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1 – 5 of 5Yumeng Wang, Shuoli Zhao, Zhihai Yang and Donald J. Liu
The purpose of this paper is to investigate the causal relationship between the prices of rice, crude oil, wheat, corn and soybean in China and estimate the long-run and short-run…
Abstract
Purpose
The purpose of this paper is to investigate the causal relationship between the prices of rice, crude oil, wheat, corn and soybean in China and estimate the long-run and short-run price relationships.
Design/methodology/approach
Using monthly price date over the period of January 1998-December 2013 in China, this paper employs an autoregressive distributed lag (ARDL) bounds test to explore the cointegration relationship among the price variables and estimate the ARDL long-run price relationship and the short-run error correction process (ARDL-EC).
Findings
The empirical results indicate that crude oil, as one of the forcing variables along with wheat, corn, and soybean prices, is effecting rice price in China. Both the long-run and short-run price transmission elasticity estimates suggest the importance of crude oil price on the formation of rice prices. Furthermore, the adjustment speed coefficient is found to be statistically significant, supporting the notion that there is an error correction mechanism for maintaining the long-run price relationship facing short-run shocks.
Originality/value
This paper adopts four types of commodity food prices to explore the relationships with crude oil price. The evidence of market integration, including the degree of price transmission and the speed of adjustment, remains a crucial step to proceed with the government intervention.
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Based on the hypothesis of the environmental Kuznets curve (EKC), the purpose of this study is to investigate the relationship between environmental pollutants (as measured by CO2…
Abstract
Purpose
Based on the hypothesis of the environmental Kuznets curve (EKC), the purpose of this study is to investigate the relationship between environmental pollutants (as measured by CO2 emissions) and GDP for India, over the period 1980–2012. The presence of an inverted “U” shape relationship is examined while controlling for factors such as the degree of trade openness, foreign direct investment, oil prices, the legal system and industrialization.
Design/methodology/approach
To verify whether the EKC follows a linear, quadratic or polynomial form, autoregressive distributed lag (ARDL) bounds testing approach for cointegration with structural breaks is adopted. The annual time series data for carbon emissions (CO2), economic growth (GDP), industrial development (industrialization), foreign direct investment and trade openness have been obtained from World Development Indicators online database. Crude oil price (international price index) for the period is collected from the International Monetary Fund. Data for total petroleum consumption are collected from the US Energy Information Agency. Data for economic freedom variables are from the Fraser Institute's Economic Freedom Index's online database.
Findings
The findings support the existence of inverted U-shaped EKC in the short-run, but not in the long-run. A linear monotonic relationship has also been estimated in select model specifications. Additionally, trade openness has been estimated to reduce emissions in models, which incorporate FDI. Else, where significant, its impact on carbon emissions is adverse. A rise in fuel price leads to reduction in carbon emissions across model specifications. Further, the lower size of government degrades the environment both in the long-run and short-run.
Practical implications
Given the existence of the pollution haven hypothesis, wherein more trade and foreign direct investments cause environmental degradation, the paper proposes formulation of appropriate regulatory mechanisms that are environmentally friendly. Additionally, India's new economic policies, favoring liberalization, privatization and globalization, reinforces the need to strengthen environmental regulations.
Originality/value
Incorporation of economic freedom as measured by the “Size of Government” in the EKC model is unique. “Size of Government” deserves a special mention. The rationale for including this explanatory variable is to understand whether countries with lower government size are more polluting. After all, theory does suggest that goods and services, which have higher social cost vis-à-vis private cost, shall be overproduced in economies that adopt more market-friendly policies, necessitating government intervention. In the study, size of government is measured as per the definition and methodology adopted by Fraser Institute's Economic Freedom of the World Index.
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Patrícia H. Leal, Antonio Cardoso Marques and Jose Alberto Fuinhas
Australia is one of the ten largest emitters of greenhouse gases but stands out from the others due to its economic growth without recession for 26 consecutive years. This paper…
Abstract
Purpose
Australia is one of the ten largest emitters of greenhouse gases but stands out from the others due to its economic growth without recession for 26 consecutive years. This paper aims to focus on the energy-growth nexus and the effects of energy consumption on the environment in Australia.
Design/methodology/approach
This analysis is performed using annual data from 1965 to 2015 and the autoregressive distributed lag model.
Findings
The paper finds empirical evidence of a trade-off between economic growth and carbon dioxide (CO2) intensity. The results show that increased gross domestic product (GDP) in Australia increased investment in renewable energy sources (RESs), although the renewable technology is limited and has no impact on reducing CO2 intensity in the long run. In contrast to investment in RES, fossil fuels, coal and oil, are decreased by GDP. However, oil consumption increased renewable energy consumption, and this reflects the pervading effect of the growing economy.
Originality/value
Overall, this paper contributes to the literature by analysing the behaviour of both energy consumption and the environment on the growing Australian economy. In addition, this paper goes further by studying the impact of economic growth on renewable and non-renewable energy consumption, as well as on CO2 emissions. The study is conducted on a single country for which literature is scarce, using a recent approach and a long time period.
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Yaswanth Karedla, Rohit Mishra and Nikunj Patel
The purpose of this study is to examine the impact of economic growth, trade openness and manufacturing on CO2 emissions in India.
Abstract
Purpose
The purpose of this study is to examine the impact of economic growth, trade openness and manufacturing on CO2 emissions in India.
Design/methodology/approach
The study employed autoregressive distributive lag (ARDL) bounds test approach and uses CO2 emissions, trade, manufacturing and GDP per capita to examine the relationship using an annual time series data from World Development Indicators during 1971 to 2016.
Findings
Results depict that there exists a long-run relationship between CO2 emissions and other variables. Trade openness significantly reduces CO2 emissions, whereas manufacturing and GDP have a significant and positive impact on CO2 in the long run.
Research limitations/implications
The findings of the study contribute to the body of knowledge by providing new evidence on the relationship between developmental metrics and the environment. These findings are critical for policymakers and regulatory bodies to focus on economic development without jeopardizing environmental degradation.
Practical implications
In order to keep its commitment to sustainability, India needs to develop policies that encourage cleaner production methods and establishment of non-polluting industries. Simultaneously, it must disincentivize industries that emit CO2 by policy frameworks such as carbon taxes, pollution taxes or green taxes.
Originality/value
None of studies examine at how these environmental factors interact in India. Kilavuz and Dogan (2020) used the same variables, but their scope was limited to Turkey. As a result, the study is the first to examine this relationship for India, contributing to the body of knowledge on economic growth, manufacturing, trade openness and environmental concerns.
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Ferda Halicioglu and Natalya Ketenci
The purpose of this paper is to empirically test the validity of the productivity bias hypothesis (PBH) in 18 Middle East countries.
Abstract
Purpose
The purpose of this paper is to empirically test the validity of the productivity bias hypothesis (PBH) in 18 Middle East countries.
Design/methodology/approach
The paper employs autoregressive-distributed lag approach to cointegration approach and stability tests.
Findings
The empirical results suggest the existence of the PBH only in the case of Bahrain, Kuwait and Saudi Arabia.
Practical implications
Conclusions drawn from this research could be useful for the policy-makers of governments and practitioners in international trade organizations.
Originality/value
This study extends the existing literature by providing initial empirical time series evidence of the PBH for the entire Middle East countries.
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