IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v20y2022i1p293-d1014032.html
   My bibliography  Save this article

Moderation of Services’ EKC through Transportation Competitiveness: PQR Model in Global Prospective

Author

Listed:
  • Muhammad Shahzad Sardar

    (Department of Economics and Statistics, University of Management and Technology, Lahore 54770, Pakistan)

  • Nabila Asghar

    (Department of Economics, Division of Management and Administrative Science, University of Education Lahore, Lahore 54770, Pakistan)

  • Mubbasher Munir

    (Department of Economics and Statistics, University of Management and Technology, Lahore 54770, Pakistan)

  • Reda Alhajj

    (School of Engineering and Natural Sciences, Istanbul Medipol University, Istanbul 34810, Turkey
    Department of Computer Science, University of Calgary, Calgary, AB T2N 1N4, Canada
    Department of Health Informatics, University of Southern Denmark, 5230 Odense, Denmark)

  • Hafeez ur Rehman

    (Department of Economics and Statistics, University of Management and Technology, Lahore 54770, Pakistan)

Abstract

The continuously increasing GHG emissions have created environmental pollution and several challenges to ecosystems and biodiversity. The challenges of climate change are multipronged, resulting in melting glaciers, flash floods, and severe heat waves. In this regard, the adaptive and mitigation strategies to manage the consequences of climate change are highly important. The transport sector creates a quarter of carbon emissions, and this share is continuously increasing. Accordingly, this research study uses transport competitiveness to determine carbon emissions of the transport sector for 121 countries covering the time period from 2008 to 2018. The Panel Quantile Regression (PQR) technique is engaged to analyze the study results. The findings highlight that transport competitiveness tends to increase carbon emissions of the transport sector across quantile groups 1 and 3, while it reduces carbon emissions in quantile group 2. The U-shaped services’ EKC is validated in quantile groups 2 and 4. The moderation engaged, i.e., transportation competitiveness, changes the turning point of the services’ EKC across quantile groups 2 and 4. However, in the high-CO 2 quantile group, the moderation impact of transport competitiveness is strongest as it reduces the sensitivity by flattening the services’ EKC. Furthermore, the planned expansion of the population and improved institutional quality tend to mitigate carbon emissions across different quantile groups. The policy relevance/implications that are based on the study results/findings are made part of the research paper.

