International Journal of Green Economics (16 papers in press)
Tragedy of commons from Garret Hardin to Elinor Ostrom: a governance
by Natalie West Kharkongor, Abhay Kanwar
Abstract: A life in a low carbon community with ample commons as implicit guarantor of jobs, justice and human flourishing seems to be a utopian and an unachievable vision; hence is a paradox with reference to contemporary planetary environmental fiasco. Blending the axed history of environmental governance offers us several lenses to peruse various realms, be it be the realm of various social movements by the indigenous to protect their rights on commons or the domain of prestigious academia which constitutes the well red intellectuals that have tried to address the issues of commons or the strife between government and natives over the ownership of commons. rnAs India in the decades of 1980 began to retort to the forces of globalization, the new grammarians of globalization drew inspiration from tragedy of commons, and fortified land and bottled the water which could have been used as a public resource. This academic probe attempts to gauge India by the lenses of Garret Hardin and Elinor Ostrom and detail on few case studies of land grabbing in different parts of country like Noida and West Bengal, Kaveri river water dispute between Karnataka and Tamil Nadu and 1984 Bhopal gas tragedy in Madhya Pradesh by scrutinizing it from Garret Hardins tragedy of commons. It will facilitate our understanding of how mismanaged access to commons ensues into environmental insecurity and unsustainability and furthers human violence which in turn ceased legitimate right of citizens over environmental justice. rnAs different ecological systems have conflicting socioeconomic and biophysical limits, adhering to Elinor Ostroms conflict resolving mechanisms, the paper will wrap on the alternatives to ebb tragedy of commons and would facilitate in designing strategies to seek environmental justice beyond humans to ensure sustainable and secure development of environment in entirety. rn
Keywords: commons; sustainable development; environmental justice; active citizenship; participatory governance and environmental security.
Foreign Direct Investment, Energy Consumption, Carbon Emissions and Economic Growth in Nigeria (1970 2014): An Aggregate Empirical Analysis
by ADELEKE GABRIEL AREMO, TITUS AYOBAMI OJEYINKA
Abstract: The paper examines the nexus between foreign direct investment (FDI), energy consumption, carbon emissions and economic growth in Nigeria within the period 1970 and 2014 using aggregate empirical analysis. We examine the stationarity properties of the variables in the presence of structural breaks. Besides, the autoregressive distributed lag (ARDL) bounds testing approach is employed to examine the long run relationship among the integrated series while we adopt Vector Error Correction Model (VECM) Granger causality approach to investigate the causal links among the variables. Our results confirm the existence of cointegration among these key variables. In addition, we find evidence of a feedback effect between foreign direct investment and energy consumption, a unidirectional causality running from FDI to carbon emissions. Foreign direct investment and carbon emissions enhance growth but energy consumption decreases economic growth in Nigeria. Policy makers are therefore advised to design policies aimed at attracting more foreign direct investment with deep green energy orientation to stimulate economic growth in Nigeria. Also, such policy should aim at rationally attracting the appropriate environmentally friendly foreign investors into the Nigerian economy.
Keywords: Foreign direct investment; energy consumption; carbon emissions; economic growth; VECM Granger causality; Nigeria and ARDL bounds testing.
Impact of ICT exports and internet usage on carbon emissions: A case of OECD countries
by Avik Sinha
Abstract: This paper investigates the causal associations between Information and communication technology (ICT) exports, internet usage, economic growth, and CO2 emission. We use two modes of ICT exports, namely ICT goods exports, and ICT services exports. Similarly, two modes have been used for internet usage, namely number of broadband connections per 100 people, and number of internet users per 100 people. By studying 28 OECD countries for 1991-2015 and employing an error-correction model for detecting Granger causality, we find a series of short-run causal associations among the four variables. The long-run causal association results show that the economic growth is likely to converge to the long-run equilibrium path in keeping with the changes in the other three variables. Our main finding is that the group of developing countries should foster an environment, which will not only boost the ICT service exports, but also will make the penetration of broadband connections in a better way.
Keywords: ICT export; internet; CO2; Granger causality; OECD.
