Asymmetric effects of high-tech industry and renewable energy on consumption-based carbon emissions in MINT countries
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Abstract
The study assesses the effect of the high-tech industry and renewable energy on consumption-based carbon emissions (CCO2) in the MINT countries (Mexico, Indonesia, Nigeria and Turkey). The study also incorporates other drivers of CCO2 emissions, such as economic growth and foreign direct investment. It utilises a panel dataset spanning between 1990 and 2018 and a series of second-generation techniques such as CIPS and CADF unit root, Westerlund cointegration, the fully modified ordinary least square (FMOLS), dynamic ordinary least square (DOLS), fixed effect ordinary least square (FE-OLS) and the novel method of moment quantile regression (MMQR). The study outcomes validate the long-run association between CCO2 and the independent variables. The outcomes of the MMQR disclose that in each quantile (0.1–0.90), economic growth, high-tech industry, and foreign direct investment increase CCO2 emissions while renewable energy consumption mitigates CCO2 emissions across all quantiles (0.1–0.90). This study also validates the presence of Enviornmental Kuznets Curve and the Pollution-Haven hypotheses. Similar results are endorsed by DOLS, FMOLS, and FE-OLS estimators. Furthermore, the panel causality discloses that high-tech industry, economic growth, renewable energy, and foreign direct investment can predict CCO2 in the MINT economies.