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Article
Publication date: 11 January 2023

Amogelang Marope and Andrew Phiri

The purpose of this study is to quantify the impact of electricity power outages on the local housing market in South Africa.

Abstract

Purpose

The purpose of this study is to quantify the impact of electricity power outages on the local housing market in South Africa.

Design/methodology/approach

This study uses the autoregressive distributive lag (ARDL) and quantile autoregressive distributive lag (QARDL) models on annual time series data, for the period 1971–2014. The interest rate, real income and inflation were used as control variables to enable a multivariate framework.

Findings

The results from the ARDL model show that real income is the only factor influencing housing price over the long run, whereas other variables only have short-run effects. The estimates from the QARDL further reveal hidden cointegration relationship over the long run with higher quantile levels of distribution and transmission losses raising the residential price growth.

Research limitations/implications

Overall, the findings of this study imply that the South African housing market is more vulnerable to property devaluation caused by power outages over the short run and yet remains resilient to loadshedding over the long run. Other macro-economic factors, such as real income and inflation, are more influential factors towards long-run developments in the residential market.

Originality/value

To the best of the authors’ knowledge, this is the first study to examine the empirical relationship between power outages and housing price growth.

Details

International Journal of Housing Markets and Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 1 September 2023

Mubasher Iqbal, Shajara Ul-Durar, Noman Arshed, Khuram Shahzad and Umer Ayub

Increased trapped heat in the atmosphere leads to global warming and economic activity is the primary culprit. This study proposes the nonlinear impact of economic activity on…

Abstract

Purpose

Increased trapped heat in the atmosphere leads to global warming and economic activity is the primary culprit. This study proposes the nonlinear impact of economic activity on cooling degree days to develop a climate Kuznets curve (CKC). Further, this study explores the moderating role of higher education and renewable energy in diminishing the climate-altering effects of economic activity.

Design/methodology/approach

All the selected BRICS economies range from 1992 to 2020. The CKC analysis uses a distribution and outlier robust panel quantile autoregressive distributed lagged model.

Findings

Results confirmed a U-shaped CKC, controlling for population density, renewable energy, tertiary education enrollment and innovation. The moderating role of renewable energy and education can be exploited to tackle the progressively expanding climate challenges. Hence, education and renewable energy intervention can help in reducing CKC-based global warming.

Research limitations/implications

This study highlighted the incorporation of climate change mitigating curriculum in education, so that the upcoming economic agents are well equipped to reduce global warming which must be addressed globally.

Originality/value

This study is instrumental in developing the climate change-based economic activity Kuznets curve and assessing the potential of higher education and renewable energy policy intervention.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 5 September 2023

Annu and Ravindra Tripathi

The study's objectives are to conduct a comprehensive review of existing knowledge, thoroughly understand the present state of green finance, identify emerging research trends…

Abstract

Purpose

The study's objectives are to conduct a comprehensive review of existing knowledge, thoroughly understand the present state of green finance, identify emerging research trends, perform content analysis and offer valuable guidance for advancing this field.

Design/methodology/approach

Data has been collected by selecting highly indexed databases, Scopus and Web of Science. These databases are well-known repositories of academic papers, journals and other scholarly publications related to various fields of study. This research uses the PRISMA methodology for conducting a structured literature review and employs a bibliometric approach to summarize the findings of the previous studies. “R” studio and Biblioshiny are used to clean the data and visualize the results. The TCCM framework is utilized to propose potential avenues for future research in the domain of green finance.

Findings

The research uncovers the potential areas in the domain of green finance for future work, encompassing green bonds, the green economy, connectivity, forces, constraints and sustainable development. Furthermore, this process enhances the theoretical underpinnings of scholarly investigations within the discipline by succinctly synthesizing and evaluating preexisting literature. This contribution could facilitate more informed and focused research endeavors in green finance.

Practical implications

The research findings have practical implications for researchers, practitioners, regulators, legislators, issuers and investors involved in green finance. The results can take initiatives to improve practices related to issuing and pricing green financial products and enhance the understanding of interconnectedness within the field.

Originality/value

This ground-breaking research sheds light on various emerging areas by taking a new approach, including the most widely read articles, authors and journals and the broader conceptual and intellectual framework. That includes finding and expanding original research streams, summarizing the most seminal works, and suggesting new research pathways.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Open Access
Article
Publication date: 26 February 2024

Cheikh Tidiane Ndour and Simplice Asongu

This study examines the relevance of information and communication technologies in the effect of gender economic inclusion on environmental sustainability.

