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The repercussions of foreign direct investment, renewable energy and health expenditure on environmental decay? An econometric analysis of B&RI countries

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  • Anwar Khan
  • Jamal Hussain
  • Sadia Bano
  • Yang Chenggang

Abstract

To achieve the objectives of the study, we have analyzed the repercussions of income, foreign direct investment, health expenditure and renewable energy consumption on environmental pollution (CO2) in a panel of Belt and Road Initiative (B&RI) countries over the time span 1995–2016. The study employed a second-generation unit root test, panel co-integration, two-step generalized method of moments (GMM), fully modified least squares (FMOLS), symmetric and asymmetric causalities for robust inference. The cointegration results established the long-run relationship between the variables. Empirical results indicated the effectiveness of renewable energy in combatting CO2 emissions, the negative sign of FDI with CO2 emissions negates the existence of the pollution haven hypothesis for the B&RI panel. Where income and health expenditure accelerates CO2 emissions, which degrades the environment, these results in the case of individual countries differ in various stages. Varieties of symmetric and asymmetric causalities are also discussed in the study. The study concludes with long term policies, which are necessary for the sustained growth of B&RI countries.

Suggested Citation

  • Anwar Khan & Jamal Hussain & Sadia Bano & Yang Chenggang, 2020. "The repercussions of foreign direct investment, renewable energy and health expenditure on environmental decay? An econometric analysis of B&RI countries," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 63(11), pages 1965-1986, September.
    • Handle: RePEc:taf:jenpmg:v:63:y:2020:i:11:p:1965-1986
    DOI: 10.1080/09640568.2019.1692796
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    Cited by:

    1. Hatemi-J, Abdulnasser, 2020. "Asymmetric Panel Causality Tests with an Application to the Impact of Fiscal Policy on Economic Performance in Scandinavia," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 73(3), pages 389-404.
    2. Ugur Korkut Pata, 2021. "Do renewable energy and health expenditures improve load capacity factor in the USA and Japan? A new approach to environmental issues," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(9), pages 1427-1439, December.
    3. Amin, Nabila & Shabbir, Muhammad Salman & Song, Huaming & Farrukh, Muhammad Umar & Iqbal, Shahid & Abbass, Kashif, 2023. "A step towards environmental mitigation: Do green technological innovation and institutional quality make a difference?," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    4. Ahmad, Waheed & Ozturk, Ilhan & Majeed, Muhammad Tariq, 2022. "How do remittances affect environmental sustainability in Pakistan? Evidence from NARDL approach," Energy, Elsevier, vol. 243(C).
    5. Karaaslan, Abdulkerim & Çamkaya, Serhat, 2022. "The relationship between CO2 emissions, economic growth, health expenditure, and renewable and non-renewable energy consumption: Empirical evidence from Turkey," Renewable Energy, Elsevier, vol. 190(C), pages 457-466.
    6. Jiang, Qingquan & Rahman, Zia Ur & Zhang, Xiaosan & Guo, Zhiqin & Xie, Qiaosheng, 2022. "An assessment of the impact of natural resources, energy, institutional quality, and financial development on CO2 emissions: Evidence from the B&R nations," Resources Policy, Elsevier, vol. 76(C).
    7. Bilgili, Faik & Soykan, Erkan & Dumrul, Cüneyt & Awan, Ashar & Önderol, Seyit & Khan, Kamran, 2023. "Disaggregating the impact of natural resource rents on environmental sustainability in the MENA region: A quantile regression analysis," Resources Policy, Elsevier, vol. 85(PA).
    8. Puertas, Rosa & Guaita-Martinez, José M. & Carracedo, Patricia & Ribeiro-Soriano, Domingo, 2022. "Analysis of European environmental policies: Improving decision making through eco-efficiency," Technology in Society, Elsevier, vol. 70(C).
    9. Guo, Qingran & Abbas, Shujaat & AbdulKareem, Hauwah K.K. & Shuaibu, Muhammad Shehu & Khudoykulov, Khurshid & Saha, Tanaya, 2023. "Devising strategies for sustainable development in sub-Saharan Africa: The roles of renewable, non-renewable energy, and natural resources," Energy, Elsevier, vol. 284(C).
    10. Liton Chandra Voumik & Md. Hasanur Rahman & Shohel Md. Nafi & Md. Akter Hossain & Abdul Rahim Ridzuan & Nora Yusma Mohamed Yusoff, 2023. "Modelling Sustainable Non-Renewable and Renewable Energy Based on the EKC Hypothesis for Africa’s Ten Most Popular Tourist Destinations," Sustainability, MDPI, vol. 15(5), pages 1-19, February.
    11. Shang, Yunfeng & Razzaq, Asif & Chupradit, Supat & Binh An, Nguyen & Abdul-Samad, Zulkiflee, 2022. "The role of renewable energy consumption and health expenditures in improving load capacity factor in ASEAN countries: Exploring new paradigm using advance panel models," Renewable Energy, Elsevier, vol. 191(C), pages 715-722.
    12. Chen Qian & Ghulam Rasool Madni, 2022. "Encirclement of Natural Resources, Green Investment, and Economic Complexity for Mitigation of Ecological Footprints in BRI Countries," Sustainability, MDPI, vol. 14(22), pages 1-15, November.
    13. Siming Zuo & Mingxia Zhu & Zhexiao Xu & Judit Oláh & Zoltan Lakner, 2021. "The Dynamic Impact of Natural Resource Rents, Financial Development, and Technological Innovations on Environmental Quality: Empirical Evidence from BRI Economies," IJERPH, MDPI, vol. 19(1), pages 1-17, December.
    14. Li, Wenqing & Qiao, Yuanbo & Li, Xiao & Wang, Yutao, 2022. "Energy consumption, pollution haven hypothesis, and Environmental Kuznets Curve: Examining the environment–economy link in belt and road initiative countries," Energy, Elsevier, vol. 239(PE).
    15. Liu, Xuemei & Yuan, Shuhan & Yu, Haoran & Liu, Zheng, 2023. "How ecological policy stringency moderates the influence of industrial innovation on environmental sustainability: The role of renewable energy transition in BRICST countries," Renewable Energy, Elsevier, vol. 207(C), pages 194-204.
    16. Ali Raza & Hongguang Sui & Kittisak Jermsittiparsert & Wioletta Żukiewicz-Sobczak & Pawel Sobczak, 2021. "Trade Liberalization and Environmental Performance Index: Mediation Role of Climate Change Performance and Greenfield Investment," Sustainability, MDPI, vol. 13(17), pages 1-16, August.

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