Revisiting the energy-growth-environment nexus in the OECD countries: An application of the CS-ARDL approach
Abstract Background 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-...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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BMC
2022-12-01
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| Series: | Energy, Sustainability and Society |
| Subjects: | |
| Online Access: | https://doi.org/10.1186/s13705-022-00375-z |
| _version_ | 1811301835502256128 |
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| author | Duc Hong Vo Chi Minh Ho Quan Thai Thuong Le Anh The Vo |
| author_facet | Duc Hong Vo Chi Minh Ho Quan Thai Thuong Le Anh The Vo |
| author_sort | Duc Hong Vo |
| collection | DOAJ |
| description | Abstract Background 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 (CO2) during the period researched. CO2 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 CO2 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, CO2 emissions, and energy consumption is highlighted, which suggests that a policy targeting one component needs to consider the impacts on the other components. |
| first_indexed | 2024-04-13T07:17:13Z |
| format | Article |
| id | doaj.art-cd7b7b9c74c14899ac4a71ee6b3fbbbf |
| institution | Directory Open Access Journal |
| issn | 2192-0567 |
| language | English |
| last_indexed | 2024-04-13T07:17:13Z |
| publishDate | 2022-12-01 |
| publisher | BMC |
| record_format | Article |
| series | Energy, Sustainability and Society |
| spelling | doaj.art-cd7b7b9c74c14899ac4a71ee6b3fbbbf2022-12-22T02:56:44ZengBMCEnergy, Sustainability and Society2192-05672022-12-0112111710.1186/s13705-022-00375-zRevisiting the energy-growth-environment nexus in the OECD countries: An application of the CS-ARDL approachDuc Hong Vo0Chi Minh Ho1Quan Thai Thuong Le2Anh The Vo3Research Centre in Business, Economics & Resources, Ho Chi Minh City Open UniversityResearch Centre in Business, Economics & Resources, Ho Chi Minh City Open UniversityResearch Centre in Business, Economics & Resources, Ho Chi Minh City Open UniversityResearch Centre in Business, Economics & Resources, Ho Chi Minh City Open UniversityAbstract Background 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 (CO2) during the period researched. CO2 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 CO2 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, CO2 emissions, and energy consumption is highlighted, which suggests that a policy targeting one component needs to consider the impacts on the other components.https://doi.org/10.1186/s13705-022-00375-zCarbon dioxideCS-ARDLEconomic growthEKCOECDRenewable energy |
| spellingShingle | Duc Hong Vo Chi Minh Ho Quan Thai Thuong Le Anh The Vo Revisiting the energy-growth-environment nexus in the OECD countries: An application of the CS-ARDL approach Energy, Sustainability and Society Carbon dioxide CS-ARDL Economic growth EKC OECD Renewable energy |
| title | Revisiting the energy-growth-environment nexus in the OECD countries: An application of the CS-ARDL approach |
| title_full | Revisiting the energy-growth-environment nexus in the OECD countries: An application of the CS-ARDL approach |
| title_fullStr | Revisiting the energy-growth-environment nexus in the OECD countries: An application of the CS-ARDL approach |
| title_full_unstemmed | Revisiting the energy-growth-environment nexus in the OECD countries: An application of the CS-ARDL approach |
| title_short | Revisiting the energy-growth-environment nexus in the OECD countries: An application of the CS-ARDL approach |
| title_sort | revisiting the energy growth environment nexus in the oecd countries an application of the cs ardl approach |
| topic | Carbon dioxide CS-ARDL Economic growth EKC OECD Renewable energy |
| url | https://doi.org/10.1186/s13705-022-00375-z |
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