Nuclear Engineering and Technology

Korean Nuclear Society (한국원자력학회)
권호 표지
DOI QR코드

DOI QR Code

Linking nuclear energy, human development and carbon emission in BRICS region: Do external debt and financial globalization protect the environment?

  • Sadiq, Muhammad (School of Business, Central South University) ;
  • Shinwari, Riazullah (School of Business, Central South University) ;
  • Usman, Muhammad (Institute for Region and Urban-Rural Development, and Center for Industrial Development and Regional Competitiveness, Wuhan University) ;
  • Ozturk, Ilhan (Faculty of Economics and Administrative Sciences, Cag University) ;
  • Maghyereh, Aktham Issa (Department of Accounting and Finance, United Arab Emirates University)
  • Received : 2022.01.24
  • Accepted : 2022.03.20
  • Published : 2022.09.25
Download PDF
⟨ Previous Next ⟩

Abstract

Nuclear energy has the potential to play an influential role in energy transition efforts than is now anticipated by many countries. Realizing sustainable human development and reducing global climate crises will become more difficult without significantly increasing nuclear power. This paper aims to probe the role of nuclear energy, external debt, and financial globalization in sustaining human development and environmental conditions simultaneously in BRICS (Brazil, Russia, India, China, and South Africa) countries. This study applied a battery of second-generation estimation approaches over the period from 1990 to 2019. These methods are useful and robust to cross-countries dependencies, slope heterogeneity, parameters endogeneity, and serial correlation that are ignored in conventional approaches to generate more comprehensive and reliable estimates. The empirical findings indicate that nuclear energy and financial globalization contribute to human development, whereas external debt inhibits it. Similarly, financial globalization accelerates ecological deterioration, but nuclear energy and external debt promote environmental sustainability. Moreover, the study reveals bidirectional feedback causalities between human development, carbon emissions and nuclear energy consumption. The study offers useful policy guidance on accomplishing sustainable and inclusive development in BRICS countries.

