Does tourism reduce the shadow economy? An international evidence.

This paper investigates one of the positive contributions of tourism to the economy through the lens of its influences on the shadow economy. Specifically, our study analyzes the effects of five indicators of tourism consumption (including domestic tourism spending, international travel and tourism consumption, business tourism spending, leisure tourism spending, and outbound tourism spending on the percentage of shadow economy to GDP) in 129 economies between 1996 and 2015. We find interesting results that contribute to the existing literature about tourism economics. Firstly, the development of the inbound tourism industry reduces the shadow economy significantly, while outbound tourism causes higher underground economic activities. Secondly, the influence of tourism on the shadow economy is significant in both the short-run and long run with a stronger effect in the long run. Thirdly, the effect of tourism on the shadow economy is more significant in the 42 High-Income Economies and 54 Low and Lower-middle Income Economies, while it is less obvious in the 33 Upper-Middle Income Economies. These findings have been checked by a battery of robustness checks ensuring their statistical consistency.

A look beyond climate risk exposure: the impact of incapacity to cope with natural hazards on financial development.

We provide a comprehensive cross-country analysis on the impact of national incapacity to cope with natural hazards (i.e., social shocks, political stability, health care, infrastructure, and material security needed to reduce the harmful effects of natural disasters) on financial development. The panel quantile regression analyses on a global sample of 130 countries generally confirm that the financial development of countries with lower capacity to cope is indeed significantly hampered compared to their peers, especially in countries with low financial development levels. Seemingly unrelated regression (SUR) analyses, which acknowledge the dynamic co-existence between both financial institutions and financial market sectors in a given economy simultaneously, offer notable finer details. For example, the handicapping effect on both sectors tends to apply to only countries with higher climate risks. Lack of coping capacity also exert negative effects on the development of financial institutions in countries of all levels of income but only affect financial markets of high-income group. The more detailed look into different dimensions (financial efficiency, financial access, and financial depth) of financial development is also given in our study. Overall, our findings highlight the vital and complex role of "coping capacity" aspect of climate risk on the sustainable development of financial sectors.

The impact of financial development on ecological footprints of nations.

Financial development is an important driver of technological progress in economic development. Its role in environmental change has not been well examined. We endeavor to examine the non-linear effects of multi-dimensional financial development measures on four kinds of ecological footprints in a global sample of 124 economies. We apply a two-step system generalized method of moments to deal with possible endogeneity. We find a stark difference in the impact of financial institutions' development and financial markets' development on the ecological footprints. Whereas financial institutions, with their three dimensions (i.e., depth, access, and efficiency) have an inverted-U shaped relationship with the ecological footprints, allowing for the initially harmful effect on the environment to revert to beneficial effects, the same results are not observed for financial markets. We attribute the inverse-U shaped relationship to a declining scale effect of FD and rising technological and composition effects of FD that transform the economy. Based on that we recommend that best practices of financial institutions regarding making environmentally conscious investment decisions be turned into a conscious investing culture around the world. For this to become a reality, better information-sharing regarding the individual environmental performance of firms will be needed.

Does knowledge matter for the environment? Global evidence of economic complexity and ecological footprints.

This study endeavors to explore the impact of knowledge materialized in production on the environment by examining the influences of economic complexity on ecological footprints. The empirical analysis is carried out for a global sample of 95 economies comprising 30 low- and lower-middle-income economies, 27 upper-middle-income economies, and 38 high-income economies. The robust results from several panel estimates show two interesting findings. First, the economic complexity has an inverted U-shaped relationship with the ecological footprints of production and consumption in the full sample. Second, that relationship is confirmed in lower-middle-income, but not in upper-middle-income economies. Moreover, the inverted U shape is evidenced by the Consumption Ecological Footprint in high-income economies. The results imply the existence of an Economic complexity Ecological Kuznets Curve in the relationship between economic complexity and ecological footprints.

Export Dynamics and Income Inequality: New Evidence on Export Quality.

Previous literature has highlighted the relationship between export diversification and income inequality. The present study attempts to explore the influence of export quality on income inequality. A global sample of 92 economies consisting of 30 low- and lower-middle-income economies (LMEs), 21 upper-middle-income economies (UMEs), and 41 high-income economies (HIEs) over the period 2002-2014, is collected to create a balanced set of panel data. Using econometric techniques for balanced panel data to deal with cross-sectional dependence, heteroscedasticity, and endogeneity, we first find that the effect of export quality is negative and significant on the Gini index pre-tax and pre-transfer in LMEs and UMEs, implying that export quality reduces income inequality. Second, export quality has a positive and significant impact on income inequality in HIEs. Our findings imply that different economic policies should be considered for dealing with income inequality among different income groups of economies.

The "karma" of impact on the Earth: will humans take responsibility? Evidence of energy consumption and CO2 emissions.

