Unlocking the investment impact of biomass energy utilization on environmental degradation for an isolated island
Date
2021
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
International Journal of Energy Sector Management
Abstract
Purpose: Discussions on environment-friendly production connected with the concerns of growing
biomass emissions have gained much attention. In this regard, this study aims to explore the issue of biomass
energy consumption and its related emission effects on the economic and environmental well-being of the
economy of Cyprus.
Design/methodology/approach – This study sources time-series data on specific variables from the
Global Material Flow and the World Bank’s World Development Indicators (WDI, 2020) between 1990 and
2016. The Robust least square (ROB-L2)
in conjunction with Pesaran autoregressive distributed lag (ARDL)
methodology analysis techniques was used in addition to the Granger causality tests to examine the direction
of causal flow between the variables under consideration.
Findings: The results indicate that biomass energy usage in the long run reduces pollution and negatively
correlates with CO2 emissions level. Also, the decline in emission is influenced by increased foreign direct
investment (FDI); thus, activities of foreign investors contribute to combating emission in the country.
According to empirical results, non-renewable energy consumption showed both positive and negative
influences on increased emission level, whereas economic growth is increasing carbon dioxide emission for
the case of Cyprus.Originality/value: This study applies current, reliable data that offers renewed insights and sheds light
on the state of affairs on biomass utilization from a developing country perspective. Additionally, it extends
the discourse on the impact of biomass utilization on CO2 emissions by considering the impact of FDI, trade
flow and energy consumption in a carbon-income function built on the liner version of the environmental
Kuznets curve hypothesis. Although this is by no means exhaustive, the study pioneers the discourse on how
FDI and biomass utilization, among other relevant variables, influences carbon dioxide emission.
Description
Research Article
Keywords
Biomass energy, Carbon reduction, Non-renewable energy