Threshold non-linear relationship between globalization, renewable energy consumption, and environmental degradation: ev
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RESEARCH ARTICLE
Threshold non-linear relationship between globalization, renewable energy consumption, and environmental degradation: evidence from smooth transition models Yushi Jiang 1 & Asadullah Khaskheli 1
&
Syed Ali Raza 2 & Muhammad Asif Qureshi 3 & Maiyra Ahmed 2
Received: 9 September 2020 / Accepted: 3 November 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract The study intends to explore the following objectives: initially, to examine the non-linear connection between globalization, renewable energy consumption, and environmental degradation. Secondly, to evaluate the role of globalization in increasing or decreasing the carbon emission at the threshold level for different income countries. Panel smooth transition regression (PSTR) is an econometric technique that has been applied for estimation utilizing the data from 1995 to 2017. Results signify that the globalization and environmental degradation have non-linear connection and depends on different regimes. Moreover, on the basis of estimation, it is considered that the effect beyond the threshold level can be damaging, whereas less than the threshold level globalization is positively related to carbon emission. Hence, the inverted U-shaped relation denotes that at a specific level, the rise in globalization reduces carbon emission, but later, a specific level globalization accumulates carbon emission. Carbon emission has non-linear and regime-dependent relation to economic development and renewable energy consumption. The study provides recommendations that can assist policymakers. Keywords Globalization . Renewable energy consumption . Trade openness . Carbon dioxide emission . GDP . PSTR model
Introduction Responsible Editor: Nicholas Apergis * Asadullah Khaskheli [email protected] * Syed Ali Raza [email protected] Yushi Jiang [email protected] Muhammad Asif Qureshi [email protected] Maiyra Ahmed [email protected] 1
School of Economics and Management, Southwest Jiaotong University, Chengdu, People’s Republic of China
2
Department of Management Sciences, IQRA University, Karachi 75300, Pakistan
3
Faculty of Business Administration and Social Sciences, Mohammad Ali Jinnah University, Karachi, Pakistan
The growth rates have been immensely increased over the years, due to which it has become an alarming issue for every country. To achieve economic development, various countries have become part of the economic cooperation agreement that aims to accumulate globalization around the globe (Zaidi et al. 2019). Among which, Asia-Pacific Economic Cooperation (APEC) is one of the contracts; the part of this agreement aims to improve the economy through trade openness, enhancing infrastructure, technological advancement, and others. For economic development, globalization is considered to be the main element that can provide assistance to share, communicate, and interact with businesses, financial institutes, ministry, and others throughout the globe at a larger pace. According to Shahbaz et
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