Energy consumption and CO2 emissions are agreed as the main causes of global warming and climate change, which are causing several extreme weather events in recent decades. However, there is little understanding how humans adjust their behaviours in energy consumption and emissions in responding to these natural threats. This study aims to examine the influences of exposure, susceptibility, and vulnerability to five natural hazards on CO2 emissions, energy intensity, renewable energy, and electricity consumption. The feasible generalized least squares model and several panel estimates are applied for a global sample of 161 countries from 2011 to 2018. The empirical results provide interesting findings. First, exposure, susceptibility, and vulnerability appear to reduce electricity usage, renewable energy consumption, energy intensity, and CO2 emissions in the global sample. Second, the negative effects of exposure, susceptibility, and vulnerability are consistent across four income groups (high-income; upper-middle-income; lower-middle-income; and low-income) except for some interesting differences. Exposure appears to increase renewable energy consumption significantly in upper-middle and high-income, while susceptibility has a significant positive influence on renewable energy consumption in low-, upper-middle, and high-income. Third, the negative impact is also documented in seven regions, with the exception of some interesting findings: threats from nature appear to increase CO2 emissions and energy intensity in the Middle East and North Africa, South Asia, and Europe and Central Asia, while they stimulate the use of renewable energy in Latin America and Caribbean. Interestingly, exposure and susceptibility appear to induce renewable energy transformation in Europe and Central Asia.

Land use change in the Vietnamese Mekong Delta: New evidence from remote sensing.

This paper presents the first attempt to capture a comprehensive spatial view of land use change in the Vietnamese Mekong Delta (VMD) for a long period, i.e., from 2000 to 2020. It is aimed at monitoring holistically the land use change and flooding situation in the region, addressing the reasons for land use change, and assessing the impacts of land use change on hydraulic aspects and farmer livelihoods during the last 21 years. MODIS products, in particular, are used to study the dynamics of land use and floods after demonstrating high validation with statistical data and radar satellites, with R2 = 0.96 and R2 ≥ 0.97 for land use and flood maps, respectively. The results show that rice cultivation is the most dominant land use type, accounting for 40% to 46% of the delta area, while aquaculture accounts for 10% to 22%, respectively. The total rice cultivation area increased from 3764 thousand hectares (thous. ha) in 2001 to 4343 thous. ha in 2015 based on the intensive development of triple rice cropping in the upper zone, then decreased to 3963 thous. ha in 2020. In contrast, aquaculture areas are farmed mainly in the coastal area and remained relatively steady, increasing slightly from 619 thous. ha in 2001 to 856 thous. ha in 2020. The massive construction of dikes for triple rice cropping in the upper zone appears to cause a significant impact on the annual flooding regime. Land use policies have influenced the changes in land use patterns, flooding situations, and the livelihoods of local farmers.

The energy consumption: the global contributions from financial development and institutions.

In a context of climate change and global warming, the literature paid more and more attention to the determinants of energy consumption. This article aims at examining the influences of the financial development and the institutional quality on the energy consumption in a global sample of 112 countries between 2002 and 2014. Our analysis is based on dynamic two-step system GMM estimations for three different energy consumption indicators-our findings are interesting. First, the financial development induces a higher energy consumption per capita; a higher energy consumption per output, and a lower renewable energy consumption. Second, the institutions have an insignificant positive influence on the energy use per capita and the energy use per output. Third, and this is our major contribution, the institutional quality can actually reverse the effect of the financial development. In other words, the effect of financial development on the energy use per capita is positive in weak institutional environment but it is negative when the latter is well developed. This article discusses these finding and their implications.

The energy-growth nexus revisited: An analysis of different types of energy.

This study revisits the nexus between energy consumption and economic growth by considering several energy use types (i.e., total energy, fossil fuel energy, and renewable energy). For this purpose, a dynamic fixed effects (DFE) estimator is applied to the autoregressive distributed lag (ARDL) model built on an extended version of the neoclassical production function. This study examines a global sample of 107 countries during 1996-2014, classified into three subsamples of countries based on income level. Overall, the findings show that, in the short run, the use of total energy and fossil fuel energy significantly and positively contribute to higher income in total and per-capita terms. However, the growth effects of renewable energy consumption appear to vary across subsamples. In the long run, the impacts of energy on economic growth are mostly insignificant, supporting the view that conservative energy policies do not harm economic growth.

The 'vicious cycle' of energy poverty and productivity: insights from 45 developing countries.

This study is the first proper attempt to examine the influence of energy poverty on productivity. Specifically, the study investigates the effects on the level and convergence of total factor productivity of no access to clean fuels and technologies for cooking; no access to electricity in the total population; no access to electricity in the rural population; no access to electricity in the urban population; non-renewable electricity production; and non-renewable electricity consumption. The study examines a global sample of 45 developing countries from 2002 to 2017 and offers three empirical analysis findings. First, the mutual causalities between the five dimensions of energy poverty and total factor productivity are shown by a non-Granger causality test for panel data, except one-direction causality from no access to clean fuels and technologies for cooking to total factor productivity convergence, which hints a 'vicious cycle' of two variables. Second, the two-step system generalised method of moments estimates show significant negative impacts of no access to clean fuels and technologies for cooking and the three variables of no access to electricity on total factor productivity. In contrast, the production and consumption of non-renewable electricity appear to have significant positive effects. Third, the three-stage least squares estimates provide statistical evidence that the effects of energy poverty on total factor productivity are transmitted through human capital accumulation, Internet usage, and the shadow economy.

Financial development and energy poverty: global evidence.

This study aims to shed light on the determinants of energy poverty by examining the role of financial development. Notably, the study analyses the multidimensional effects of financial development (including two subsectors and three dimensions on five indicators of energy poverty). Various estimates are applied with a global sample of 65 economies, consisting of 36 low- and lower-middle-income economies and 29 upper-middle-income economies for 2002-2015. First, financial development can alleviate energy poverty. Second, the results are properly consistent across the two subsectors and three dimensions. Third, the two subsectors and three dimensions of financial development are found to reduce energy poverty in low- and lower-middle-income economies but have heteroscedastic effects in upper-middle-income economies.