IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v25y2023i9d10.1007_s10668-022-02484-3.html
   My bibliography  Save this article

Cushioning environmental damage with institutions and FDI: study of sustainable development goals (SDGs)

Author

Listed:
  • Edmund Ntom Udemba

    (Istanbul Gelisim University)

Abstract

This study examines India’s sustainable development with respect to economic and environment development. India is among the largest emerging countries with good economic development prospects. Nevertheless, its environmental development is poor coupled with its position as third in global carbon emission ranking. This peculiarity of Indian economy with increasing emissions has prompted the need for this research into the country’s sustainability. Considering the leading role of government in curbing the environmental problems, this study aims to ascertain the India’s sustainable development by investigating the role of institutional quality in mitigating its carbon emissions. India’s data of 1996Q1 2018Q4 are utilized to investigate the country’s sustainable development. Short-run and long-run autoregressive distribution lag (ARDL) dynamic and bound test for cointegration with Granger causality are adopted in this study for better insight on India’s sustainable development. Findings from ARDL revealed positive impact of Institutions on environment quality through reduction in carbon emission; however, effect of foreign direct investment (FDI) and fossil fuels shows negative effect on India’s environment through increase in carbon emissions. Findings from Granger causality exposed direction of impacts among the variables; hence, nexus is formed among the variables in determining the cause of carbon emissions and environmental damage. The findings from Granger causality give support to the findings from the ARDL analysis pointing towards the need to frame policies capable of mitigating carbon emission and enhances energy transition through institutions.