Suggested Citation

  • Muhammad Shahzad Sardar & Nabila Asghar & Mubbasher Munir & Reda Alhajj & Hafeez ur Rehman, 2022. "Moderation of Services’ EKC through Transportation Competitiveness: PQR Model in Global Prospective," IJERPH, MDPI, vol. 20(1), pages 1-17, December.
  • Handle: RePEc:gam:jijerp:v:20:y:2022:i:1:p:293-:d:1014032
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/20/1/293/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1660-4601/20/1/293/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Baz, Khan & Cheng, Jinhua & Xu, Deyi & Abbas, Khizar & Ali, Imad & Ali, Hashmat & Fang, Chuandi, 2021. "Asymmetric impact of fossil fuel and renewable energy consumption on economic growth: A nonlinear technique," Energy, Elsevier, vol. 226(C).
    2. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
    3. Khan, Zeeshan & Ali, Shahid & Dong, Kangyin & Li, Rita Yi Man, 2021. "How does fiscal decentralization affect CO2 emissions? The roles of institutions and human capital," Energy Economics, Elsevier, vol. 94(C).
    4. Hill, Graeme & Heidrich, Oliver & Creutzig, Felix & Blythe, Phil, 2019. "The role of electric vehicles in near-term mitigation pathways and achieving the UK’s carbon budget," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    5. Mary O. Agboola & Festus V. Bekun, 2019. "Does Agricultural Value Added Induce Environmental Degradation? Empirical Evidence from an Agrarian Country," Working Papers of the African Governance and Development Institute. 19/040, African Governance and Development Institute..
    6. Moutinho, Victor & Varum, Celeste & Madaleno, Mara, 2017. "How economic growth affects emissions? An investigation of the environmental Kuznets curve in Portuguese and Spanish economic activity sectors," Energy Policy, Elsevier, vol. 106(C), pages 326-344.
    7. Kaika, Dimitra & Zervas, Efthimios, 2013. "The Environmental Kuznets Curve (EKC) theory—Part A: Concept, causes and the CO2 emissions case," Energy Policy, Elsevier, vol. 62(C), pages 1392-1402.
    8. Mohammed Obaid & Arpad Torok & Jairo Ortega, 2021. "A Comprehensive Emissions Model Combining Autonomous Vehicles with Park and Ride and Electric Vehicle Transportation Policies," Sustainability, MDPI, vol. 13(9), pages 1-15, April.
    9. Jo Thori Lind & Halvor Mehlum, 2010. "With or Without U? The Appropriate Test for a U‐Shaped Relationship," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(1), pages 109-118, February.
    10. Anam Javaid & Noman Arshed & Mubbasher Munir & Zahrahtul Amani Zakaria & Faten S. Alamri & Hamiden Abd El-Wahed Khalifa & Uzma Hanif, 2022. "Econometric Assessment of Institutional Quality in Mitigating Global Climate-Change Risk," Sustainability, MDPI, vol. 14(2), pages 1-13, January.
    11. Zhu, Huiming & Duan, Lijun & Guo, Yawei & Yu, Keming, 2016. "The effects of FDI, economic growth and energy consumption on carbon emissions in ASEAN-5: Evidence from panel quantile regression," Economic Modelling, Elsevier, vol. 58(C), pages 237-248.
    12. Santarromana, Rudolph & Mendonça, Joana & Dias, André Martins, 2020. "The effectiveness of decarbonizing the passenger transport sector through monetary incentives," Transportation Research Part A: Policy and Practice, Elsevier, vol. 138(C), pages 442-462.
    13. Shan, Shan & Ahmad, Munir & Tan, Zhixiong & Adebayo, Tomiwa Sunday & Man Li, Rita Yi & Kirikkaleli, Dervis, 2021. "The role of energy prices and non-linear fiscal decentralization in limiting carbon emissions: Tracking environmental sustainability," Energy, Elsevier, vol. 234(C).
    14. Richard York & Eugene A. Rosa & Thomas Dietz, 2004. "The Ecological Footprint Intensity of National Economies," Journal of Industrial Ecology, Yale University, vol. 8(4), pages 139-154, October.
    15. Richard F. J. Haans & Constant Pieters & Zi-Lin He, 2016. "Thinking about U: Theorizing and testing U- and inverted U-shaped relationships in strategy research," Strategic Management Journal, Wiley Blackwell, vol. 37(7), pages 1177-1195, July.
    16. Wilman-Santiago Ochoa-Moreno & Byron Alejandro Quito & Carlos Andrés Moreno-Hurtado, 2021. "Foreign Direct Investment and Environmental Quality: Revisiting the EKC in Latin American Countries," Sustainability, MDPI, vol. 13(22), pages 1-18, November.
    17. Banerjee, Abhijit & Duflo, Esther & Qian, Nancy, 2020. "On the road: Access to transportation infrastructure and economic growth in China," Journal of Development Economics, Elsevier, vol. 145(C).
    18. Sun, Huaping & Edziah, Bless Kofi & Sun, Chuanwang & Kporsu, Anthony Kwaku, 2019. "Institutional quality, green innovation and energy efficiency," Energy Policy, Elsevier, vol. 135(C).
