Is Globalization Driving the Use of Renewable Energy? A Global Macro Perspective
Verda Salman
School of Social Sciences and Humanities, National University of Sciences and Technology (NUST), H-12, Islamabad, Pakistan (Pakistan)
Imtiaz Ahmad
School of Social Sciences and Humanities, National University of Sciences and Technology (NUST), H-12, Islamabad, Pakistan (Pakistan)
https://orcid.org/0000-0002-1565-2517
Shahzad Alvi
shahzad.alvi@s3h.nust.edu.pkSchool of Social Sciences and Humanities, National University of Sciences and Technology (NUST), H-12, Islamabad, Pakistan (Pakistan)
Abstract
The contemporary world has become increasingly interdependent in terms of economic, social and political development. These various forms of interdependence, usually termed globalization, help disseminate ideas, information, products, and services around the world. Increase in globalization has also increased path-dependence, affecting economic, social, and institutional development and completing some industries, products and technologies to grow in line with the global demand and changing standards. While the role of globalization in economic growth, technology transfer and institutional development is established in literature, the role of globalization in reversing environmental deterioration is not explored yet. The current study looks at how globalization has affected renewable energy use in high, upper middle and lower middle income countries. The empirical results based on a fixed effects model show that countries differ in terms of taking advantage of different types of globalization, i.e., economic, social and political, while transitioning towards renewable energy (RE) projects. Economic globalization has a positive influence on RE usage in the case of high and lower middle income countries, Social globalization in case of high and upper middle income countries. Contrary to the positive impacts of economic and social globalization, political globalization has a negative impact on RE usage in the case of high income countries. In addition to globalization, the effect of government effectiveness, GDP per capita and CO2 vary across the groups of countries.
Keywords:
globalization, renewable energy, government effectiveness, GDP per capita, CO2References
ABBASI M. A., PARVEEN S., KHAN S., KAMAL M. A., 2020, Urbanization and energy consumption effects on carbon dioxide emissions: evidence from Asian-8 countries using panel data analysis, Environmental Science and Pollution Research, 27(15): 18029-18043.
DOI: https://doi.org/10.1007/s11356-020-08262-w
Google Scholar
ABBASI K., JIAO Z., SHAHBAZ M., KHAN A., 2020, Asymmetric impact of renewable and non-renewable energy on economic growth in Pakistan: New evidence from a nonlinear analysis, Energy Exploration & Exploitation, 38(5): 1946-1967.
DOI: https://doi.org/10.1177/0144598720946496
Google Scholar
ADEDOYIN O. B., SOYKAN E., 2020, Covid-19 pandemic and online learning: the challenges and opportuni-ties, Interactive learning environments: 1-13.
DOI: https://doi.org/10.1080/10494820.2020.1813180
Google Scholar
AMIR M., KHAN S. Z., 2021, Assessment of renewable energy: Status, challenges, COVID-19 impacts, opportunities, and sustainable energy solutions in Africa, Energy and Built Environment.
DOI: https://doi.org/10.1016/j.enbenv.2021.03.002
Google Scholar
ANTWEILER W., COPELAND B. R., TAYLOR M. S., 2001, Is free trade good for the environment? American eco-nomic review, 91(4): 877-908.
DOI: https://doi.org/10.1257/aer.91.4.877
Google Scholar
AWERBUCH S., SAUTER R., 2006, Exploiting the oil-GDP effect to support renewables deployment, Energy Policy, 34(17): 2805-2819.
DOI: https://doi.org/10.1016/j.enpol.2005.04.020
Google Scholar
AWODUMI O. B., ADEWUYI A. O., 2020, The role of non-renewable energy consumption in economic growth and carbon emission: evidence from oil producing economies in Africa, Energy Strategy Reviews, 27: 100434.
DOI: https://doi.org/10.1016/j.esr.2019.100434
Google Scholar
BAYER P., DOLAN L., URPELAINEN J., 2013, Global patterns of renewable energy innovation, 1990-2009, Energy for Sustainable Development, 17(3): 288-295.
DOI: https://doi.org/10.1016/j.esd.2013.02.003
Google Scholar
BIN, L., JI, H., 2021, Energy security and economic development in large energy user countries. International Journal of Social Sciences and Sustainability, 1, 4.
Google Scholar
BALOCH Z. A., TAN Q., KAMRAN H. W., NAWAZ M. A., ALBASHAR G., HAMEED J., 2022, A multi-perspective assessment approach of renewable energy production: policy perspective analysis, Environment, Development and Sustainability, 24(2): 2164-2192.
