IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2023-05-19.html
   My bibliography  Save this article

Unveiling the Role of Business Freedom to Determine Environmental Degradation in Developing Countries

Author

Listed:
  • Marc Audi

    (1Abu Dhabi School of Management (ADSM), UAE; & University Paris 1 Pantheon Sorbonne, France)

  • Amjad Ali

    (The European School of Leadership and Management (ESLM), Belgium; & Lahore School of Accountancy and Finance, University of Lahore, Pakistan.)

Abstract

Presently, environmental degradation is the prime concern of the world economies as a whole. Following this concern, Sustainable Development Goals designed by the UNDP raise the slogan “Clear Environment for All†. This paper has analyzed the impact of business freedom on environmental degradation in the case of 110 developing countries from 2000 to 2020. Panel least squares and generalized moments methods have been applied to check the impact of explanatory variables on dependent variables. The results show that business freedom and renewable energy consumption have a negative and significant impact on environmental degradation in selected developing countries. The results explain that financial development has a positive and significant impact on environmental degradation in developing countries. Whereas urbanization has a positive and significant impact on environmental degradation. Thus, for the reduction of environmental degradation business freedom and renewable energy consumption should be promoted, whereas negative linkages of urbanization and financial development should be reduced.

Suggested Citation

  • Marc Audi & Amjad Ali, 2023. "Unveiling the Role of Business Freedom to Determine Environmental Degradation in Developing Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 157-164, September.
    • Handle: RePEc:eco:journ2:2023-05-19
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/14656/7463
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/14656
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Halicioglu, Ferda, 2009. "An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey," Energy Policy, Elsevier, vol. 37(3), pages 1156-1164, March.
    2. Zhang, Lei & Gao, Jing, 2016. "Exploring the effects of international tourism on China's economic growth, energy consumption and environmental pollution: Evidence from a regional panel analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 225-234.
    3. Marc Audi & Amjad Ali, 2023. "The Role of Environmental Conditions and Purchasing Power Parity in Determining Quality of Life among Big Asian Cities," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 292-305, May.
    4. Audi, Marc & Ali, Amjad, 2016. "Environmental Degradation, Energy consumption, Population Density and Economic Development in Lebanon: A time series Analysis (1971-2014)," MPRA Paper 82494, University Library of Munich, Germany, revised 2017.
    5. Chandran Govindaraju, V.G.R. & Tang, Chor Foon, 2013. "The dynamic links between CO2 emissions, economic growth and coal consumption in China and India," Applied Energy, Elsevier, vol. 104(C), pages 310-318.
    6. Khan, Irfan & Hou, Fujun & Le, Hoang Phong & Ali, Syed Ahtsham, 2021. "Do natural resources, urbanization, and value-adding manufacturing affect environmental quality? Evidence from the top ten manufacturing countries," Resources Policy, Elsevier, vol. 72(C).
    7. Selden Thomas M. & Song Daqing, 1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 147-162, September.
    8. Tomiwa Sunday Adebayo & Mary Oluwatoyin Agboola & Husam Rjoub & Ibrahim Adeshola & Ephraim Bonah Agyekum & Nallapaneni Manoj Kumar, 2021. "Linking Economic Growth, Urbanization, and Environmental Degradation in China: What Is the Role of Hydroelectricity Consumption?," IJERPH, MDPI, vol. 18(13), pages 1-14, June.
    9. Amjad Ali & Marc Audi & Ismail Senturk & Yannick Roussel, 2022. "Do Sectoral Growth Promote CO2 Emissions in Pakistan? Time Series Analysis in Presence of Structural Break," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 410-425, March.
    10. Marc Audi & Amjad Ali & Mohamad Kassem, 2020. "Greenhouse Gases: A Review of Losses and Benefits," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 403-418.
