IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v19y2022i19p12868-d936116.html
   My bibliography  Save this article

Analysis of the Lockdown Effects on the Economy, Environment, and COVID-19 Spread: Lesson Learnt from a Global Pandemic in 2020

Author

Listed:
  • Woraphon Yamaka

    (Center of Excellence in Econometrics, Chiang Mai University, Chiang Mai 50200, Thailand)

  • Siritaya Lomwanawong

    (Faculty of Economics, Chiang Mai University, Chiang Mai 50200, Thailand)

  • Darin Magel

    (Faculty of Economics, Chiang Mai University, Chiang Mai 50200, Thailand)

  • Paravee Maneejuk

    (Center of Excellence in Econometrics, Chiang Mai University, Chiang Mai 50200, Thailand)

Abstract

Lockdown policies have been implemented to reduce COVID-19 transmission worldwide. However, the shutdown of activities has resulted in large economic losses, and it has been widely reported that lockdown measures have resulted in improved air quality. Therefore, many previous studies have attempted to investigate the impacts of the COVID-19-induced lockdowns on the economy, environment, and COVID-19 spread. Nevertheless, the heterogeneity among countries worldwide in the economic, environmental, and public health aspects and the spatial effects of decomposition have not been well investigated in the existing related literature. In this study, based on the cross-sectional data of 158 countries in 2020 and the proposed nonlinear simultaneous spatial econometric models, we investigate the nonlinear and spatial impacts of the COVID-19-induced lockdowns on the economy, environment, and COVID-19 spread. The findings show that lockdowns have had statistically significant negative economic impacts and beneficial environmental consequences but no effect on COVID-19 spread. Noteworthily, this study also found the length of lockdown periods to affect the three domains of interest differently, with a piece of empirical evidence that the imposition of lockdowns for more than 31 days a year could result in economic impairments but contribute to environmental improvements. Lockdowns were shown to have substantially reduced PM2.5 not only in the countries that imposed the measures but also indirectly in the neighboring countries as a spatial spillover effect.