Suggested Citation

  • Edmund Ntom Udemba, 2023. "Cushioning environmental damage with institutions and FDI: study of sustainable development goals (SDGs)," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(9), pages 10217-10237, September.
    • Handle: RePEc:spr:endesu:v:25:y:2023:i:9:d:10.1007_s10668-022-02484-3
    DOI: 10.1007/s10668-022-02484-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-022-02484-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10668-022-02484-3?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. Lægreid, Ole Martin & Povitkina, Marina, 2018. "Do Political Institutions Moderate the GDP-CO2 Relationship?," Ecological Economics, Elsevier, vol. 145(C), pages 441-450.
    2. Danish, & Baloch, Muhammad Awais & Wang, Bo, 2019. "Analyzing the role of governance in CO2 emissions mitigation: The BRICS experience," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 119-125.
    3. Haug, Alfred A. & Ucal, Meltem, 2019. "The role of trade and FDI for CO2 emissions in Turkey: Nonlinear relationships," Energy Economics, Elsevier, vol. 81(C), pages 297-307.
    4. Azilah Hasnisah & A. A. Azlina & Che Mohd Imran Che Taib, 2019. "The Impact of Renewable Energy Consumption on Carbon Dioxide Emissions: Empirical Evidence from Developing Countries in Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 135-143.
    5. Paramati, Sudharshan Reddy & Mo, Di & Gupta, Rakesh, 2017. "The effects of stock market growth and renewable energy use on CO2 emissions: Evidence from G20 countries," Energy Economics, Elsevier, vol. 66(C), pages 360-371.
    6. Sinha, Avik & Shahbaz, Muhammad, 2018. "Estimation of Environmental Kuznets Curve for CO2 emission: Role of renewable energy generation in India," Renewable Energy, Elsevier, vol. 119(C), pages 703-711.
    7. Ritu Rana & Manoj Sharma, 2019. "Dynamic causality testing for EKC hypothesis, pollution haven hypothesis and international trade in India," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 28(3), pages 348-364, April.
    8. Bhattacharya, Mita & Awaworyi Churchill, Sefa & Paramati, Sudharshan Reddy, 2017. "The dynamic impact of renewable energy and institutions on economic output and CO2 emissions across regions," Renewable Energy, Elsevier, vol. 111(C), pages 157-167.
    9. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    10. Tiwari Aviral, 2011. "Primary Energy Consumption, CO2 Emissions and Economic Growth: Evidence from India," South East European Journal of Economics and Business, Sciendo, vol. 6(2), pages 99-117, November.
    11. Wang, Zhaohua & Danish, & Zhang, Bin & Wang, Bo, 2018. "The moderating role of corruption between economic growth and CO2 emissions: Evidence from BRICS economies," Energy, Elsevier, vol. 148(C), pages 506-513.
    12. Perron, Pierre, 1990. "Testing for a Unit Root in a Time Series with a Changing Mean," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(2), pages 153-162, April.
    13. Di Vaio, Assunta & Trujillo, Lourdes & D'Amore, Gabriella & Palladino, Rosa, 2021. "Water governance models for meeting sustainable development Goals:A structured literature review," Utilities Policy, Elsevier, vol. 72(C).
    14. Aviral Kumar TIWARI, 2011. "Energy Consumption, Co2 Emission and Economic Growth: A Revisit of the Evidence from India," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 11(2).
    15. Udemba, Edmund Ntom & Tosun, Merve, 2022. "Energy transition and diversification: A pathway to achieve sustainable development goals (SDGs) in Brazil," Energy, Elsevier, vol. 239(PC).
    16. Malik, Sadia & Qasim, Maha & Saeed, Hasan & Chang, Youngho & Taghizadeh-Hesary, Farhad, 2020. "Energy security in Pakistan: Perspectives and policy implications from a quantitative analysis," Energy Policy, Elsevier, vol. 144(C).
    17. Sinha, Avik & Gupta, Monika & Shahbaz, Muhammad & Sengupta, Tuhin, 2019. "Impact of Corruption in Public Sector on Environmental Quality: Implications for Sustainability in BRICS and Next 11 Countries," MPRA Paper 94357, University Library of Munich, Germany, revised 05 Jun 2019.
    18. Dogan, Eyup & Seker, Fahri, 2016. "Determinants of CO2 emissions in the European Union: The role of renewable and non-renewable energy," Renewable Energy, Elsevier, vol. 94(C), pages 429-439.
    19. Sun, Huaping & Edziah, Bless Kofi & Sun, Chuanwang & Kporsu, Anthony Kwaku, 2019. "Institutional quality, green innovation and energy efficiency," Energy Policy, Elsevier, vol. 135(C).
    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. Nguyen, Thi Hao & Deng, Hongbing & Abbas, Zainab Zahra & Lam, Thi Thoa & Abbas, Hussain Raza, 2024. "The effect of natural capital, regional development, FDI, and natural resource rent on environmental performance: The Mediating role of green innovation," Resources Policy, Elsevier, vol. 91(C).

