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19 pages, 437 KiB  
Article
Agricultural Insurance and Food Security in Saudi Arabia: Exploring Short and Long-Run Dynamics Using ARDL Approach and VECM Technique
by Faten Derouez and Yasmin Salah Alqattan
Sustainability 2025, 17(10), 4696; https://doi.org/10.3390/su17104696 - 20 May 2025
Viewed by 153
Abstract
This study investigated the dynamic factors influencing food security in Saudi Arabia, a critical concern for the nation’s stability and development. The purpose of this research was to analyze the impact of several key determinants on the Food Security Index and to distinguish [...] Read more.
This study investigated the dynamic factors influencing food security in Saudi Arabia, a critical concern for the nation’s stability and development. The purpose of this research was to analyze the impact of several key determinants on the Food Security Index and to distinguish between their short-term and long-term effects, thereby providing evidence-based policy recommendations. Using annual time-series data spanning 1990 to 2023, the research employs the Autoregressive Distributed Lag (ARDL) and Vector Error Correction Model (VECM) methods. We specifically examined the roles of agricultural GDP contribution, agricultural insurance coverage, food price stability, government policies related to agriculture, climate change impacts, agricultural productivity, and technology adoption. Short-run estimates reveal that agricultural GDP contribution, government policies, and agricultural productivity express a significant positive influence on food security. Importantly, climate change showed a counterintuitive positive association in the short term, potentially indicating immediate adaptive responses. Conversely, food price stability exhibited an unexpected negative association, which may indicate that the index captures high price levels rather than just volatility. The long-run analysis highlights the crucial importance of sustained factors for food security. Agricultural GDP contribution, agricultural insurance coverage, and agricultural productivity are identified as having significant positive impacts over the long term. In contrast, climate change demonstrates a significant negative long-run impact, underscoring its detrimental effect over time. Government policies, while impactful in the short term, become statistically insignificant in the long run, suggesting that sustained structural factors become dominant. Granger causality tests indicate short-term causal relationships flowing from climate change (positively), agricultural GDP contribution, government policies, and agricultural productivity towards food security. The significant error correction term confirms the existence of a stable long-run equilibrium relationship among the variables. On the basis of these findings, the study concludes that strengthening food security in Saudi Arabia requires a multifaceted approach. Short-term efforts should focus on enhancing agricultural productivity and implementing targeted measures to mitigate immediate climate impacts and refine food price stabilization strategies. For long-term resilience, priorities must include expanding agricultural insurance coverage, investing in sustainable agricultural practices, and continuing to boost agricultural productivity. The study contributes to the literature by providing a comprehensive dynamic analysis of food security determinants in Saudi Arabia using robust time-series methods, offering specific insights into the varying influences of economic, policy, environmental, and agricultural factors across different time horizons. Further research is recommended to explore the specific mechanisms behind the observed short-term relationship with climate change and optimize food price policies. Full article
(This article belongs to the Special Issue Sustainable Water Management in Rapid Urbanization)
24 pages, 565 KiB  
Article
Investigating the Relationship Between Liquidity Risk, Credit Risk, and Solvency Risk in Banks Listed on the Iranian Capital Market: A Panel Vector Error Correction Model
by Pejman Peykani, Mostafa Sargolzaei, Cristina Tanasescu, Seyed Ehsan Shojaie and Hamidreza Kamyabfar
Economies 2025, 13(5), 139; https://doi.org/10.3390/economies13050139 - 19 May 2025
Viewed by 256
Abstract
In the aftermath of global financial crises and amid increasing complexity in banking operations, understanding and managing various types of risk—especially liquidity, credit, and solvency risks—has become a global concern for financial stability. This study addresses a critical gap in the literature by [...] Read more.
