Models | Lower bound | Upper bound | Significance level |
---|---|---|---|
Model 1 | |||
Fc (lngr, lnnr, lnhc, lnub). F = 8.3425 | 2.25 |
3.59 |
10% |
Model 2 | |||
Fc (lngr, lnnr, lnhc, lnub, lnin). F = 7.6069 | 1.81 |
2.93 |
10% |
Model 3 | |||
Fc (lngr, lnnr, lnhc, lnub, lngr2). F = 8.5647 | 2.29 |
3.38 |
10% |
Estimated models | EG − JOH | EG − JOH − BO − BDM | Cointegration |
---|---|---|---|
14.651 | 38.854 | Yes | |
21.361 | 44.537 | Yes | |
15.101 | 36.342 | Yes | |
5% critical value (for Model 1) | 10.576 | 20.143 | |
5% critical value (for Models 2 and 3) | 10.419 | 19.888 |
EF | GR | GR | NR | HC | UB | IN | |
---|---|---|---|---|---|---|---|
Mean | 1.070 | 8.772 | 14.51 | 1.657 | 0.727 | 3.991 | 0.549 |
Max. | 3.930 | 8.933 | 15.05 | 2.678 | 1.016 | 4.179 | 0.801 |
Min. | 1.100 | 8.615 | 14.00 | 0.650 | 0.584 | 3.867 | 0.426 |
Std. D | 0.245 | 0.093 | 0.309 | 0.460 | 0.131 | 0.104 | 0.114 |
Skewness | −0.117 | 0.265 | 0.281 | 0.062 | 0.862 | 0.311 | 0.836 |
Kurtosis | 2.198 | 2.126 | 2.128 | 2.707 | 2.384 | 1.669 | 2.350 |
Prob. | 0.505 | 0.359 | 0.348 | 0.905 | 0.037 | 0.120 | 0.042 |
Variables | ZA unit root test | |||
---|---|---|---|---|
Level | Difference | |||
Break year | Break year | |||
EF | −4.191 | 2003 | −8.473 |
2008 |
GR | −3.116 | 2004 | −5.155 |
1994 |
NR | −3.659 | 1987 | −9.614 |
1981 |
HC | −1.726 | 2001 | −5.336 |
2001 |
UB | −4.991 | 1986 | −7.031 |
1985 |
IN | −3.581 | 2001 | −3.989 |
2001 |
GR2 | −3.024 | 1985 | −5.206 |
1994 |
S/N | Indicator name | Measurement | Source |
---|---|---|---|
1 | Urbanisation | Urban population (% of total population) | WDI (2019) |
2 | Natural resources | Total natural resource rent (% of GDP) | ✓ |
3 | GDP per capita | In constant 2010 USD | ✓ |
4 | Interaction term | (Human capital × Urbanisation) | ✓ |
5 | GDP per capita2 | In constant 2010 USD | ✓ |
6 | Ecological footprint | Global hectares per capita | GFN (2019) |
7 | Human capital | Human capital index | Penn World Table |
Variables | DF-GLS | NG-Perron | ||||
---|---|---|---|---|---|---|
At level | Difference | At level | Difference | |||
MSB 5% | MSB 5% | |||||
EF | 0.091 | −6.811 |
0.829 | 0.233 | 0.148 |
0.233 |
GR | −0.846 | −4.228 |
0.346 | 0.233 | 0.162 |
0.233 |
HC | −0.318 |
−0.208 | 0.244 |
0.233 | 0.559 | 0.233 |
NR | −2.426 | −8.647 |
0.234 | 0.233 | 0.154 |
0.233 |
UB | −1.702 |
−0.797 | 0.143 |
0.233 | 0.519 | 0.233 |
IN | −0.528 |
−0.474 | 0.228 |
0.233 | 0.551 | 0.233 |
GR2 | −0.920 | −4.152 |
0.338 | 0.233 | 0.164 |
0.233 |
Variables | FMOLS | DOLS | CCR |
---|---|---|---|
GR (log) | 0.056 |
0.202 |
0.326 |
(2.276) | (2.581) | (4.768) | |
HC (log) | −0.064 |
−1.667 |
−0.621 |
(−5.835) | (−9.673) | (−8.289) | |
NR (log) | 0.024 |
0.241 |
1.046 |
(3.768) | (4.573) | (9.231) | |
UB (log) | 0.348 |
0.271 |
0.2286 |
(3.987) | (9.482) | (7.271) |
Null Hypotheses | MWALD Stat. | Probability | Causality |
---|---|---|---|
GR→EF | 6.015 | 0.021 | Yes |
HC→EF | 5.892 | 0.044 | Yes |
NR→EF | 4.042 | 0.120 | No |
UB→EF | 8.763 | 0.007 | Yes |
EF→GR | 7.382 | 0.035 | Yes |
HC→GR | 9.702 | 0.031 | Yes |
NR→GR | 5.819 | 0.042 | Yes |
UB→GR | 8.281 | 0.018 | Yes |
EF→HC | 1.745 | 0.650 | No |
GR→HC | 0.619 | 0.723 | No |
NR→HC | 1.891 | 0.634 | No |
UB→HC | 2.817 | 0.380 | No |
EF→NR | 0.483 | 0.066 | Yes |
GR→NR | 0.581 | 0.001 | Yes |
HC→NR | 1.291 | 0.035 | Yes |
UB→NR | 9.382 | 0.491 | No |
EF→UB | 0.173 | 0.849 | No |
GR→UB | 0.481 | 0.341 | No |
HC→UB | 1.461 | 0.635 | No |
NR→UB | 9.903 | 0.045 | Yes |
Long-run results | |||
---|---|---|---|
