Skip to main content

Advertisement

SpringerLink
Log in

The marginal effects of economic growth, financial development, and low-carbon energy use on carbon footprints in Oman: fresh evidence from autoregressive distributed lag model analysis

  • Research Article
  • Published:
Environmental Science and Pollution Research Aims and scope Submit manuscript

Abstract

Oman is committed to turning carbon neutral by 2040 whereby identifying the environmental sustainability-stimulating factors has become a critically important agenda for the nation. Against this backdrop, this study attempts to evaluate the marginal effects of economic growth, financial development, and low-carbon energy use on Oman’s carbon footprint levels using quarterly frequency data spanning from 1984Q1 to 2018Q4. Controlling for structural break concerns in the data, the results from the empirical analysis verify the carbon footprint-related environmental Kuznets curve hypothesis for Oman in the long-run. In this regard, the threshold level of per capita real GDP level of Oman is predicted at around US $23,500 which is below the average and maximum per capita real GDP level of Oman during the period considered in this study. Besides, the development of the financial sector and scaling up consumption of low-carbon energy resources are evidenced to boost and curb Oman’s short- and long-run carbon footprint figures, respectively. More importantly, the joint carbon footprint-mitigating impact of financial development and low-carbon energy use is also unearthed from the findings. In line with these major findings, a couple of relevant policy interventions are suggested to help Oman accomplish its 2040 carbon-neutrality agenda.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2

Similar content being viewed by others

References

  • Abdouli M, Hammami S (2020) Economic growth, environment, fdi inflows, and financial development in Middle East countries: fresh evidence from simultaneous equation models. J Knowl Econ 11(2):479–511

    Google Scholar 

  • Alsamara M, Mrabet Z, Saleh AS, Anwar S (2018) The environmental Kuznets curve relationship: a case study of the Gulf Cooperation Council region. Environ Sci Pollut Res 25(33):33183–33195

    CAS  Google Scholar 

  • Aluko OA, Obalade AA (2020) Financial development and environmental quality in sub-Saharan Africa: is there a technology effect? Sci Total Environ 747:141515

    CAS  Google Scholar 

  • Ardakani MK, Seyedaliakbar SM (2019) Impact of energy consumption and economic growth on CO2 emission using multivariate regression. Energy Strat Rev 26:100428

    Google Scholar 

  • Awan A, Abbasi KR, Rej S, Bandyopadhyay A, Lv K (2022) The impact of renewable energy, internet use and foreign direct investment on carbon dioxide emissions: a method of moments quantile analysis. Renew Energy 189:454–466

    CAS  Google Scholar 

  • Balsalobre-Lorente D, Driha OM, Leitão NC, Murshed M (2021) The carbon dioxide neutralizing effect of energy innovation on international tourism in EU-5 countries under the prism of the EKC hypothesis. J Environ Manag 298:113513

    CAS  Google Scholar 

  • Balsalobre-Lorente D, Ibáñez-Luzón L, Usman M, Shahbaz M (2022) The environmental Kuznets curve, based on the economic complexity, and the pollution haven hypothesis in PIIGS countries. Renew Energy 185:1441–1455

    CAS  Google Scholar 

  • Bandyopadhyay A, Rej S (2021) Can nuclear energy fuel an environmentally sustainable economic growth? Revisiting the EKC hypothesis for India. Environ Sci Pollut Res 28(44):63065–63086

    Google Scholar 

  • Bello MO, Solarin SA, Yen YY (2018) The impact of electricity consumption on CO2 emission, carbon footprint, water footprint and ecological footprint: the role of hydropower in an emerging economy. J Environ Manag 219:218–230

    Google Scholar 

  • Danish UR, Khan SUD (2020) Determinants of the ecological footprint: role of renewable energy, natural resources, and urbanization. Sustain Cities Soc 54:101996

    Google Scholar 

  • Destek MA, Sinha A (2020) Renewable, non-renewable energy consumption, economic growth, trade openness and ecological footprint: evidence from organisation for economic Co-operation and development countries. J Clean Prod 242:118537

    Google Scholar 

  • Destek MA, Ulucak R, Dogan E (2018) Analyzing the environmental Kuznets curve for the EU countries: the role of ecological footprint. Environ Sci Pollut Res 25(29):29387–29396