Environmental performance of OPEC countries; addressing the role of gross domestic product, energy consumption, trade openness and industrial structure
by Seyedhossein Sajadifar, Azam Mohamadbagheri
Abstract: Based on the Kuznetss environmental theory, we examine the effect on carbon dioxide (CO2) emission of gross domestic product (GDP), energy consumption, trade openness, and industrial structure in OPEC countries during 19742013, using the Full Modified Ordinary Least Square (FMOLS) method. We find that GDP, energy consumption, and industrial structure have positive effects on CO2 emission. The GDP squared, however, negatively affects CO2, although the effect is small. The positive effect of GDP but negative effect of GDP squared validates the environmental Kuznets curve for OPEC countries. In addition, we find that an increase in trade openness leads to decrease in CO2 emission. Using the panel vector error correction model (VECM) and Granger causality test, we confirm that long-run causality is supported for all of our equations. We also find bi-directional short-run causality between energy consumption and CO2 emission and between energy consumption and industrial structure. Moreover, we find one-way causality running from energy consumption to GDP, from CO2 emission to trade openness, from GDP to trade openness, and from GDP to emission.
Keywords: Environmental Kuznets Curve; Full Modified Ordinary Least Square; Vector Error Correction Model; OPEC Countries.
RELATIONSHIP BETWEEN ENVIRONMENTAL CONSCIOUSNESS AND GREEN PURCHASE BEHAVIOUR AMONG YOUTH
by Hitesh Jhanji, VISHAL SARIN
Abstract: Due to increase in environmental pollution, Consumers are now more conscious about the environment and are willing to save the environment. The present research attempts to find out the relationship between environmental consciousness and green purchase behavior among youth. A survey was administered to young male and female consumers between the age of 15 to 29. The consumers were surveyed on their green purchase behavior, environmental concern, environmental attitude, recycling behavior and political behavior. Regression analysis was applied to evaluate the data. Environmental attitude has become one of the most important predictor for analyzing the green purchase behavior of young females. Recycling and political action are the most important predictor for young males green purchase behavior.
Keywords: Environment; Environmental consciousness; Green purchase behavior; Youth; Young consumers; Recycling behavior; Political behavior.
RE-VISITING THE ENVIRONMENTAL KUZNETS CURVE IN MALAYSIA: THE INTERACTIVE ROLES OF DEFORESTATION AND URBANISATION
by Waliu Shittu, Hammed MUSIBAU, Sallahuddin Hassan
Abstract: The study re-examines the validity of EKC hypothesis in Malaysia, with the interaction effects of deforestation and urbanisation. The uses of methane and nitro oxide emissions, as against carbon oxide emissions used in similar studies, also lends credence to the efficiency of the estimates. Confirming the EKC hypothesis, the study employs the trio of robust LS, quantile regression and ARDL on secondary data obtained from World Bank and Energy Information Administration from 1981 to 2014. The findings of the study reveal that urbanisation both positively and negatively influences the environment; deforestation positively influences it; while the interaction effect is such that it enhances the positive effects of each of urbanisation and deforestation on the environment. Also, there is a bi-directional causality between environment and each of urbanisation and economic growth, as well as a uni-directional causality running from deforestation through urbanisation. The study, therefore, recommends increasing incentives for sustainable growth-driven industries, in the forms of tax-cut and lower interest rates to critical sectors; as well as the protection of local ones. The discouragement of forest loss through increased tax, and other penalties, for violators would largely reduce environmental degradation in Malaysia. Since increasing urbanisation exerts damaging effects on climate, Malaysia should de-congest urban areas by improving the living conditions in the rural areas, while also encouraging the siting of industries and create employment in rural counterparts.
Keywords: Deforestation; EKC; ARDL; Urbanisation; Malaysia.
Energy Consumption, CO2 Emission and Sustainable Growth in Nigeria
by Olayode Agboola
Abstract: This study investigates whether the observed reduction in energy intensity in Nigeria between 1970 and 2014 will be sustainable, given a possible tie between energy and output and whether de-intensification or de-carbonization will be a more sustainable approach to ensuring greener growth in Nigeria. Using time series data on real GDP, energy use, and carbon emission obtained from the Global Economic Monitor (GEM) from 1970 to 2014, results of correlation, copula, cointegration, and Granger causality as well as impulse response analyses show evidence of a weak positive tie between energy and growth for Nigeria, and that de-carbonization is more sustainable in the short term while de-intensification is more sustainable in the longer term. This study concludes that de-carbonization and de-intensification policies should be adopted in the short term and in the longer term, respectively, in pursuing greener growth in Nigeria.