    19. Cuiping Yu & Decai Tang & Acheampong Paul Tenkorang & Brandon J. Bethel, 2021. "The Impact of the Opening of Producer Services on the International Competitiveness of Manufacturing Industry," Sustainability, MDPI, vol. 13(20), pages 1-17, October.
    20. Juhi Yadav & Avinash Kumar & Rahul Mohan, 2020. "Dramatic decline of Arctic sea ice linked to global warming," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 103(2), pages 2617-2621, September.
    21. Wang, Shaojian & Zeng, Jingyuan & Liu, Xiaoping, 2019. "Examining the multiple impacts of technological progress on CO2 emissions in China: A panel quantile regression approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 103(C), pages 140-150.
    22. Yuan, Rong & Behrens, Paul & Rodrigues, João F.D., 2018. "The evolution of inter-sectoral linkages in China's energy-related CO2 emissions from 1997 to 2012," Energy Economics, Elsevier, vol. 69(C), pages 404-417.
    23. Huan Zhang, 2021. "Technology Innovation, Economic Growth and Carbon Emissions in the Context of Carbon Neutrality: Evidence from BRICS," Sustainability, MDPI, vol. 13(20), pages 1-22, October.
    24. Ehigiamusoe, Kizito Uyi & Lean, Hooi Hooi & Smyth, Russell, 2020. "The moderating role of energy consumption in the carbon emissions-income nexus in middle-income countries," Applied Energy, Elsevier, vol. 261(C).
    25. Stern, David I. & Common, Michael S. & Barbier, Edward B., 1996. "Economic growth and environmental degradation: The environmental Kuznets curve and sustainable development," World Development, Elsevier, vol. 24(7), pages 1151-1160, July.
    26. Shaozhou Qi & Huarong Peng & Xiujie Tan, 2019. "The Moderating Effect of R&D Investment on Income and Carbon Emissions in China: Direct and Spatial Spillover Insights," Sustainability, MDPI, vol. 11(5), pages 1-19, February.
    27. Sanchari Deb & Kari Tammi & Karuna Kalita & Pinakeswar Mahanta, 2018. "Review of recent trends in charging infrastructure planning for electric vehicles," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 7(6), November.
    28. Zhenhua Chen & Xinmeng Li, 2021. "Economic impact of transportation infrastructure investment under the Belt and Road Initiative," Asia Europe Journal, Springer, vol. 19(1), pages 131-159, December.
    29. Badeeb, Ramez Abubakr & Lean, Hooi Hooi & Shahbaz, Muhammad, 2020. "Are too many natural resources to blame for the shape of the Environmental Kuznets Curve in resource-based economies?," Resources Policy, Elsevier, vol. 68(C).
    30. 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.
    31. Wang, Zhaohua & Danish, & Zhang, Bin & Wang, Bo, 2018. "The moderating role of corruption between economic growth and CO2 emissions: Evidence from BRICS economies," Energy, Elsevier, vol. 148(C), pages 506-513.
    32. Husam Rjoub & Jamiu Adetola Odugbesan & Tomiwa Sunday Adebayo & Wing-Keung Wong, 2021. "Sustainability of the Moderating Role of Financial Development in the Determinants of Environmental Degradation: Evidence from Turkey," Sustainability, MDPI, vol. 13(4), pages 1-18, February.
    33. Katircioğlu, Salih Turan & Taşpinar, Nigar, 2017. "Testing the moderating role of financial development in an environmental Kuznets curve: Empirical evidence from Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 572-586.
    34. Kolbe, Karin, 2019. "Mitigating urban heat island effect and carbon dioxide emissions through different mobility concepts: Comparison of conventional vehicles with electric vehicles, hydrogen vehicles and public transport," Transport Policy, Elsevier, vol. 80(C), pages 1-11.
    35. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
    36. Shujahat Haider Hashmi & Fan Hongzhong & Zeeshan Fareed & Roksana Bannya, 2020. "Testing Non-Linear Nexus between Service Sector and CO 2 Emissions in Pakistan," Energies, MDPI, vol. 13(3), pages 1-29, January.
    37. Davidov, Sreten & Pantoš, Miloš, 2017. "Planning of electric vehicle infrastructure based on charging reliability and quality of service," Energy, Elsevier, vol. 118(C), pages 1156-1167.
    38. Peiseler, Leopold & Cabrera Serrenho, André, 2022. "How can current German and EU policies be improved to enhance the reduction of CO2 emissions of road transport? Revising policies on electric vehicles informed by stakeholder and technical assessments," Energy Policy, Elsevier, vol. 168(C).
    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. Tomiwa Sunday Adebayo & Abraham Ayobamiji Awosusi & Seun Damola Oladipupo & Ephraim Bonah Agyekum & Arunkumar Jayakumar & Nallapaneni Manoj Kumar, 2021. "Dominance of Fossil Fuels in Japan’s National Energy Mix and Implications for Environmental Sustainability," IJERPH, MDPI, vol. 18(14), pages 1-20, July.
