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Does Japan's energy consumption impact its environmental degradation? Evidence from ARDL technique

Author: Damak, Obadiah Ibrahim; Nimvyap, Nanfa; Danboyi, Emmanuel Elisha; Makwin, Deborah Joshua; Daniel, Ajang Janet
Publisher: Zenodo
DOI: 10.5281/zenodo.17291346
Source: https://zenodo.org/records/17291346/files/WJARR-2025-1544.pdf
 Co esponding au ho : Obadiah Ib ahim Damak
Copy igh © 2025 Au ho (s) e ain he copy igh o his a icle. This a icle is published unde he e ms o he C ea i e Commons A ibu ion License 4.0.
Does Japan's ene gy consump ion impac i s en i onmen al deg ada ion? E idence
om ARDL echnique
Obadiah Ib ahim Damak *, Nan a Nim yap, Emmanuel Elisha Danboyi, Debo ah Joshua Makwin and Ajang
Jane Daniel
Depa men o Economics, Facul y o Social Sciences, Pla eau S a e Uni e si y Bokkos, Nige ia.
Wo ld Jou nal o Ad anced Resea ch and Re iews, 2025, 26(02), 234-253
Publica ion his o y: Recei ed on 25 Ma ch 2025; e ised on 30 Ap il 2025; accep ed on 02 May 2025
A icle DOI: h ps://doi.o g/10.30574/wja .2025.26.2.1544
Abs ac
Using annual da a om 1990 h ough 2021, his s udy looked in o he oles o economic g ow h, ene gy use,
globaliza ion, and egula o y quali y in Japan. In ou analysis, we make use o he ARDL echniques. Using he ARDL,
acco ding o empi ical da a, GDP and ossil uel ha e a posi i e and signi ican connec ion wi h CO2, meaning any
inc ease in GDP and ossil uel will lead o inc ease in en i onmen al deg ada ion in he long- un. On he o he hand,
enewable ene gy has a nega i e and signi ican ela ionship wi h CO2 in he long- un, meaning ha , any inc ease in he
consump ion o enewable ene gy will educe en i onmen al deg ada ion in Japan. While globaliza ion and egula o y
quali y ha e nega i e and insigni ican associa ion wi h CO2 in he lung- un. In he sho - e m, GDP, enewable ene gy,
ossil uel and globaliza ion a e all s a is ically signi ican ly linked nega i ely o CO2 emissions. Ou s udy also uses
FMOLS, DOLS and CRR analysis which also suppo he ARDL model. Acco ding o ou indings wi h FMOLS, DOLS and
CRR ou pu s, shows long un ela ionship be ween CO2 and economic g ow h, enewable ene gy usage, use o ossil
uels, globaliza ion, and ade openness in Japan. In addi ion, Pea son co ela ion was employed o es he connec ions
be ween he a iables. Ou indings he e o e gi e he Japanese go e nmen and he es o he wo ld addi ional
in o ma ion o help hem hink abou enewable ene gy usage as he mos eliable s a egy o cu back on CO2 emissions.
Key wo ds: CO2; GDP; Renewable ene gy; Fossil uel; Globaliza ion; Regula o y quali y; and ARDL.
1. In oduc ion
En i onmen al deg ada ion can in e up he plane 's ca bon cycle and has an impac on global wa ming, which is
causing go e nmen s a ound he wo ld a e s a ing o wo y mo e and mo e abou i . The mos impo an issue acing
humani y oday is clima e change. Clima e change ca ied on by emissions o g eenhouse gases (GHGs) demons a es
unpa alleled haza ds o de elopmen and human exis ence, mos ly CO2 pollu ions (Hochman, e al., 2018). Ex eme
wea he , animal ex inc ion, and a lack o ood a e some o hese h ea s. The p incipal human endea o ha con ibu es
o CO2 pollu ion is u ilizing ossil uels o ene gy (such as coal and na u al gas) and anspo a ion. Ne e heless, some
business p ac ices and land-use changes con inue o p oduce CO2 emissions. Only a ew o he p obable nega i e e ec s
o global wa ming and clima e change include s un ed plan g ow h, inc easing sea le els, dis u bance o wa e sys ems,
and ad e se wea he condi ions (like hea wa es, loods, s o ms, and d ough s) (Romanello e al., 2021). Since he
exo bi an cos o p ese ing wildli e and decon amina ing land ills, a coun y could expe ience en i onmen al
deg ada ion ha could ha e nega i e consequences o he economy. The e o e, en i onmen al p ese a ion is one o
he con empo a y global p oblems ha has been included in o many coun ies' poli ical sys ems.