Keywords: energy; CO2; growth; de-intensification; de-carbonization.
CORPORATE ENVIRONMENTAL DISCLOSURE AND EARNING MANAGEMENT
by Rayenda Khresna Brahmana, Meng Yee Tan, Hui Wei You
Abstract: Corporate environmental disclosure (hereafter abbreviated as CED) has developed rapidly into an important component of earning management (hereafter abbreviated as EM). Meanwhile, many parties are apprehensive of environmental issues. This study examined the relationship between CED and EM. The main focus was on 238 public listed companies, in three different industries, namely construction, technology, and trading industries. The study was conducted from 2008 to 2014. CED had a positive and significant effect on the EM (Lassaad, & Khamoussi, 2012; Muttakin, Khan, and Azim, 2015) at 1% level of significance. This research presented two important impacts to the policy makers. Firstly, policy makers have a trade-off between choosing to act responsibly towards the environment or face EM. Second, policy makers have to relook the issue of environmental disclosure as a voluntary disclosure.
Keywords: Earning Management; corporate environmental disclosure; firm characteristics.
Exploration of The Kyoto Protocol and Doha Round on Decarbonizing between High Income OECD and Developing Countries
by Tantatape Brahmasrene, Jung Wan Lee
Abstract: A model is developed to bolster the developing countries argument that increasing carbon dioxide emissions levels is created by industrialized countries and it is unfair to place the same burdens on developing countries. FMOLS model is employed to examine the relationship and its elasticity between economic growth, international trade, industrialization, agriculture, urbanization, and carbon emissions levels. The results support a link between economic growth, exports, industrialization, agriculture, urbanization and CO2 emissions for both industrialized countries and developing countries. This study also reveals a positive impact of urbanization and negative effect of international trade on CO2 emissions in high income OECD, and developing countries. In addition, a positive effect of industrialization and a negative relationship of agriculture occur in developing countries. Further exploration of the Kyoto Protocol in 1997 indicates no significant effect for high income OECD countries, but significant negative impact appears among developing countries.rn
Keywords: carbon emissions; economic growth; international trade; industrialization; agriculture; urbanization; developing countries; industrialized countries.
Green Financing for Sustainability: Analyzing the Trends with Challenges and Prospects in the Context of Bangladesh
by Md. Harun Ur Rashid Rashid, Mohammad Main Uddin
Abstract: This study aims to investigate the contributions of banks and non-bank financial institutions through green financing in the overall economy of Bangladesh. This paper also tries to bring out the challenges and prospects of banks and financial institutions (FIs) in green financing. The study has been conducted based on secondary data consisting of previous literature reviews, published reports of different banks and financial institutions including Bangladesh Bank annual reports and published documents of international organizations relating to environmental sustainability. This study shows that though the trends of green financing are growing, comparing to total loan disbursed; it is still below the standard set by Bangladesh Bank. This study provides a valuable insight to the banks as well as policymakers to attain a greater legitimacy and a policy review based on guidelines and recommendations on green financing to urge rapid progress in greening the environment as well as the overall economy for sustainability.
Keywords: Green Financing (GF); Sustainability; Bank and Non-Bank Financial Institutions (NBFIs); Challenges; Prospects; Bangladesh.
Green growth & climate resilient development intensification through the adoption of solar home system in the hard to reach areas of Bangladesh: an Economic Evaluation
by Hasan Imtiaj Islam, Md. Arfanuzzaman
Abstract: The study attempted to find out the type of Solar Home Systems (SHSs) are available in the hard to reach area of Bangladesh and evaluate the cost-benefit of adopting such options as a green energy. This study finding exhibits that the SHS is available from 20Wp to 85Wp in the market and their costs range from USD 153 to 479. The net present value of the SHS shows positive outcome for the considered 6%, 8%, 10% and 12% discount rate in which relatively greater benefit can be attained in 6% discount rate for all type of SHS. The study also reveals that for a twenty-year life cycle SHS can reduce CO2 emission up to 193.764 M. tons which has a larger implication for the CDM projects as well as profitable climate action in Bangladesh. The study suggests that, strong attempt in low cost SHS development and rapid promotion can trigger decent employment, green growth and resilient development in the countries of global south.
Keywords: cost-benefit analysis; clean development mechanism; discounting; green growth; renewable energy; Bangladesh.
