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The Environmental Effects of Urbanization, Education, and Green Innovation in the Union for Mediterranean Countries: Evidence from Quantile Regression Model

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  • Rashid Latief

    (School of Finance, Xuzhou University of Technology, Xuzhou 221018, China)

  • Usman Sattar

    (College of Law and Political Science, Zhejiang Normal University, Jinhua 321004, China)

  • Sohail Ahmad Javeed

    (Hangzhou College of Commerce, Zhejiang Gongshang University, Hangzhou 311500, China)

  • Ammar Ali Gull

    (Ecole Sup’erieure des Sciences Commerciales D’Angers (ESSCA), 69007 Lyon, France
    International School, Vietnam National University, Hanoi 700000, Vietnam
    Business School, ILMA University, Karachi 75190, Pakistan)

  • Yingshun Pei

    (School of Finance, Xuzhou University of Technology, Xuzhou 221018, China)

Abstract

This study aims to examine the environmental dynamics in the Union for Mediterranean (UFM) countries by considering education, urbanization, green innovation, and other key factors for the period 2001–2016. The data are divided based on the income level of UFM countries and analyzed with panel quantile regression, panel unit root tests, panel co-integration test, ordinary least squares method, and fixed effects model to evaluate the nexus between variables. A generalized method of moments (GMM) is employed to deal with the endogeneity issue in the panel data. The results of the study confirm that the urban population has an inverted U-shaped association with environmental degradation in the lower-middle and high-middle income countries. It further comes out that increased education levels decrease environmental degradation in the high-income countries. Hence, green innovation reduces environmental degradation in the upper-middle-income and high-middle-income countries. The study validates an inverted U-shaped relationship between GDP and environmental degradation in all income-based groups of countries, which supports the Environmental Kuznets Curve (EKC) hypothesis.

Suggested Citation

  • Rashid Latief & Usman Sattar & Sohail Ahmad Javeed & Ammar Ali Gull & Yingshun Pei, 2022. "The Environmental Effects of Urbanization, Education, and Green Innovation in the Union for Mediterranean Countries: Evidence from Quantile Regression Model," Energies, MDPI, vol. 15(15), pages 1-17, July.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:15:p:5456-:d:873669
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