In the aftermath of global financial crises and amid increasing complexity in banking operations, understanding and managing various types of risk—especially liquidity, credit, and solvency risks—has become a global concern for financial stability. This study addresses a critical gap in the literature by examining the dynamic interrelationships among these three types of risk in the context of emerging markets. Using data from 21 banks listed on the Iranian capital market from 2011 to 2023, we employ a Panel Vector Error Correction Model (VECM) alongside panel impulse response analysis to assess both short- and long-term dynamics. Our results reveal that an increase in liquidity positively impacts bank solvency, while credit risk negatively affects solvency but does not significantly influence liquidity risk. These findings contribute to the theoretical understanding of systemic risk interactions in banking and provide practical insights for policymakers and financial institutions seeking to enhance risk management strategies in volatile market environments. Full article
(This article belongs to the Special Issue Advances in Financial Market Phenomenology)
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13 pages, 1174 KiB  
Article
Climate Change Effects on Dates Productivity in Saudi Arabia: Implications for Food Security
by Abda Emam
Sustainability 2025, 17(10), 4574; https://doi.org/10.3390/su17104574 - 16 May 2025
Viewed by 102
Abstract
This study aimed to assess the impact of climatic alteration on food security in Saudi Arabia. Date productivity, temperature, and precipitation represent the data which were collected from various sources linked to the study subject and cover the period from 1980 to 2023. [...] Read more.
This study aimed to assess the impact of climatic alteration on food security in Saudi Arabia. Date productivity, temperature, and precipitation represent the data which were collected from various sources linked to the study subject and cover the period from 1980 to 2023. The Engle–Granger two-step procedure, the VECM, and forecast analysis were applied to test the long-term relationship, short-term integration, and forecasting, respectively. Moreover, qualitative analysis was used to reveal the influence of climatic change on food security. The results discovered long-term co-integration between date productivity and temperature. Additionally, the results revealed that there has been long-running co-integration between date productivity and the precipitation series. Temperature and precipitation negatively and significantly impacted date productivity during the study period. With reference to forecast results, the graph was validated using various forecast indicators: the Alpha, Gamma, Beta, and Mean Square Error equivalents were 1.0, 0.0, 0.0, and 5.47, respectively. Moreover, the growth rates of date productivity were equal to 0.82 and 0.08 for the periods from 1980 to 2022 and 2023 to 2034 (forecast), respectively, indicating that there is a decrease in the growth rate of date productivity (0.08) during the forecast period. From these results, the conclusion is that climatic change (temperature and precipitation) negatively impacts date productivity. In addition, the growth rate during the forecast period decreased, indicating that climatic change is affecting food security currently and will continue to do so in the future. This study recommended specific policy interventions and innovations in agricultural practices, including developing and implementing a national framework focused on climate-smart agriculture, balancing productivity, adaptation, and mitigation. This could be aligned with Vision 2030 and the Saudi Green Initiative. Additionally, this could include investing in research and development by increasing public–private partnerships to support agricultural R&D in arid regions, with a focus on heat- and drought-resistant crop varieties and water-efficient farming systems. Regarding agricultural innovations, these could include the use of renewable energy, particularly solar energy, the expansion of rainwater harvesting infrastructure, recycling treated wastewater for agriculture, and reducing reliance on groundwater sources. Full article
(This article belongs to the Special Issue Sustainability of Agriculture: The Impact of Climate Change on Crops)
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22 pages, 939 KiB  
Article
The Role of Agriculture in Shaping CO2 in Saudi Arabia: A Comprehensive Analysis of Economic and Environmental Factors
by Jawaher Binsuwadan, Lamya Alotaibi and Hawazen Almugren
Sustainability 2025, 17(10), 4346; https://doi.org/10.3390/su17104346 - 11 May 2025
Viewed by 382
Abstract
This research examines the critical issue of greenhouse gas emissions, focusing on carbon dioxide (CO2) as a significant contributor to climate change and its threats to environmental sustainability. The primary objective of this paper is to highlight the environmental impacts resulting [...] Read more.
