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Article
Publication date: 28 May 2024

Malihe Ashena and Ghazal Shahpari

The significance of this research lies in providing an understanding of how economic conditions, including financial development, informal economic activities and economic…

Abstract

Purpose

The significance of this research lies in providing an understanding of how economic conditions, including financial development, informal economic activities and economic uncertainty, influence carbon emissions and tries to offer valuable insights for policymakers to promote sustainable development.

Design/methodology/approach

The Panel-ARDL method is employed for a group of 30 developing countries from 1990 to 2018. This study analyzes the data obtained from the World bank, International Monetary Fund and World Uncertainty databases.

Findings

Based on the empirical results of the extended model, an increase in GDP and energy intensity is associated with an 83 and 14% increase in carbon emissions, respectively. Conversely, a 1% increase in financial development and economic uncertainty is linked to significant decrease in carbon emissions (about 47 and 23%, respectively). Finally, an increase in the informal economy can lead to a negligible yet significant decrease in carbon emissions. These results reveal that financial development plays an effective role in reducing CO2 emissions. Moreover, while economic uncertainty and informal economy are among unfavorable economic conditions, they contribute in CO2 reduction.

Practical implications

Therefore, fostering financial development and addressing economic uncertainty are crucial for mitigating carbon emissions, while the impact of informal economy on emissions, though present, is relatively negligible. Accordingly, policies to control uncertainty and reduce the informal economy should be accompanied by environmental policies to avoid increase in emissions.

Originality/value

The originality of this paper lies in its focus on fundamental changes in the economic environment such as financial development, economic uncertainty, and informal activities as determinants of carbon emissions. This perspective opens up new avenues for understanding the intricate relationship between carbon emissions and economic factors, offering unique insights previously unexplored in the literature.

Details

Management of Environmental Quality: An International Journal, vol. 35 no. 7
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 9 July 2024

Malihe Ashena and Ghazal Shahpari

Energy poverty presents substantial challenges for both developed and developing nations, with the latter experiencing more pronounced adverse effects due to issues related to the…

Abstract

Purpose

Energy poverty presents substantial challenges for both developed and developing nations, with the latter experiencing more pronounced adverse effects due to issues related to the provision and equitable access of energy resources. This study aims to provide a deep understanding of how financial development, economic complexity and government expenditures can impact energy poverty.

Design/methodology/approach

This research employs generalized method of moments (GMM) estimation on panel data to investigate the economic determinants of energy poverty in 31 developing countries from 2000 to 2020. For a comprehensive analysis, the proxies for energy poverty include access to electricity, access to clean fuels and energy consumption.

Findings

The findings suggest that while financial development cannot facilitate access to clean fuels in developing countries, it contributes to an increase in energy access and consumption. Another finding is that energy poverty can be alleviated by enhancing economic complexity since economic complexity can result in increased access to electricity and increased use of clean energy sources. Furthermore, the results underscore the pivotal role of government expenditures, surpassing the influence of financial development. In other words, government expenditures have the potential to significantly improve energy poverty across all three indices.

Originality/value

This is a pioneering research that seeks to examine some economic dynamics including, financial development and economic complexity on energy poverty and provide valuable guidance for policymakers aiming to promote sustainable energy development with respect to economic dynamics.

Details

International Journal of Energy Sector Management, vol. 19 no. 1
Type: Research Article
ISSN: 1750-6220

Keywords

Open Access
Article
Publication date: 1 November 2023

Malihe Ashena, Hamid Laal Khezri and Ghazal Shahpari

This paper aims to deepen the understanding of the relationship between global economic uncertainty and price volatility, specifically focusing on commodity, industrial materials…

1100

Abstract

Purpose

This paper aims to deepen the understanding of the relationship between global economic uncertainty and price volatility, specifically focusing on commodity, industrial materials and energy price indices as proxies for global inflation, analyzing data from 1997 to 2020.

Design/methodology/approach

The dynamic conditional correlation generalized autoregressive conditional heteroscedasticity model is used to study the dynamic relationship between variables over a while.

Findings

The results demonstrated a positive relationship between commodity prices and the global economic policy uncertainty (GEPU). Except for 1999–2000 and 2006–2008, the results of the energy price index model were very similar to those of the commodity price index. A predominant positive relationship is observed focusing on the connection between GEPU and the industrial material price index. The results of the pairwise Granger causality reveal a unidirectional relationship between the GEPU – the Global Commodity Price Index – and the GEPU – the Global Industrial Material Price Index. However, there is bidirectional causality between the GEPU – the Global Energy Price Index. In sum, changes in price indices can be driven by GEPU as a political factor indicating unfavorable economic conditions.

Originality/value

This paper provides a deeper understanding of the role of global uncertainty in the global inflation process. It fills the gap in the literature by empirically investigating the dynamic movements of global uncertainty and the three most important groups of prices.

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