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Threshold non-linear relationship between globalization, renewable energy consumption, and environmental degradation: evidence from smooth transition models

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Abstract

The study intends to explore the following objectives: initially, to examine the non-linear connection between globalization, renewable energy consumption, and environmental degradation. Secondly, to evaluate the role of globalization in increasing or decreasing the carbon emission at the threshold level for different income countries. Panel smooth transition regression (PSTR) is an econometric technique that has been applied for estimation utilizing the data from 1995 to 2017. Results signify that the globalization and environmental degradation have non-linear connection and depends on different regimes. Moreover, on the basis of estimation, it is considered that the effect beyond the threshold level can be damaging, whereas less than the threshold level globalization is positively related to carbon emission. Hence, the inverted U-shaped relation denotes that at a specific level, the rise in globalization reduces carbon emission, but later, a specific level globalization accumulates carbon emission. Carbon emission has non-linear and regime-dependent relation to economic development and renewable energy consumption. The study provides recommendations that can assist policymakers.

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Data availability

The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request.

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Authors and Affiliations

  1. School of Economics and Management, Southwest Jiaotong University, Chengdu, People’s Republic of China

    Yushi Jiang & Asadullah Khaskheli

  2. Department of Management Sciences, IQRA University, Karachi, 75300, Pakistan

    Syed Ali Raza & Maiyra Ahmed

  3. Faculty of Business Administration and Social Sciences, Mohammad Ali Jinnah University, Karachi, Pakistan

    Muhammad Asif Qureshi

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  1. Yushi Jiang
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  2. Asadullah Khaskheli
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  3. Syed Ali Raza
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  4. Muhammad Asif Qureshi
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  5. Maiyra Ahmed
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Contributions

Yushi Jiang: Conceptualization, writing—original draft, writing—review and editing, supervision

Asadullah Khaskheli: Conceptualization, writing—original draft, writing—review and editing, data curation

Syed Ali Raza: Methodology, writing—original draft, writing—review and editing, software, formal analysis

Muhammad Asif Qureshi: Formal analysis, writing—original draft, writing—review and editing, data curation, methodology, formal analysis, software

Maiyra Ahmed: writing—original draft, writing—review and editing, data curation

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Correspondence to Asadullah Khaskheli or Syed Ali Raza.

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Jiang, Y., Khaskheli, A., Raza, S.A. et al. Threshold non-linear relationship between globalization, renewable energy consumption, and environmental degradation: evidence from smooth transition models. Environ Sci Pollut Res 28, 13323–13339 (2021). https://doi.org/10.1007/s11356-020-11537-x

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