This research examines the critical issue of greenhouse gas emissions, focusing on carbon dioxide (CO2) as a significant contributor to climate change and its threats to environmental sustainability. The primary objective of this paper is to highlight the environmental impacts resulting from economic growth, energy consumption, and agricultural development in Saudi Arabia. The purpose of the empirical research is to investigate the dynamic causal relationships between CO2 emissions, agricultural development, economic growth, energy consumption, and additional control variables in Saudi Arabia from 1990 to 2022. It is hypothesised that increases in agricultural land, economic activity, and energy use contribute to rising CO2 emissions. This study examines these relationships using the Autoregressive Distributed Lag (ARDL) and Fully Modified Ordinary Least Squares (FMOLS) methodologies, along with unit root tests, the ARDL bounds test, and Vector Error Correction Model (VECM) causality analysis, to assess both short-term and long-term interactions among the variables. The findings reveal that agricultural land expansion, economic growth, and energy consumption significantly contribute to increased CO2 emissions. Specifically, a 1% increase in agricultural land correlated with a 0.16% rise in CO2 emissions, while a 1% increase in economic growth and energy use led to 0.28% and 0.85% rises, respectively. These results underscore the environmental challenges posed by economic expansion and energy dependence. This paper emphasises the need for policies that balance economic growth with emissions reduction, in line with Saudi Vision 2030. Transitioning to a low-carbon, circular economy supported by renewable energy and innovation is essential for sustainable development and climate change mitigation. Full article
(This article belongs to the Special Issue Advanced Agricultural Economy: Challenges and Opportunities)
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16 pages, 954 KiB  
Article
Technological Advancements and Economic Growth as Key Drivers of Renewable Energy Production in Saudi Arabia: An ARDL and VECM Analysis
by Faten Derouez
Energies 2025, 18(9), 2177; https://doi.org/10.3390/en18092177 - 24 Apr 2025
Viewed by 212
Abstract
This study examines the short- and long-term effects of various economic, environmental, and policy factors on renewable energy production (REP) in Saudi Arabia from 1990 to 2024, using the Autoregressive Distributed Lag (ARDL) approach and Vector Error Correction Model (VECM) techniques. The analysis [...] Read more.
This study examines the short- and long-term effects of various economic, environmental, and policy factors on renewable energy production (REP) in Saudi Arabia from 1990 to 2024, using the Autoregressive Distributed Lag (ARDL) approach and Vector Error Correction Model (VECM) techniques. The analysis focuses on fossil fuel consumption (FFC), renewable energy investment (REI), carbon emissions (CEs), energy prices (EPs), government policies (GPs), technological advancements (TAs), socioeconomic factors (SEFs), and economic growth (EG) as determinants of REP, measured as electricity generated from solar power sources in kilowatt-hours (kWh). Short-term findings reveal a positive momentum effect, where prior REP levels significantly influence current production, driven by factors such as learning by doing, economies of scale, and consistent policy support. However, FFC negatively impacts REP, highlighting resource competition and market dynamics favoring fossil fuels. Positive short-term influences include REI, CEs, EPs, GPs, TAs, SEFs, and EG, which collectively enhance renewable energy adoption through investments, technological innovation, policy incentives, and economic development. Long-term analysis underscores a strong negative relationship between FFC and REP, with a 7503-unit decline in REP associated with increased fossil fuel dependency. Conversely, REP benefits from REI, CEs, EPs, GPs, TAs, and EG, with significant contributions from technological advancements (3769-unit increase) and economic growth (9191-unit increase). However, SEFs exhibit a slight negative impact, suggesting that rapid urbanization and population growth may outpace renewable infrastructure development. Overall, the study highlights the complex interplay of factors shaping renewable energy production, emphasizing the importance of sustained investments, supportive policies, and technological innovation, while addressing challenges posed by fossil fuel reliance and socioeconomic pressures. These insights provide valuable implications for policymakers and stakeholders aiming to accelerate the transition to renewable energy in Saudi Arabia. Full article
(This article belongs to the Section A: Sustainable Energy)
22 pages, 518 KiB  
Article
Sustainability in High-Income Countries: Urbanization, Renewables, and Ecological Footprints
by Fayaz Hussain Tunio, Agha Amad Nabi, Rafique Ur Rehman Memon, Tayyab Raza Fraz and Daniela Haluza
Energies 2025, 18(7), 1599; https://doi.org/10.3390/en18071599 - 23 Mar 2025
Cited by 1 | Viewed by 433
Abstract
Environmental sustainability remains a critical challenge in the face of global economic development. This study explored the complex interactions among renewable energy consumption, urbanization, trade openness, and economic development, focusing on their effects on environmental quality in 34 high-income European and Asian economies [...] Read more.