    11. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    12. Yongming Wang & Irfan Uddin & Yingmei Gong, 2021. "Nexus between Natural Resources and Environmental Degradation: Analysing the Role of Income Inequality and Renewable Energy," Sustainability, MDPI, vol. 13(15), pages 1-20, July.
    13. Alam, Shaista & Fatima, Ambreen & Butt, Muhammad S., 2007. "Sustainable development in Pakistan in the context of energy consumption demand and environmental degradation," Journal of Asian Economics, Elsevier, vol. 18(5), pages 825-837, October.
    14. Bakirtas, Tahsin & Akpolat, Ahmet Gokce, 2018. "The relationship between energy consumption, urbanization, and economic growth in new emerging-market countries," Energy, Elsevier, vol. 147(C), pages 110-121.
    15. Mohd Irfan & Krishnendu Shaw, 2017. "Modeling the effects of energy consumption and urbanization on environmental pollution in South Asian countries: a nonparametric panel approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(1), pages 65-78, January.
    16. Islam, Asif M. & López, Ramón E., 2015. "Government Spending and Air Pollution in the US," International Review of Environmental and Resource Economics, now publishers, vol. 8(2), pages 139-189, July.
    17. Al-Mulali, Usama & Ozturk, Ilhan, 2015. "The effect of energy consumption, urbanization, trade openness, industrial output, and the political stability on the environmental degradation in the MENA (Middle East and North African) region," Energy, Elsevier, vol. 84(C), pages 382-389.
    18. Marc Audi & Amjad Ali & Yannick Roussel, 2021. "Aggregate and Disaggregate Natural Resources Agglomeration and Foreign Direct Investment in France," International Journal of Economics and Financial Issues, Econjournals, vol. 11(1), pages 147-156.
    19. Amjad Ali & Marc Audi, 2016. "The Impact of Income Inequality, Environmental Degradation and Globalization on Life Expectancy in Pakistan: An Empirical Analysis," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 4(4), pages 182-193, April.
    20. Ozturk, Ilhan & Acaravci, Ali, 2013. "The long-run and causal analysis of energy, growth, openness and financial development on carbon emissions in Turkey," Energy Economics, Elsevier, vol. 36(C), pages 262-267.
    21. Ash Amin, 1999. "An Institutionalist Perspective on Regional Economic Development," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 23(2), pages 365-378, June.
    22. Adekoya, Oluwasegun B. & Ajayi, Gbenga E. & Suhrab, Muhammad & Oliyide, Johnson A., 2022. "How critical are resource rents, agriculture, growth, and renewable energy to environmental degradation in the resource-rich African countries? The role of institutional quality," Energy Policy, Elsevier, vol. 164(C).
    23. Halkos, George E. & Tzeremes, Nickolaos G., 2013. "Carbon dioxide emissions and governance: A nonparametric analysis for the G-20," Energy Economics, Elsevier, vol. 40(C), pages 110-118.
    24. Kolade Sunday Adesina & John W. Muteba Mwamba, 2019. "Does Economic Freedom Matter For CO2 Emissions? Lessons From Africa," Journal of Developing Areas, Tennessee State University, College of Business, vol. 53(3), pages 155-167, Summer.
    25. Audi, Marc & Ali, Amjad, 2018. "Determinants of Environmental Degradation under the Perspective of Globalization: A Panel Analysis of Selected MENA Nations," MPRA Paper 85776, University Library of Munich, Germany.
    26. A. Kahuthu, 2006. "Economic Growth and Environmental Degradation in a Global Context," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 8(1), pages 55-68, February.
    27. Amjad Ali & Marc Audi & Chan Bibi & Yannick Roussel, 2021. "The Impact of Gender Inequality and Environmental Degradation on Human Well-being in the Case of Pakistan: A Time Series Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 11(2), pages 92-99.
    28. Amjad Ali & Marc Audi & Yannick Roussel, 2021. "Natural Resources Depletion, Renewable Energy Consumption and Environmental Degradation: A Comparative Analysis of Developed and Developing World," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 251-260.
    29. Shahbaz, Muhammad & Nasir, Muhammad Ali & Roubaud, David, 2018. "Environmental degradation in France: The effects of FDI, financial development, and energy innovations," Energy Economics, Elsevier, vol. 74(C), pages 843-857.