Keywords

References

  1. C. Pirlogea, The human development relies on energy. Panel data evidence, Procedia Econ. Financ. 3 (2012) 496-501. https://doi.org/10.1016/S2212-5671(12)00186-4
  2. D. Balsalobre-Lorente, L. Ib anez-Luzon, M. Usman, M. Shahbaz, The environmental Kuznets curve, based on the economic complexity, and the pollution haven hypothesis in PIIGS countries, Renew. Energy 185 (2022) 1441-1455. https://doi.org/10.1016/j.renene.2021.10.059
  3. J. Hickel, The sustainable development index: measuring the ecological efficiency of human development in the anthropocene, Ecol. Econ. 167 (2020), 106331. https://doi.org/10.1016/j.ecolecon.2019.05.011
  4. S.A. Sarkodie, S. Adams, P.A. Owusu, T. Leirvik, I. Ozturk, Mitigating degradation and emissions in China: the role of environmental sustainability, human capital and renewable energy, Sci. Total Environ. 719 (2020), 137530. https://doi.org/10.1016/j.scitotenv.2020.137530
  5. N. Tran, Q. Van, Tran, L.T.T. Van, Do, L.H. Dinh, H.T.T. Do, Tradeoff between environment, energy consumption and human development: do levels of economic development matter? Energy 173 (2019) 483-493. https://doi.org/10.1016/j.energy.2019.02.042
  6. T.S. Adebayo, S.D. Oladipupo, I. Adeshola, H. Rjoub, Wavelet analysis of impact of renewable energy consumption and technological innovation on CO2 emissions: evidence from Portugal, Environ. Sci. Pollut. Res. (2021) 1-18.
  7. B. Yang, M. Usman, Do industrialization, economic growth and globalization processes influence the ecological footprint and healthcare expenditures? Fresh insights based on the STIRPAT model for countries with the highest healthcare expenditures, Sustain. Prod. Consum. 28 (2021) 893-910. https://doi.org/10.1016/j.spc.2021.07.020
  8. M. Usman, N. Hammar, Dynamic relationship between technological innovations, financial development, renewable energy, and ecological footprint: fresh insights based on the STIRPAT model for Asia Pacific Economic Cooperation countries, Environ. Sci. Pollut. Res. 28 (12) (2021) 15519-15536. https://doi.org/10.1007/s11356-020-11640-z
  9. A. Jahanger, M. Usman, M. Murshed, H. Mahmood, D. Balsalobre-Lorente, The linkages between natural resources, human capital, globalization, economic growth, financial development, and ecological footprint: the moderating role of technological innovations, Resou. Pol. 76 (2022), 102569. https://doi.org/10.1016/j.resourpol.2022.102569
  10. F.F. Adedoyin, I. Ozturk, F.V. Bekun, P.O. Agboola, M.O. Agboola, Renewable and non-renewable energy policy simulations for abating emissions in a complex economy: evidence from the novel dynamic ARDL, Renew. Energy 177 (2021) 1408-1420. https://doi.org/10.1016/j.renene.2021.06.018
  11. World Nuclear Association, Nuclear Power in the World Today, NPWT, 2021. https://www.world-nuclear.org/information-library/current-and-futuregeneration/nuclear-power-in-the-world-today.aspx. (Accessed 20 December 2021).
  12. X. Sun, X. Liu, Decomposition analysis of debt's impact on China's energy consumption, Energy Pol 146 (2020), 111802. https://doi.org/10.1016/j.enpol.2020.111802
  13. M. Usman, M.S.A. Makhdum, What abates ecological footprint in BRICS-T region? Exploring the influence of renewable energy, non-renewable energy, agriculture, forest area and financial development, Renew. Energy 179 (2021) 12-28. https://doi.org/10.1016/j.renene.2021.07.014
  14. M.A. Baloch, I. Ozturk, F.V. Bekun, D. Khan, Modeling the dynamic linkage between financial development, energy innovation, and environmental quality: does globalization matter? Bus. Strat. Environ. 30 (1) (2021) 176-184. https://doi.org/10.1002/bse.2615
  15. World Bank, World Development Indicator, WDI, 2020. https://databank.worldbank.org/reports.aspx?source=world-development-indicators. (Accessed 29 December 2021).
  16. BP, Statistical Review of World Energy, 69th Edition, BP, 2020. https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energyeconomics/statistical-review/bp-stats-review-2020-full-report.pdf. (Accessed 29 December 2021).
  17. M.B. Mbarek, S. Nasreen, R. Feki, The contribution of nuclear energy to economic growth in France: short and long run, Qual. Quantity 51 (2017) 219-238. https://doi.org/10.1007/s11135-015-0302-1