Environmental sustainability remains a critical challenge in the face of global economic development. This study explored the complex interactions among renewable energy consumption, urbanization, trade openness, and economic development, focusing on their effects on environmental quality in 34 high-income European and Asian economies from 1970 to 2022. Using linear Bayesian regression and the Vector Error Correction Model (VECM), the analysis examined short- and long-term impacts to uncover nuanced relationships. Results demonstrated that economic development contributed to environmental degradation over the long term while mitigating it in the short term. Renewable energy consumption supported economic growth but showed limited efficacy in reducing ecological footprints across different time frames. Urbanization and trade openness emerged as significant drivers of long-term environmental degradation, emphasizing the need for targeted policy interventions. This study examined the link among economic progress and environmental sustainability, and identified key areas for improvement in urban planning, renewable energy, and trade policies. The findings provide a framework for policymakers to balance development with environmental preservation. Full article
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21 pages, 4853 KiB  
Article
China’s Energy Stock Price Index Prediction Based on VECM–BiLSTM Model
by Bingchun Liu, Xia Zhang, Yuan Gao, Minghui Xu and Xiaobo Wang
Energies 2025, 18(5), 1242; https://doi.org/10.3390/en18051242 - 3 Mar 2025
Viewed by 517
Abstract
The energy stock price index maps the development trends in China’s energy market to a certain extent, and accurate forecasting of China’s energy market index can effectively guide the government to regulate energy policies to cope with external risks. The vector error correction [...] Read more.
The energy stock price index maps the development trends in China’s energy market to a certain extent, and accurate forecasting of China’s energy market index can effectively guide the government to regulate energy policies to cope with external risks. The vector error correction model (VECM) analyzes the relationship between each indicator and the output, provides an external explanation for the way the indicator influences the output indicator, and uses this to filter the input indicators. The forecast results of the China energy stock price index for 2022–2024 showed an upward trend, and the model evaluation parameters MAE, MAPE, and RMSE were 0.2422, 3.5704% and 0.3529, respectively, with higher forecasting efficiency than other comparative models. Finally, the impact of different indicators on the Chinese energy market was analyzed through scenario setting. The results show that oscillations in the real commodity price factor (RCPF) and the global economic conditions index (GECON) cause fluctuations in the price indices of the Chinese energy market and that the Chinese energy market evolves in the same manner as the changes in two international stock indices: the MSCI World Index and FTSE 100 Index. Full article
(This article belongs to the Section C: Energy Economics and Policy)
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74 pages, 7429 KiB  
Article
Monetary Policy Under Global and Spillover Uncertainty Shocks: What Do the Bayesian Time-Varying Coefficient VAR, Local Projections, and Vector Error Correction Model Tell Us in Tunisia?
by Emna Trabelsi
J. Risk Financial Manag. 2025, 18(3), 129; https://doi.org/10.3390/jrfm18030129 - 1 Mar 2025
Viewed by 926
Abstract
This study assesses the informational usefulness of several uncertainty metrics in predicting the monetary policy and actual economic activity of Tunisia. We use a Bayesian time-varying vector autoregressive (VAR) model to identify uncertainty shocks sequentially. We complement the analysis with the use of [...] Read more.
This study assesses the informational usefulness of several uncertainty metrics in predicting the monetary policy and actual economic activity of Tunisia. We use a Bayesian time-varying vector autoregressive (VAR) model to identify uncertainty shocks sequentially. We complement the analysis with the use of local projections (LPs), a recently flexible and simple method that accommodates the effect of an exogenous intervention on policy outcomes. The findings suggest that shocks to global and spillover uncertainty are important in elucidating the dynamics of industrial production and consumer prices. The impulse response functions (IRFs) show that the central bank does not follow a linear-rule-based monetary strategy. The irreversibility theory, or the “precautionary” behavior, is tested in a vector error correction model (VECM). The money market rate impacts industrial production and consumer prices differently during high versus low uncertainty, depending on the uncertainty variable and the horizon (short versus long run). The effects can be insignificant or significantly dampened during high uncertainty, indicating that conventional monetary policy may be ineffective or less influential. The “wait and see” strategy adopted by economic agents implies that they do not take timely actions until additional pieces of information arrive. While this could not be the sole explanation of our findings, it conveys the importance of dealing with uncertainty in decision-making and highlights the necessity of a clear and credible communication strategy. Importantly, the central bank should complement interest rates with the use of unconventional monetary policy instruments for better flexibility. Our work provides a comprehensive and clear picture of the Tunisian economy and a focal guide for the central bank’s future practices to achieve macroeconomic objectives. Full article
(This article belongs to the Special Issue Monetary Policy in a Globalized World)
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18 pages, 622 KiB  
Article
The Effect of Financial Market Capitalisation on Economic Growth and Unemployment in South Africa
by Wandile Allan Ngcobo, Sheunesu Zhou and Strinivasan S. Pillay
Economies 2025, 13(3), 57; https://doi.org/10.3390/economies13030057 - 20 Feb 2025
Cited by 1 | Viewed by 1007
Abstract
The dynamic impact of financial market capitalisation on South Africa’s unemployment and economic growth is empirically explored in this study using the finance-augmented Solow model framework. South Africa’s high rate of structural unemployment and its robust financial market, which is at the same [...] Read more.