    30. Khan, Irfan & Hou, Fujun & Irfan, Muhammad & Zakari, Abdulrasheed & Le, Hoang Phong, 2021. "Does energy trilemma a driver of economic growth? The roles of energy use, population growth, and financial development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 146(C).
    31. Ali, Amjad & Zulfiqar, Kalsoom, 2018. "An Assessment of Association between Natural Resources Agglomeration and Unemployment in Pakistan," MPRA Paper 87968, University Library of Munich, Germany.
    32. Shahbaz, Muhammad, 2013. "Does financial instability increase environmental degradation? Fresh evidence from Pakistan," Economic Modelling, Elsevier, vol. 33(C), pages 537-544.
    33. Xunchang Fei & Mingliang Fang & Yao Wang, 2021. "Climate change affects land-disposed waste," Nature Climate Change, Nature, vol. 11(12), pages 1004-1005, December.
    34. Alam & Paramati, 2015. "Do oil consumption and economic growth intensify environmental degradation? Evidence from developing economies," Applied Economics, Taylor & Francis Journals, vol. 47(48), pages 5186-5203, October.
    35. Adams, Samuel & Klobodu, Edem Kwame Mensah, 2017. "Urbanization, democracy, bureaucratic quality, and environmental degradation," Journal of Policy Modeling, Elsevier, vol. 39(6), pages 1035-1051.
    36. Matheus Koengkan & José Alberto Fuinhas & Renato Santiago, 2020. "The relationship between CO2 emissions, renewable and non-renewable energy consumption, economic growth, and urbanisation in the Southern Common Market," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 9(4), pages 383-401, October.
    37. Chien, Fengsheng & Ajaz, Tahseen & Andlib, Zubaria & Chau, Ka Yin & Ahmad, Paiman & Sharif, Arshian, 2021. "The role of technology innovation, renewable energy and globalization in reducing environmental degradation in Pakistan: A step towards sustainable environment," Renewable Energy, Elsevier, vol. 177(C), pages 308-317.
    38. Abdul Ghafoor Awan, 2013. "Relationship between Environment and Sustainable Economic Development: A Theoretical Approach to Environmental Problems," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 3(3), pages 741-761.
    39. Abbasi, Faiza & Riaz, Khalid, 2016. "CO2 emissions and financial development in an emerging economy: An augmented VAR approach," Energy Policy, Elsevier, vol. 90(C), pages 102-114.
    40. Jun, Wen & Mughal, Nafeesa & Zhao, Jin & Shabbir, Malik Shahzad & Niedbała, Gniewko & Jain, Vipin & Anwar, Ahsan, 2021. "Does globalization matter for environmental degradation? Nexus among energy consumption, economic growth, and carbon dioxide emission," Energy Policy, Elsevier, vol. 153(C).
    41. Altinay, Galip & Karagol, Erdal, 2004. "Structural break, unit root, and the causality between energy consumption and GDP in Turkey," Energy Economics, Elsevier, vol. 26(6), pages 985-994, November.
    42. Stefan Giljum & Monika Dittrich & Mirko Lieber & Stephan Lutter, 2014. "Global Patterns of Material Flows and their Socio-Economic and Environmental Implications: A MFA Study on All Countries World-Wide from 1980 to 2009," Resources, MDPI, vol. 3(1), pages 1-21, March.
    43. Tomiwa Sunday Adebayo & Manuel Francisco Coelho & Dilber Çağlar Onbaşıoğlu & Husam Rjoub & Mário Nuno Mata & Paulo Viegas Carvalho & João Xavier Rita & Ibrahim Adeshola, 2021. "Modeling the Dynamic Linkage between Renewable Energy Consumption, Globalization, and Environmental Degradation in South Korea: Does Technological Innovation Matter?," Energies, MDPI, vol. 14(14), pages 1-12, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marc Audi & Marc Poulin & Amjad Ali, 2024. "Environmental Impact of Business Freedom and Renewable Energy: A Global Perspective," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 672-683, May.
    2. Amjad Ali & Marc Audi & Ismail Senturk & Yannick Roussel, 2022. "Do Sectoral Growth Promote CO2 Emissions in Pakistan? Time Series Analysis in Presence of Structural Break," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 410-425, March.
    3. Alim, Wajid & Ali, Amjad & Minhas, Amna Shafiq, 2022. "The Impact of Leverage on the Firm Performance: A Case of Fertilizers Sector of Pakistan," MPRA Paper 114200, University Library of Munich, Germany.
