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Economic Growth and the Environment II

A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: closed (15 December 2023) | Viewed by 13345

Special Issue Editors


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Guest Editor
Department of Economics, Sungkyunkwan University, Seoul 110-745, Korea
Interests: economic growth and development; macro- finance; mathematical and quantitative methods
Special Issues, Collections and Topics in MDPI journals

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Guest Editor
Department of Food and Resource Economics, Korea University, Seoul 02841, Korea
Interests: macroeconomic policy; economic growth and income inequality; mathematical and quantitative methods
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

The relationship between economic growth and environmental quality is a long-debated issue, and continues to be a focus of academics and policymakers. The foundation of the growth–environment nexus is the environmental Kuznets curve (EKC) hypothesis, according to which environmental quality first worsens and then improves over the course of economic growth. The EKC hypothesis implies that (i) there is a tradeoff between growth and the environment for countries at the early stages of economic development, but a win–win at the later stages; and (ii) economic growth will eventually lead to improvements in environmental quality. While controversial, both theoretically and empirically, the EKC literature has made two significant contributions. First, it raises important questions about how growth and associated growth policy such as trade and FDI affect environmental quality and initiate a substantial research agenda. Second, it has launched a large body of research on convergence in environmental performance, such as carbon emissions, energy consumption, and environmental regulation.

This Special Issue seeks submissions of high-quality work and topics focusing on mechanisms that lead to a tradeoff and/or win–win between growth and the environment, as well as potential driving forces and attributes of convergence or divergence in environmental performance. Topics related to green technology, AI technology, green R&D, green finance, and environmental regulation are particularly encouraged. Other issues related to economic growth, environmental quality, and convergence are also welcome.  

The first volume of the Special Issue, "Economic Growth and the Environment", can be found at:

https://www.mdpi.com/journal/sustainability/special_issues/economic_growth_and_the_environment

Prof. Dr. Shu-Chin Lin
Prof. Dr. Dong-Hyeon Kim
Guest Editors

Manuscript Submission Information

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Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • environmental Kuznets curve
  • economic growth
  • environmental convergence
  • green technology
  • AI technology
  • green finance
  • environmental regulation

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Published Papers (8 papers)

