IDEAS home Printed from https://ideas.repec.org/a/sae/engenv/v35y2024i4p2058-2086.html
   My bibliography  Save this article

Toward sustainable environment in Italy: The role of trade globalization, human capital, and renewable energy consumption

Author

Listed:
  • Min Zhang
  • Tomiwa Sunday Adebayo
  • Abraham Ayobamiji Awosusi
  • Muhammad Ramzan
  • Caner Otrakçı
  • Dervis Kirikkaleli

Abstract

The current study evaluates the effect of financial development (FD), economic growth (GDP), trade globalization (TGLO), renewable energy consumption (REC), and human capital (HC) on ecological footprint (ECF) in Italy using data between 1985 and 2018. We further assess the combined impact of trade globalisation and human capital on ecological footprint as well as the combined effect of trade globalisation and human capital on ecological footprint. In order to explore these associations, the present research utilizes autoregressive distributed lag (ARDL) to catch both long and short-run associations between ecological footprint and its drivers. Furthermore, we use dynamic OLS (DOLS) and fully modified OLS (FMOLS) long-run estimators as robustness checks. Lastly, causality at different frequencies is captured using the frequency domain causality test. The outcomes of the ARDL estimator disclose that (a) a surge in ecological footprint is attributed to an increase in economic growth; (b) a decrease in ecological footprint is attributed to an increase in renewable energy, trade globalisation, and human capital; (c) the combined impact of human capital and trade globalisation lessen ecological footprint, and (d) combined effect of trade globalisation and human capital mitigate ecological footprint in Italy. Furthermore, the outcomes of the causality test revealed that all the exogenous variables can significantly predict ecological footprint in the long run with the exemption of financial development. Based on the study's findings, an SDG-focused policy framework is advocated.

Suggested Citation

  • Min Zhang & Tomiwa Sunday Adebayo & Abraham Ayobamiji Awosusi & Muhammad Ramzan & Caner Otrakçı & Dervis Kirikkaleli, 2024. "Toward sustainable environment in Italy: The role of trade globalization, human capital, and renewable energy consumption," Energy & Environment, , vol. 35(4), pages 2058-2086, June.
    • Handle: RePEc:sae:engenv:v:35:y:2024:i:4:p:2058-2086
    DOI: 10.1177/0958305X221146941
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0958305X221146941
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0958305X221146941?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
    ---><---

