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Exploring the dynamic nexus between renewable energy, poverty alleviation, and environmental pollution: fresh evidence from E-9 countries

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Abstract

The present study aims to scrutinize the long- and short-run relationship along with the direction of causality among environmental pollution (CO2), renewable, non-renewable energy, income disparity, exchange rate, and poverty alleviation in E-9 countries of continent Asia, using a panel dataset from 1990 to 2018. The current study used pooled mean group autoregressive distributed lag (PMG ARDL) and Dumitrescu-Hurlin (D-H) causality test after affirming a stable long-run association among environmental pollution and all the explanatory variables. However, ECM (error correction mechanism) was specified to explore short-run dynamics. The study’s outcomes confirmed strong co-integration among environmental pollution (CO2), renewable, non-renewable energy, income disparity, exchange rate, and poverty alleviation. Moreover, uni (bi) directional causality runs from non-renewable energy, exchange rate, and income disparity (poverty alleviation and renewable energy) to environmental pollution (CO2). Results also revealed that poverty alleviation, exchange rate, and renewable energy usage substantially negatively influence environmental pollution (CO2). Contrarily, income disparities and non-renewable energy usage positively influence long- and short-run environmental pollution. Therefore, from the policy perspective, the current study focused on twofold; first, there is a desire to alleviate poverty, the decline in non-renewable energy use and income disparity among upper and lower-income quintiles. Second, boost exchange rate and renewable energy use to control environmental pollution in the described least developed countries (LDCs).

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Funding

This work is funded by the National Social Science Foundation of China: Measurement and Evaluation of Civil-Military Integration Innovation Resources Allocation Efficiency in the New Era (Key Project Grant No. 20ZDA092).

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Authors and Affiliations

  1. Postdoctoral Station of Management Science and Engineering, College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing, 211100, China

    Asad Amin

  2. College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing, 211100, China

    Zilong Wang

  3. Department of Economics Government, Degree College Ban Hafiz Jee Mianwali, Punjab, Pakistan

    Aadil Hameed Shah

  4. College of Economics, Sichuan Agricultural University, Chengdu, 611130, China

    Abbas Ali Chandio

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Conceptualization, A.A. and A.A.C.; methodology, A.A. and A.A.C; software, A.H.S; formal analysis, A.A.; data collection, A.A. and A.A.C; writing—original draft preparation, A.A., A.A.C, and A.H.S.; writing-review and editing, Z.W; supervision and project administration. All authors have read and agreed to the published version of the manuscript.

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Amin, A., Wang, Z., Shah, A.H. et al. Exploring the dynamic nexus between renewable energy, poverty alleviation, and environmental pollution: fresh evidence from E-9 countries. Environ Sci Pollut Res 30, 25773–25791 (2023). https://doi.org/10.1007/s11356-022-23870-4

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