IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v15y2024i1d10.1007_s13132-023-01292-y.html
   My bibliography  Save this article

Analyzing the Role of Political Risk, GDP, and Eco-Innovations Towards CO2 Emissions in South Asian Countries

Author

Listed:
  • Usman Mehmood

    (University of Management and Technology
    University of the Punjab)

Abstract

This research work estimates the impacts of political risk towards carbon emissions while incorporating the role of technological innovations, financial development, economic growth, and trade, in panel data of Pakistan, India, Bangladesh, and Sri Lanka. In doing so, the yearly data of 1984–2017 is analyzed by adopting an advanced econometric method of the cross-sectional autoregressive distributed lag (CS-ARDL) approach. The Westerlund co-integration test confirms the strong association among the variables, and the results of CS-ARDL show that innovations, economic growth, and trade are not environmentally friendly in South Asian countries. Furthermore, financial development and a stable political environment are important to achieve carbon neutrality in developing South Asian countries. This work diverts the attention of policymakers in making a stable political environment. This will improve the environmental quality and save these countries from future drastic climatic variability.

Suggested Citation

  • Usman Mehmood, 2024. "Analyzing the Role of Political Risk, GDP, and Eco-Innovations Towards CO2 Emissions in South Asian Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2121-2135, March.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:1:d:10.1007_s13132-023-01292-y
    DOI: 10.1007/s13132-023-01292-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-023-01292-y
    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/s13132-023-01292-y?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. Joakim Westerlund & David L. Edgerton, 2008. "A Simple Test for Cointegration in Dependent Panels with Structural Breaks," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(5), pages 665-704, October.
    2. Yao, Yao & Ivanovski, Kris & Inekwe, John & Smyth, Russell, 2019. "Human capital and energy consumption: Evidence from OECD countries," Energy Economics, Elsevier, vol. 84(C).
    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. Buhari Doğan & Oana M. Driha & Daniel Balsalobre Lorente & Umer Shahzad, 2021. "The mitigating effects of economic complexity and renewable energy on carbon emissions in developed countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 1-12, January.
    5. Tomiwa Sunday Adebayo & Dervis Kirikkaleli, 2021. "Impact of renewable energy consumption, globalization, and technological innovation on environmental degradation in Japan: application of wavelet tools," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(11), pages 16057-16082, November.
    6. M. Hashem Pesaran, 2015. "Testing Weak Cross-Sectional Dependence in Large Panels," Econometric Reviews, Taylor & Francis Journals, vol. 34(6-10), pages 1089-1117, December.
    7. Chudik, Alexander & Pesaran, M. Hashem, 2015. "Common correlated effects estimation of heterogeneous dynamic panel data models with weakly exogenous regressors," Journal of Econometrics, Elsevier, vol. 188(2), pages 393-420.
    8. Goel, Rajeev K. & Herrala, Risto & Mazhar, Ummad, 2013. "Institutional quality and environmental pollution: MENA countries versus the rest of the world," Economic Systems, Elsevier, vol. 37(4), pages 508-521.
    9. Panayotou, Theodore, 1997. "Demystifying the environmental Kuznets curve: turning a black box into a policy tool," Environment and Development Economics, Cambridge University Press, vol. 2(4), pages 465-484, November.
    10. Hanif, Imran & Faraz Raza, Syed Muhammad & Gago-de-Santos, Pilar & Abbas, Qaiser, 2019. "Fossil fuels, foreign direct investment, and economic growth have triggered CO2 emissions in emerging Asian economies: Some empirical evidence," Energy, Elsevier, vol. 171(C), pages 493-501.
    11. 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.