DOI: https://doi.org/10.1007/s10668-021-01524-8
Google Scholar
BOUTE A., 2020, Regulatory stability and renewable energy investment: The case of Kazakhstan, Renewable and Sus-tainable Energy Reviews, 121: 109673.
DOI: https://doi.org/10.1016/j.rser.2019.109673
Google Scholar
BOWDEN N., PAYNE J. E., 2010, Sectoral analysis of the causal relationship between renewable and non-renewable energy consumption and real output in the US, Energy Sources, Part B: Economics, Planning, and Policy, 5(4): 400-408.
DOI: https://doi.org/10.1080/15567240802534250
Google Scholar
CHEON A., URPELAINEN J., 2012, Oil prices and energy technology innovation: An empirical analysis, Global Envi-ronmental Change, 22(2): 407-417.
DOI: https://doi.org/10.1016/j.gloenvcha.2011.12.001
Google Scholar
DREHER A., 2006, Does Globalization Affect Growth? Evidence from a new Index of Globalization call made, Applied Economics 38, 10: 1091-1110.
DOI: https://doi.org/10.1080/00036840500392078
Google Scholar
ERGUN S. J., OWUSU P. A., RIVAS M. F., 2019, Determinants of renewable energy consumption in Afri-ca, Environmental Science and Pollution Research, 26(15): 15390-15405.
DOI: https://doi.org/10.1007/s11356-019-04567-7
Google Scholar
ETOKAKPAN M. U., SOLARIN S. A., YORUCU V., BEKUN F. V., SARKODIE S. A., 2020, Modelling natural gas consumption, capital formation, globalization, CO2 emissions and economic growth nexus in Malaysia: Fresh evidence from combined cointegration and causality analysis, Energy Strategy Reviews, 31: 100526.
DOI: https://doi.org/10.1016/j.esr.2020.100526
Google Scholar
GOZGOR G., MAHALIK M. K., DEMIR E., PADHAN H., 2020, The impact of economic globalization on renewable energy in the OECD countries, Energy Policy, 139: 111365.
DOI: https://doi.org/10.1016/j.enpol.2020.111365
Google Scholar
IBRAHIEM D. M., HANAFY S. A., 2020, Dynamic linkages amongst ecological footprints, fossil fuel energy consump-tion and globalization: an empirical analysis, Management of Environmental Quality: An International Journal.
DOI: https://doi.org/10.1108/MEQ-02-2020-0029
Google Scholar
KOSKINA A., FARAH P. D., IBRAHIM I. A., 2020, Trade in clean energy technologies: sliding from protection to protectionism through obligations for technology transfer in climate change law, or Vice Versa?, The Journal of World En-ergy Law & Business, 13(2): 114-128, https://doi.org/10.1093/jwelb/jwaa013.
DOI: https://doi.org/10.1093/jwelb/jwaa013
Google Scholar
KUTAN A. M., PARAMATI S. R., UMMALLA M., ZAKARI A., 2018, Financing renewable energy projects in major emerging market economies: Evidence in the perspective of sustainable economic development, Emerging Markets Finance and Trade, 54(8): 1761-1777.
DOI: https://doi.org/10.1080/1540496X.2017.1363036
Google Scholar
LEE H. S., SHEPLEY M., HUANG C. S., 2009, Evaluation of off-leash dog parks in Texas and Florida: A study of use patterns, user satisfaction, and perception, Landscape and urban planning, 92(3-4): 314-324.
DOI: https://doi.org/10.1016/j.landurbplan.2009.05.015
Google Scholar
LYULYOV O., PIMONENKO T., KWILINSKI A., DZWIGOL H., DZWIGOL-BAROSZ M., PAVLYK V., BAROSZ P., 2021, The impact of the government policy on the energy efficient gap: The evidence from Ukraine, Energies, 14(2): 373.
DOI: https://doi.org/10.3390/en14020373
Google Scholar
MATEI I., 2017, Is there a Link between Renewable Energy Consumption and Economic Growth? A Dynamic Panel Investigation for the OECD Countries, Revue d'economie politique, 127(6): 985-1012.
DOI: https://doi.org/10.3917/redp.276.0985
Google Scholar
MEHRARA M., REZAEI S., RAZI D. H., 2015, Determinants of renewable energy consumption among ECO countries; based on Bayesian model averaging and weighted-average least square, International Letters of Social and Humanistic Sciences, 54: 96-109.