    Google Scholar 

  • Dogan E, Ozturk I (2017) The influence of renewable and non-renewable energy consumption and real income on CO2 emissions in the USA: evidence from structural break tests. Environ Sci Pollut Res 24(11):10846–10854

    Google Scholar 

  • Elshimy M, El-Aasar KM (2020) Carbon footprint, renewable energy, non-renewable energy, and livestock: testing the environmental Kuznets curve hypothesis for the Arab world. Environ Dev Sustain 22(7):6985–7012

    Google Scholar 

  • Erdoğan S, Yıldırım DÇ, Gedikli A (2020) Natural resource abundance, financial development and economic growth: an investigation on Next-11 countries. Res Policy 65:101559

    Google Scholar 

  • GCA. (2022). Global Carbon Atlas. Available at http://www.globalcarbonatlas.org/en/CO2-emissions (accessed on 20.5.2022)

  • GFN. (2022). Global Footprint Network. Avialable at https://www.footprintnetwork.org/resources/glossary/ (accessed on 20.5.2022)

  • Gregory AW, Hansen BE (1996) Practitioners corner: tests for cointegration in models with regime and trend shifts. Oxf Bull Econ Stat 58(3):555–560

    Google Scholar 

  • Grossman GM, Krueger AB (1995) Economic growth and the environment*. Q J Econ 110:353–377. https://doi.org/10.2307/2118443

    Article  Google Scholar 

  • Grossman G, Krueger AB (1991) Environmental impacts of a North American free trade agreement (No. 644). CEPR Discussion Papers

  • Hamid I, Alam MS, Murshed M, Jena PK, Sha N, Alam MN (2022) The roles of foreign direct investments, economic growth, and capital investments in decarbonizing the economy of Oman. Environ Sci Pollut Res 29(15):22122–22138

    Google Scholar 

  • Jahanger A, Usman M, Murshed M, Mahmood H, Balsalobre-Lorente D (2022) The linkages between natural resources, human capital, globalization, economic growth, financial development, and ecological footprint: the moderating role of technological innovations. Res Policy 76:102569

    Google Scholar 

  • Jiang T, Yu Y, Jahanger A, Balsalobre-Lorente D (2022) Structural emissions reduction of China's power and heating industry under the goal of “double carbon”: a perspective from input-output analysis. Sustain Prod Cons 31:346–356

    Google Scholar 

  • Khan M, Ozturk I (2021) Examining the direct and indirect effects of financial development on CO2 emissions for 88 developing countries. J Environ Manag 293:112812

    CAS  Google Scholar 

  • Khan S, Murshed M, Ozturk I, Khudoykulov K (2022a) The roles of energy efficiency improvement, renewable electricity production, and financial inclusion in stimulating environmental sustainability in the Next Eleven countries. Renewable Energy

  • Khan Y, Oubaih H, Elgourrami FZ (2022b) The role of private investment in ICT on carbon dioxide emissions (CO2) mitigation: do renewable energy and political risk matter in Morocco? Environ Sci Pollut Res. https://doi.org/10.1007/s11356-022-19455-w

  • Khezri M, Karimi MS, Khan YA, Abbas SZ (2021) The spillover of financial development on CO2 emission: a spatial econometric analysis of Asia-Pacific countries. Renew Sust Energ Rev 145:111110

    CAS  Google Scholar 

  • Kirikkaleli D, Güngör H, Adebayo TS (2022) Consumption-based carbon emissions, renewable energy consumption, financial development and economic growth in Chile. Bus Strateg Environ 31(3):1123–1137

    Google Scholar 

  • Lee J, Strazicich MC (2004) Minimum LM unit root test with one structural break. Manu Dep Econ Appalachian State Univ 33(4):2483–2492

    Google Scholar 

  • Mahmood, H. (2022). The effects of natural gas and oil consumption on CO2 emissions in GCC countries: asymmetry analysis. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-022-19851-2

  • Mahmood H, Furqan M (2021) Oil rents and greenhouse gas emissions: spatial analysis of Gulf Cooperation Council countries. Environ Dev Sustain 23(4):6215–6233

    Google Scholar 

  • Manzoor F, Wei L, Siraj M (2021) Small and medium-sized enterprises and economic growth in Pakistan: An ARDL bounds cointegration approach. Heliyon 7(2):e06340