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Research

22 pages, 1408 KiB  
Article
Climate Change versus Economic Growth: Case of Greenhouse Apply a Study of European Union Countries and England from 2010 to 2019 Using Linear Regression and Neural Networks
by Juan Antonio Torrents Arevalo
Sustainability 2024, 16(5), 1884; https://doi.org/10.3390/su16051884 - 25 Feb 2024
Cited by 2 | Viewed by 1403
Abstract
Climate change, encompassing the greenhouse effect, is a scientifically acknowledged fact. Factors such as population increase and limited resources for economic growth warrant consideration. This paper aims to develop a new approach to explore the relationship between the greenhouse effect (including climate change) [...] Read more.
Climate change, encompassing the greenhouse effect, is a scientifically acknowledged fact. Factors such as population increase and limited resources for economic growth warrant consideration. This paper aims to develop a new approach to explore the relationship between the greenhouse effect (including climate change) and economic growth and the social/welfare state and find if the government really focus on the reduction of the greenhouse or is marketing. The objective is to develop a study employing linear regression, neural networks, and other statistical tools to elucidate these relationships. The data comprise figures for the human development index (HDI), the greenhouse effect, the GDP, and environmental indicators. The method used will be a parametric workout about the variables that affect the greenhouse gas emissions, the relationship between it and the HDI, and finally, will apply a prediction of greenhouse effects incorporating a neural network. Since 2020, in European Union countries, and especially in new members, focus has been placed on the HDI rather than on the reduction in the greenhouse effect. On the other hand, neural networks allow advances that enable the European Union to focus on climate change, with large investments planned until 2030 because the reduction in greenhouse gases can be effectively lowered when the countries’ expenditures are focused on environmental protection, including enhancing biodiversity. Full article
(This article belongs to the Special Issue Economic Growth and the Environment II)
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22 pages, 299 KiB  
Article
How Urban-Level Credit Expansion Affects the Quality of Green Innovation: Evidence from China
by Zhengge Song, Jingjing Tang, Haijian Zeng and Fangying Pang
Sustainability 2024, 16(5), 1725; https://doi.org/10.3390/su16051725 - 20 Feb 2024
Cited by 1 | Viewed by 1041
Abstract
We take the economic stimulus package in China as a quasi-natural experiment to investigate the effect of urban credit expansion on the quality of green innovation at the city level. The analysis takes urban-level and firm-level data from 2004 to 2015 and adopts [...] Read more.
We take the economic stimulus package in China as a quasi-natural experiment to investigate the effect of urban credit expansion on the quality of green innovation at the city level. The analysis takes urban-level and firm-level data from 2004 to 2015 and adopts the PSM-DID approach. Our empirical results suggest that the implementation of credit expansion makes a significant contribution to the improvement of green patent quality. In addition, the mechanism suggests that urban credit expansion policies promote corporate green innovation through channels such as providing credit expansion and a lower cost of financing enterprise transformation and upgrading. This research also suggest that credit expansion promotes economic growth while also incentivising first-tier cities to engage in more green transformations and upgrade to improve the quality of green patents. Our findings also provide an important insight for the implementation of credit expansion policies and the achievement of sustainable development in countries around the world, particularly in developing countries. Finally, this paper argues that China’s credit expansion policy in 2009 has played a role in improving the quality of green innovation and improving green transformation. Full article
(This article belongs to the Special Issue Economic Growth and the Environment II)
19 pages, 319 KiB  
Article
Do Foreign Direct Investment Inflows in the Producer Service Sector Promote Green Total Factor Productivity? Evidence from China
by Yixing Sun, Mingyang Zhang and Yicheng Zhu
Sustainability 2023, 15(14), 10904; https://doi.org/10.3390/su151410904 - 12 Jul 2023
Cited by 3 | Viewed by 1420
Abstract
By exploring feasible pathways for coordinating the ecological environment and economic development, this study investigated the impact of FDI in the producer service sector (SFDI) on green total factor productivity (GTFP) across 20 provinces from 2006 to 2019 in China. We employed a [...] Read more.
By exploring feasible pathways for coordinating the ecological environment and economic development, this study investigated the impact of FDI in the producer service sector (SFDI) on green total factor productivity (GTFP) across 20 provinces from 2006 to 2019 in China. We employed a panel data regression model and found that SFDI significantly promotes China’s GTFP, verifying the existence of the “pollution halo” effects of SFDI in China, where GTFP is estimated by the global Malmquist–Luenberger productivity index based on the slack-based measure and directional distance function. We also employed mediating and moderating models to test the mechanism and found that SFDI can affect GTFP through competition, green innovation, and resource allocation mechanisms. Notably, the impact of SFDI on GTFP exhibits regional heterogeneity, with the strongest impact observed in the eastern region, followed by the western region, and the weakest in the central region. Further analysis reveals that the enhancement of environmental regulations and the level of factor marketization can amplify the influence of SFDI. Finally, we offer specific recommendations encompassing the enhancement of openness, improvement of factor markets, and strengthening of environmental regulations. Full article
