The role of natural resources, globalization, and renewable energy in testing the EKC hypothesis in MINT countries: new
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RESEARCH ARTICLE
The role of natural resources, globalization, and renewable energy in testing the EKC hypothesis in MINT countries: new evidence from Method of Moments Quantile Regression approach Noshaba Aziz 1 & Arshian Sharif 2,3 & Ali Raza 4 & Kittisak Jermsittiparsert 5,6 Received: 1 April 2020 / Accepted: 3 November 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract We employ the new Method of Moments Quantile Regression approach to expose the role of natural resources, renewable energy, and globalization in testing Environment Kuznets Curve (EKC) in MINT panel covering the years 1995–2018. The outcome validates the EKC curve between economic progress and carbon emissions from the third quantile to the extreme highest quantile. The result also shows that natural resources increase CO2 emissions at the lowest quantile and then turn insignificant from the middle to the highest quantiles due to the potential utilization of resources in a sustainable manner. The renewable energy mitigates CO2 emissions at the lower half quantiles. Still, for upper quantiles, the results are unexpected and imply that the countries’ total energy mix depends heavily on fossil fuels. As far as globalization is concerned, the significant results from medium to upper quantiles reveal that as globalization heightens due to foreign direct investment or trade, energy consumption also expands, leading to the worst environment quality. Thus, the present study’s consequences deliver guidelines for policymakers to utilize natural resources sustainably and opt technologies based on clean energy, which may offset environmental degeneration. Keywords Natural resources . Renewable energy . Globalization . EKC . MINT countries . Responsible Editor: Eyup Dogan
Introduction Environmental degradation is one of the most precarious challenges faced by the contemporary world. The issue of environmental degradation has attained enormous attention from researchers and academia. In the previous few decades, the world has been experiencing considerable economic growth due to progress and development (Dong et al. 2018; Scherer
et al. 2018). As per World Bank, the world GDP has doubled to the US $73.73 trillion from the US $37.88 trillion (constant 2010 US$) over the period 1990 to 2014. Globally, energy usage in the same period has also risen to 1922.5 kg of oil equivalent from 1662.93 kg (World Bank 2019). The growing utilization of energy triggers many environmental concerns (Huaman and Jun 2014). In 2018, the total world emissions of carbon upraised to 33,890.80 million tons, i.e., 1.37 times
Responsible Editor: Eyup Dogan * Kittisak Jermsittiparsert [email protected]
2
Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia, Changlun, Malaysia
Noshaba Aziz [email protected]
3
Department of Business Administration, Faculty of Management Sciences, ILMA University, Karachi, Pakistan
Arshian Sharif [email protected]
4
School of Economics, Shandong University, Jinan, China
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