Variables | Model 1 | Model 2 | Model 3 |
Constant | 4.162 |
4.432 |
2.465 |
(2.478) | (3.441) | (1.047) | |
GR (log) | 0.032 |
0.546 |
0.129 |
(2.675) | (4.567) | (3.657) | |
HC (log) | −0.044 |
−0.146 |
−0.198 |
(−2.987) | (−2.286) | (−3.892) | |
NR (log) | 0.275 |
0.297 |
0.140 |
(2.979) | (3.486) | (3.287) | |
UB (log) | 0.450 |
0.228 |
0.052 |
(7.657) | (6.836) | (6.679) | |
IN (log) | – | −0.231 |
– |
– | (−4.675) | – | |
GR2 (log) | – | – | −0.056 |
– | – | (−7.546) |
Author(s) | Time period | Methodology | Variables considered | Country(ies) | Key finding(s) |
---|---|---|---|---|---|
1990–2016 | AMG | NRR, GDP, HC, EF | ASEAN bloc | NRR does not hurt environment in Thailand and Laos PDR. Bidirectional causality exists between HC and GDP, and between NRR and GDP. | |
1995–2016 | DOLS, FMOLS. | EF, GDP, NRR, URB, REN | BRICS | REN, URB, and NRR decrease EF. GDP enhances environmental degradation. | |
1970–2016 | ARDL | NRR, HC, GDP, URB, EF | China | URB, NRR, and GDP drive EF in China. | |
1971–2014 | CUP-FM, CUP-BC. | FDI, GDP, NRE, URB, HC, EF | G7 countries. | GDP, NRE, and URB increase EF, while HC and FDI reduce it. | |
1971–2014 | ARDL | GDP, NRE, URB, TRD, EF | Indonesia | NRE, GDP, and URB increase EF in Indonesia. | |
Baloch et al. (2019a) | 1990–2016 | Driscoll-Kraay panel regression | FDI, GDP, FDV, NRE, URB, EF | 59 Belt and Road countries. | FDV, FDI, NRE and URB have negative influence on environment. |
1971–2014 | ARDL | NRR, GDP, BIO, GDP2 EF | Pakistan | Long-run causality exists between BIO and EF. NRR has positive impact on EF. | |
1971–2014 | ARDL | HC, GDP, BIO, EF | Pakistan | BIO increases EF. GDP declines EF by 0.60%. HC exerts negative effect on EF. GDP Granger causes EF. | |
1971–2013 | ARDL | Fossil fuel energy, URB, Export, FDV, REN, EF | Mexico, Indonesia, Nigeria, and Turkey. | URB is chief cause of environmental degradation. | |
1990–2016 | AMG | REN, NRE, URB, EF, FDV, GDP | MENA | FDV, GDP, NRE, and URB increase EF in MENA. One-way causality flows from NRE and URB to EF. | |
1980–2016 | Panel Quantile Regression | FDI, EF, NRE, URB, GDP, carbon footprint, CO2 emissions | Coastal Mediterranean countries | NRE degrades environment. Effects of GDP and URB on environment were mixed for different indicators. | |
1992–2016 | FMOLS, DOLS. | NRR, URB, REN, GDP, GDP2, EF | BRICS | EKC is validated in individual BRICS countries. NRR, URB, and REN reduce EF. | |
1980–2014 | MG. FMOLS-MG, DOLS-MG. | GDP, GDP2, EF, REN, TRD, NRE | 24 OECD countries. | EKC hypothesis does not hold. REN reduces EF. | |
1990–2014 | AMG | REN, URB, GDP, GDP2, EF, NRE | 14 SSA countries. | Feedback causality runs among NRE, URB, GDP, and EF. NRE, GDP, and URB exert positive effects on EF. | |
1990–2015 | Panel ARDL | REN, URB, POP, FOR, NRE, GDP, EF | Asia | URB, GDP, NRE, FOR, and POP drive EF. REN restores environmental quality. | |
1991–2017 | PMG | EF, URB, Material footprint, GDP, GLO, NRE | 37 Asian countries | URB and GLO increase EF. GDP and NRE also increase EF. | |
1965Q1–2017Q4 | Quantile ARDL | NRE, EF, REN, GDP | Turkey | Feedback causality exists among listed variables; RE, GDP, NRE, and EF. | |
1990–2014 | CCEMG, IFE. | CO2 emissions, EF, RE, GDP, NRE | Europe | RE is environmentally friendly. NRE exerts positive impact on EF. | |
1971–2014 | NARDL | GDP, NRE Capital, EF | Pakistan | EF Granger causes NRE. GDP does not cause EF. | |
1990–2018 | QARDL | GDP, EF, FOR, RE | Pakistan | FOR and REN minimise EF. GDP increases EF thereby encouraging environmental degradation. |