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Mitigating human-induced emissions in Argentina: role of renewables, income, globalization, and financial development

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Abstract

Achieving environmental sustainability has become a global initiative while addressing climate change and its effects. However, the role of energy production and consumption in economic development remains critical amidst environmental pollution. Thus, the need for innovation and clean energy alternatives is critical while pursuing sustainable development. This country-specific study focuses on Argentina, where economic growth trajectory is embedded with high CO2 emissions. This study assesses the long-term and causal impact of financial development and renewables on environmental pollution while accounting for the role of economic development and globalization using yearly data spanning 1980 to 2017. A battery of econometric methods is applied to underscore the interaction between the parameters of interest. The findings of Maki and ARDL tests of cointegration alongside Kripfganz and Schneider critical approximation p-values affirm long-run equilibrium interaction between variables. The outcomes of autoregressive distributed lag, fully modified, and dynamic ordinary least squares demonstrate that while economic expansion dampens environmental quality—globalization and renewables improve the environment. This finding suggests pollution-driven economic growth trajectory in Argentina with high dependence on fossil fuels. Besides, the gradual shift causality test finds evidence of one-way causality from renewable energy consumption, economic growth, and globalization to CO2 emissions. Argentina’s pathway in achieving sustainable development requires gradual and inclusive economic shift towards green growth.

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Acknowledgements

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Availability of data and materials

The data for this present study are sourced from the World Development Indicators (https://data.worldbank.org/). The current data specific data can be made available upon request but all available and downloadable at the earlier mentioned database and weblink.

List of Nomenclature

CO2:

Carbon dioxide

ARDL:

Autoregressive distributed lag

BP:

British petroleum

GDP:

Gross domestic production

CO2:

Carbon emissions

EN:

Energy use

TO:

Trade openness

FD:

Financial development

GLO:

Globalization

CC:

Coal consumption

CR:

Coal rent

URB:

Urbanization

R&D:

Research and development

GCF:

Gross capital formation

EFP:

Ecological footprint

HC:

Human capital

REN:

Renewable energy

SM:

Stock market

FDI:

Foreign direct investment

TOR:

Tourism

Author information

Authors and Affiliations

  1. Faculty of Economics and Administrative Science, Department of Business Administration, Cyprus International University, Turkey, 99258, Nicosia, North Cyprus, via Mersin 10, Turkey

    Tomiwa Sunday Adebayo

  2. Department of Business Management, Faculty of Economics and Administrative Sciences, Girne American University, Kyrenia, North Cyprus, Mersin 10, Turkey

    Gbenga Daniel Akinsola

  3. Department of International Logistics and Transportation, Faculty of Economics Administrative and Social sciences, Istanbul Gelisim University, Istanbul, Turkey

    Festus Victor Bekun

  4. School of Applied Sciences, Management Information Systems, Cyprus International University, Nicosia, North Cyprus, Mersin 10, Turkey

    Oseyenbhin Sunday Osemeahon

  5. Nord University Business School, Bodo, Norway

    Samuel Asumadu SARKODIE

Authors
  1. Tomiwa Sunday Adebayo
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  2. Gbenga Daniel Akinsola
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  3. Festus Victor Bekun
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  4. Oseyenbhin Sunday Osemeahon
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  5. Samuel Asumadu SARKODIE
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Contributions

The first author (Dr Tomiwa Sunday Adebayo) was responsible for the conceptual construction of the study’s idea. The second author (Dr. Gbenga Daniel Akinsola) handled the literature section while the third author (Dr. Festus Victor Bekun) managed the data gathering and manuscript editing. Dr. Oseyenbhin Sunday Osemeahon managed the draft and SA Sarkodie, Ph.D. responsible for proofreading and supervision.

Corresponding author

Correspondence to Festus Victor Bekun.

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Adebayo, T.S., Akinsola, G.D., Bekun, F.V. et al. Mitigating human-induced emissions in Argentina: role of renewables, income, globalization, and financial development. Environ Sci Pollut Res 28, 67764–67778 (2021). https://doi.org/10.1007/s11356-021-14830-5

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