Club convergence analysis of fossil fuels material footprint at the global level.

Material footprint is vital for playing a role in increasing the pace of climate change and the sustainability of development efforts. Fossil fuels material footprint (FFMF) remains a critical indicator of environment-friendly economic development. Fossil fuels have also retained their dominance as prominent drivers of global growth since the Industrial Revolution. FFMF levels show considerable variations in economic growth worldwide as awareness of sustainability and climate change propagates. Although biomass/carbon emission convergence have been discussed extensively in the existing literature, FFMF convergence is still scanty despite its vital role in climate change. Hence, this study adds to the existing literature by examining the convergence of FFMF for 154 countries for the period from 1970 to 2019 using club convergence analysis. The results show that FFMF converges to a single steady state, stating a symmetric decline in FFMF growth. Further, the findings from sigma and beta tests are consistent with the main results. Thus, the demonstrated convergence of FFMF directs that global efforts regarding FFMF control should be continued. Moreover, future climate change policies should also be formulated to enhance the awareness of FFMF and long-term sustainability.

Does economic complexity lead to global carbon emissions convergence?

This study examines how economic complexity, along with human capital, total factor productivity, foreign direct investment, and trade openness, leads to per capita CO2 emissions (PCO2Es) convergence at club level in the case of 42 countries for the period of 1998-2019. To do so, first, this study implements the Phillips and Sul novel club convergence approach, and results show the existence of three clubs implying the distinct transition paths. Secondly, to examine how the economic complexity affects the PCO2Es in each club, this study applies a panel data model. This study finds the divergence in PCCO2Es when all 42 countries are considered together. However, there is existence of three clubs that are converging to their steady states due to economic complexity along with control variables. Further, the impact of economic complexity on PCO2Es is found to be different for the three clubs. For instance, a positive and significant relationship has been noted for clubs 1 and 2 (high and moderate PCO2Es). This implies that economic shifts in these countries degrade the environment. While in the case of club 3, we find a negative and significant relationship suggesting an improvement in the environmental quality. From the policy point of view, it can be suggested that environmental policies should be designed at the club level by targeting economic complexity. Further, club 1 and club 2 may improve the environmental quality by adopting some of the successful environmental policies from club 3 countries.

A link between productivity, globalisation and carbon emissions: evidence from emissions by coal, oil and gas.

Although much has been discussed about the link between renewable energy, globalisation and carbon dioxide (CO2) emissions, yet the impact of total factor productivity (TFP) on CO2 emissions is less known in the existing literature. Therefore, the present study considers TFP as one of the determinants of CO2 as it is believed that technological enhancement plays an essential role in improving the environmental quality by raising efficiency in energy use and pollution treatment. In contrast, it may also have unfavourable impacts. In particular, this study analyses how TFP along with renewable energy and globalisation affect the aggregate and source of CO2 emissions (oil, coal and gas) in the case of top ten carbon emitters from the developing economies over the period 1980-2018. To achieve the above objective, we use the second-generation panel unit root, cointegration and causality tests. We also implement a cross-sectional autoregressive distributed lag model (CS-ARDL) to find the long-run and short-run coefficients. Findings from panel cointegration tests show that there exists a significant long-run relationship between renewable energy, non-renewable energy, globalisation, total factor productivity and CO2. Moreover, findings show that renewable energy consumption has a negative and significant impact on CO2 emissions while non-renewable energy consumption significantly increases the CO2 at aggregate and disaggregated levels. Further, our results confirm that TFP increases the CO2 emissions whereas globalisation decreases CO2. From the policy point of view, TFP growth needs to be accelerated to a higher level so that it enables low carbon growth. The slower TFP growth may enhance output which requires more energy and produces more emissions. Thus, there should be a promotion of emissions' reducing technology along with better TFP growth. Also, our findings recommend that CO2 in sample countries can be reduced through promoting low carbon technology, and globalisation.

Spillover effect of greenhouse gas emissions across five major continents.

