Examination of the factors contributing to environmental degradation: does LPG consumption still matter?

• Published in: Environmental science and pollution research international 2024-01, Vol.31 (5), p.6815-6834
• Main Authors: Tekin, Bilgehan, Dirir, Sadik Aden
• Format: Article
• Language: English
• Subjects: Alternative energy sources; Aquatic Pollution; Atmospheric Protection/Air Quality Control/Air Pollution; Brazil; Carbon dioxide; Carbon dioxide emissions; Causality; China; Consumption; Degradation; Developing countries; Earth and Environmental Science; Ecological effects; Ecological footprint; ecology; Economic development; Economic growth; Economics; Ecotoxicology; Emissions; energy; Energy consumption; Energy policy; Energy resources; Energy sources; Environment; Environmental Chemistry; Environmental degradation; Environmental effects; Environmental Health; Environmental impact; Environmental protection; Financial institutions; Footprint analysis; fuels; Impact analysis; India; issues and policy; LDCs; Liquefied gases; Liquefied petroleum gas; LPG; markets; nonrenewable resources; Renewable energy; Research Article; Russia; Securities markets; South Africa; Sustainable development; Waste Water Technology; Water Management; Water Pollution Control
• ISSN: 1614-7499; 0944-1344; 1614-7499
• DOI: 10.1007/s11356-023-31484-7

Liquefied petroleum gas (LPG) is one of the energy resources that deserve to be qualified as a transition fuel for developing countries that cannot abandon their dependence on non-renewable energy use and adopt renewable alternatives. The current study examines how environmental degradation is affected by financial development, LPG use, and economic growth in the BRICS-T countries (Brazil, Russia, India, China, South Africa, and Turkiye) in the period of 1993–2018. For this purpose, four models were tested with Pedroni, Kao, PMG Panel ARDL cointegration and Dumitrescu-Hurlin causality methods. The results show that LPG consumption has a positive effect on the ecological footprint and an adverse influence on the CO 2 emission of BRICS - T countries. The financial institutions exhibited to have a positive and significant impact on ecology. Economic growth displayed negative effects on environmental degradation and a positive influence on CO 2 . Additionally, there is significant evidence for the validity of the EKC hypothesis. Unidirectional causality exists between ecological footprint, LPG, financial market, and economic growth. The financial institution index shows bidirectional causality with the ecological footprint. There is also unidirectional causality between ecological footprint, LPG, financial market, and economic growth. Furthermore, the financial institutions’ index shows a bidirectional causality with the ecological footprint. Also, economic development and financial institution index have a bidirectional relationship with CO 2 emissions. On the other hand, the financial market index showed unidirectional causality with CO 2 emissions. In short, our study highlights the need for a comprehensive and integrated approach to sustainable development in BRICS - T countries. Policymakers must balance economic growth with environmental protection and consider the potential trade-offs between policy options to promote sustainable and inclusive development.