    4. Marc Audi & Fiaz Ahmad Sulehri & Amjad Ali & Razan Al-Masri, 2022. "An Event Based Analysis of Stock Return and Political Uncertainty in Pakistan: Revisited," International Journal of Economics and Financial Issues, Econjournals, vol. 12(5), pages 39-56, September.
    5. Sulehri, Fiaz Ahmad & Ali, Amjad, 2024. "Country Risk and Sustainable Development: Mediating Role of Economic Growth," MPRA Paper 121290, University Library of Munich, Germany.
    6. Abdul Hai Rathore & Abdullah Sahi, 2022. "The impact of Corporate Governance on voluntary disclosure of R&D expenditure of USA Pharmaceutical firms," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(2), pages 34-53, August.
    7. Amjad Ali & Marc Audi & Yannick Roussel, 2021. "Natural Resources Depletion, Renewable Energy Consumption and Environmental Degradation: A Comparative Analysis of Developed and Developing World," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 251-260.
    8. Insha Kunwal & Muhammad Ramzan Sheikh & Muhammad Zahir Faridi & Muhammad Imran Mushtaq, 2023. "Urbanization, Energy Consumption and Environmental Quality in Asian Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(4), pages 372-386.
    9. Marc Audi & Razan Al-Masri & Chan Bibi, 2022. "Challenging Assumptions about Women’s Empowerment and Economic Resources and Domestic Violence among Young Married Women in India," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(2), pages 23-33, August.
    10. Fiaz Ahmad Sulehri & Saba Sharif, 2022. "The Impact of Firm Sustainability on Firm Growth: Evidence from USA," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(2), pages 1-15, August.
    11. Muhammad Ashraf & Arslan Ali Raza & Muhammad Ishaq, 2022. "A Novel Approach Of Social Media Analytics For Predicting National Consumer Confidence Index," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(2), pages 220-234, June.
    12. Muhammad Hatim & Zerish Tasleem & Muhammad Nadeem, 2022. "The Influence Of Education And Health On Rural Household Poverty: A Moderating Role Of Culture In Punjab, Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(2), pages 120-133, June.
    13. Mahmood, Ahmad & Zahoor, Ahmed & Xiyue, Yang & Nazim, Hussain & Sinha, Avik, 2021. "Financial development and environmental degradation: Do human capital and institutional quality make a difference?," MPRA Paper 110039, University Library of Munich, Germany, revised 2021.
    14. Qasim Abbasi & Bilal Khokar, 2021. "Nexus between Gender Inequality and Income Inequality," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 7(4), pages 41-49, December.
    15. Shakeel Ahmed & Muhammad Hasnain Ali, 2022. "Institutional Service Quality, Word of Mouth and Institutional Image: An Empirical Study of Pakistani Universities," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(1), pages 18-30, March.
    16. Shazia Sana & Shahnawaz Malik & Muhammad Ramzan Sheikh, 2022. "Investigating The Effectiveness Of Channels Of Monetary Transmission Mechanism In Pakistan: An Application Of Var Model, Impulse Response Function And Variance Decomposition," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(2), pages 160-184, June.
    17. Roussel, Yannick & Audi, Marc, 2024. "Exploring the Nexus of Economic Expansion, Tourist Inflows, and Environmental Sustainability in Europe," MPRA Paper 121529, University Library of Munich, Germany.
    18. Abdul Rauf & Arif Khan & Muhammad Faiz Mehdi, 2021. "Health Expenditure, Family Planning, and Infant Mortality in Punjab," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 7(4), pages 1-10, December.
    19. Audi, Marc, 2024. "A Discussion on the Role of International Regimes in Mitigating Global Warming and Climate Change," MPRA Paper 121586, University Library of Munich, Germany.
    20. Ahmad Latif & Rimsha Javed, 2021. "Does Economic Growth, Population Growth And Energy Use Impact Carbondioxide Emissions In Pakistan? An Ardl Approach," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(2), pages 85-91, June.

    More about this item

    Keywords

    renewable energy consumption; business freedom; environmental degradation;
    All these keywords.

    JEL classification:

    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2023-05-19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.