    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. Mohd Shahidan Shaari & Noorazeela Zainol Abidin & Zulkefly Abdul Karim, 2020. "The Impact of Renewable Energy Consumption and Economic Growth on CO2 Emissions: New Evidence using Panel ARDL Study of Selected Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 617-623.
    2. Mahalik, Mantu Kumar & Villanthenkodath, Muhammed Ashiq & Mallick, Hrushikesh & Gupta, Monika, 2021. "Assessing the effectiveness of total foreign aid and foreign energy aid inflows on environmental quality in India," Energy Policy, Elsevier, vol. 149(C).
    3. Danish & Recep Ulucak, 2020. "The pathway toward pollution mitigation: Does institutional quality make a difference?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3571-3583, December.
    4. Yang, Jinxuan & Rizvi, Syed Kumail Abbas & Tan, Zhixiong & Umar, Muhammad & Koondhar, Mansoor Ahmed, 2021. "The competing role of natural gas and oil as fossil fuel and the non-linear dynamics of resource curse in Russia," Resources Policy, Elsevier, vol. 72(C).
    5. Muhammad Mehedi Masud & Abu Hanifa Md. Noman & Rulia Akhtar & Sonia Kumari A/P Selvarajan & Abdullah Al‐Mamun, 2024. "Does credit growth mitigate emission intensity in ASEAN countries?," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(2), pages 1324-1349, March.
    6. Abdul Rehman & Hengyun Ma & Munir Ahmad & Abdul Rauf, 2023. "Investigating the Dynamic Association Among CO2 Emission, Energy Use, and Economic Growth: Evidence From China," SAGE Open, , vol. 13(3), pages 21582440211, July.
    7. Nicolae Stef & Sami Ben Jabeur, 2023. "Elections and Environmental Quality," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(2), pages 593-625, February.
    8. 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.
    9. repec:sae:sagope:v:11:y:2021:i:4:p:21582440211060829 is not listed on IDEAS
    10. Mirzat Ullah & Hafiz M. Sohail & Muhammad Asif Khan & Hassan Zada & Maria Kovacova & Judit Olah, 2023. "Nexus between Economic Growth and CO2 Emission within the Preview of Institutional Quality: Some New Insights from," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(64), pages 849-849, August.
    11. Wan-Lin Yong & Jerome Kueh & Yong Sze Wei & Jang-Haw Tiang, 2020. "Energy Consumption and Economic Growth Nexus in China: Autoregressive Distributed Lag (ARDL)," Journal of Public Administration and Governance, Macrothink Institute, vol. 10(2), pages 194212-1942, December.
    12. Hayat Khan & Liu Weili & Itbar Khan, 2022. "Environmental innovation, trade openness and quality institutions: an integrated investigation about environmental sustainability," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 3832-3862, March.
    13. Francisco García-Lillo & Eduardo Sánchez-García & Bartolomé Marco-Lajara & Pedro Seva-Larrosa, 2023. "Renewable Energies and Sustainable Development: A Bibliometric Overview," Energies, MDPI, vol. 16(3), pages 1-22, January.
    14. Abdul Rehman & Hengyun Ma & Magdalena Radulescu & Crenguta Ileana Sinisi & Loredana Maria Paunescu & MD Shabbir Alam & Rafael Alvarado, 2021. "The Energy Mix Dilemma and Environmental Sustainability: Interaction among Greenhouse Gas Emissions, Nuclear Energy, Urban Agglomeration, and Economic Growth," Energies, MDPI, vol. 14(22), pages 1-21, November.
    15. 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.
    16. Chibueze, E. Nnaji & Jude, O. Chukwu & Nnaji Moses, 2013. "Electricity Supply, Fossil fuel Consumption, Co2 Emissions and Economic Growth: Implications and Policy Options for Sustainable Development in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 3(3), pages 262-271.
    17. Kangyin Dong & Xiucheng Dong & Qingzhe Jiang, 2020. "How renewable energy consumption lower global CO2 emissions? Evidence from countries with different income levels," The World Economy, Wiley Blackwell, vol. 43(6), pages 1665-1698, June.
    18. Shahani, Rakesh & Bansal, Aastha, 2020. "An econometric investigation of Dynamic Linkages between CO2 emissions, energy consumption, & economic growth: A Case of India and China," MPRA Paper 103591, University Library of Munich, Germany.
    19. Abdul Mansoor & Baserat Sultana, 2018. "Impact of Population, GDP and Energy Consumption on Carbon Emissions: Evidence from Pakistan Using an Analytic Tool IPAT," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 5(2), pages 183-190.
    20. Nanthakumar, Loganathan & Shahbaz, Muhammad & Taha, Roshaiza, 2014. "The Effect of Green Taxation and Economic Growth on Environment Hazards: The Case of Malaysia," MPRA Paper 56843, University Library of Munich, Germany, revised 23 Jun 2014.
    21. Rahman, Mohammad Mafizur & Kashem, Mohammad Abul, 2017. "Carbon emissions, energy consumption and industrial growth in Bangladesh: Empirical evidence from ARDL cointegration and Granger causality analysis," Energy Policy, Elsevier, vol. 110(C), pages 600-608.

    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:spr:endesu:v:25:y:2023:i:9:d:10.1007_s10668-022-02484-3. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.