The dynamic impact of financial market capitalisation on South Africa’s unemployment and economic growth is empirically explored in this study using the finance-augmented Solow model framework. South Africa’s high rate of structural unemployment and its robust financial market, which is at the same standard as those in countries with advanced economies, served as the driving force for the study. Evidence for the dynamic link is presented by a time series analysis that employed the VECM model. South Africa continues to face persistent macroeconomic issues, including stagnant economic growth, declining investment, and rising unemployment. Market capitalisation, net acquisition of financial assets, and foreign direct investment all have a favourable and substantial effect on economic growth. According to VECM estimation results, unemployment has a detrimental effect on economic growth. Also, market capitalisation has significant positive effects on economic growth. Unemployment and economic growth are inversely related, thus unemployment has an adverse effect on economic growth. According to the findings, financial markets have distinct effects on economic growth because of their various functions within the economy. It was also shown that foreign direct investment has a crucial role in increasing economic growth. This implies the important role that the financial market and systems have in South Africa’s economic growth. The article advises authorities to keep enacting measures to boost capital market growth to increase employment, while also making sure that other structural issues affecting the labour market are effectively addressed to stimulate job creation. Full article
(This article belongs to the Special Issue Studies on Factors Affecting Economic Growth)
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29 pages, 1335 KiB  
Article
Interrelationships Among Government Participation, Population and Growth of per Capita Income: Inquiry on Top Twenty Income-Holding Countries in the World
by Ramesh Chandra Das
Economies 2025, 13(2), 46; https://doi.org/10.3390/economies13020046 - 12 Feb 2025
Viewed by 760
Abstract
The literature on growth in economics encompasses two main facets of thinking: the applicability of diminishing productivity of capital, as has been in the neoclassical growth model with exogenous technological progress, and the applicability of non-diminishing productivity of capital, as has been in [...] Read more.
The literature on growth in economics encompasses two main facets of thinking: the applicability of diminishing productivity of capital, as has been in the neoclassical growth model with exogenous technological progress, and the applicability of non-diminishing productivity of capital, as has been in the endogenous growth models. The main conclusion of the former is the cross-country convergence to a common steady state while that of the latter is non-convergence. The tremendous history of the growth of the world’s so-called developed economies in the 1980s, diverging with the so-called backward economies, has nullified the applicability of the neoclassical growth model and justified non-steady state positive per capita growth of income and consumption through endogenous technological progress in terms of knowledge capital, human capital, good public institutions, etc. The present study aims to examine whether per capita income growth is explained by the size of government intervention coupled with the working population size in the world’s top twenty countries in terms of aggregate income. With the theoretical setup of the model and using empirical tools, such as cointegration, error correction and causality in a vector autoregression structure, this study reveals that eighteen countries maintain long-run relationships among per capita income growth, government participation, population and the interaction factors between government intervention and population, excepting Germany and Canada. Further, in the short run, for eleven countries on the list, there are instances in which public institutions associated with the population and the interaction term have a causal influence on the growth of per capita income. The empirical results relating to income growth, thus, have sustainability implications. Full article
(This article belongs to the Special Issue Public Finance and Green Growth)
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25 pages, 516 KiB  
Article
Price Behavior and Market Integration in European Union Electricity Markets: A VECM Analysis
by Cristian Valeriu Stanciu and Narcis Eduard Mitu
Energies 2025, 18(4), 770; https://doi.org/10.3390/en18040770 - 7 Feb 2025
Viewed by 898
Abstract
This study examines the integration and price behavior of European Union electricity markets using a Vector Error Correction Model (VECM). Employing daily wholesale day-ahead electricity prices from 24 EU countries spanning October 2017 to September 2024, the research identifies seven regional clusters of [...] Read more.
