Does technology really drive economies toward green growth?," Resources Policy, Elsevier, vol. 90(C).
    10. Li, Jiaqi & Li, Yushan & Zheng, Ziqi & Si, Xiaoyu, 2023. "Environment and natural resources degradation under COVID-19 crises: Recovery post pandemic," Resources Policy, Elsevier, vol. 83(C).
    11. Atif Jahanger & Daniel Balsalobre-Lorente & Ahmed Samour & Foday Joof & Mumtaz Ali & Turgut Tursoy, 2022. "Do Renewable Energy and the Real Estate Market Promote Environmental Quality in South Africa: Evidence from the Bootstrap ARDL Approach," Sustainability, MDPI, vol. 14(24), pages 1-17, December.
    12. Han, Zhihong & Gong, Lixin & Long, Chi & Afzal, Anees, 2023. "Towards resourceful sustainability: Integrating minerals resources in achieving development goals," Resources Policy, Elsevier, vol. 87(PA).

    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. Gangopadhyay, Partha & Das, Narasingha & Alam, G.M. Monirul & Khan, Uzma & Haseeb, Mohammad & Hossain, Md. Emran, 2023. "Revisiting the carbon pollution-inhibiting policies in the USA using the quantile ARDL methodology: What roles can clean energy and globalization play?," Renewable Energy, Elsevier, vol. 204(C), pages 710-721.
    2. Appiah, Michael & Li, Mingxing & Sehrish, Saba & Abaji, Emad Eddin, 2023. "Investigating the connections between innovation, natural resource extraction, and environmental pollution in OECD nations; examining the role of capital formation," Resources Policy, Elsevier, vol. 81(C).
    3. Razzaq, Asif & Ajaz, Tahseen & Li, Jing Claire & Irfan, Muhammad & Suksatan, Wanich, 2021. "Investigating the asymmetric linkages between infrastructure development, green innovation, and consumption-based material footprint: Novel empirical estimations from highly resource-consuming economi," Resources Policy, Elsevier, vol. 74(C).
    4. Alvarado, Rafael & Tillaguango, Brayan & Murshed, Muntasir & Ochoa-Moreno, Santiago & Rehman, Abdul & Işık, Cem & Alvarado-Espejo, Johana, 2022. "Impact of the informal economy on the ecological footprint: The role of urban concentration and globalization," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 750-767.
    5. Muhammad Ramzan & Ummara Razi & Muhammad Umer Quddoos & Tomiwa Sunday Adebayo, 2023. "Do green innovation and financial globalization contribute to the ecological sustainability and energy transition in the United Kingdom? Policy insights from a bootstrap rolling window approach," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 393-414, February.
    6. 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.
    7. Muhammad Farhan Bashir & Benjiang MA & Muhammad Shahbaz & Zhilun Jiao, 2020. "The nexus between environmental tax and carbon emissions with the roles of environmental technology and financial development," PLOS ONE, Public Library of Science, vol. 15(11), pages 1-20, November.
    8. Wang, Wei & Rehman, Mubeen Abdur & Fahad, Shah, 2022. "The dynamic influence of renewable energy, trade openness, and industrialization on the sustainable environment in G-7 economies," Renewable Energy, Elsevier, vol. 198(C), pages 484-491.
    9. Danish I. Godil & Zhang Yu & Arshian Sharif & Rimsha Usman & Syed Abdul Rehman Khan, 2021. "Investigate the role of technology innovation and renewable energy in reducing transport sector CO2 emission in China: A path toward sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(4), pages 694-707, July.
    10. Aluwani Tagwi, 2022. "The Impacts of Climate Change, Carbon Dioxide Emissions (CO 2 ) and Renewable Energy Consumption on Agricultural Economic Growth in South Africa: ARDL Approach," Sustainability, MDPI, vol. 14(24), pages 1-25, December.
    11. Jahanger, Atif & Hossain, Mohammad Razib & Awan, Ashar, 2024. "Exploring the critical nexus among energy mineral, globalization, and CO2 emissions in NAFTA: What's the forum's response amid asymmetries?," Resources Policy, Elsevier, vol. 90(C).
    12. Najia Saqib & Ivan A. Duran & Ilhan Ozturk, 2023. "Unraveling the Interrelationship of Digitalization, Renewable Energy, and Ecological Footprints within the EKC Framework: Empirical Insights from the United States," Sustainability, MDPI, vol. 15(13), pages 1-21, July.
    13. Asif Razzaq & Arshian Sharif & Paiman Ahmad & Kittisak Jermsittiparsert, 2021. "Asymmetric role of tourism development and technology innovation on carbon dioxide emission reduction in the Chinese economy: Fresh insights from QARDL approach," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 176-193, January.
    14. Fareed, Zeeshan & Rehman, Mubeen Abdur & Adebayo, Tomiwa Sunday & Wang, Yihan & Ahmad, Munir & Shahzad, Farrukh, 2022. "Financial inclusion and the environmental deterioration in Eurozone: The moderating role of innovation activity," Technology in Society, Elsevier, vol. 69(C).
    15. Chishti, Muhammad Zubair & Patel, Ritesh, 2023. "Breaking the climate deadlock: Leveraging the effects of natural resources on climate technologies to achieve COP26 targets," Resources Policy, Elsevier, vol. 82(C).
    16. Yurtkuran, Suleyman, 2021. "The effect of agriculture, renewable energy production, and globalization on CO2 emissions in Turkey: A bootstrap ARDL approach," Renewable Energy, Elsevier, vol. 171(C), pages 1236-1245.
    17. Bakry, Walid & Mallik, Girijasankar & Nghiem, Xuan-Hoa & Sinha, Avik & Vo, Xuan Vinh, 2023. "Is green finance really “green”? Examining the long-run relationship between green finance, renewable energy and environmental performance in developing countries," Renewable Energy, Elsevier, vol. 208(C), pages 341-355.
    18. Shahbaz, Muhammad & Lahiani, Amine & Abosedra, Salah & Hammoudeh, Shawkat, 2018. "The role of globalization in energy consumption: A quantile cointegrating regression approach," Energy Economics, Elsevier, vol. 71(C), pages 161-170.
    19. Caglar, Abdullah Emre & Askin, Bekir Emre, 2023. "A path towards green revolution: How do competitive industrial performance and renewable energy consumption influence environmental quality indicators?," Renewable Energy, Elsevier, vol. 205(C), pages 273-280.
    20. Chishti, Muhammad Zubair & Sinha, Avik & Zaman, Umer & Shahzad, Umer, 2023. "Exploring the dynamic connectedness among energy transition and its drivers: Understanding the moderating role of global geopolitical risk," Energy Economics, Elsevier, vol. 119(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:renene:v:201:y:2022:i:p1:p:514-525. 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.journals.elsevier.com/renewable-energy .

    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.