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The Race to Zero Emissions in MINT Economies: Can Economic Growth, Renewable Energy and Disintegrated Trade Be the Path to Carbon Neutrality?

Author

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  • Tomiwa Sunday Adebayo

    (Department of Business Administration, Faculty of Economics and Administrative Science, Cyprus International University, Nicosia 99040, Turkey)

  • Mehmet Ağa

    (Accounting and Finance Department, Faculty of Economics and Administrative Science, Cyprus International University, Nicosia 99040, Turkey)

Abstract

The current paper evaluates the role of disintegrated trade, financial development, and renewable energy on consumption-based carbon emissions (CCO 2 ) in MINT nations between 1990Q1 and 2019Q4. This paper utilizes the novel Bootstrap Fourier Granger causality in quantiles (BFGC-Q) to evaluate this connection. This approach produces tail-causal and asymmetric causal connections between the indicators within the Fourier approximation, contrary to the Toda–Yamamoto causality and other conventional Granger tests. The outcomes uncover a unidirectional causality from economic growth and renewable energy to CCO 2 emissions in each MINT nation. Moreover, unidirectional causality emerged from financial development to CCO 2 for Indonesia, Nigeria, and Turkey. Moreover, exports have predictive power over CCO 2 in Indonesia, Turkey, and Mexico, while imports only have predictive power over CCO 2 emissions in Turkey. Lastly, financial development causes CCO 2 in Indonesia, Nigeria, and Mexico. In summary, green energy and exports are essential factors that decrease CCO 2 emissions and therefore decrease ecological deterioration in Mexico, Indonesia, and Turkey. On the flip side, imports only trigger CCO 2 emissions in Turkey and Mexico. Lastly, the financial development effect on CCO 2 emissions is positive in Mexico, Indonesia, and Nigeria, while an insignificant impact is found in Turkey. Based on these findings, policy ramifications are initiated.

Suggested Citation

  • Tomiwa Sunday Adebayo & Mehmet Ağa, 2022. "The Race to Zero Emissions in MINT Economies: Can Economic Growth, Renewable Energy and Disintegrated Trade Be the Path to Carbon Neutrality?," Sustainability, MDPI, vol. 14(21), pages 1-20, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:21:p:14178-:d:958258
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