Abstract

Purpose

This study examines the relevance of information and communication technologies in the effect of gender economic inclusion on environmental sustainability.

Design/methodology/approach

The focus is on a panel of 42 sub-Saharan African countries over the period 2005–2020. The empirical evidence is based on generalized method of moments. The environmental sustainability indicator used is CO2 emissions per capita. Three indicators of women’s economic inclusion are considered: female labour force participation, female employment and female unemployment. The chosen ICT indicators are mobile phone penetration, Internet penetration and fixed broadband subscriptions.

Findings

The results show that: (1) fixed broadband subscriptions represent the most relevant ICT moderator of gender economic inclusion for an effect on CO2 emissions; (2) negative net effects are apparent for the most part with fixed broadband subscriptions (3) both positive ICT thresholds (i.e., critical levels for complementary policies) and negative ICT thresholds (i.e., minimum ICT levels for negative net effects) are provided; (4) ICT synergy effects are apparent for female unemployment, but not for female employment. In general, the joint effect of ICTs or their synergies and economic inclusion should be a concern for policymakers in order to better ensure sustainable development. Moreover, the relevant ICT policy thresholds and mobile phone threshold for complementary policy are essential in promoting a green economy.

Originality/value

The study complements the extant literature by assessing linkages between information technology, gender economic inclusion and environmental sustainability.

Details

Management of Environmental Quality: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 15 January 2024

James Temitope Dada, Folorunsho M. Ajide and Mamdouh Abdulaziz Saleh Al-Faryan

Driven by the Sustainable Development Goals (goals 7, 8, 12 and 13), this study investigates the moderating role of financial development in the link between energy poverty and a…

Abstract

Purpose

Driven by the Sustainable Development Goals (goals 7, 8, 12 and 13), this study investigates the moderating role of financial development in the link between energy poverty and a sustainable environment in African nations.

Design/methodology/approach

Panel cointegration analysis, fully modified least squares, Driscoll and Kraay least squares and method of moments quantile regression were used as estimation techniques to examine the link between financial development, energy poverty and sustainable environment for 28 African nations. Energy poverty is measured using two proxies-access to clean energy and access to electricity, while the environment is gauged using ecological footprint.

Findings

The regression outcomes show that access to clean energy and electricity negatively impacts the ecological footprint across all the quantiles; hence, energy poverty increases environmental degradation. Financial development positively influences environmental degradation in the region at the upper quantiles. Similarly, the interactive term of energy poverty and financial development has a significant positive impact on ecological footprint; thus, the financial sector adds to energy poverty and environmental degradation. The results of other variables hint that per capita income and institutions worsen environmental quality while urbanisation strengthens the environment.

Originality/value

This study offers fresh insights into the moderating effect of financial development in the link between energy poverty and sustainable environment in African countries.

Details

Management of Environmental Quality: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 8 February 2024

Shakeel Sajjad, Rubaiyat Ahsan Bhuiyan, Rocky J. Dwyer, Adnan Bashir and Changyong Zhang

This study aims to examine the relationship between financial development (FD), financial risk, green finance and innovation related to carbon emissions in the G7 economies.

Abstract

Purpose

This study aims to examine the relationship between financial development (FD), financial risk, green finance and innovation related to carbon emissions in the G7 economies.

Design/methodology/approach

This quantitative study examines the roles that financial development [FD: Domestic credit to private sector by banks as percentage of gross domestic product (GDP)], economic growth (GDP: Constant US$ 2015), financial risk index (FRI), green finance (GFIN: Renewable energy public research development and demonstration (RD&D) budget as percentage of total RD&D budget), development of environment-related technologies (DERTI: percentage of all technologies) and human capital (HCI: index) have on the environmental quality of developed economies. Based on panel data, the study uses a novel approach method of moments quantile regression as a main method to tackle the issue of cross-sectional dependency, slope heterogeneity and nonnormality of the data.

Findings

The study confirms that increasing economic development increases emissions and negatively impacts the environment. However, efficient resource allocation, improved financial systems, and green innovation are likely to contribute to emission mitigation and the overall development of a sustainable viable economy. Furthermore, the study highlights the importance of risk management in financial systems for future emissions prevention.

Practical implications

The study uses a reliable estimation procedure, which extends the discussion on climate policy from a COP-27 perspective and offers practical implications for policymakers in developing more effective emission mitigation strategies.