    References listed on IDEAS

    as
    1. Murshed, Muntasir & Saboori, Behnaz & Madaleno, Mara & Wang, Hong & Doğan, Buhari, 2022. "Exploring the nexuses between nuclear energy, renewable energy, and carbon dioxide emissions: The role of economic complexity in the G7 countries," Renewable Energy, Elsevier, vol. 190(C), pages 664-674.
    2. James Temitope Dada & Adams Adeiza & Noor Azizi Ismail & Arnaut Marina, 2022. "Investigating the link between economic growth, financial development, urbanization, natural resources, human capital, trade openness and ecological footprint: evidence from Nigeria," Journal of Bioeconomics, Springer, vol. 24(2), pages 153-179, July.
    3. Zivot, Eric & Andrews, Donald W K, 2002. "Further Evidence on the Great Crash, the Oil-Price Shock, and the Unit-Root Hypothesis," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 25-44, January.
    4. Kais Mtar & Walid Belazreg, 2021. "Causal Nexus Between Innovation, Financial Development, and Economic Growth: the Case of OECD Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(1), pages 310-341, March.
    5. Daniel Balsalobre‐Lorente & Oana M. Driha & George Halkos & Shekhar Mishra, 2022. "Influence of growth and urbanization on CO2 emissions: The moderating effect of foreign direct investment on energy use in BRICS," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(1), pages 227-240, February.
    6. Breitung, Jorg & Candelon, Bertrand, 2006. "Testing for short- and long-run causality: A frequency-domain approach," Journal of Econometrics, Elsevier, vol. 132(2), pages 363-378, June.
    7. Ahmadpour, Ali & Mokaramian, Elham & Anderson, Simon, 2021. "The effects of the renewable energies penetration on the surplus welfare under energy policy," Renewable Energy, Elsevier, vol. 164(C), pages 1171-1182.
    8. Pata, Ugur Korkut & Caglar, Abdullah Emre, 2021. "Investigating the EKC hypothesis with renewable energy consumption, human capital, globalization and trade openness for China: Evidence from augmented ARDL approach with a structural break," Energy, Elsevier, vol. 216(C).
    9. Awosusi Abraham Ayobamiji & Demet Beton Kalmaz, 2020. "Reinvestigating the determinants of environmental degradation in Nigeria," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 13(1), pages 52-71.
    10. Samour, Ahmed & Moyo, Delani & Tursoy, Turgut, 2022. "Renewable energy, banking sector development, and carbon dioxide emissions nexus: A path toward sustainable development in South Africa," Renewable Energy, Elsevier, vol. 193(C), pages 1032-1040.
    11. Mac Junior Abeka & Eric Andoh & John Gartchie Gatsi & Seyram Kawor & David McMillan, 2021. "Financial development and economic growth nexus in SSA economies: The moderating role of telecommunication development," Cogent Economics & Finance, Taylor & Francis Journals, vol. 9(1), pages 1862395-186, January.
    12. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    13. Ms. Edda Zoli, 2013. "Italian Sovereign Spreads: Their Determinants and Pass-through to Bank Funding Costs and Lending Conditions," IMF Working Papers 2013/084, International Monetary Fund.
    14. Ulucak, Recep & Danish, & Ozcan, Burcu, 2020. "Relationship between energy consumption and environmental sustainability in OECD countries: The role of natural resources rents," Resources Policy, Elsevier, vol. 69(C).
    15. Simone Gitto & Paolo Mancuso, 2015. "The contribution of physical and human capital accumulation to Italian regional growth: a nonparametric perspective," Journal of Productivity Analysis, Springer, vol. 43(1), pages 1-12, February.
    16. Atif Jahanger & Muhammad Usman & Daniel Balsalobre‐Lorente, 2022. "Linking institutional quality to environmental sustainability," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1749-1765, December.
    17. 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).
    18. George Babington Amegavi & Zechariah Langnel & Albert Ahenkan & Thomas Buabeng, 2022. "The dynamic relationship between economic globalisation, institutional quality, and ecological footprint: Evidence from Ghana," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 31(6), pages 876-893, August.
    19. Pavlos Stamatiou & Nikolaos Dritsakis, 2019. "Causality among CO 2 emissions, energy consumption and economic growth in Italy," International Journal of Computational Economics and Econometrics, Inderscience Enterprises Ltd, vol. 9(4), pages 268-286.
    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. Zhao, Xinlu & Adebayo, Tomiwa Sunday & Kong, Xianli & Al-Faryan, Mamdouh Abdulaziz Saleh, 2022. "Relating energy innovations and natural resources as determinants of environmental sustainability: The role of globalization in G7 countries," Resources Policy, Elsevier, vol. 79(C).
    2. Naqvi, Syed Asif Ali & Hussain, Mehvish & Hussain, Bilal & Shah, Syed Ale Raza & Nazir, Jawad & Usman, Muhammad, 2023. "Environmental sustainability and biomass energy consumption through the lens of pollution Haven hypothesis and renewable energy-environmental kuznets curve," Renewable Energy, Elsevier, vol. 212(C), pages 621-631.