(This article belongs to the Special Issue Economic Growth and the Environment II)
18 pages, 15603 KiB  
Article
Effects and Spatial Spillover of Manufacturing Agglomeration on Carbon Emissions in the Yellow River Basin, China
by Dan Wang, Yan Liu and Yu Cheng
Sustainability 2023, 15(12), 9386; https://doi.org/10.3390/su15129386 - 11 Jun 2023
Cited by 5 | Viewed by 1391
Abstract
Manufacturing agglomeration is an important manifestation for cities to enhance their competitiveness, and the resource and environmental effects caused by agglomeration have become a hot topic. Based on the relevant data of prefecture-level cities in the Yellow River Basin from 2006 to 2019, [...] Read more.
Manufacturing agglomeration is an important manifestation for cities to enhance their competitiveness, and the resource and environmental effects caused by agglomeration have become a hot topic. Based on the relevant data of prefecture-level cities in the Yellow River Basin from 2006 to 2019, this study used a Markov transition matrix to study the characteristics of carbon emission transfer and constructed an SDM model to analyze the effect of manufacturing agglomeration on carbon emissions and spatial spillover; the study drew the following conclusions: carbon emissions and the concentrations of manufacturing industries in the Yellow River Basin are on the rise, with carbon emissions showing a distribution pattern of “downstream > midstream > upstream”. Manufacturing agglomeration has a significant positive influence on carbon emissions, reflecting the necessity for the green transformation of manufacturing agglomeration. Manufacturing agglomeration has a spatial spillover effect on carbon emissions. The direct effect is positive, and the indirect effect is negative. The polarization effect caused by agglomeration weakens the development degree of neighboring areas, which may reflect the technological spillover effect of manufacturing agglomeration on neighboring areas. Manufacturing agglomeration has regional heterogeneity in carbon emissions. Compared with the middle and lower reaches of the Yellow River Basin, the effect is more obvious in the upper reaches. The study proposes countermeasures in terms of optimizing the spatial pattern of the manufacturing industry and other aspects to provide references for promoting the transformation development of the manufacturing industry in the Yellow River Basin. Full article
(This article belongs to the Special Issue Economic Growth and the Environment II)
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11 pages, 501 KiB  
Article
Empirical Study of the Environmental Kuznets Curve in China Based on Provincial Panel Data
by Jun Yan, Wenting Lu, Xiaoyan Xu and Jiamin Lian
Sustainability 2023, 15(6), 5225; https://doi.org/10.3390/su15065225 - 15 Mar 2023
Cited by 2 | Viewed by 2089
Abstract
The Environmental Kuznets Curve is a key indicator to measure the relationship between the environmental pollution level and economic development. Considering that China’s economic development is a superposing process of multiple industrial technologies, in order to restore the classical Environmental Kuznets Curve estimation [...] Read more.
The Environmental Kuznets Curve is a key indicator to measure the relationship between the environmental pollution level and economic development. Considering that China’s economic development is a superposing process of multiple industrial technologies, in order to restore the classical Environmental Kuznets Curve estimation as much as possible, this paper selects the data of six types of pollutants between provinces (except Tibet) in China during 2011–2017 to construct a comprehensive environmental pollution degree indicator, which is more objective than the single indicator in traditional research; estimates the Environmental Kuznets Curve with per capita disposable income; and then conducts a panel regression analysis based on the econometric model. Research shows that the relationship between comprehensive environmental pollution and economic development basically presents an inverted U-shape, which is consistent with the basic characteristics of the traditional Environmental Kuznets Curve, and the inflection point of the curve is 34,243.2 in RMB. Finally, according to the results, effective suggestions are put forward to correctly handle the relationship between economic development and environmental governance and optimize the path of environmental governance in China. Full article
(This article belongs to the Special Issue Economic Growth and the Environment II)
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12 pages, 282 KiB  
Article
Sustainable Environmental Economics in Farmers’ Production Factors via Irrigation Resources Utilization Using Technical Efficiency and Allocative Efficiency
by Michel Mivumbi and Xiaoling Yuan
Sustainability 2023, 15(5), 4101; https://doi.org/10.3390/su15054101 - 23 Feb 2023
Cited by 1 | Viewed by 1523
Abstract
This study reports the results of farmers’ production via irrigation resources utilization and efficiency parameters of technical efficiency and allocative efficiency by way of sustainable environmental economics. The hypothesis is that factors of farmers’ production affect technical efficiency and allocative efficiency in the [...] Read more.
