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Does digitalization matter in green preferences in nexus of output volatility and environmental quality?

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Abstract

The fact is that output volatility and carbon dioxide (CO2) emissions move together over the period. This empirical study examines the dynamic effect of output volatility on CO2 emissions using the advance nonlinear panel autoregressive distributed lag (ARDL) approach. The empirical analysis is executed for ten high emitters Asian countries covering the period from 1990 to 2019. The findings reveal that positive change in output volatility increases CO2 emissions and negative change in output volatility decreases CO2 emissions in the long run in Asia. The results also show that digitization also positively impacts environmental quality in Asia due to green globalization. The findings are also robust and similar in an alternative indicator of the environment. An important policy is that reducing volatility in output is a suitable way of environmental sustainability, particularly for Asian countries.

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Carlos Samuel Ramos Meza stipulated the idea. Rinat Zhanbayev, Hazrat Bilal, Mubbashra Sultan, and Zehra Betul Pekergin have done the data acquisitions, analysis, and written the whole draft. Carlos Samuel Ramos Meza and Hafiz Muhammad Arslan read and approved the final version.

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Correspondence to Carlos Samuel Ramos-Meza.

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Ramos-Meza, C.S., Zhanbayev, R., Bilal, H. et al. Does digitalization matter in green preferences in nexus of output volatility and environmental quality?. Environ Sci Pollut Res 28, 66957–66967 (2021). https://doi.org/10.1007/s11356-021-15095-8

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