    Google Scholar 

  • Mehmood U (2022a) Examining the role of financial inclusion towards CO2 emissions: presenting the role of renewable energy and globalization in the context of EKC. Environ Sci Pollut Res 29(11):15946–15954

    Google Scholar 

  • Mehmood U (2022b) Examining the role of financial inclusion towards CO2 emissions: presenting the role of renewable energy and globalization in the context of EKC. Environ Sci Pollut Res 29(11):15946–15954

    Google Scholar 

  • Mehmood U (2022c) Environmental degradation and financial development: do institutional quality and human capital make a difference in G11 nations? Environ Sci Pollut Res. https://doi.org/10.1007/s11356-022-18825-8

  • Minlah MK, Zhang X (2021) Testing for the existence of the environmental Kuznets curve (EKC) for CO2 emissions in Ghana: evidence from the bootstrap rolling window Granger causality test. Environ Sci Pollut Res 28(2):2119–2131

    CAS  Google Scholar 

  • Murshed, M., Nurmakhanova, M., Al-Tal, R., Mahmood, H., Elheddad, M., & Ahmed, R. (2022). Can intra-regional trade, renewable energy use, foreign direct investments, and economic growth mitigate ecological footprints in South Asia?. Energy Sources, Part B: Economics, Planning, and Policy. https://doi.org/10.1080/15567249.2022.2038730

  • Omri A, Daly S, Rault C, Chaibi A (2015) Financial development, environmental quality, trade and economic growth: what causes what in MENA countries. Energy Econ 48:242–252

    Google Scholar 

  • Pesaran MH, Shin Y, Smith RJ (2001) Bounds testing approaches to the analysis of level relationships. J Appl Econ 16:289–326. https://doi.org/10.1002/jae.616

    Article  Google Scholar 

  • Salahuddin M, Gow J, Ozturk I (2015) Is the long-run relationship between economic growth, electricity consumption, carbon dioxide emissions and financial development in Gulf Cooperation Council Countries robust? Renew Sust Energ Rev 51:317–326

    CAS  Google Scholar 

  • Saqib N (2022a) Nexus between the renewable and nonrenewable energy consumption and carbon footprints: evidence from Asian emerging economies. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-022-19948-8

  • Saqib N (2022b) Green energy non-renewable energy financial development and economic growth with carbon footprint: heterogeneous panel evidence from cross-country. Economic Research-Ekonomska Istraživanja. https://doi.org/10.1080/1331677X.2022.2054454

  • Sarkodie SA (2021) Environmental performance, biocapacity, carbon & ecological footprint of nations: drivers, trends and mitigation options. Sci Total Environ 751:141912

    CAS  Google Scholar 

  • Selcuk M, Gormus S, Guven M (2021) Do agriculture activities matter for environmental Kuznets curve in the Next Eleven countries? Environ Sci Pollut Res 28(39):55623–55633

    Google Scholar 

  • Shahbaz M, Balcilar M, Mahalik MK, Akadiri SS (2021) Is causality between globalization and energy consumption bidirectional or unidirectional in top and bottom globalized economies? Intl J Fin Econ. https://doi.org/10.1002/ijfe.2519

  • Shahzad SJH, Shahbaz M, Ferrer R, Kumar RR (2017) Tourism-led growth hypothesis in the top ten tourist destinations: New evidence using the quantile-on-quantile approach. Tour Manag 60:223–232

    Google Scholar 

  • Sharma R, Sinha A, Kautish P (2021) Does renewable energy consumption reduce ecological footprint? Evidence from eight developing countries of Asia. J Clean Prod 285:124867

    Google Scholar 

  • Sinha A, Sengupta T, Alvarado R (2020) Interplay between technological innovation and environmental quality: formulating the SDG policies for next 11 economies. J Clean Prod 242:118549

    Google Scholar 

  • U.S. Energy Information Administration (2019) Country analysis executive summary:Oman

  • Usman M, Balsalobre-Lorente D, Jahanger A, Ahmad P (2022) Pollution concern during globalization mode in financially resource-rich countries: do financial development, natural resources, and renewable energy consumption matter? Renew Energy 183:90–102

