Exchange rate stability in the emerging economies: does renewable energy play a role-a panel data analysis.

Due to the high and rising rates of carbon emissions, the use of renewable energy sources has been encouraged to help achieve carbon neutrality goal. However, renewable energy sources are said to be expensive than fossil fuels. Major studies have been undertaken to ascertain the association between renewable energy and many economic indicators, such as gross domestic product, employment rate, and inflation rate. The current study is aimed at investigating whether renewable energy use helps stabilize the foreign exchange rate of emerging economies, which has not been widely examined in the past, hence the study originality. Stability in the foreign exchange rate of a nation is very crucial as this helps to stabilize the inflation rate. This study employs the fully modified ordinary least and dynamic ordinary least square methods to analyze panel data of emerging economies. The findings indicate that high real interest rate and gross domestic product causes appreciation in the currency exchange of a country, while high balance of payment, inflation rate and renewable energy consumption are found to cause currency depreciation. The Pedroni and Kao cointegration tests are employed and the results show that a long-run relationship exists among the variables examined. This research recommends balance of payments and inflation rate to be minimized if exchange rate stability is to be achieved, while gross domestic product and real interest rate should be increased.

Does renewable energy use enhance exchange rate appreciation and stable rate of inflation?

The current study is aimed at investigating the relationship between the use of renewable energy, the rate of currency exchange, and the rate of inflation with the ARDL model. The findings of the ECM show that in the long run, a bidirectional association between exchange rate and renewable energy exists in Brazil. This shows that the rate of currency exchange affects the use of renewable energy, and the use of renewable energy affects the rate of currency exchange. The inflation rate also affects renewable energy and exchange rate in the long run. The rate of adjustment to equilibrium is also below 50%, indicating that it will take a long time to adjust to long-run equilibrium. In the short run, we ascertain that renewable energy use has a significant negative effect on the rate of currency exchange, showing that a rise in the use of renewable energy significantly causes the exchange rate to appreciate. The long-run results show that renewable energy use negatively impacts exchange rate (appreciation), while the inflation rate and rate of currency exchange significantly affect the use of renewable energy positively. Thus, in addition to lowering carbon dioxide emissions and global warming effects, renewable energy use also facilitates an improvement in the currency's value. Therefore, the use of renewable energy should be promoted, and nations should shift to the use of renewable energy. This will also promote zero carbon in the future.

Vulnerability to recurrent shocks and disparities in gendered livelihood diversification in remote areas of Nigeria.

New multidimensional indicators of vulnerability to disaster from external shocks were constructed using survey data covering 1750 respondents from rural Nigeria. Simple ordinary least squares and decomposition analysis were then used to examine the effect of recurrent shocks on livelihood diversification. The results elicited several findings. Although findings from the constructed vulnerability indices revealed overall high risks of disasters, females were disproportionally more vulnerable to cattle rustling. Conversely, both natural hazard-induced and cattle rustling-driven shocks have a strong negative impact on livelihood diversification. This effect is invariant regardless of the perceived gender of the respondents. Decomposition results show that recurrent shocks have moderate influences on inter-gender income disparities, as a larger proportion of the inequalities are explained by demographic characteristics. The findings point to a number of policy recommendations, most notably that the disaster prevention and management strategies should prioritise interventions that have a direct bearing on an individual's economic, human, and social capitals.