There are some studies that either examine the convergence or spillover effect of greenhouse gas emissions (GHGEs) at the country or multiple country level but research on the spillover effect of GHGEs is very limited particularly for the agriculture sector across the major continents. Therefore, this study examined the connectedness across the five major continents namely Asia, Africa, Europe, Oceania and Americas for the period 1961-2018. To achieve the objective, this study applies a very recent time-varying parameter vector autoregressive (TVP-VAR) model. The results obtained from TVP-VAR model indicate that all the five continents are highly interconnected in GHGEs. In particular, the findings show that Asia, Africa and Americas are the main transmitters and Europe and Oceania are the main receivers of GHGEs. The findings suggest that Asia, Africa and Americas should use the economic profits received from the economic integration for the environmental protection policies with more attention. This might help for high economic growth and development with a clean environment.

Global disparities of greenhouse gas emissions in agriculture sector: panel club convergence analysis.

A lot has been discussed about the greenhouse gas (GHG) emissions in the existing studies; the study on the club convergence of GHG emissions is limited particularly for the agriculture sector. This study tries to investigate the convergence hypothesis across 93 countries spanning 1980-2017. To examine the convergence hypothesis, we implement the novel Phillips and Sul test. Results obtained from this test show the evidence of divergence when we consider all 93 countries as a group. This implies that GHG emissions across the countries are following different convergence paths. To capture this, we further apply clustering algorithms and results show the existence of five clubs of convergence and one group stating the need for altering the policies at the club level to achieve a single steady state in GHG emissions. Moreover, our findings recommend that the mitigation policies should be considered in the presence of different clubs of regions with different convergence paths in terms of GHG emissions and account for the distributional effect of transfers across countries.

Does biomass material footprint converge? Evidence from club convergence analysis.

Although several studies explored the issue of CO2/Ecological footprint convergence across the countries, study on biomass material footprint (BMF) convergence is scant. This study bridges this research gap by examining the "BMF convergence hypothesis" across 172 countries for the period from 1990 to 2017. To attain our objective, we use the novel Phillips and Sul (J Appl Econom 24(7):1153-1185, 2007a; Econometrica 75:1771-1855, 2007b) approach. We find that there is no evidence of convergence, while 172 countries are taken together. This implies that all the countries together are having different transition paths. Thus, Phillips and Sul test implements the clustering algorithms to identify the club convergence. Our results show the existence of six different steady-state (or club convergence) equilibriums for BMF. Thus, our findings show that climate change policies are required to be designed as per the existing clubs of the sample countries.

Do COVID-19 cases follow a similar transition path? Evidence from Indian states.

This paper assesses the convergence of COVID-19 cases by obtaining transition paths of Indian states covering the period from August 01 to October 31, 2020. The results based on Phillips-Sul test show evidence of different transition paths. These findings are useful from the policy perspective, particularly to see whether existing efforts made for stopping the spread of COVID-19 by states/central governments are effective.•Convergence of COVID-19 cases across Indian states is investigated.•The Phillips and Sul test is applied.•Findings are in favour of different transition paths.

Club convergence of per capita carbon emission: global insight from disaggregated level data.

This study aims to examine the convergence hypothesis of per capita carbon dioxide emission and its component such as coal, oil, and gas in the case of 53 countries covering the period of 1980 to 2016. In particular, we study whether countries are moving toward a common steady-state equilibrium condition in the per capita carbon emission or converging into different groups. To do so, this study used Phillips and Sul (Econometrica 75(6): 1771-1855, 2007, J Appl Econ 24(7): 1153-1185, 2009) technique. Our results show no evidence of convergence for full sample. However, our results support the evidence of two club convergence of total emission, emission from gas and petroleum consumption, while three clubs are noticed in case of per capita carbon dioxide emission from coal use. This invalidates the equality rule of participation of each country in climate change policy. Further, similar results emerge in case of total emission and petroleum where club 1 consists of mostly developed countries while club 2 has a large number of developing countries. Interestingly, we do not find any divergence behavior across all countries in the sample. We find that natural gas is the major component to drive the total carbon emission convergence in case of our sample countries.