    3. 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).
    4. Abdullah Emre Caglar, 2023. "Can nuclear energy technology budgets pave the way for a transition toward low‐carbon economy: Insights from the United Kingdom," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 198-210, February.
    5. Riazullah Shinwari & Imran Zakeria & Muhammad Usman & Muhammad Sadiq, 2024. "Revisiting the Relationship Between FDI, Natural Resources, and Economic Growth in Afghanistan: Does Political (in) Stability Matter?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 5174-5203, June.
    6. Vincent Tawiah & Raymond Ayivor & Babajide Michael Oyewo, 2024. "Who cares about corruption in Africa? China or the USA?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 2647-2664, July.
    7. Khan, Zaid Ashiq & Koondhar, Mansoor Ahmed & Tiantong, Ma & Khan, Aftab & Nurgazina, Zhanar & Tianjun, Liu & Fengwang, Ma, 2022. "Do chemical fertilizers, area under greenhouses, and renewable energies drive agricultural economic growth owing the targets of carbon neutrality in China?," Energy Economics, Elsevier, vol. 115(C).
    8. Hossain, Mohammad Razib & Rana, Md. Jaber & Saha, Sourav Mohan & Haseeb, Mohammad & Islam, Md. Sayemul & Amin, Md. Ruhul & Hossain, Md. Emran, 2023. "Role of energy mix and eco-innovation in achieving environmental sustainability in the USA using the dynamic ARDL approach: Accounting the supply side of the ecosystem," Renewable Energy, Elsevier, vol. 215(C).
    9. Ma, Qiang & Khan, Zeeshan & Chen, Fuzhong & Murshed, Muntasir & Siqun, Yang & Kirikkaleli, Dervis, 2023. "Revisiting the nexus between house pricing and money demand: Power spectrum and wavelet coherence based approach," The Quarterly Review of Economics and Finance, Elsevier, vol. 87(C), pages 266-274.
    10. Irfan, Muhammad & Chen, Zhenling & Adebayo, Tomiwa Sunday & Al-Faryan, Mamdouh Abdulaziz Saleh, 2022. "Socio-economic and technological drivers of sustainability and resources management: Demonstrating the role of information and communications technology and financial development using advanced wavele," Resources Policy, Elsevier, vol. 79(C).
    11. Hamza Çeştepe & Murat Çetin & Pınar Avcı & Bersu Bahtiyar, 2024. "The link between technological innovation and financial development: Evidence from selected OECD countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(2), pages 1219-1235, April.
    12. Tomiwa Sunday Adebayo & Abraham Ayobamiji Awosusi & Seun Damola Oladipupo & Ephraim Bonah Agyekum & Arunkumar Jayakumar & Nallapaneni Manoj Kumar, 2021. "Dominance of Fossil Fuels in Japan’s National Energy Mix and Implications for Environmental Sustainability," IJERPH, MDPI, vol. 18(14), pages 1-20, July.
    13. repec:zbw:bofitp:urn:nbn:fi:bof-201505061169 is not listed on IDEAS
    14. Kartal, Mustafa Tevfik & Ghosh, Sudeshna & Adebayo, Tomiwa Sunday, 2023. "Renewable energy effect on economy and environment: The case of G7 countries through novel bootstrap rolling window approach," Renewable Energy, Elsevier, vol. 216(C).
    15. Guan, Jialin & Kirikkaleli, Dervis & Bibi, Ayesha & Zhang, Weike, 2020. "Natural resources rents nexus with financial development in the presence of globalization: Is the “resource curse” exist or myth?," Resources Policy, Elsevier, vol. 66(C).
    16. Bouoiyour, Jamal & Selmi, Refk & Tiwari, Aviral Kumar & Shahbaz, Muhammad, 2015. "The nexus between oil price and Russia's real exchange rate: Better paths via unconditional vs conditional analysis," Energy Economics, Elsevier, vol. 51(C), pages 54-66.
    17. Muhammad Usman & Atif Jahanger & Magdalena Radulescu & Daniel Balsalobre-Lorente, 2022. "Do Nuclear Energy, Renewable Energy, and Environmental-Related Technologies Asymmetrically Reduce Ecological Footprint? Evidence from Pakistan," Energies, MDPI, vol. 15(9), pages 1-24, May.
    18. Zied Ftiti & Aviral Tiwari & Ibrahim Fatnassi, 2014. "Oil price and macroeconomy in India – An evolutionary cospectral coherence approach," Working Papers 2014-68, Department of Research, Ipag Business School.
    19. Salah Eddine Sari Hassoun & Khayereddine Salim Adda & Asma Hadjira Sebbane, 2021. "Examining the connection among national tourism expenditure and economic growth in Algeria," Future Business Journal, Springer, vol. 7(1), pages 1-9, December.
    20. Balakrishnan, Pulapre & Das, Mausumi & Parameswaran, M., 2017. "The internal dynamic of Indian economic growth," Journal of Asian Economics, Elsevier, vol. 50(C), pages 46-61.
    21. Alqahtani, Faisal & Hamdi, Besma & Hammoudeh, Shawkat, 2021. "The effects of global factors on the Saudi Arabia equity market by firm size: Implications for risk management based on quantile analysis and frequency domain causality," Journal of Multinational Financial Management, Elsevier, vol. 61(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:sae:engenv:v:35:y:2024:i:4:p:2058-2086. 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: SAGE Publications (email available below). General contact details of provider: .

    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.