Since en i onmen al deg ada ion can dis up he global ca bon cycle and con ibu e o global wa ming, i is a se ious
p oblem ha is becoming mo e and mo e appa en on a global scale and is being conside ed by go e nmen s wo ldwide.
Wo ld Jou nal o Ad anced Resea ch and Re iews, 2025, 26(02), 234-253
235
Clima e change is one o he mos signi ican p oblems ha humani y is now expe iencing. Unp eceden ed h ea s o
human p og ess and li e a e o e ed by clima e change b ough on by g eenhouse gas emissions (GHGs), pa icula ly
CO2 pollu ion (Dong e al., 2020). These haza ds include se e e wea he , animal ex inc ion, and a sho age o ood. The
p ima y human ac i i y esponsible o CO2 pollu ion is he bu ning o ossil uels o ene gy and anspo a ion, such
as coal and na u al gas. Howe e , some indus ial ope a ions and changes in land use con inue o elease ca bon dioxide
in o he a mosphe e. A ew po en ial nega i e e ec s o clima e change and global wa ming on human heal h, he
en i onmen , and ecosys ems include sea le el ise, dis u bances o wa e sys ems, educed plan g ow h, and ex eme
wea he e en s (s o ms, loods, hea wa es, and d ough s) (Romanello e al. 2022). In e na ional measu es, such as he
Pa is Ag eemen and he Kyo o P o ocol, ha e been de eloped by in e go e nmen al g oups as a esul o g owing
en i onmen al consciousness wo ldwide. The majo objec i e o he his o ic Pa is Acco d is o con inue wo king owa d
a 1.5 °C global empe a u e inc eases while keeping i below 2 °C. (Khan & Hou, 2021).
Why Japan? The e was a sudden inc ease ise in in e es in sus ainabili y in pas ew yea s, and he e is ample scien i ic
p oo ha human ac i i y has an impac on he en i onmen . Global wa ming is making Japan's ypically mild
empe a u e wa me , which is an icipa ed o signi ican ly a ec ene gy demand and ela ed CO2 emissions (Zhongming,
e al.,2018). Japan anks ou h in e na ionally he la ges impo e o lique ied na u al gas as well as coal and pe oleum
p oduc s. Domes ic ene gy sou ces a e sca ce in Japan, accoun ing o less han 10% o he coun y's annual p ima y
ene gy consump ion as o 2012. Wo ld Bank, 2020: Wi h a GDP o $US4.872 illion in 2018, a e China and he Uni ed
S a es, Japan has he hi d-la ges economy in he wo ld, and is he se en h-bigges sou ce o GHG emissions. A e he
Fukushima nuclea disas e in 2011, i pu o i s deca boniza ion e o s, which led i o abandon nuclea powe and
inc ease he use o ossil uels. The Kyo o P o ocol was a i ied by he Japanese go e nmen in 2002, and began wo king
o c ea e a socie y wi h less ca bon emissions. he P ime Minis e o Japan as a esul eleased a new ision in 2008
called " App oaches o a Low-Ca bon Socie y," his also include making a long- un plan objec i e o educe CO2
emissions by 60 o 80 pe cen om he le el in 1990 by 2050 (Sun & Yu, 2012). The ea hquake ha s uck G ea Eas
Japan in 2011 and he Fukushima Daiichi nuclea powe acili y ca as ophe exposed he weaknesses and s esses in
Japan's ene gy supply in as uc u e as well as he isks associa ed wi h nuclea powe . The Fukushima nuclea agedy
p omp ed changes o he coun y's ene gy s a egy, which would e en ually educe eliance on nuclea powe , which
p oduced a ound 30% o he na ion's elec ici y in 2011 (Po ugal-Pe ei a, & Es eban,2014).