This study examines the integration and price behavior of European Union electricity markets using a Vector Error Correction Model (VECM). Employing daily wholesale day-ahead electricity prices from 24 EU countries spanning October 2017 to September 2024, the research identifies seven regional clusters of markets based on similarities in price trends. The analysis reveals strong long-term equilibrium relationships and dynamic short-term adjustments, highlighting the interconnectedness of these markets. Central players, such as Germany in Block 1 and France in Block 2, emerge as pivotal in driving regional stability, while markets like Romania and Bulgaria (Block 3) demonstrate significant interconnections. Scandinavian and Baltic regions (Blocks 4 and 5) showcase unique balancing mechanisms influenced by shared infrastructure. Aggregated inter-block dynamics underscore the critical role of central hubs like Blocks 1 and 3 in bridging market disparities. Despite progress, regional heterogeneity persists, with slower adjustments observed in certain clusters. The findings emphasize the need for targeted policies to enhance cross-border electricity trading and infrastructure investments, ensuring equitable integration across all regions. By addressing these disparities, the EU can bolster market efficiency and resilience, contributing to its overarching energy strategy and transition to sustainable energy systems. Full article
(This article belongs to the Special Issue Economic Approaches to Energy, Environment and Sustainability)
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18 pages, 542 KiB  
Article
Desalination for Food Security in Tunisia: Harnessing Renewable Energy to Address Water Scarcity and Climate Change by Using ARDL Approach and VECM Technical
by Faten Derouez and Adel Ifa
Sustainability 2025, 17(3), 1046; https://doi.org/10.3390/su17031046 - 27 Jan 2025
Viewed by 878
Abstract
This study employs the Autoregressive Distributed Lag (ARDL) model to investigate the short-term and long-term effects of independent variables, including Agricultural output (A), Renewable energy consumption (REC), Non-renewable energy consumption (NREC), CO2E emissions, Climate change (CC) and Financial (FD), on food security (FS) [...] Read more.
This study employs the Autoregressive Distributed Lag (ARDL) model to investigate the short-term and long-term effects of independent variables, including Agricultural output (A), Renewable energy consumption (REC), Non-renewable energy consumption (NREC), CO2E emissions, Climate change (CC) and Financial (FD), on food security (FS) in Tunisia during the 1990–2023 period. After confirming the stationarity of the variables and the existence of long-run cointegration, the ARDL model was employed. The short-term ARDL estimates revealed mixed results. While some variables had positive effects, others exhibited negative influences on FS. For instance, A positively impacted FS, while REC, NREC, CO2E, CC, and FD had negative effects. The long-term ARDL analysis indicates that A, NREC, CC, and FD have significant effects on FS. A and NREC positively influence FS, while CC and FD have negative impacts. REC’s effect on FS is uncertain due to its marginal significance, and CO2E shows no significant relationship with FS in the long run. This study provides valuable insights into the short-term and long-term relationships between FS and its influencing factors. The findings can inform policy decisions and future research in this area. Full article
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33 pages, 8889 KiB  
Article
Evaluating the Position of Côte d’Ivoire’s Cocoa Industry on the Global Production Chain and the Influencing Factors
by Dogo Armand Dago and Yu Pei
Sustainability 2025, 17(3), 1013; https://doi.org/10.3390/su17031013 - 26 Jan 2025
Viewed by 2180
Abstract
This study investigates the position of Côte d’Ivoire’s cocoa industry within the global production chain and identifies key influencing factors from 1960 to 2024. Using a Vector Error Correction Model (VECM), the research evaluates the effects of economic and climate variables—cocoa bean production, [...] Read more.
This study investigates the position of Côte d’Ivoire’s cocoa industry within the global production chain and identifies key influencing factors from 1960 to 2024. Using a Vector Error Correction Model (VECM), the research evaluates the effects of economic and climate variables—cocoa bean production, global cocoa prices, GDP contributions, domestic cocoa grindings, rainfall, and temperature—on cocoa exports. The findings reveal that a 1% increase in global cocoa prices decreases exports by 0.45%, indicating significant price sensitivity. Cocoa bean production accounts for 42.39% of export variance over the long term, while GDP contributions (0.88%) and domestic cocoa grindings (0.34%) enhance competitiveness and value addition. Rainfall negatively impacts productivity, underscoring vulnerabilities to climate variability, whereas temperature has a short-term positive effect on export performance (0.12%). Short-term dynamics demonstrate rapid adjustments toward equilibrium, with adjustment speeds of 41.23% for Côte d’Ivoire and 37.21% for Ghana. The study highlights Côte d’Ivoire’s dependence on raw cocoa exports and its susceptibility to price volatility and climate risks. By comparing Côte d’Ivoire with Ghana, the analysis underscores the advantages of robust domestic processing policies. To ensure long-term sustainability, the study recommends expanding domestic cocoa processing, adopting agroforestry practices to mitigate climate risks, and investing in infrastructure to boost competitiveness and resilience. Full article
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23 pages, 589 KiB  
Article
Unravelling the Link Between Financialisation and Economic Growth: Evidence from Croatia
by Agim Mamuti, Fatbardha Kadiu, Idaver Sherifi, Inna Romānova and Simon Grima
Risks 2025, 13(1), 15; https://doi.org/10.3390/risks13010015 - 16 Jan 2025
Viewed by 893
Abstract
This study investigates the relationship between financialisation and economic growth in Croatia, focusing on the period from 1995 to 2021. Using time series econometric models, including the Augmented Dickey–Fuller test for stationarity, Johansen’s cointegration test for long-term relationships, and the Granger causality test [...] Read more.
