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

• Published in: Environmental science and pollution research international Vol. 28; no. 32; pp. 43908 - 43922
• Main Authors: Adebayo, Tomiwa Sunday, Udemba, Edmund Ntom, Ahmed, Zahoor, Kirikkaleli, Dervis
• Format: Journal Article
• Language: English
• Published: Berlin/Heidelberg Springer Berlin Heidelberg 01.08.2021; Springer Nature B.V
• Subjects: 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 science; Innovations; Reduction; Renewable Energy; Renewable resources; Research Article; Sustainable consumption; Sustainable use; Technological change; Waste Water Technology; Water Management; Water Pollution Control; Chile; Technological innovation; Consumption-based carbon emissions; Economic growth; Renewable energy consumption; NARDL
• ISSN: 0944-1344; 1614-7499
• DOI: 10.1007/s11356-021-13830-9

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.