Renewable energy, economic development, and ecological footprint nexus: fresh evidence of renewable energy environment K
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RESEARCH ARTICLE
Renewable energy, economic development, and ecological footprint nexus: fresh evidence of renewable energy environment Kuznets curve (RKC) from income groups Syed Asif Ali Naqvi 1 & Syed Ale Raza Shah 1,2 & Sofia Anwar 1 & Hassan Raza 1 Received: 1 June 2020 / Accepted: 10 August 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract This study aims to measure the association of real economic growth per capita, renewable energy consumption, and financial development with ecological footprints (EFP) across the 155 countries of four different income groups over the period of 1990– 2017. For the analysis, the unit root tests allowing cross-sectional dependency, Westerlund cointegration test, common correlated effect of mean group, augmented mean group, mean group, and Dumitrescu–Hurlin panel causality test are used. The results verify both the environmental Kuznets curve (EKC) and renewable energy environment Kuznets curve (RKC) hypotheses in the highincome group; however, other groups have not shown reliable results. Moreover, it is observed that the existence of RKC is a turning point for high-income countries, and it takes place before the turning point of the forthcoming EKC. Besides, empirical outcomes endorse the presence of long-run equilibrium and indicate that financial development has a negative and significant effect on the EFP in the case of the high-income group. In contrast, upper–middle– and lower–middle–income groups show the insignificant relationship with the dependent variable. Likewise, financial development has a positive and significant association with EFP for the low-income group. Conversely, biomass energy has a negative relationship with EFP in high- and lower–middle–income groups, while a positive association has been observed for the remaining two groups. We suppose that the study outcomes would guide the policymakers in decision-making regarding the development and usage of renewable energy to prevent environmental damages. Keywords Biomass energy . RKC . Economic development . Ecological footprint
Introduction Since the beginning of the twentieth century, a growing trend in carbon emission has been observed. The emission has Responsible Editor: Nicholas Apergis * Syed Ale Raza Shah [email protected] Syed Asif Ali Naqvi [email protected] Sofia Anwar [email protected] Hassan Raza [email protected] 1
Department of Economics, Government College University, Faisalabad 38000, Pakistan
2
School of Economics & Finance, Xi’an Jiaotong University, Xi’an 710061, China
increased by 1.8% in 2017 as compared with that in 1990. The average temperature has also increased due to an increase in the emission levels worldwide (Karl et al. 2015). Several human diseases and losses of social welfare are concerned with this issue. There is a growing cognizance of the severe impact of global warming triggered by carbon emission. The association among energy use, economic development (ED), and environmental pollution is under intensive research foc
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