IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v26y2024i1d10.1007_s10668-022-02729-1.html
   My bibliography  Save this article

Analyzing transport demand and environmental degradation: the case of G-7 countries

Author

Listed:
  • Sinan Erdogan

    (Hatay Mustafa Kemal University)

  • Samuel Asumadu Sarkodie

    (Nord University Business School (HHN))

  • Festus Fatai Adedoyin

    (Bournemouth University)

  • Festus Victor Bekun

    (Istanbul Gelisim University
    Lebanese American University
    South Ural State University, 76)

  • Phebe Asantewaa Owusu

    (Nord University Business School (HHN))

Abstract

The debate for green development has been ongoing in the energy and environment literature—especially initiatives to mitigate climate change. On this note, we explore the effects of the air and railway transport demand, fossil-fuel energy consumption, demographic policies, economic growth, and alternative energy consumption on environmental degradation in Group of Seven (G7) economies. Using robust panel estimation techniques that account for cross-sectional dependence, empirical results affirm the presence of long-run relationships among variables. Besides, the results give credence to the environmental Kuznets curve hypothesis (EKC) in G7 countries over the sampled period. We observe that demand for air transport, energy from fossil fuel sources, and economic development dampen environmental quality by 0.12%, 0.33%, and 46.54%, respectively. Interestingly, renewable energy and rail transportation demand improve environmental quality. This outcome resonates with the need for alternative and clean energy production and consumption (Sustainable Development Goals 11 and 12) while enhancing the fight against climate change—especially the adoption of clean energy technologies in the air transport sector for sustainable growth.