  18. E.Z. Wang, C.C. Lee, The impact of clean energy consumption on economic growth in China: is environmental regulation a curse or a blessing? Int. Rev. Econ. Finance 77 (2022) 39-58. https://doi.org/10.1016/j.iref.2021.09.008
  19. Z. Wang, Q. Bui, B. Zhang, C.L.K. Nawarathna, C. Mombeuil, The nexus between renewable energy consumption and human development in BRICS countries: the moderating role of public debt, Renew. Energy 165 (2021) 381-390. https://doi.org/10.1016/j.renene.2020.10.144
  20. S.T. Hassan, Danish Salah-Ud-Din khan, M.A. Baloch, Z.H. Tarar, Is nuclear energy a better alternative for mitigating CO2 emissions in BRICS countries? An empirical analysis, Nucl. Eng. Technol. 52 (2020) 2969-2974. https://doi.org/10.1016/j.net.2020.05.016
  21. L.S. Lau, C.K. Choong, C.F. Ng, F.M. Liew, S.L. Ching, Is nuclear energy clean? Revisit of Environmental Kuznets Curve hypothesis in OECD countries, Econ. Modell. 77 (2019) 12-20. https://doi.org/10.1016/j.econmod.2018.09.015
  22. H.T. Pao, C.C. Chen, Decoupling strategies: CO2 emissions, energy resources, and economic growth in the Group of Twenty, J. Clean. Prod. 206 (2019) 907-919. https://doi.org/10.1016/j.jclepro.2018.09.190
  23. T.S. Adebayo, E.B. Agyekum, S. Kamel, H.M. Zawbaa, M. Altuntas, , Drivers of environmental degradation in Turkey: designing an SDG framework through advanced quantile approaches, Energy Rep. 8 (2022) 2008-2021. https://doi.org/10.1016/j.egyr.2022.01.020
  24. M.T. Majeed, I. Ozturk, I. Samreen, T. Luni, Evaluating the asymmetric effects of nuclear energy on carbon emissions in Pakistan, Nucl. Eng. Technol. (2021) 1-9.
  25. I. Ozturk, Measuring the impact of alternative and nuclear energy consumption, carbon dioxide emissions and oil rents on specific growth factors in the panel of Latin American countries, Prog. Nucl. Energy 100 (2017) 71-81. https://doi.org/10.1016/j.pnucene.2017.05.030
  26. S.A. Sarkodie, S. Adams, Renewable energy, nuclear energy, and environmental pollution: accounting for political institutional quality in South Africa, Sci. Total Environ. 643 (2018) 1590-1601. https://doi.org/10.1016/j.scitotenv.2018.06.320
  27. A. Azam, M. Rafiq, M. Shafique, J. Yuan, An empirical analysis of the non-linear effects of natural gas, nuclear energy, renewable energy and ICT-Trade in leading CO2 emitter countries: policy towards CO2 mitigation and economic sustainability, J. Environ. Manag. 286 (2021), 112232. https://doi.org/10.1016/j.jenvman.2021.112232
  28. A. Azam, M. Rafiq, M. Shafique, J. Yuan, Does nuclear or renewable energy consumption help to control environmental pollution? New evidence from China, Renew. Energy Focus. 39 (2021) 139-147. https://doi.org/10.1016/j.ref.2021.08.002
  29. U.A. Osakede, O.K. Adeleke, Government Borrowing, Infrastructure and Human Development in Africa: A Panel Threshold Approach, Springer, Cham, 2022, pp. 81-92.
  30. A.K. Fosu, The external debt-servicing constraint and public-expenditure composition in Sub-Saharan Africa, Afr. Dev. Rev. 22 (2010) 378-393. https://doi.org/10.1111/j.1467-8268.2010.00252.x
  31. D. Akam, S.P. Nathaniel, A.H. Muili, S.N. Eze, The relationship between external debt and ecological footprint in SANE countries: insights from Konya panel causality approach, Environ. Sci. Pollut. Res. (2021).
  32. S. Katircioglu, A. Celebi, Testing the role of external debt in environmental degradation: empirical evidence from Turkey, Environ. Sci. Pollut. Res. 25 (2018) 8843-8852. https://doi.org/10.1007/s11356-018-1194-0
  33. S. Tang, Z. Wang, G. Yang, W. Tang, What are the implications of globalization on sustainability?-A comprehensive study, Sustain 12 (8) (2020) 3411. https://doi.org/10.3390/su12083411
  34. A. Simplice, Globalization and Africa: implications for human development, Int. J. Dev. Issues 12 (2013) 213-238. https://doi.org/10.1108/IJDI-10-2012-0064
  35. A. Singh, Financial globalization and human development, J. Hum. Dev. Capab. 13 (2012) 135-151. https://doi.org/10.1080/19452829.2011.637380
  36. Y. Huang, M. Haseeb, M. Usman, I. Ozturk, Dynamic association between ICT, renewable energy, economic complexity and ecological footprint: is there any difference between E-7 (developing) and G-7 (developed) countries? Technol. Soc. 68 (2022), 101853. https://doi.org/10.1016/j.techsoc.2021.101853
