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Examining Environmental Sustainability in Italy: Evidence from ARDL and Non-linear ARDL Approaches

In: Sustainable Digital Transformation

Author

Listed:
  • Aamir Javed

    (University of Chieti-Pescara)

  • Agnese Rapposelli

    (University of Chieti-Pescara)

Abstract

One of the reasons behind environmental degradation and climate change is greenhouse gases that are mainly consisted of carbon dioxide (CO2) emissions. Besides, CO2 emissions negatively affect human health. Consequently, national institutions should understand which factors are affecting carbon emissions in order to achieve sustainable (environmental, social and economic) development. The main objective of this paper is to examine the symmetric and asymmetric effects of oil price, foreign direct investments and economic growth on carbon emissions in Italy. To this purpose, the long and short-run impact of these variables on carbon emissions have been investigated by applying the autoregressive distributed lag (ARDL) and non-linear ARDL methodologies to Italian data for the period 1970–2019. The symmetric results show that economic growth and foreign direct investments intensify carbon emissions both in the long and short-run, while the impact of oil price on emissions is negative in the long-run and positive in the short-run, suggesting that oil price is responsible for environmental degradation only in the short run. The asymmetric results reveal that both in the long and short-run an increase in the oil price imply reductions in carbon emission.

Suggested Citation

  • Aamir Javed & Agnese Rapposelli, 2023. "Examining Environmental Sustainability in Italy: Evidence from ARDL and Non-linear ARDL Approaches," Lecture Notes in Information Systems and Organization, in: Stefano Za & Robert Winter & Alessandra Lazazzara (ed.), Sustainable Digital Transformation, pages 75-93, Springer.
    • Handle: RePEc:spr:lnichp:978-3-031-15770-7_6
    DOI: 10.1007/978-3-031-15770-7_6
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    Cited by:

    1. Aamir Javed & José Alberto Fuinhas & Agnese Rapposelli, 2023. "Asymmetric Nexus between Green Technology Innovations, Economic Policy Uncertainty, and Environmental Sustainability: Evidence from Italy," Energies, MDPI, vol. 16(8), pages 1-20, April.

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