Suggested Citation

  • Sinan Erdogan & Samuel Asumadu Sarkodie & Festus Fatai Adedoyin & Festus Victor Bekun & Phebe Asantewaa Owusu, 2024. "Analyzing transport demand and environmental degradation: the case of G-7 countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(1), pages 711-734, January.
    • Handle: RePEc:spr:endesu:v:26:y:2024:i:1:d:10.1007_s10668-022-02729-1
    DOI: 10.1007/s10668-022-02729-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-022-02729-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10668-022-02729-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Georgatzi, Vasiliki V. & Stamboulis, Yeoryios & Vetsikas, Apostolos, 2020. "Examining the determinants of CO2 emissions caused by the transport sector: Empirical evidence from 12 European countries," Economic Analysis and Policy, Elsevier, vol. 65(C), pages 11-20.
    2. Jalil, Abdul & Feridun, Mete, 2011. "The impact of growth, energy and financial development on the environment in China: A cointegration analysis," Energy Economics, Elsevier, vol. 33(2), pages 284-291, March.
    3. 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.
    4. Esso, Loesse Jacques & Keho, Yaya, 2016. "Energy consumption, economic growth and carbon emissions: Cointegration and causality evidence from selected African countries," Energy, Elsevier, vol. 114(C), pages 492-497.
    5. Badi H. Baltagi & Espen Bratberg & Tor Helge Holmås, 2005. "A panel data study of physicians' labor supply: the case of Norway," Health Economics, John Wiley & Sons, Ltd., vol. 14(10), pages 1035-1045, October.
    6. 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.
    7. Bagliani, Marco & Bravo, Giangiacomo & Dalmazzone, Silvana, 2008. "A consumption-based approach to environmental Kuznets curves using the ecological footprint indicator," Ecological Economics, Elsevier, vol. 65(3), pages 650-661, April.
    8. Zhao, Wei & Liu, Yishu & Huang, Lihua, 2022. "Estimating environmental Kuznets Curve in the presence of eco-innovation and solar energy: An analysis of G-7 economies," Renewable Energy, Elsevier, vol. 189(C), pages 304-314.
    9. 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.
    10. 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.
    11. Soohyeon Kim & Jungho Baek & Eunnyeong Heo, 2019. "A New Look at the Democracy–Environment Nexus: Evidence from Panel Data for High- and Low-Income Countries," Sustainability, MDPI, vol. 11(8), pages 1-14, April.
    12. Scruggs, Lyle A., 1998. "Political and economic inequality and the environment," Ecological Economics, Elsevier, vol. 26(3), pages 259-275, September.
    13. Susmita Dasgupta & Benoit Laplante & Hua Wang & David Wheeler, 2002. "Confronting the Environmental Kuznets Curve," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 147-168, Winter.
    14. Kaika, Dimitra & Zervas, Efthimios, 2013. "The environmental Kuznets curve (EKC) theory. Part B: Critical issues," Energy Policy, Elsevier, vol. 62(C), pages 1403-1411.
    15. Balsalobre-Lorente, Daniel & Shahbaz, Muhammad & Roubaud, David & Farhani, Sahbi, 2018. "How economic growth, renewable electricity and natural resources contribute to CO2 emissions?," Energy Policy, Elsevier, vol. 113(C), pages 356-367.
    16. Peter Pedroni, 2000. "Fully Modified OLS for Heterogeneous Cointegrated Panels," Department of Economics Working Papers 2000-03, Department of Economics, Williams College.
    17. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    18. Acemoglu,Daron & Robinson,James A., 2009. "Economic Origins of Dictatorship and Democracy," Cambridge Books, Cambridge University Press, number 9780521671422, September.
    19. Barrett, Scott & Graddy, Kathryn, 2000. "Freedom, growth, and the environment," Environment and Development Economics, Cambridge University Press, vol. 5(4), pages 433-456, October.
    20. Peter Pedroni, 1999. "Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(S1), pages 653-670, November.
    21. Ali Acaravci & Guray Akalin, 2017. "Environment economic Growth Nexus: A Comparative Analysis of Developed and Developing Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 7(5), pages 34-43.
    22. Jeyhun I. Mikayilov & Marzio Galeotti & Fakhri J. Hasanov, 2018. "The Impact of Economic Growth on CO2 Emissions in Azerbaijan," IEFE Working Papers 102, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
    23. Apergis, Nicholas & Payne, James E., 2010. "Energy consumption and growth in South America: Evidence from a panel error correction model," Energy Economics, Elsevier, vol. 32(6), pages 1421-1426, November.
    24. Apergis, Nicholas & Payne, James E., 2010. "Coal consumption and economic growth: Evidence from a panel of OECD countries," Energy Policy, Elsevier, vol. 38(3), pages 1353-1359, March.
    25. Torras, Mariano & Boyce, James K., 1998. "Income, inequality, and pollution: a reassessment of the environmental Kuznets Curve," Ecological Economics, Elsevier, vol. 25(2), pages 147-160, May.
    26. Soumyananda Dinda, 2009. "Climate change and human insecurity," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 9(1/2), pages 103-109.