  37. N.M. Suki, A. Sharif, S. Afshan, N.M. Suki, Revisiting the Environmental Kuznets Curve in Malaysia: the role of globalization in sustainable environment, J. Clean. Prod. 264 (2020), 121669. https://doi.org/10.1016/j.jclepro.2020.121669
  38. B. Wang, C. Yan, N. Iqbal, Z. Fareed, A. Arslan, Impact of human capital and financial globalization on environmental degradation in OBOR countries: critical role of national cultural orientations, Environ. Sci. Pollut. Res. (2022) 1-17.
  39. A.A. Awosusi, T.S. Adebayo, M. Altuntas, , E.B. Agyekum, H.M. Zawbaa, S. Kamel, The dynamic impact of biomass and natural resources on ecological footprint in BRICS economies: a quantile regression evidence, Energy Rep. 8 (2022) 1979-1994. https://doi.org/10.1016/j.egyr.2022.01.022
  40. Y. Miao, A. Razzaq, T.S. Adebayo, A.A. Awosusi, Do renewable energy consumption and financial globalization contribute to ecological sustainability in newly industrialized countries? Renew. Energy (2022).
  41. M. Usman, D. Balsalobre-Lorente, Environmental concern in the era of industrialization: can financial development, renewable energy and natural resources alleviate some load? Energy Pol 162 (2022), 112780. https://doi.org/10.1016/j.enpol.2022.112780
  42. M. Khan, I. Ozturk, Examining the direct and indirect effects of financial development on CO2 emissions for 88 developing countries, J. Environ. Manag. 293 (2021), 112812. https://doi.org/10.1016/j.jenvman.2021.112812
  43. M.H. Pesaran, General diagnostic tests for cross section dependence in panels, in: CESifo Work. Pap. No. 1229, Cent. Econ. Stud. Ifo Inst, CESifo), Munich, 2004.
  44. E.W. Frees, Assessing cross-sectional correlation in panel data, J. Econom. 69 (1995) 393-414. https://doi.org/10.1016/0304-4076(94)01658-M
  45. M. Friedman, The use of ranks to avoid the assumption of normality implicit in the analysis of variance, J. Am. Stat. Assoc. 32 (1937) 675-701. https://doi.org/10.1080/01621459.1937.10503522
  46. T.S. Breusch, A.R. Pagan, The Lagrange multiplier test and its applications to model specification in econometrics, Rev. Econ. Stud. 47 (1980) 239-253. https://doi.org/10.2307/2297111
  47. B.H. Baltagi, Q. Feng, C. Kao, A Lagrange Multiplier test for cross-sectional dependence in a fixed effects panel, J. Econom. 170 (2012) 164-177. https://doi.org/10.1016/j.jeconom.2012.04.004
  48. M.H. Pesaran, T. Yamagata, Testing slope homogeneity in large panels, J. Econom. 142 (2008) 50-93. https://doi.org/10.1016/j.jeconom.2007.05.010
  49. M.H. Pesaran, A simple panel unit root test in the presence of cross-section dependence, J. Appl. Econom. 22 (2007) 265-312. https://doi.org/10.1002/jae.951
  50. J. Westerlund, Testing for error correction in panel data, Oxf. Bull. Econ. Stat. 69 (2007) 709-748. https://doi.org/10.1111/j.1468-0084.2007.00477.x
  51. A. Chudik, M.H. Pesaran, Common correlated effects estimation of heterogeneous dynamic panel data models with weakly exogenous regressors, J. Econom. 188 (2015) 393-420. https://doi.org/10.1016/j.jeconom.2015.03.007
  52. M.H. Pesaran, Estimation and inference in large heterogeneous panels with a multifactor error structure, Econom 74 (2006) 967-1012. https://doi.org/10.1111/j.1468-0262.2006.00692.x
  53. M. Eberhardt, S. Bond, Cross-section Dependence in Nonstationary Panel Models: a Novel Estimator, Pap. Prep. Nord. Econom. Meet., Lund, Sweden, 2009, pp. 29-31.
  54. E.I. Dumitrescu, C. Hurlin, Testing for Granger non-causality in heterogeneous panels, Econ. Modell. 29 (2012) 1450-1460. https://doi.org/10.1016/j.econmod.2012.02.014
  55. R. Shinwari, Y. Wang, A. Maghyereh, B. Awartani, Does Chinese foreign direct investment harm CO2 emissions in the Belt and Road Economies, Environ. Sci. Pollut. Res. (2022) 1-17.
  56. M. Usman, M.S.A. Makhdum, R. Kousar, Does financial inclusion, renewable and non-renewable energy utilization accelerate ecological footprints and economic growth? fresh evidence from 15 highest emitting countries, Sustain. Cities Soc. 65 (2021) 102590. https://doi.org/10.1016/j.scs.2020.102590
  57. M. Usman, A. Jahanger, M.S.A. Makhdum, D. Balsalobre-Lorente, A. Bashir, How do financial development, energy consumption, natural resources, and globalization affect Arctic countries' economic growth and environmental quality? an advanced panel data simulation, Energy 241 (2022) 122515. https://doi.org/10.1016/j.energy.2021.122515