The Race to Zero Emissions in MINT Economies: Can Economic Growth, Renewable Energy and Disintegrated Trade Be the Path to Carbon Neutrality?

Tomiwa Adebayo () and Mehmet Ağa
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Mehmet Ağa: Accounting and Finance Department, Faculty of Economics and Administrative Science, Cyprus International University, Nicosia 99040, Turkey

Sustainability, 2022, vol. 14, issue 21, 1-20

Abstract: The current paper evaluates the role of disintegrated trade, financial development, and renewable energy on consumption-based carbon emissions (CCO 2 ) in MINT nations between 1990Q1 and 2019Q4. This paper utilizes the novel Bootstrap Fourier Granger causality in quantiles (BFGC-Q) to evaluate this connection. This approach produces tail-causal and asymmetric causal connections between the indicators within the Fourier approximation, contrary to the Toda–Yamamoto causality and other conventional Granger tests. The outcomes uncover a unidirectional causality from economic growth and renewable energy to CCO 2 emissions in each MINT nation. Moreover, unidirectional causality emerged from financial development to CCO 2 for Indonesia, Nigeria, and Turkey. Moreover, exports have predictive power over CCO 2 in Indonesia, Turkey, and Mexico, while imports only have predictive power over CCO 2 emissions in Turkey. Lastly, financial development causes CCO 2 in Indonesia, Nigeria, and Mexico. In summary, green energy and exports are essential factors that decrease CCO 2 emissions and therefore decrease ecological deterioration in Mexico, Indonesia, and Turkey. On the flip side, imports only trigger CCO 2 emissions in Turkey and Mexico. Lastly, the financial development effect on CCO 2 emissions is positive in Mexico, Indonesia, and Nigeria, while an insignificant impact is found in Turkey. Based on these findings, policy ramifications are initiated.

Keywords: CCO 2 emissions; disintegrated trade; financial development; renewable energy; MINT nations (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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