Suggested Citation

  • Woraphon Yamaka & Siritaya Lomwanawong & Darin Magel & Paravee Maneejuk, 2022. "Analysis of the Lockdown Effects on the Economy, Environment, and COVID-19 Spread: Lesson Learnt from a Global Pandemic in 2020," IJERPH, MDPI, vol. 19(19), pages 1-21, October.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:19:p:12868-:d:936116
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/19/19/12868/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/19/19/12868/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jaroslava Botev & Balázs Égert & Fredj Jawadi, 2019. "The nonlinear relationship between economic growth and financial development: Evidence from developing, emerging and advanced economies," International Economics, CEPII research center, issue 160, pages 3-13.
    2. Thi Huong An Nguyen & Christine Thomas-Agnan & Thibault Laurent & Anne Ruiz-Gazen, 2021. "A simultaneous spatial autoregressive model for compositional data," Spatial Economic Analysis, Taylor & Francis Journals, vol. 16(2), pages 161-175, April.
    3. Vo, D.H. & Nguyen, H.M. & Vo, A.T. & McAleer, M.J., 2019. "CO2 Emissions, Energy Consumption and Economic Growth," Econometric Institute Research Papers EI2019-11, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    4. Chandran Govindaraju, V.G.R. & Tang, Chor Foon, 2013. "The dynamic links between CO2 emissions, economic growth and coal consumption in China and India," Applied Energy, Elsevier, vol. 104(C), pages 310-318.
    5. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    6. Mou WANG, 2018. "A Granger Causality Analysis between the GDP and CO2 Emissions of Major Emitters and Implications for International Climate Governance," Chinese Journal of Urban and Environmental Studies (CJUES), World Scientific Publishing Co. Pte. Ltd., vol. 6(01), pages 1-9, March.
    7. Houssem Eddine Chebbi & Marcelo Olarreaga & Habib Zitouna, 2011. "Trade Openness and Co2 Emissions in Tunisia," Middle East Development Journal, Taylor & Francis Journals, vol. 3(1), pages 29-53, January.
    8. Nasreen, Samia & Mbarek, Mounir Ben & Atiq-ur-Rehman, Muhammad, 2020. "Long-run causal relationship between economic growth, transport energy consumption and environmental quality in Asian countries: Evidence from heterogeneous panel methods," Energy, Elsevier, vol. 192(C).
    9. Caselli Francesca & Grigoli Francesco & Sandri Damiano, 2022. "Protecting Lives and Livelihoods with Early and Tight Lockdowns," The B.E. Journal of Macroeconomics, De Gruyter, vol. 22(1), pages 241-268, January.
    10. Sorin Cheval & Cristian Mihai Adamescu & Teodoro Georgiadis & Mathew Herrnegger & Adrian Piticar & David R. Legates, 2020. "Observed and Potential Impacts of the COVID-19 Pandemic on the Environment," IJERPH, MDPI, vol. 17(11), pages 1-25, June.
    11. Nutnaree Maneejuk & Sutthipat Ratchakom & Paravee Maneejuk & Woraphon Yamaka, 2020. "Does the Environmental Kuznets Curve Exist? An International Study," Sustainability, MDPI, vol. 12(21), pages 1-22, November.
    12. Essam A. Rashed & Sachiko Kodera & Jose Gomez-Tames & Akimasa Hirata, 2020. "Influence of Absolute Humidity, Temperature and Population Density on COVID-19 Spread and Decay Durations: Multi-Prefecture Study in Japan," IJERPH, MDPI, vol. 17(15), pages 1-14, July.
    13. Hausman, Jerry A., 1983. "Specification and estimation of simultaneous equation models," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 1, chapter 7, pages 391-448, Elsevier.
    14. Tiba, Sofien & Frikha, Mohamed, 2018. "Income, trade openness and energy interactions: Evidence from simultaneous equation modeling," Energy, Elsevier, vol. 147(C), pages 799-811.
    15. Sebastien Bourdin & Ludovic Jeanne & Fabien Nadou & Gabriel Noiret, 2021. "Does lockdown work? A spatial analysis of the spread and concentration of Covid-19 in Italy," Regional Studies, Taylor & Francis Journals, vol. 55(7), pages 1182-1193, July.
    16. Bruce E. Hansen, 2017. "Regression Kink With an Unknown Threshold," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 35(2), pages 228-240, April.
    17. Xiao-Dong Yang & Hong-Li Li & Yue-E Cao, 2021. "Influence of Meteorological Factors on the COVID-19 Transmission with Season and Geographic Location," IJERPH, MDPI, vol. 18(2), pages 1-13, January.
    18. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
    19. Adewuyi, Adeolu O. & Awodumi, Olabanji B., 2017. "Biomass energy consumption, economic growth and carbon emissions: Fresh evidence from West Africa using a simultaneous equation model," Energy, Elsevier, vol. 119(C), pages 453-471.
    20. Yongzhu Xiong & Yunpeng Wang & Feng Chen & Mingyong Zhu, 2020. "Spatial Statistics and Influencing Factors of the COVID-19 Epidemic at Both Prefecture and County Levels in Hubei Province, China," IJERPH, MDPI, vol. 17(11), pages 1-26, May.
    21. Anh The Vo & Duc Hong Vo & Quan Thai-Thuong Le, 2019. "CO 2 Emissions, Energy Consumption, and Economic Growth: New Evidence in the ASEAN Countries," JRFM, MDPI, vol. 12(3), pages 1-20, September.