    27. Yoo, Seung-Hoon, 2006. "Causal relationship between coal consumption and economic growth in Korea," Applied Energy, Elsevier, vol. 83(11), pages 1181-1189, November.
    28. Neves, Sónia Almeida & Marques, António Cardoso & Fuinhas, José Alberto, 2017. "Is energy consumption in the transport sector hampering both economic growth and the reduction of CO2 emissions? A disaggregated energy consumption analysis," Transport Policy, Elsevier, vol. 59(C), pages 64-70.
    29. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    30. Farzanegan, Mohammad Reza & Markwardt, Gunther, 2018. "Development and pollution in the Middle East and North Africa: Democracy matters," Journal of Policy Modeling, Elsevier, vol. 40(2), pages 350-374.
    31. Erdogan, Sinan & Fatai Adedoyin, Festus & Victor Bekun, Festus & Asumadu Sarkodie, Samuel, 2020. "Testing the transport-induced environmental Kuznets curve hypothesis: The role of air and railway transport," Journal of Air Transport Management, Elsevier, vol. 89(C).
    32. repec:bla:obuest:v:61:y:1999:i:0:p:653-70 is not listed on IDEAS
    33. Ajmi, Ahdi Noomen & Hammoudeh, Shawkat & Nguyen, Duc Khuong & Sato, João Ricardo, 2015. "On the relationships between CO2 emissions, energy consumption and income: The importance of time variation," Energy Economics, Elsevier, vol. 49(C), pages 629-638.
    34. Magnani, Elisabetta, 2000. "The Environmental Kuznets Curve, environmental protection policy and income distribution," Ecological Economics, Elsevier, vol. 32(3), pages 431-443, March.
    35. Pata, Ugur Korkut & Caglar, Abdullah Emre, 2021. "Investigating the EKC hypothesis with renewable energy consumption, human capital, globalization and trade openness for China: Evidence from augmented ARDL approach with a structural break," Energy, Elsevier, vol. 216(C).
    36. Doğan, Buhari & Chu, Lan Khanh & Ghosh, Sudeshna & Diep Truong, Huong Hoang & Balsalobre-Lorente, Daniel, 2022. "How environmental taxes and carbon emissions are related in the G7 economies?," Renewable Energy, Elsevier, vol. 187(C), pages 645-656.
    37. Frodyma, Katarzyna & Papież, Monika & Śmiech, Sławomir, 2022. "Revisiting the Environmental Kuznets Curve in the European Union countries," Energy, Elsevier, vol. 241(C).
    38. Esso, Loesse Jacques, 2010. "Threshold cointegration and causality relationship between energy use and growth in seven African countries," Energy Economics, Elsevier, vol. 32(6), pages 1383-1391, November.
    39. Apergis, Nicholas & Payne, James E., 2010. "Renewable energy consumption and economic growth: Evidence from a panel of OECD countries," Energy Policy, Elsevier, vol. 38(1), pages 656-660, January.
    40. Esteve, Vicente & Tamarit, Cecilio, 2012. "Is there an environmental Kuznets curve for Spain? Fresh evidence from old data," Economic Modelling, Elsevier, vol. 29(6), pages 2696-2703.
    41. Farzin, Y. Hossein & Bond, Craig A., 2006. "Democracy and environmental quality," Journal of Development Economics, Elsevier, vol. 81(1), pages 213-235, October.
    42. Aslan Alper & Gozbasi Onur, 2016. "Environmental Kuznets curve hypothesis for sub-elements of the carbon emissions in China," 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. 82(2), pages 1327-1340, June.
    43. Miao, Yang & Razzaq, Asif & Adebayo, Tomiwa Sunday & Awosusi, Abraham Ayobamiji, 2022. "Do renewable energy consumption and financial globalisation contribute to ecological sustainability in newly industrialized countries?," Renewable Energy, Elsevier, vol. 187(C), pages 688-697.
    44. Bernauer, Thomas & Koubi, Vally, 2009. "Effects of political institutions on air quality," Ecological Economics, Elsevier, vol. 68(5), pages 1355-1365, March.
    45. Nasir, Muhammad & Ur Rehman, Faiz, 2011. "Environmental Kuznets Curve for carbon emissions in Pakistan: An empirical investigation," Energy Policy, Elsevier, vol. 39(3), pages 1857-1864, March.
    46. 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.
    47. Destek, Mehmet Akif & Ulucak, Recep & Dogan, Eyüp, 2018. "Analyzing the Environmental Kuznets Curve for the EU countries: The role of ecological footprint," MPRA Paper 106882, University Library of Munich, Germany.
    48. Gössling, Stefan & Scott, Daniel & Hall, C. Michael, 2015. "Inter-market variability in CO2 emission-intensities in tourism: Implications for destination marketing and carbon management," Tourism Management, Elsevier, vol. 46(C), pages 203-212.
    49. Ignace De Vos & Gerdie Everaert & Ilse Ruyssen, 2015. "Bootstrap-based bias correction and inference for dynamic panels with fixed effects," Stata Journal, StataCorp LLC, vol. 15(4), pages 986-1018, December.
    50. Erdogan, Sinan & Akalin, Guray & Oypan, Oguz, 2020. "Are shocks to disaggregated energy consumption transitory or permanent in Turkey? New evidence from fourier panel KPSS test," Energy, Elsevier, vol. 197(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sinan Erdogan & Eyup Serdar Erdogan, 2025. "Is the health-led growth hypothesis valid in the Sub-saharan African countries? Fresh evidence from newly developed panel causality tests," Quality & Quantity: International Journal of Methodology, Springer, vol. 59(1), pages 497-521, February.