This study investigates the relationship between financialisation and economic growth in Croatia, focusing on the period from 1995 to 2021. Using time series econometric models, including the Augmented Dickey–Fuller test for stationarity, Johansen’s cointegration test for long-term relationships, and the Granger causality test within the Vector Error Correction Model (VECM) framework, the research reveals a sustained long-term equilibrium relationship between financialisation and economic growth in Croatia. However, the Granger causality test does not indicate a definitive causal direction between these variables. While the study is limited to the Croatian context and the specified period, its findings have significant implications for policymakers in Croatia and similar emerging markets. These results suggest that while financialisation can enhance economic growth through better resource allocation and increased investment, it may also pose risks such as financial instability. Such measures aim to mitigate the risks associated with financialisation while promoting sustainable economic growth. To address these challenges, we recommend the implementation of robust regulatory frameworks, financial literacy initiatives, and economic diversification strategies. Such measures aim to mitigate the risks associated with financialisation while promoting sustainable economic growth. The study fills an important research gap on financialisation in emerging markets, particularly in Croatia, providing empirical evidence on the long-term relationship between financialisation and economic growth and highlighting the need for context-specific policy interventions. Full article
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24 pages, 1928 KiB  
Article
Assessing the Sustainability of Southeast Asia’s Energy Transition: A Comparative Analysis
by Faten Derouez and Adel Ifa
Energies 2025, 18(2), 287; https://doi.org/10.3390/en18020287 - 10 Jan 2025
Cited by 3 | Viewed by 880
Abstract
The rapid economic growth in Southeast Asia has heightened concerns about its environmental sustainability, particularly in relation to CO2 emissions. Despite the growing focus on climate change mitigation, the region faces significant challenges in balancing economic development, energy transitions, and environmental conservation. [...] Read more.
The rapid economic growth in Southeast Asia has heightened concerns about its environmental sustainability, particularly in relation to CO2 emissions. Despite the growing focus on climate change mitigation, the region faces significant challenges in balancing economic development, energy transitions, and environmental conservation. Existing studies often overlook the complex interplay between these factors, leaving a critical gap in understanding how tailored strategies can address country-specific dynamics. To bridge this gap, this study introduces the “Sustainable Energy-Environment Nexus” (SEEN) framework, which integrates economic growth, energy transitions, and environmental conservation as interconnected elements necessary for achieving carbon neutrality in both the short and long run. Using data from eight Southeast Asian countries (Indonesia, Malaysia, China, South Korea, Vietnam, Singapore, Thailand, and Japan) over the period 1990–2023, this study employs the Autoregressive Distributed Lag (ARDL) approach and the Vector Error Correction Model (VECM) technique to analyze the relationships between CO2 emissions, GDP, financial development, forest areas, renewable energy, non-renewable energy consumption, and trade openness. The findings reveal that GDP and non-renewable energy consumption significantly drive CO2 emissions in countries like Indonesia, Malaysia, Japan, and South Korea. Conversely, forest areas, financial development, renewable energy, and trade openness are effective in reducing emissions in countries such as Vietnam and China. This study highlights the critical role of renewable energy adoption while addressing challenges such as inadequate infrastructure and limited technology transfer. It also identifies opportunities for regional cooperation in innovation and policy harmonization. To support sustainable energy development, tailored policy recommendations include incentivizing investments in renewable energy, enhancing technology transfer, expanding forest conservation efforts, and aligning regional renewable energy targets across ASEAN. The SEEN framework provides a robust foundation for advancing research and policy design aimed at reducing CO2 emissions and promoting environmental sustainability across Southeast Asia. Full article
(This article belongs to the Special Issue New Trends in Energy, Climate and Environmental Research)
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