    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. Arminen, Heli & Menegaki, Angeliki N., 2019. "Corruption, climate and the energy-environment-growth nexus," Energy Economics, Elsevier, vol. 80(C), pages 621-634.
    2. Abdul Rehman & Hengyun Ma & Ilhan Ozturk & Muntasir Murshed & Vishal Dagar, 2021. "The dynamic impacts of CO2 emissions from different sources on Pakistan’s economic progress: a roadmap to sustainable development," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 17857-17880, December.
    3. Ali, Wajahat & Abdullah, Azrai & Azam, Muhammad, 2017. "Re-visiting the environmental Kuznets curve hypothesis for Malaysia: Fresh evidence from ARDL bounds testing approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 990-1000.
    4. Pei-Zhi Liu & Seema Narayan & Yi-Shuai Ren & Yong Jiang & Konstantinos Baltas & Basil Sharp, 2022. "Re-Examining the Income–CO 2 Emissions Nexus Using the New Kink Regression Model: Does the Kuznets Curve Exist in G7 Countries?," Sustainability, MDPI, vol. 14(7), pages 1-18, March.
    5. Liddle, Brantley, 2013. "Population, Affluence, and Environmental Impact Across Development: Evidence from Panel Cointegration Modeling," MPRA Paper 52088, University Library of Munich, Germany.
    6. George Halkos & Iacovos Psarianos, 2016. "Exploring the effect of including the environment in the neoclassical growth model," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(3), pages 339-358, July.
    7. Lange, Steffen & Pohl, Johanna & Santarius, Tilman, 2020. "Digitalization and energy consumption. Does ICT reduce energy demand?," Ecological Economics, Elsevier, vol. 176(C).
    8. Soumyananda Dinda, 2018. "Production technology and carbon emission: long-run relation with short-run dynamics," Journal of Applied Economics, Taylor & Francis Journals, vol. 21(1), pages 106-121, January.
    9. Arouri, Mohamed El Hedi & Ben Youssef, Adel & M'henni, Hatem & Rault, Christophe, 2012. "Energy consumption, economic growth and CO2 emissions in Middle East and North African countries," Energy Policy, Elsevier, vol. 45(C), pages 342-349.
    10. Imen Gam, 2022. "Does a sanitary crisis drive oil prices and carbon emissions in the USA? Evidence from VECM modeling," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(9), pages 10616-10632, September.
    11. Soumyananda Dinda, 2014. "A theoretical basis for green growth," International Journal of Green Economics, Inderscience Enterprises Ltd, vol. 8(2), pages 177-189.
    12. Hazwan Haini & Lutfi Abdul Razak & Pang Wei Loon & Sufrizul Husseini, 2023. "Re-examining the finance–institutions–growth nexus: does financial integration matter?," Economic Change and Restructuring, Springer, vol. 56(3), pages 1895-1924, June.
    13. Kamanda Espoir, Delphin, 2024. "Investigating the dynamic impacts of public debt on economic growth in the Democratic Republic of Congo: a case of quantile on quantile regression," MPRA Paper 122415, University Library of Munich, Germany.
    14. Ali Raza Cheema & Attiya Yasmin Javid, 2015. "The Relationship between Disaggregate Energy Consumption, Economic Growth and Environment for Asian Developing Economies," PIDE-Working Papers 2015:115, Pakistan Institute of Development Economics.
    15. Amir Iqbal & Xuan Tang & Samma Faiz Rasool, 2023. "Investigating the nexus between CO2 emissions, renewable energy consumption, FDI, exports and economic growth: evidence from BRICS countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(3), pages 2234-2263, March.
    16. Juan A. Román Aso & Jaime Vallés Giménez, 2016. "Air Emissions Performance: A Dynamic Analysis for Spain," Hacienda Pública Española / Review of Public Economics, IEF, vol. 218(3), pages 57-78, September.
    17. Shi, Qiaoling & Shan, Yuli & Zhong, Chao & Cao, Ye & Xue, Rui, 2022. "How would GVCs participation affect carbon intensity in the “Belt and Road Initiative” countries?," Energy Economics, Elsevier, vol. 111(C).
    18. Seref Bozoklu & A. Oguz Demir & Sinan Ataer, 2020. "Reassessing the environmental Kuznets curve: a summability approach for emerging market economies," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 10(3), pages 513-531, September.
    19. Vo, Duc Hong & Vo, Anh The & Ho, Chi Minh & Nguyen, Ha Minh, 2020. "The role of renewable energy, alternative and nuclear energy in mitigating carbon emissions in the CPTPP countries," Renewable Energy, Elsevier, vol. 161(C), pages 278-292.
    20. Dahiru Alhaji-Bala Birnintsaba & Hüseyin Ozdeser & Andisheh Saliminezhad, 2021. "Impact Analysis on the Effective Synergy Between Climate Change, Ecological Degradation and Energy Consumption on Economic Growth in Nigeria," SAGE Open, , vol. 11(4), pages 21582440211, December.

    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:gam:jijerp:v:19:y:2022:i:19:p:12868-:d:936116. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.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.