• The effect of foreign direct investment and stock market growth on clean energy use across a panel of emerging market economies.

      Apergis, Nicholas; Paramati, Sudharshan Reddy; Ummalla, Mallesh; University of Piraeus; Jiangxi University of Finance and Economics; University of Hyderabad (Elsevier., 2016-03-11)
      This study investigates the impact of both FDI inflows and stock market developments on clean energy use across 20 emerging market economies, spanning the period 1991–2012. It accounts for cross-sectional dependence and heterogeneity in the analysis and employs robust panel econometric techniques. The empirical results on long-run elasticities display that economic output, FDI inflows and stock market developments have all a significant positive impact on clean energy consumption. Finally, the results on heterogeneous panel non-causality tests indicate the presence of unidirectional causality running from FDI to clean energy consumption in the short-run. For robustness purposes, the paper also estimates long-run elasticities for individual countries, with the findings documenting that both FDI inflows and stock market developments have a considerable positive impact on clean energy uses. The findings urge that both policy makers and governments in these emerging market economies should initiate effective public-private-partnership investments in clean energy projects by providing lucrative incentives, which, in turn, will encourage both domestic and foreign investors to invest more in clean energy projects and, eventually, moving these economies towards sustainable economic growth.
    • Financing clean energy projects through domestic and foreign capital: the role of political cooperation among the EU, the G20 and OECD countries

      Paramati, Sudharshan Reddy; Apergis, Nicholas; Ummalla, Mallesh; Jiangxi University of Finance and Economics; University of Piraeus; University of Hyderabad (Elsevier, 2016-11-12)
      There is a growing concern among both individuals and policy makers in relevance to increasing CO2 emissions across the world. As a result, international organizations have started to pressurize economies to minimize their carbon emissions by increasing the share of clean energy consumption in total energy use. Hence, the goal of this paper is to empirically explore to what extent both domestic (stock market) and foreign (FDI inflows) capital affect clean energy uses across the EU, the G20, and OECD, spanning the period 1993–2012. The results of long-run elasticities document that both FDI and stock market developments play a significant role in promoting clean energy uses across all three-country groups. The results also suggest that clean energy consumption has a considerable positive and negative effect on economic output and CO2 emissions, respectively, while the political globalization has a substantial negative impact on carbon emissions across the EU, the G20 and OECD economies.
    • The impacts of R&D investment and stock markets on clean energy uses and CO2 emissions in a panel of OECD economies

      Apergis, Nicholas; Alam, Md. Samsul; Paramati, Sudharshan Reddy; Fang, Jianchun; University of Derby; De Montfort University; University of Dundee; Zhejiang University of Technology (Wiley, 2020-09-14)
      The goal of this paper is to examine to what extent R&D investment and stock market development promote clean energy consumption and environmental protection across a panel of 30 OECD economies. Based on the IPAT theoretical approach, study employs robust panel econometric models which account for cross-sectional dependence in the analysis and uses annual data, spanning the period 1996 to 2013. The empirical results illustrate that R&D and stock market have a significant long-run equilibrium relationship with clean energy and CO2 emissions. The long-run elasticities display that R&D and stock market growth have a significant positive impact on clean energy consumption, while they have a negative effect on the growth of CO2 emissions. Given these findings, the paper suggests that the policy makers in the OECD economies should realize that it is worth investing in R&D activities as it is promoting the use of clean energy and ensuring low carbon economies. Therefore, the policymakers have to initiate effective policies to promote R&D activities and also encourage the firms that are listed in the stock market to adopt environmental friendly policies.
    • The role of stock markets on environmental degradation: A comparative study of developed and emerging market economies across the globe

      Paramati, Sudharshan Reddy; Alam, Md. Samsul; Apergis, Nicholas; Jiangxi University of Finance and Economics; University of Dundee; Griffith University; University of Piraeus (Elsevier, 2017-12-17)
      It is well established in the literature that stock markets increase both economic activities and energy consumption across countries. Therefore, it is commonly believed that stock markets are expected to have a significant effect on CO2 emissions. However, it is not known whether these stock markets can contribute to more or less CO2 emissions. Hence, the goal of this study is to examine the impact of stock market indicators on CO2 emissions across a global panel of both developed and emerging market economies. The results establish that stock market indicators have a significant negative and positive impact on carbon emissions in developed and emerging market economies, respectively. Furthermore, the findings illustrate the presence of the Environmental Kuznets Curve (EKC) hypothesis, implying that stronger stock markets lead to a further decline in carbon emissions. Given these findings, the study argues that the role of stock markets in the abatement of CO2 emissions significantly varies across both developed and emerging market economies. Significant implications have to do with the fact that developed markets might have initiated effective policies on listed firms to minimize carbon emissions, while emerging markets are yet to achieve this.