In:
Energy, Sustainability and Society, Springer Science and Business Media LLC, Vol. 12, No. 1 ( 2022-12-08)
Abstract:
This study revisits the energy-growth-environment nexus in the member countries of the Organization for Economic Cooperation and Development (OECD) by examining the role of trade openness, financial development, and urbanization. The cross-sectional augmented distributed lag (CS-ARDL) approach is employed to address the presence of slope homoskedasticity and cross-sectional dependence in the data set. Results Our empirical findings fail to confirm the validity of the environmental Kuznets curve (EKC) hypothesis for emissions of carbon dioxide (CO 2 ) during the period researched. CO 2 emissions have bidirectional causality with income, the share of renewable energy, and the share of nonrenewable energy. Trade openness, financial development, and urbanization play different roles in the energy-growth-environment nexus. Whereas trade openness increases CO 2 emissions, financial development reduces consumption of renewable energy. Urbanization plays a limited role in this nexus. Conclusions These findings lead to some policy implications. The close relationship between economic growth, CO 2 emissions, and energy consumption is highlighted, which suggests that a policy targeting one component needs to consider the impacts on the other components.
Type of Medium:
Online Resource
ISSN:
2192-0567
DOI:
10.1186/s13705-022-00375-z
Language:
English
Publisher:
Springer Science and Business Media LLC
Publication Date:
2022
detail.hit.zdb_id:
2641015-1
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