Social implications

The study offers policy suggestions for a sustainable economy, focusing on both COP-27 and the G7 countries. Recommendations include implementing carbon pricing, developing carbon capture and storage technologies, investing in renewables and energy efficiency and introducing financial instruments for emission mitigation. From a COP-27 standpoint, the G7 should prioritize transitioning to low-carbon economies and supporting developing nations in their sustainability efforts to address the pressing challenges of climate change and global warming.

Originality/value

In comparison to the literature, this study examines the importance of financial risk for G7 economies in promoting a sustainable environment. More specifically, in the context of FD and national income with carbon emissions, previous researchers have disregarded the importance of green innovation and human capital, so the current study fills the gap in the literature related to G7 economies by exploring the link between the identified variables related to carbon emissions.

Details

Studies in Economics and Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1086-7376

Keywords

Article
Publication date: 9 October 2023

Ahmet Galip Gençyürek

The crude oil market plays a key role in addressing the issue of energy economics. This paper aims to detect the causality relationship between the crude oil market and economy…

Abstract

Purpose

The crude oil market plays a key role in addressing the issue of energy economics. This paper aims to detect the causality relationship between the crude oil market and economy based on the financial system.

Design/methodology/approach

This paper used the static and dynamic Hatemi-J Bootstrap Toda–Yamamoto and Diebold–Yilmaz connectedness index. The Hatemi-J Bootstrap Toda-Yamamoto approach allows researchers to use nonstationary data and that method is robust to nonnormal distribution and heteroscedasticity. The Diebold–Yilmaz connectedness index model provides researchers to detect the power of connectedness besides linkage direction. The analyzed period is the span from January 3, 2005 to October 3, 2022.

Findings

The results show bidirectional causality in the full sample but unidirectional causality before and after the 2008 financial crisis. During the 2008 financial crisis period and the COVID-19 period, there was a bidirectional and unidirectional causality, respectively. The connectedness approach indicates that the crude oil market affects financial stress through investors’ risk preferences.

Research limitations/implications

The Diebold–Yilmaz spillover index model is based on vector autoregression methods with a stationarity precondition. However, some of the five dimensions that constitute the financial stress index (FSI) are nonstationary in level. Therefore, the authors takes the first difference of the nonstationary data.

Practical implications

The linkage between the crude oil market and the FSI provides useful information for investors and policymakers. For instance, this paper indicates that an investor wanted to forecast future value of the crude oil (financial stress) should consider the current and past values of financial stress (crude oil). Moreover, policymaker should consider the crude oil market (FSI) to make a policy proposal for financial system (crude oil market).

Originality/value

Recently, indicators of economic activity levels (economic policy uncertainty, implied volatility index) have begun to be considered to analyze the relationship between energy and the economy but very little is known in the literature about the leading and lagging roles of data in subsample periods and the linkage channel. The other originality of this research is using the new econometric approaches.

Details

Studies in Economics and Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1086-7376

Keywords

Article
Publication date: 7 June 2023

Shahid Bashir and Tabina Ayoub

This paper is an attempt to re-examine the validity of the Twin Deficit Hypothesis in the Indian economy, which is characterised by mounting inequality and liquidity constraints…

Abstract

Purpose

This paper is an attempt to re-examine the validity of the Twin Deficit Hypothesis in the Indian economy, which is characterised by mounting inequality and liquidity constraints. The authors augment the econometric analysis with two important mediating variables, exchange rate and trade openness, to analyse their impact on current account deficit.

Design/methodology/approach

The authors have used a ground-breaking asymmetric cointegration technique proposed by Shin et al. (2014) to investigate the short-run and long-run asymmetric nexus between gross fiscal deficit and current account deficit. In addition, the study has used asymmetric dynamic multipliers to see the dynamics of nonlinear adjustment from disequilibrium in the short run to equilibrium in the long run. The study has also used generalised impulse response functions to check the robustness of our cointegration results.

Findings

Using annual time series data from 1970 to 2018, the empirical exercise validates the presence of asymmetries in the Twin Deficit Hypothesis for the Indian economy. This study's robust findings demonstrate that the two deficits are asymmetrically related in the long run. The authors also found that exchange rate asymmetrically affects current account deficit thus validating the asymmetric J-curve phenomenon. From the causality analysis, the authors infer that there is a weak unidirectional causality running from fiscal deficit to current account deficit.

Research limitations/implications

Fiscal deficit may cause current account deficit via changes in other macroeconomic variables that were not taken care of in this study. Therefore, the estimation techniques used in the present study might suffer from the issue of omitted-variable bias. Further research should include other macroeconomic variables where the twin deficit nexus is also influenced by other relevant variables. This will help in disentangling the indirect transmissions by which fiscal deficit translates into current account deficit.