DOI: https://doi.org/10.18052/www.scipress.com/ILSHS.54.96
Google Scholar
MUHAMMAD B., KHAN S., 2021, Understanding the relationship between natural resources, renewable energy con-sumption, economic factors, globalization and CO2 emissions in developed and developing countries, Natural Resources Forum, 45(2): 138-156.
DOI: https://doi.org/10.1111/1477-8947.12220
Google Scholar
MURSHED M., ELHEDDAD M., AHMED R., BASSIM M., THAN E. T., 2022, Foreign direct investments, renewable electricity output, and ecological footprints: do financial globalization facilitate renewable energy transition and environmental welfare in Bangladesh?, Asia-Pacific Financial Markets, 29(1): 33-78.
DOI: https://doi.org/10.1007/s10690-021-09335-7
Google Scholar
MURSHED M., AHMED Z., ALAM M. S., MAHMOOD H., REHMAN A., DAGAR V., 2021, Reinvigorating the role of clean energy transition for achieving a low-carbon economy: evidence from Bangladesh, Environmental Science and Pollution Research, 28(47): 67689-67710.
DOI: https://doi.org/10.1007/s11356-021-15352-w
Google Scholar
NAWAZ, S. M. N., RIAZ, T., 2021, Examining People Behavioral Responses to COVID-19: The Role of Socioeconom-ics, Risk Perceptions, and Media in Pakistan. International Journal of Social Sciences and Sustainability, 1(1).
Google Scholar
NAWAZ, S. M. N., ALVI, S., AKMAL, T. (2021). The impasse of energy consumption coupling with pollution haven hypothesis and environmental Kuznets curve: a case study of South Asian economies. Environmental Science and Pollu-tion Research, 28(35), 48799-48807.
DOI: https://doi.org/10.1007/s11356-021-14164-2
Google Scholar
NCHOFOUNG T. N., ACHUO E. D., ASONGU S. A., 2021, Resource rents and inclusive human development in developing countries, Resources Policy, 74: 102382.
DOI: https://doi.org/10.1016/j.resourpol.2021.102382
Google Scholar
Omri A., Nguyen D. K., 2014, On the determinants of renewable energy consumption: International evidence, Energy, 72: 554-560.
DOI: https://doi.org/10.1016/j.energy.2014.05.081
Google Scholar
PADHAN H., PADHANG P. C., TIWARI A. K., AHMED R., HAMMOUDEH S., 2020, Renewable energy consump-tion and robust globalization (s) in OECD countries: Do oil, carbon emissions and economic activity matter?, Energy Strat-egy Reviews, 32: 100535.
DOI: https://doi.org/10.1016/j.esr.2020.100535
Google Scholar
PARAMATI S. R., UMMALLA M., APERGIS N., 2016, The effect of foreign direct investment and stock market growth on clean energy use across a panel of emerging market economies, Energy Economics, 56: 29-41.
DOI: https://doi.org/10.1016/j.eneco.2016.02.008
Google Scholar
PENG X., LIU Z., JIANG D., 2021, A review of multiphase energy conversion in wind power generation, Renewable and Sustainable Energy Reviews, 147: 111172.
DOI: https://doi.org/10.1016/j.rser.2021.111172
Google Scholar
SHAHBAZ M., SHAHZAD S. J. H., MAHALIK M. K., SADORSKY P., 2018, How strong is the causal relationship between globalization and energy consumption in developed economies? A country-specific time-series and panel analy-sis, Applied Economics, 50(13): 1479-1494.
DOI: https://doi.org/10.1080/00036846.2017.1366640
Google Scholar
SHEKHAR J., SURI D., SOMANI P., LEE S. J., ARORA M., 2021, Reduced renewable energy stability in India fol-lowing COVID-19: Insights and key policy recommendations, Renewable and Sustainable Energy Reviews, 144: 111015.
DOI: https://doi.org/10.1016/j.rser.2021.111015
Google Scholar
Authors
Verda SalmanSchool of Social Sciences and Humanities, National University of Sciences and Technology (NUST), H-12, Islamabad, Pakistan Pakistan
Authors
Imtiaz AhmadSchool of Social Sciences and Humanities, National University of Sciences and Technology (NUST), H-12, Islamabad, Pakistan Pakistan
https://orcid.org/0000-0002-1565-2517
Authors
Shahzad Alvishahzad.alvi@s3h.nust.edu.pk
School of Social Sciences and Humanities, National University of Sciences and Technology (NUST), H-12, Islamabad, Pakistan Pakistan
Statistics
Abstract views: 95PDF downloads: 64
License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.