    Google Scholar 

  • Usman O, Rafindadi AA, Sarkodie SA (2021) Conflicts and ecological footprint in MENA countries: implications for sustainable terrestrial ecosystem. Environ Sci Pollut Res 28(42):59988–59999

    Google Scholar 

  • Valadkhani A, Smyth R, Nguyen J (2019) Effects of primary energy consumption on CO2 emissions under optimal thresholds: evidence from sixty countries over the last half century. Energy Econ 80:680–690

    Google Scholar 

  • Wang X (2021) Determinants of ecological and carbon footprints to assess the framework of environmental sustainability in BRICS countries: a panel ARDL and causality estimation model. Environ Res 197:111111

    CAS  Google Scholar 

  • World Bank. (2022). World Development Indicators. Available at https://data.worldbank.org/country/OM (accessed on 20.5.2022)

  • Zhao J, Sinha A, Inuwa N, Wang Y, Murshed M, Abbasi KR (2022) Does structural transformation in economy impact inequality in renewable energy productivity? Implications for sustainable development. Renew Energy 189:853–864. https://doi.org/10.1016/j.renene.2022.05.065

    Article  Google Scholar 

  • Zivot E, Andrews DWK (2002) Further evidence on the great crash, the oil-price shock, and the unit-root hypothesis. J Bus Econ Stat 20(1):25–44

    Google Scholar 

  • Zmami M, Ben-Salha O (2020) An empirical analysis of the determinants of CO2 emissions in GCC countries. Intl J Sustain Dev World Ecol 27(5):469–480

    Google Scholar 

Download references

Data availability

The data sources are mentioned in the “Model, data, and methodology.”

Author information

Authors and Affiliations

  1. Department of Finance and Economics, College of Commerce and Business Administration, Dhofar University, Salalah, Oman

    Naushad Alam & Syed Ahsan Jamil

  2. Department of Finance, College of Business Administration, Prince Sultan University, Riyadh, Saudi Arabia

    Nazia Iqbal Hashmi

  3. School of Business and Economics, North South University, Dhaka-1229, Bangladesh

    Muntasir Murshed

  4. Department of Journalism, Media and Communications, Daffodil International University, Dhaka, Bangladesh

    Muntasir Murshed

  5. Bangladesh Institute of Development Studies (BIDS), E-17 Agargaon, Sher-e-Bangla Nagar, Dhaka-1207, Bangladesh

    Muntasir Murshed

  6. Department of Finance, College of Business Administration, Prince Sattam Bin Abdulaziz University, 173 Alkharj, 11942, Saudi Arabia

    Haider Mahmood

  7. Department of Economics and Finance, College of Business Administration, University of Bahrain, Sakhir, Bahrain

    Shabbir Alam

Authors
  1. Naushad Alam
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Nazia Iqbal Hashmi
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Syed Ahsan Jamil
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Muntasir Murshed
    View author publications

    You can also search for this author in PubMed Google Scholar

  5. Haider Mahmood
    View author publications

    You can also search for this author in PubMed Google Scholar

  6. Shabbir Alam
    View author publications

    You can also search for this author in PubMed Google Scholar

Contributions

NA conceptualized, conducted the econometric analysis, and wrote the introduction. NIH analyzed the findings and conducted the literature review. SAJ conducted the literature review and reviewed the draft. MM conceptualized, wrote the original draft, conducted the econometric analysis, highlighted the policy implications, supervised the work, and revised the manuscript. HM wrote the introduction and concluding remarks. MSA wrote the original draft and compiled the overall manuscript.

Corresponding author

Correspondence to Muntasir Murshed.

Ethics declarations

Ethics Approval

Not applicable.

Consent to participate

Not applicable.

Consent for publication

Not applicable.

Competing interests

The authors declare no competing interests.

Additional information

Responsible Editor: Philippe Garrigues

Publisher’s note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Alam, N., Hashmi, N.I., Jamil, S.A. et al. The marginal effects of economic growth, financial development, and low-carbon energy use on carbon footprints in Oman: fresh evidence from autoregressive distributed lag model analysis. Environ Sci Pollut Res 29, 76432–76445 (2022). https://doi.org/10.1007/s11356-022-21211-z

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11356-022-21211-z

Keywords

Search

Navigation