The effects of energy price, spatial spillover of CO2 emissions, and economic freedom on CO2 emissions in Europe: a spatial econometrics approach.

Since the European Union (EU)'s current goal of making its continent the world's first climate-neutral continent by 2050, the EU will need to set a path for new policies in the areas of Europe's economy, energy consumption, and agriculture. Thus, this paper analyzes the marginal impact of energy price and economic freedom on Europe's CO2 emissions grounded on the extended Stochastic Impacts by Regression on Population, Affluence and Technology ecology (STIRPAT) model together with the spatial econometric models. The results indicate the existence of spatial spillover effect of CO2 emissions among some countries in Europe. The Hausman test was also performed to select the best model between the random effects and the fixed effects. The findings suggest that increasing both economic freedom and energy price in a local country turns to reduce the country's own CO2 emissions and also reduces the emissions of its adjacent countries. Comparing the direct effect of economic freedom and energy price to that of the SDM fixed effect, a feedback of 12.77% and 23.53% of the direct effect was observed, respectively. The results also indicated that the turning point of economic freedom and economic growth was 6.714 and thus 9.083. Overall, the study spotlighted some policy suggestions for the energy market for the European commission in reducing the emissions of CO2.

The nexus amid foreign direct investment, urbanization, and CO2 emissions: Evidence from energy grouping along the ECOWAS community.

The vision of every country or subregions is to achieve economic growth and sustainable economic growth. Thus, the Economic Community of West African States (ECOWAS) as an economic cooperation renders interaction among 16 relevant countries to increase economic development. However, CO2 emissions as a result of economic growth are of great concern. Thus, this study delves into the determinants of CO2 emissions along the ECOWAS community, taking into consideration if countries are energy exporters or energy importers. The analytical procedure applied indicated the presence of heterogeneity in the slope coefficient and cross-sectional dependencies across the various panels. Applying the Westerlund bootstrap co-integration unveiled, the employed variables have a long-run equilibrium association. The results from the augmented mean group (AMG) revealed that the contribution weight (order of importance) to CO2 emissions varies across panel clusters. Finally, the causality results unveil a bidirectional causation in all panels between urbanization and CO2 emissions, whereas foreign direct investment and CO2 emissions have a bidirectional effect in energy importers and the main panel. These results obtained indicate that foreign direct investment, urbanization, energy consumption, trade openness, and gross domestic product are the determinants of CO2 emissions along the community. Based on the outcome, the suggested policy implications indicate that (a) the need for a paradigm shift from fossil fuel sources to renewables be encouraged in the community and (b) again, the awareness of spillover of economic growth and energy transition on CO2 emissions from foreign companies to local businesses must be promoted.

Exploring the relationship between economic growth, energy consumption, urbanization, trade, and CO2 emissions: a PMG-ARDL panel data analysis on regional classification along 81 BRI economies.

The vision of every country or sub-regions is to achieve sustainable economic growth. The inability of individual countries to have a sole sustainable initiative has resulted in the establishment of economic cooperation such as the Belt and Road Initiative (BRI), which renders interaction among 138 relevant countries to increase economic development. This study delves into the determinants of economic growth along the BRI economic corridors, taking into consideration regional classification of the relevant countries. The analytical procedure applied indicated the presence of heterogeneity in the slope coefficient and cross-sectional dependencies across the various panels. Applying the Westerlund bootstrap co-integration test, it was deducted that the employed variables have a long-run equilibrium association. The results from the pooled mean group (PMG) revealed that the contribution weight (order of importance) of the explanatory variables to economic growth varies across the regional panel clusters. Finally, the causality results unveil that a bidirectional causation affiliation exists between energy consumption and economic growth in all panels except Southeast and South Asia which experience one-way directional effects from energy usage to economic growth. Trade and economic growth unveiled a bidirectional causal affiliation in all panel groups with exception of the Middle East and North Africa, where a one-way directional affiliation from trade to economic growth was felt. These results obtained indicate that energy consumption, urbanization, trade, and CO2 emissions are determinants of economic growth along the BRI route. Based on the outcome, the suggested policy implications include the following: (a) The government across each region could incorporate tax and other incentives to encourage entrepreneurs and citizens to produce equipment that reduces carbon intensity and is ecologically friendly. (b) The necessity for a paradigm shift away from fossil fuels and towards renewable energy sources should be advocated among the countries involved.