    12. Çoban, Serap & Topcu, Mert, 2013. "The nexus between financial development and energy consumption in the EU: A dynamic panel data analysis," Energy Economics, Elsevier, vol. 39(C), pages 81-88.
    13. Peter Pedroni, 2001. "Purchasing Power Parity Tests In Cointegrated Panels," The Review of Economics and Statistics, MIT Press, vol. 83(4), pages 727-731, November.
    14. Mancur Olson, 1996. "Distinguished Lecture on Economics in Government: Big Bills Left on the Sidewalk: Why Some Nations Are Rich, and Others Poor," Journal of Economic Perspectives, American Economic Association, vol. 10(2), pages 3-24, Spring.
    15. Dervis Kirikkaleli & Tomiwa Sunday Adebayo, 2021. "Do renewable energy consumption and financial development matter for environmental sustainability? New global evidence," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(4), pages 583-594, July.
    16. Zeren, Feyyaz & Akkuş, Hilmi Tunahan, 2020. "The relationship between renewable energy consumption and trade openness: New evidence from emerging economies," Renewable Energy, Elsevier, vol. 147(P1), pages 322-329.
    17. Husam Rjoub & Jamiu Adetola Odugbesan & Tomiwa Sunday Adebayo & Wing-Keung Wong, 2021. "Sustainability of the Moderating Role of Financial Development in the Determinants of Environmental Degradation: Evidence from Turkey," Sustainability, MDPI, vol. 13(4), pages 1-18, February.
    18. Yasir Khan & Cai ShuKai & Taimoor Hassan & Jawed Kootwal & Muhammad Nisar Khan, 2021. "The links between renewable energy, fossil energy, terrorism, economic growth and trade openness: the case of Pakistan," SN Business & Economics, Springer, vol. 1(9), pages 1-25, September.
    19. Chang, Ting-Huan & Huang, Chien-Ming & Lee, Ming-Chih, 2009. "Threshold effect of the economic growth rate on the renewable energy development from a change in energy price: Evidence from OECD countries," Energy Policy, Elsevier, vol. 37(12), pages 5796-5802, December.
    20. Mansor H. Ibrahim & Siong Hook Law, 2016. "Institutional Quality and CO 2 Emission–Trade Relations: Evidence from Sub-Saharan Africa," South African Journal of Economics, Economic Society of South Africa, vol. 84(2), pages 323-340, June.
    21. 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.
    22. Özgür Bayram Soylu & Tomiwa Sunday Adebayo & Dervis Kirikkaleli, 2021. "The Imperativeness of Environmental Quality in China Amidst Renewable Energy Consumption and Trade Openness," Sustainability, MDPI, vol. 13(9), pages 1-22, April.
    23. Asim Anwar & Mustafa Younis & Inayat Ullah, 2020. "Impact of Urbanization and Economic Growth on CO 2 Emission: A Case of Far East Asian Countries," IJERPH, MDPI, vol. 17(7), pages 1-8, April.
    24. Brantley Liddle, 2018. "Consumption-Based Accounting and the Trade-Carbon Emissions Nexus in Asia: A Heterogeneous, Common Factor Panel Analysis," Sustainability, MDPI, vol. 10(10), pages 1-13, October.
    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. Khan, Zeeshan & Ali, Muhsin & Jinyu, Liu & Shahbaz, Muhammad & Siqun, Yang, 2020. "Consumption-based carbon emissions and trade nexus: Evidence from nine oil exporting countries," Energy Economics, Elsevier, vol. 89(C).
    2. Jiangling Yu & Feng Ju & Muhammad Wahab & Ephraim Bonah Agyekum & Clement Matasane & Solomon Eghosa Uhunamure, 2022. "Estimating the Effects of Economic Complexity and Technological Innovations on CO 2 Emissions: Policy Instruments for N-11 Countries," Sustainability, MDPI, vol. 14(24), pages 1-15, December.
    3. Muhammad Shahbaz & Avik Sinha & Andreas Kontoleon, 2022. "Decomposing scale and technique effects of economic growth on energy consumption: Fresh evidence from developing economies," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 1848-1869, April.
    4. Usman Mehmood & Ephraim Bonah Agyekum & Solomon Eghosa Uhunamure & Karabo Shale & Ayesha Mariam, 2022. "Evaluating the Influences of Natural Resources and Ageing People on CO 2 Emissions in G-11 Nations: Application of CS-ARDL Approach," IJERPH, MDPI, vol. 19(3), pages 1-14, January.