Practical implications

The results from our econometric exercise strongly suggest that the twin deficits are asymmetrically related. From a policy perspective, the asymmetric twin deficit nexus offers strong policy implications for the development of policies that are flexible enough to respond to shifts in internal and external sector dynamics. While framing the mechanism of fiscal prudence, policymakers in emerging countries like India must take into account the regime-changing behaviour of twin deficits.

Originality/value

The present paper is a significant contribution to the existing body of literature by being the first study in India which has analysed the Twin Deficits phenomenon in a nonlinear framework with the incorporation of asymmetric exchange rate dynamics in the model.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

Keywords

Article
Publication date: 16 June 2023

Kunjana Malik and Sakshi Sharma

Large-scale industrialization, growth and development have come at the cost of severe environmental degradation, primarily measured in terms of carbon dioxide emissions. Apart…

Abstract

Purpose

Large-scale industrialization, growth and development have come at the cost of severe environmental degradation, primarily measured in terms of carbon dioxide emissions. Apart from the several measures taken to reduce enviornmental degradation, provision of private capital is a necessity apart from the public capital. There is a debate on impact of carbon dioxide emissions with increase in affluence, technology, population and renewable energy. The purpose of the study is to look into the role of private equity investment on renewable energy and technological patents.

Design/methodology/approach

The study extends the use of stochastic impact by regression on population, affluence and technology model to include another factor for investments and capital, i.e. private equity along with renewable energy, population, technology and GDP growth on carbon emissions for the BRICS countries. The time period for the study is from 2002 to 2021, and the relationship between the variables has been tested using pooled mean group/autoregressive distributed lag, fully modified ordinary least squares and panel quantile regression.

Findings

First, the results depict a log-run relationship between the variables across the panel using cointegration. Private equity investments do not have a significant impact on carbon emissions. The study proposes important policy implications. There are two schools of thought on the impact of private equity on carbon emissions. For example, inherently private equity investments come with higher stakes and a shorter holding period because of which their primary focus remains on having higher returns instead of responsible investing. However, as private equity adds up to capital, which leads to an increase in productivity and eventually higher economic growth, this could affect carbon emissions. This study supports the first thought. Additionally, renewable energy also affects carbon emissions positively. The policymakers should look into the role and intent of the private equity investors in green investments and invest in technologies and patents that can lead to energy consumption.

Originality/value

The paper is the first of its kind, to the best of the authors’ knowledge, to look into the impact of private equity on renewable energy and technological patents.

Details

International Journal of Energy Sector Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-6220

Keywords

Open Access
Article
Publication date: 31 July 2023

Hanan Naser, Fatima Al-aali, Yomna Abdulla and Rabab Ebrahim

Over the last decade, investments in green energy companies have witnessed noticeable growth rates. However, the glacial pace of the world economic restoration due to COVID-19…

Abstract

Purpose

Over the last decade, investments in green energy companies have witnessed noticeable growth rates. However, the glacial pace of the world economic restoration due to COVID-19 pandemic placed a high degree of uncertainty over this market. Therefore, this study investigates the short- and long-term relationships between COVID-19 new cases and WilderHill New Energy Global Innovation Index (NEX) using daily data over the period from January 23, 2020 to February 1, 2023.

Design/methodology/approach

The authors utilize an autoregressive distributed lag bounds testing estimation technique.

Findings

The results show a significant positive impact of COVID-19 new cases on the returns of NEX index in the short run, whereas it has a significant negative impact in the long run. It is also found that the S&P Global Clean Energy Index has a significant positive impact on the returns of NEX index. Although oil has an influential effect on stock returns, the results show insignificant impact.

Practical implications

Governments have the chance to flip this trend by including investment in green energy in their economic growth stimulation policies. Governments should highlight the fundamental advantages of investing in this type of energy such as creating job vacancies while reducing emissions and promoting innovation.

Originality/value

First, as far as the authors are aware, the authors are the first to examine the effect of oil prices on clean energy stocks during COVID-19. Second, the authors contribute to studies on the relationship between oil prices and renewable energy. Third, the authors add to the emerging strand of literature on the impact of COVID-19 on various sectors of the economy. Fourth, the findings of the paper can add to the growing literature on sustainable development goals, in specific the papers related to energy sustainability.

Details

Arab Gulf Journal of Scientific Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-9899

Keywords

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