The risk of environmental damage: a corporate governance perspective
by Diletta Lenzi
Abstract: Within the legal framework of European for-profit companies, this paper examines the role that corporate law can play in preventing environmental damages. It begins with an analysis of the main 'benefits' and 'costs' that corporate directors consider when engaging in environmental risk management: improving business reputation to attract sensitive consumers and investors, and accessing green financing or green public procurement, on the one side; the risk of liability lawsuits, higher costs of credit, a decrease of stock market price and an increase of insurance premiums, on the other side. The paper then turns to the internal dynamics of corporations, developing three different categories of environmental risks and related different corporate attitudes. On the basis of this tripartition, the paper suggests specific corporate governance mechanisms that can be adopted to manage the risk of environmental damages in a more effective, and less costly, manner.
Keywords: corporate governance law; corporate law; corporate social responsibility; directors liability; environmental damage; environmental risk committee; green bond; green public procurement; greening; non-financial statement; polluter-pays principle; risk management.
Sovereign wealth funds, shareholder activism and socially responsible investing: impact on corporate governance and sustainability
by Wei Yin
Abstract: Institutional shareholder activism is usually discussed within the business. Sovereign wealth funds (SWFs), as long-term institutional investors, are stepping into the sustainable investment movement and corporate governance discussion. But studies, from the regulatory perspective, that discuss the SWFs' shareholder activism are scant. As shareholders of investee companies, SWFs theoretically can exert activism to influence corporate performance, while their inherent feature poses challenges to regulators of host countries. This paper aims to explore the story of SWF activism, and its impacts on corporate governance and business sustainability. It analyses approaches that SWFs can utilise and the status quo of SWF activism. The issues and benefits of SWF activism are briefly assessed. Regulatory supports concerning social activism, responsible investing and transparency are analysed. It suggests that to ensure the benefits of SWF activism and reduce concerns, it is necessary to promote soft law and regulatory measures regarding transparency and SWFs' shareholder rights.
Keywords: sovereign wealth funds; shareholder activism; corporate governance; social activism; financial activism; socially responsible investing; business sustainability; institutional shareholder activism; transparency; Santiago Principles; voice activism; exit activism.
Private responsibilities in the protection of the environment: how to involve SMEs in participatory regulations?
by Mariavittoria Zaccaria
Abstract: The EU provides for a number of self-regulatory and participative instruments in environmental legislation. While Small and Medium Enterprises (SMEs) represent 99.8% of the European industrial population, they often lack resources and exposure to the public, limiting their determination to get involved in participatory environmental regulations. Therefore, European regulatory instruments are not yet an effective response to such issues. This article analyses European environmental participation in the industry sector and assesses the incentives and challenges for SMEs. Taking the EMAS Regulation as an example, the analysis aims to show that small companies need more specific regulatory attention and that their participation in the market shall be guided by direct and targeted action of public authorities.
Keywords: environment; public participation; industry; SMEs; self-regulation; EMAS; European Union; governance; EMS; private responsibility; public responsibility.
Externalising the energy law: the domestic impact beyond the current domain of the European Union
by Irakli Samkharadze
Abstract: While the European Union's (EU) historic inward-looking energy policy is rapidly shifting through extending the application of energy law to non-EU countries, there has not been much academic focus on this phenomenon yet. Most of the scholarly work is still related to the developments at the European level and does not include the wider extraterritorial effect of EU energy acquis in neighbouring countries. The underlying objective of this paper is to address this deficit by analysing the domestic impact that the EU energy law has outside its bounds. The case of Georgia is referred in this context to enrich the paper with practical examples and study the consequences of EU energy normative power within the eastern Europeanisation framework.
Keywords: EU energy law; EU external relations; Europeanisation of law; legal harmonisation.
New approaches to safety regulation for offshore oil and gas exploration and production in the UK and Norway
by Margarita Nieves-Zárate
Abstract: This paper analyses how safety regulation evolved in the UK and Norway from prescriptive regulations to goal-setting regulations in order to manage the risks associated with offshore oil and gas operations. Major accidents in the industry led to reshaping regulatory approaches to rule making, supervising and enforcing safety regulations providing interesting case studies of how law adapts to technological challenges. The allocation of responsibilities between different roles of the regulatory authority, the oil and gas companies and the workforce are important aspects of these new approaches.
Keywords: safety; offshore; oil and gas; exploration and production; prescriptive regulation; goal-setting regulation; supervision.