Journal Article

Determinants of consumption-based carbon emissions in Chile: an application of non-linear ARDL

Udemba, Edmund Ntom, Ahmed, Zahoor, Adebayo, Tomiwa Sunday, Kirikkaleli, Dervis

2021

Overview

In recent years, a growing number of scholars have employed various proxies of environmental degradation to understand the reasons behind rising environmental degradation. However, very few studies have considered consumption-based carbon emissions, even though a clear understanding of the impact of consumption patterns is essential for redirecting the pattern to more sustainable consumption. Thus, this study takes a step forward by using consumption-based carbon emissions (CCO 2 ) as a proxy of environmental degradation using the novel non-linear ARDL technique for Chilefrom 1990 to 2018. To the best understanding of the investigators, no prior studies have investigated the drivers of consumption-based carbon emissions utilizing non-linear ARDL. The study employed ADF and KSS (non-linear) tests to check the data series’ stationary level. Additionally, the symmetric and asymmetric ARDL approaches are utilized to explore cointegration and long-run linkages. According to the results, there is no symmetric cointegration among the variables; however, the empirical estimates reveal a long-run asymmetric connection between the indicators and CCO 2 emissions. The novel results from the asymmetric ARDL indicate that negative and positive changes in economic growth deteriorate the quality of the environment. Interestingly, a reduction in economic growth makes a more dominant contribution to environmental degradation. Moreover, positive changes in renewable energy usage improve the quality of Chile’s environment, inferring that the country can achieve a reduction in environmental degradation by boosting renewable energy consumption. Surprisingly, the study found that technological innovation is ineffective in reducing consumption-based carbon emissions, which implies that Chile’s technological innovation is not directed towards manufacturing green technology. Finally, the policy implications are discussed with respect to reducing consumption-based carbon emissions.

• Publisher: Springer Berlin Heidelberg,Springer Nature B.V
• Subject: Aquatic Pollution / Asymmetry / Atmospheric Protection/Air Quality Control/Air Pollution / Carbon / Carbon Dioxide - analysis / Chile / Clean technology / Consumption patterns / Earth and Environmental Science / Economic Development / Economic growth / Economics / Ecotoxicology / Emissions / Energy consumption / Energy usage / Environment / Environmental Chemistry / Environmental degradation / Environmental factors / Environmental Health / Environmental impact / Environmental science / Innovations / issues and policy / Reduction / Renewable Energy / renewable energy sources / Renewable resources / Research Article / Sustainable consumption / sustainable technology / Sustainable use / Technological change / technology / Waste Water Technology / Water Management / Water Pollution Control