    5. Shahbaz, Muhammad & Sinha, Avik & Kontoleon, Andreas, 2020. "Decomposing Scale and Technique Effects of Economic Growth on Energy Consumption: Fresh Evidence in Developing Economies," MPRA Paper 102111, University Library of Munich, Germany, revised 27 Jul 2020.
    6. Pata, Ugur Korkut & Destek, Mehmet Akif & Manga, Muge & Cengiz, Orhan, 2022. "Militarization of NATO Countries Sparks Climate Change? Investigating the Moderating Role of Technological Progress and Financial Development," MPRA Paper 117567, University Library of Munich, Germany.
    7. Yang, Shuangpeng & umar, Muhammad, 2022. "How globalization is reshaping the environmental quality in G7 economies in the presence of renewable energy initiatives?," Renewable Energy, Elsevier, vol. 193(C), pages 128-135.
    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. Norazah Mohd Suki & Norbayah Mohd Suki & Arshian Sharif & Sahar Afshan, 2021. "The role of logistics performance for sustainable development in top Asian countries: Evidence from advance panel estimations," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(4), pages 595-606, July.
    10. Doğan, Buhari & Ghosh, Sudeshna & Hoang, Dung Phuong & Chu, Lan Khanh, 2022. "Are economic complexity and eco-innovation mutually exclusive to control energy demand and environmental quality in E7 and G7 countries?," Technology in Society, Elsevier, vol. 68(C).
    11. Adebayo, Tomiwa Sunday & Awosusi, Abraham Ayobamiji & Bekun, Festus Victor & Altuntaş, Mehmet, 2021. "Coal energy consumption beat renewable energy consumption in South Africa: Developing policy framework for sustainable development," Renewable Energy, Elsevier, vol. 175(C), pages 1012-1024.
    12. Arshian Sharif & Najia Saqib & Kangyin Dong & Syed Abdul Rehman Khan, 2022. "Nexus between green technology innovation, green financing, and CO2 emissions in the G7 countries: The moderating role of social globalisation," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1934-1946, December.
    13. Md Qamruzzaman & Nusrat Farzana & Piana Monsur Mindia, 2024. "Unveiling the Path to Environmental Sustainability through Energy Efficiency, Environmental Innovation, and Institutional Quality in Southeast Asian Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 14(6), pages 322-343, November.
    14. 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.
    15. Wilman-Santiago Ochoa-Moreno & Byron Alejandro Quito & Carlos Andrés Moreno-Hurtado, 2021. "Foreign Direct Investment and Environmental Quality: Revisiting the EKC in Latin American Countries," Sustainability, MDPI, vol. 13(22), pages 1-18, November.
    16. Talan, Amogh & Rao, Amar & Sharma, Gagan Deep & Apostu, Simona-Andreea & Abbas, Shujaat, 2023. "Transition towards clean energy consumption in G7: Can financial sector, ICT and democracy help?," Resources Policy, Elsevier, vol. 82(C).
    17. Zhou, Long & Alharthi, Majed & Aziz, Babar & Kok, Shiau Hui & Wasim, Sarah & Dong, Xiaohong, 2024. "Illuminating the contributions of fintech, mineral resources, and foreign direct investment in alleviating environmental issues: An empirical analysis," Resources Policy, Elsevier, vol. 89(C).
    18. Özgür Bayram Soylu & Tomiwa Sunday Adebayo & Dervis Kirikkaleli, 2021. "The Imperativeness of Environmental Quality in China Amidst Renewable Energy Consumption and Trade Openness," Sustainability, MDPI, vol. 13(9), pages 1-22, April.
    19. Shahbaz, Muhammad & Sinha, Avik & Raghutla, Chandrashekar & Vo, Xuan Vinh, 2022. "Decomposing scale and technique effects of financial development and foreign direct investment on renewable energy consumption," Energy, Elsevier, vol. 238(PB).
    20. Hassan, Taimoor & Song, Huaming & Khan, Yasir & Kirikkaleli, Dervis, 2022. "Energy efficiency a source of low carbon energy sources? Evidence from 16 high-income OECD economies," Energy, Elsevier, vol. 243(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:spr:jknowl:v:15:y:2024:i:1:d:10.1007_s13132-023-01292-y. 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.