    2. Eyup Dogan & Nigar Taspinar & Korhan K Gokmenoglu, 2019. "Determinants of ecological footprint in MINT countries," Energy & Environment, , vol. 30(6), pages 1065-1086, September.
    3. Wang, Xiang & Yin, Jian & Yang, Yao & Muda, Iskandar & Abduvaxitovna, Shamansurova Zilola & AlWadi, Belal Mahmoud & Castillo-Picon, Jorge & Abdul-Samad, Zulkiflee, 2023. "Relationship between the resource curse, Forest management and sustainable development and the importance of R&D Projects," Resources Policy, Elsevier, vol. 85(PA).
    4. Bi Goli Jean Jacques Iritie, 2015. "Economic Growth and Biodiversity: An Overview Conservation Policies in Africa," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 8(2), pages 196-196, February.
    5. Atwi, Majed & Barberán, Ramón & Mur, Jesús & Angulo, Ana, 2018. "CO2 Kuznets Curve Revisited: From Cross-Sections to Panel Data Models," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 40, pages 169-196.
    6. Letisha S. Fong & Alberto Salvo & David Taylor, 2020. "Evidence of the environmental Kuznets curve for atmospheric pollutant emissions in Southeast Asia and implications for sustainable development: A spatial econometric approach," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(5), pages 1441-1456, September.
    7. Sugiawan, Yogi & Managi, Shunsuke, 2016. "The environmental Kuznets curve in Indonesia: Exploring the potential of renewable energy," Energy Policy, Elsevier, vol. 98(C), pages 187-198.
    8. Muhammad Farhan Bashir & Benjiang MA & Muhammad Shahbaz & Zhilun Jiao, 2020. "The nexus between environmental tax and carbon emissions with the roles of environmental technology and financial development," PLOS ONE, Public Library of Science, vol. 15(11), pages 1-20, November.
    9. Cao, Chunyan & Chen, Wei & Aslam, Misbah, 2023. "COP26 perspective of natural resources extraction: Oil and mineral resources perspective of developed economies," Resources Policy, Elsevier, vol. 82(C).
    10. Kacprzyk, Andrzej & Kuchta, Zbigniew, 2020. "Shining a new light on the environmental Kuznets curve for CO2 emissions," Energy Economics, Elsevier, vol. 87(C).
    11. Bimonte, Salvatore & Stabile, Arsenio, 2017. "Land consumption and income in Italy: a case of inverted EKC," Ecological Economics, Elsevier, vol. 131(C), pages 36-43.
    12. David I. Stern, 2017. "The environmental Kuznets curve after 25 years," Journal of Bioeconomics, Springer, vol. 19(1), pages 7-28, April.
    13. Myo Myo Htike & Anil Shrestha & Makoto Kakinaka, 2022. "Investigating whether the environmental Kuznets curve hypothesis holds for sectoral CO2 emissions: evidence from developed and developing countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(11), pages 12712-12739, November.
    14. Simone Marsiglio & Alberto Ansuategi & Maria Carmen Gallastegui, 2016. "The Environmental Kuznets Curve and the Structural Change Hypothesis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(2), pages 265-288, February.
    15. Roxana Pincheira & Felipe Zuniga, 2021. "Environmental Kuznets curve bibliographic map: a systematic literature review," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(S1), pages 1931-1956, April.
    16. Chang, Chun-Ping & Wen, Jun & Dong, Minyi & Hao, Yu, 2018. "Does government ideology affect environmental pollutions? New evidence from instrumental variable quantile regression estimations," Energy Policy, Elsevier, vol. 113(C), pages 386-400.
    17. Zhang, Zhihe & Hou, Yufei & Zhang, Zesen & Li, Mulin, 2023. "Natural resources, carbon neutrality, and fiscal federalism: Implications for G7 countries amid rising Covid-19 concerns," Resources Policy, Elsevier, vol. 87(PA).
    18. Xiaodong Teng & Kun-Shan Wu & Lopin Kuo & Bao-Guang Chang, 2023. "Investigating the double-edged sword effect of environmental, social and governance practices on corporate risk-taking in the high-tech industry," Oeconomia Copernicana, Institute of Economic Research, vol. 14(2), pages 511-549, June.
    19. Rothman, Dale S., 1998. "Environmental Kuznets curves--real progress or passing the buck?: A case for consumption-based approaches," Ecological Economics, Elsevier, vol. 25(2), pages 177-194, May.
    20. Chien, Fengsheng & Anwar, Ahsan & Hsu, Ching-Chi & Sharif, Arshian & Razzaq, Asif & Sinha, Avik, 2021. "The role of information and communication technology in encountering environmental degradation: Proposing an SDG framework for the BRICS countries," Technology in Society, Elsevier, vol. 65(C).

    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:gam:jijerp:v:20:y:2022:i:1:p:293-:d:1014032. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.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.