This study reports the results of farmers’ production via irrigation resources utilization and efficiency parameters of technical efficiency and allocative efficiency by way of sustainable environmental economics. The hypothesis is that factors of farmers’ production affect technical efficiency and allocative efficiency in the irrigation scheme as sustainable environmental economics. Data from cross section and panel data were used and then the productivity parameters measurement of the production function are outlined in two scenarios: first, the data report that the parameters such as output elasticity determine factors of inefficiency and technical efficiency. Second, it presents the scores for the allocative efficiency to explain whether production factors (resources) are optimally, under- or over-allocated by farmers in the irrigation systems under environmental sustainability. This paper presents the productivity and efficiency parameters estimated using stochastic frontier analysis for the translog production function, which was estimated by the MLE method, and the allocative efficiency for the factor inputs allocation in the irrigation systems estimated by ordinary least square for the Cobb-Douglas production function. This study concludes that collective farmers lead into technical inefficiency and over use of factors of production. Full article
(This article belongs to the Special Issue Economic Growth and the Environment II)
16 pages, 307 KiB  
Article
Do Environmental Regulation and Foreign Direct Investment Drive Regional Air Pollution in China?
by Qianqian Wu and Rong Wang
Sustainability 2023, 15(2), 1567; https://doi.org/10.3390/su15021567 - 13 Jan 2023
Cited by 6 | Viewed by 1713
Abstract
With economic development, air pollution is becoming increasingly serious, which affects the sustainable development of the global economy. In order to explore policy measures to curb air pollution, this paper selects data from 30 regions in China and explores their impact studies on [...] Read more.
With economic development, air pollution is becoming increasingly serious, which affects the sustainable development of the global economy. In order to explore policy measures to curb air pollution, this paper selects data from 30 regions in China and explores their impact studies on air pollution from the perspectives of environmental regulation and foreign direct investment using a systematic GMM model. Then, the threshold effect model is selected to verify their nonlinear relationship. The conclusions are as follows: (1) Environmental regulation does not pass the significance test. There is no significant “U-shaped” or “inverted U-shaped” relationship between environmental regulation and air pollution. In the eastern region, there is an inverted U-shaped relationship, which is consistent with the environmental Kuznets curve (EKC) hypothesis, and the effect in the central and western regions is higher than in the eastern region of China. (2) The entry of foreign direct investment (FDI) aggravates the environmental pollution problem in China, and the overall status quo is consistent with the pollution haven hypothesis, which shows an inverted U-shaped curve between FDI and air pollution. The eastern region does not have any U-shaped relationships. The other two regions show an inverted U-shaped curve between foreign direct investment and air pollution; these two regions are still in the left half of the curve, and the increase in foreign capital will lead to aggravation of the pollution status quo. (3) The industrial structure will aggravate air pollution in the whole country and the central and western regions; the eastern region shows a suppression effect, but this is not significant. Urbanization exacerbates air pollution in the central and western regions but has an insignificant effect in the eastern region. The level of economic development increases air pollution in all regions. The expansion of the population size brings a large amount of production and living pollution, which aggravates environmental pollution. The research in this paper can provide theoretical references for regional policies to control air pollution. Full article
(This article belongs to the Special Issue Economic Growth and the Environment II)
15 pages, 498 KiB  
Article
Does Environmental Regulation Drive Economic Growth through Technological Innovation: Application of Nonlinear and Spatial Spillover Effect
by Jing Chen and Liyuan Hu
Sustainability 2022, 14(24), 16455; https://doi.org/10.3390/su142416455 - 8 Dec 2022
Cited by 5 | Viewed by 1722
Abstract
Based on provincial dynamic panel data from 2010 to 2019, this paper constructs a panel threshold model and explores the nonlinear relationship between environmental regulation and economic growth through channels of technological innovation. In addition, a spatial panel Durbin model is constructed to [...] Read more.
Based on provincial dynamic panel data from 2010 to 2019, this paper constructs a panel threshold model and explores the nonlinear relationship between environmental regulation and economic growth through channels of technological innovation. In addition, a spatial panel Durbin model is constructed to test the spatial spillover effects of environmental regulation and technological innovation on economic growth. The results show that environmental regulation has a significant positive impact on economic growth through channels of technological innovation. The interaction between environmental regulation and technological innovation has a single threshold effect on economic growth. When the intensity of environmental regulation exceeds the critical value, environmental regulation will change from promoting economic growth to inhibiting economic growth through channels of technological innovation. Environmental regulation has negative spatial spillover effect on economic growth of neighboring regions, while technological innovation has positive spatial spillover effect on economic growth of neighboring regions. Full article
(This article belongs to the Special Issue Economic Growth and the Environment II)
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