The Sustainable Environment in Uruguay: The Roles of Financial Development, Natural Resources, and Trade Globalization
As the world continues to be a globalized society, there have been variations in environmental quality, but studies including trade globalization into the environmental policy framework remain inconclusive. Therefore, employing the time series dataset of Uruguay over the period between 1980 and 2018...
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2022-04-01
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| Series: | Frontiers in Environmental Science |
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| Online Access: | https://www.frontiersin.org/articles/10.3389/fenvs.2022.875577/full |
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| author | Abraham Ayobamiji Awosusi Nkosinathi G. Xulu Mohsen Ahmadi Husam Rjoub Mehmet Altuntaş Solomon Eghosa Uhunamure Seyi Saint Akadiri Dervis Kirikkaleli |
| author_facet | Abraham Ayobamiji Awosusi Nkosinathi G. Xulu Mohsen Ahmadi Husam Rjoub Mehmet Altuntaş Solomon Eghosa Uhunamure Seyi Saint Akadiri Dervis Kirikkaleli |
| author_sort | Abraham Ayobamiji Awosusi |
| collection | DOAJ |
| description | As the world continues to be a globalized society, there have been variations in environmental quality, but studies including trade globalization into the environmental policy framework remain inconclusive. Therefore, employing the time series dataset of Uruguay over the period between 1980 and 2018, the main objective of this current study is to investigate the effect of trade globalization, natural resources rents, economic growth, and financial development on carbon emissions. By employing the bounds testing procedures in combination with the critical approximation p-values of Kripfganz and Schneider (2018), the Autoregressive Distributed Lag estimator, and spectral causality test to achieve the goal of this research. The outcomes of the bounds test confirm a long-run connection between carbon emissions and these determinants. Moreover, from the outcome of the Autoregressive Distributed Lag estimator, we observed that trade liberalization is found to exert CO2 emissions in the long and short run. The economic expansion in Uruguay imposes significant pressure on the quality of the environment in the long and short run. The abundance of natural resources significantly increases environmental deterioration in the long and short run. Furthermore, we uncover that financial development does not impact environmental deterioration in Uruguay. Finally, the outcome of the spectral causality test detected that trade globalization, economic growth, and natural resources forecast carbon emissions with the exclusion of financial development. Based on the outcome, this study suggests that policies should be tailored towards international trade must be reassessed, and the restrictions placed on the exportation of polluting-intensive commodities must be reinforced. |
| first_indexed | 2024-04-14T01:05:17Z |
| format | Article |
| id | doaj.art-4020e3f3f5dd47c9aaf54f56a11ce53c |
| institution | Directory Open Access Journal |
| issn | 2296-665X |
| language | English |
| last_indexed | 2024-04-14T01:05:17Z |
| publishDate | 2022-04-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Environmental Science |
| spelling | doaj.art-4020e3f3f5dd47c9aaf54f56a11ce53c2022-12-22T02:21:17ZengFrontiers Media S.A.Frontiers in Environmental Science2296-665X2022-04-011010.3389/fenvs.2022.875577875577The Sustainable Environment in Uruguay: The Roles of Financial Development, Natural Resources, and Trade GlobalizationAbraham Ayobamiji Awosusi0Nkosinathi G. Xulu1Mohsen Ahmadi2Husam Rjoub3Mehmet Altuntaş4Solomon Eghosa Uhunamure5Seyi Saint Akadiri6Dervis Kirikkaleli7Department of Economics, Faculty of Economics and Administrative Science, Near East University, Nicosia, TurkeyDepartment of Geography and Environmental Studies, University of Zululand, KwaDlangezwa, South AfricaDepartment of Industrial Engineering, Urmia University of Technology (UUT), Urmia, IranDepartment of Accounting and Finance, Faculty of Economics and Administrative Sciences, Cyprus International University, Mersin, TurkeyDepartment of Economics, Faculty of Economics, Administrative and Social Sciences, Nisantasi University, Istanbul, TurkeyFaculty of Applied Sciences, Cape Peninsula University of Technology, Cape Town, South AfricaResearch Department, Central Bank of Nigeria, Abuja, NigeriaDepartment of Banking and Finance, Faculty of Economic and Administrative Sciences, European University of Lefke, Lefke, TurkeyAs the world continues to be a globalized society, there have been variations in environmental quality, but studies including trade globalization into the environmental policy framework remain inconclusive. Therefore, employing the time series dataset of Uruguay over the period between 1980 and 2018, the main objective of this current study is to investigate the effect of trade globalization, natural resources rents, economic growth, and financial development on carbon emissions. By employing the bounds testing procedures in combination with the critical approximation p-values of Kripfganz and Schneider (2018), the Autoregressive Distributed Lag estimator, and spectral causality test to achieve the goal of this research. The outcomes of the bounds test confirm a long-run connection between carbon emissions and these determinants. Moreover, from the outcome of the Autoregressive Distributed Lag estimator, we observed that trade liberalization is found to exert CO2 emissions in the long and short run. The economic expansion in Uruguay imposes significant pressure on the quality of the environment in the long and short run. The abundance of natural resources significantly increases environmental deterioration in the long and short run. Furthermore, we uncover that financial development does not impact environmental deterioration in Uruguay. Finally, the outcome of the spectral causality test detected that trade globalization, economic growth, and natural resources forecast carbon emissions with the exclusion of financial development. Based on the outcome, this study suggests that policies should be tailored towards international trade must be reassessed, and the restrictions placed on the exportation of polluting-intensive commodities must be reinforced.https://www.frontiersin.org/articles/10.3389/fenvs.2022.875577/fullcarbon emissionstrade globalizationfinancial developmenteconomic growthnatural resourcesand spectral causality test |
| spellingShingle | Abraham Ayobamiji Awosusi Nkosinathi G. Xulu Mohsen Ahmadi Husam Rjoub Mehmet Altuntaş Solomon Eghosa Uhunamure Seyi Saint Akadiri Dervis Kirikkaleli The Sustainable Environment in Uruguay: The Roles of Financial Development, Natural Resources, and Trade Globalization Frontiers in Environmental Science carbon emissions trade globalization financial development economic growth natural resources and spectral causality test |
| title | The Sustainable Environment in Uruguay: The Roles of Financial Development, Natural Resources, and Trade Globalization |
| title_full | The Sustainable Environment in Uruguay: The Roles of Financial Development, Natural Resources, and Trade Globalization |
| title_fullStr | The Sustainable Environment in Uruguay: The Roles of Financial Development, Natural Resources, and Trade Globalization |
| title_full_unstemmed | The Sustainable Environment in Uruguay: The Roles of Financial Development, Natural Resources, and Trade Globalization |
| title_short | The Sustainable Environment in Uruguay: The Roles of Financial Development, Natural Resources, and Trade Globalization |
| title_sort | sustainable environment in uruguay the roles of financial development natural resources and trade globalization |
| topic | carbon emissions trade globalization financial development economic growth natural resources and spectral causality test |
| url | https://www.frontiersin.org/articles/10.3389/fenvs.2022.875577/full |
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