    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. Muhammad Bilal Khan & Hummera Saleem & Malik Shahzad Shabbir & Xie Huobao, 2022. "The effects of globalization, energy consumption and economic growth on carbon dioxide emissions in South Asian countries," Energy & Environment, , vol. 33(1), pages 107-134, February.
    2. Dogan, Eyup & Seker, Fahri, 2016. "Determinants of CO2 emissions in the European Union: The role of renewable and non-renewable energy," Renewable Energy, Elsevier, vol. 94(C), pages 429-439.
    3. Omri, Anis & Daly, Saida & Rault, Christophe & Chaibi, Anissa, 2015. "Financial development, environmental quality, trade and economic growth: What causes what in MENA countries," Energy Economics, Elsevier, vol. 48(C), pages 242-252.
    4. Tiba, Sofien & Frikha, Mohamed, 2019. "The controversy of the resource curse and the environment in the SDGs background: The African context," Resources Policy, Elsevier, vol. 62(C), pages 437-452.
    5. Sencer Atasoy, Burak, 2017. "Testing the environmental Kuznets curve hypothesis across the U.S.: Evidence from panel mean group estimators," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 731-747.
    6. Itbar Khan & Ruoyu Zhong & Lei Han & Hayat Khan, 2025. "Analyzing the Nexus Between Income Inequality, Renewable Energy, and Environmental Quality: Emphasizing the Significance of Institutional Quality," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 3793-3825, March.
    7. Dogan, Eyup & Seker, Fahri, 2016. "The influence of real output, renewable and non-renewable energy, trade and financial development on carbon emissions in the top renewable energy countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1074-1085.
    8. You, Wan-Hai & Zhu, Hui-Ming & Yu, Keming & Peng, Cheng, 2015. "Democracy, Financial Openness, and Global Carbon Dioxide Emissions: Heterogeneity Across Existing Emission Levels," World Development, Elsevier, vol. 66(C), pages 189-207.
    9. Omri, Anis, 2018. "Entrepreneurship, sectoral outputs and environmental improvement: International evidence," Technological Forecasting and Social Change, Elsevier, vol. 128(C), pages 46-55.
    10. Goher-Ur-Rehman Mir & Servaas Storm, 2016. "Carbon Emissions and Economic Growth: Production-based versus Consumption-based Evidence on Decoupling," Working Papers Series 41, Institute for New Economic Thinking.
    11. Henninger, Ella & Smith, E. Keith, 2024. "Beyond the haze: Decomposing the effect of economic inequality on global air quality from 2000 to 2020," Ecological Economics, Elsevier, vol. 222(C).
    12. Tiba, Sofien & Omri, Anis, 2017. "Literature survey on the relationships between energy, environment and economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1129-1146.
    13. Uzar, Umut, 2020. "Political economy of renewable energy: Does institutional quality make a difference in renewable energy consumption?," Renewable Energy, Elsevier, vol. 155(C), pages 591-603.
    14. Iftikhar Yasin & Nawaz Ahmad & M. Aslam Chaudhary, 2020. "Catechizing the Environmental-Impression of Urbanization, Financial Development, and Political Institutions: A Circumstance of Ecological Footprints in 110 Developed and Less-Developed Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(2), pages 621-649, January.
    15. Francisco García-Lillo & Eduardo Sánchez-García & Bartolomé Marco-Lajara & Pedro Seva-Larrosa, 2023. "Renewable Energies and Sustainable Development: A Bibliometric Overview," Energies, MDPI, vol. 16(3), pages 1-22, January.
    16. Nicolli, Francesco & Gilli, Marianna & Vona, Francesco, 2025. "Inequality and climate change: Two problems, one solution?," Energy Economics, Elsevier, vol. 145(C).
    17. Jian Xue & Zeeshan Rasool & Raima Nazar & Ahmad Imran Khan & Shaukat Hussain Bhatti & Sajid Ali, 2021. "Revisiting Natural Resources—Globalization-Environmental Quality Nexus: Fresh Insights from South Asian Countries," Sustainability, MDPI, vol. 13(8), pages 1-19, April.
    18. Majed Atwi & Ramón Barberán & Jesús Mur & Ana Angulo, 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.
    19. Zhang, Chuanguo & Zhao, Wei, 2014. "Panel estimation for income inequality and CO2 emissions: A regional analysis in China," Applied Energy, Elsevier, vol. 136(C), pages 382-392.
    20. Lin Guo, 2017. "Income Inequality, Household Consumption And Co2 Emissions In China," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(02), pages 531-553, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • 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
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

    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:spr:endesu:v:26:y:2024:i:1:d:10.1007_s10668-022-02729-1. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.