RESUMO
The transition to a low-carbon economy is imperative to reduce reliance on fossil fuels and mitigate pollution emissions. This preposition also aligns with the United Nations Sustainable Development Goals (SDGs-13), which highlight the climate change action. In this vein, Brazil has implemented the Decarbonization Credit (CBIOS) program to incentivize biofuel production and promote environmental sustainability through carbon credit emissions. To this end, the present study evaluates the effectiveness of the CBIO contract as a hedging tool for investors in the face of energy price fluctuations and decarbonization efforts. Specifically, we employ conditional dynamic correlation (DCC-GARCH) and optimal hedge ratio (HR) techniques to assess the relationship between CBIO and the futures and spot prices of sugar, oil, and ethanol. Our findings suggest that the current CBIO contract is not an effective hedge against energy spot and future prices. However, our analysis identifies a strengthening correlation between ethanol traded in Chicago and CBIO over time, highlighting the potential for an underlying contract to serve as an effective hedging tool in the future. Our study adds to the existing literature on carbon pricing mechanisms and their impact on financial markets, emphasizing the importance of sustainable energy policies and their potential to mitigate the risks associated with energy price volatility and decarbonization efforts.
Assuntos
Biocombustíveis , Carbono , Brasil , Mudança Climática , EtanolRESUMO
Achieving environmental sustainability has become a global initiative while addressing climate change and its effects. However, the role of energy production and consumption in economic development remains critical amidst environmental pollution. Thus, the need for innovation and clean energy alternatives is critical while pursuing sustainable development. This country-specific study focuses on Argentina, where economic growth trajectory is embedded with high CO2 emissions. This study assesses the long-term and causal impact of financial development and renewables on environmental pollution while accounting for the role of economic development and globalization using yearly data spanning 1980 to 2017. A battery of econometric methods is applied to underscore the interaction between the parameters of interest. The findings of Maki and ARDL tests of cointegration alongside Kripfganz and Schneider critical approximation p-values affirm long-run equilibrium interaction between variables. The outcomes of autoregressive distributed lag, fully modified, and dynamic ordinary least squares demonstrate that while economic expansion dampens environmental quality-globalization and renewables improve the environment. This finding suggests pollution-driven economic growth trajectory in Argentina with high dependence on fossil fuels. Besides, the gradual shift causality test finds evidence of one-way causality from renewable energy consumption, economic growth, and globalization to CO2 emissions. Argentina's pathway in achieving sustainable development requires gradual and inclusive economic shift towards green growth.
Assuntos
Dióxido de Carbono , Desenvolvimento Econômico , Argentina , Dióxido de Carbono/análise , Humanos , Internacionalidade , Energia RenovávelRESUMO
The transition of most economies especially heavily industrialized nations like China, Turkey, Russia, India, Indonesia, Brazil, and Mexico fondly known as E7 are fast emerging economies with its impact on economic growth and ecosystem. On the above highlight, the present study explores the dynamic interaction between hydroelectricity energy, renewable energy consumption, nonrenewable energy consumption on economic growth over annual time frequency data from 1990 to 2018. To this end, Kao co-integration technique is adopted in conjunction with panel ordinary least squares, dynamic ordinary least squares, and fully modified ordinary least square estimators over the identified blocs while the heterogeneous causality test of Dumitrescu and Hurlin is employed to detect the direction of causality among the variables. Empirical result shows long-run analysis reveals long-run equilibrium relationship between the examined variables. Furthermore, a one-way causality relationship is observed between economic growth and nonrenewable energy, economic growth and renewable energy, and economic growth and pollutant emission. The present study identifies a U-shaped pattern among nonrenewable energy consumption and economic growth in the long-run. These findings suggest that as economic growth increases, there is less strengthening of energy from the nonrenewable energy consumption hence, portentous deterioration in nonrenewable usage while authenticating the proficiency of nonrenewable energy consumption in the E7 countries. Further policy prescriptions are rendered in the concluding section.
Assuntos
Dióxido de Carbono/análise , Ecossistema , Brasil , China , Desenvolvimento Econômico , Índia , Indonésia , México , Energia Renovável , Federação Russa , TurquiaRESUMO
This study investigates the environmental Kuznets curve (EKC) hypothesis for Brazil, Russia, India, China and South Africa (BRICS) over the period 1990-2014, while considering agricultural activities, energy use, trade openness and mobile use as driving forces of environmental degradation. The empirical results verify an inverted U-shaped connection between carbon emissions and economic growth. This study confirms the unfriendly impact of agriculture on the environment. Electricity consumption and trade openness likewise exhibit similar impacts on carbon emissions. Mobile use however reduces pollution. A unique revelation from this study is that the interaction between electricity consumption and agricultural activities has an additional pernicious effect on the environment. The methodologies applied for testing the impact of selected independent variables on carbon emissions in BRICS are the Dynamic Ordinary Least Squares (DOLS) and the Fully Modify Ordinary Least Square (FMOLS) for long run regression. Empirical evidence confirms that agriculture exerts a negative impact on the environment in BRICS countries. This study therefore recommends the adoption of cleaner energy processes and enabling high-tech and clean foreign investment.