This pape aims o in es iga e, in a single model, he ela ionships be ween CO2, economic g ow h, ene gy consump ion,
globaliza ion, and egula o y quali y o he case o Japan, which has no been s udied p e iously, pa icula ly when
egula o y quali y is included as a con ol a iable in he model. The ARDL econome ic me hod will be used o achie e
his goal. As a as we a e awa e, no esea ch has used he ARDL app oach be o e o collec in o ma ion on he
ela ionship—whe he causal o dynamic—be ween he CO2, globaliza ion, egula o y quali y, ene gy consump ion,
and economic g ow h in Japan a di e en equencies and du ing di e en ime pe iods. We also used FMOLS, DOLS,
and CCR es ima o s o be e cap u e he long- e m e ec s o ene gy consump ion, economic g ow h, globaliza ion, and
egula o y quali y in Japan. As a esul , his s udy ills in his acuum in he li e a u e. This s udy looked in o he
possibili y ha :
• The independen a iables and CO2 ha e a long- e m equilib ium ela ionship.
• The GDP, ossil uels, and enewable ene gy ha e a subs an ial long- un e ec on Japan's CO2 and
• The FMOLS, DOLS, and CCR es indings co obo a e he s udy's long- un es ima es.
The es o his s udy is o ganized as ollows: The "li e a u e e iew" sec ion p o ides a quick o e iew o he mos
cu en s udies conduc ed on he opic and he heo e ical amewo k sec ion. The sec ion i led "Da a Me hodology"
p esen s he da a and me hodology. The sec ion unde "Empi ical indings" p esen s he conclusions om he empi ical
analysis. Las ly, he "concluding ema ks" sec ion p esen s he s udy's conclusion.
2. Synopsis o he li e a u e e iew
En i onmen al de e io a ion is cu en ly he wo ld's bigges p oblem. CO2 emissions, which a e b ough on by inc ease
in ene gy demand, a e he p incipal cause o en i onmen al deg ada ion.
2.1. Economic g ow h (GDP) and CO2
La ge g oups o de eloped economies ha e been obse ing di e ences in opinion o e he pas 20 yea s ega ding he
connec ion be ween CO2 emissions and GDP. I is ob ious ha basic indus ializa ion means mo e emissions. On he
o he hand, he ela ionship be ween weal h and CO2 is no e y s ong beyond his undamen al one. Consequen ly,
se e al ela ionships amongs hese a iables a e p esen ed. We shall look a he endency owa d emission ajec o ies
Wo ld Jou nal o Ad anced Resea ch and Re iews, 2025, 26(02), 234-253
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and economic g ow h in his s udy. The connec ion be ween economic g ow h and CO2 emissions es s he
En i onmen al Kuzne Cu e (EKC) hypo hesis, which depic s an in e ed U-shaped non-linea cu e be ween hese
wo a iables. Bo h in he beginning o de elopmen and once hey ha e eached a ce ain s age o g ow h, hese wo
a iables ha e a posi i e ela ionship, acco ding o he EKC, CO2 emissions dec ease as GDP inc eases since he na ion
can now pu chase e icien echnologies. This heo y was pu o he es , and i was ound o be ue by Akbos anci e al.
(2009). O e he long- un, economic g ow h and CO2 emissions a e posi i ely co ela ed.
Simila ly, (Huang e al. 2008) p o ided e idence in a o o Kuzne s' heo y. A e analyzing panel da a on GDP and
ene gy consump ion om 82 coun ies be ween 1972 and 2002, he au ho came o he conclusion ha he e is no
causal ela ionship be ween economic g ow h and ene gy consump ion in low-income g oup na ions. Pollu ion in low-
income coun ies inc eases wi h income; addi ionally, pollu ion begins o dec ease once a coun y eaches a speci ic
income h eshold. A esea ch based on da a ga he ed om 138 coun ies be ween 1971 and 2007 is p esen ed by Wang
(2013). The conclusion implies ha ca bon dioxide emissions can be explained by na ional incomes. The e en ual gain
in na ional GDP will ansla e in o an inc ease in ca bon dioxide emissions. In nea ly 80% o he coun ies, he d i e o
economic expansion has led o a ise in ca bon dioxide emissions.
Khan e al. in 2020 looked a he connec ion be ween Pakis an's ene gy use, economic g ow h, and CO2 emissions.
Acco ding o he indings, bo h in he sho and long un, economic g ow h and ene gy use inc ease CO2 emissions.
Addi ionally, Khan e al.'s esea ch om 2021 demons a ed ha ene gy usage has a a o able e ec on CO2 emissions
in 184 na ions. Howe e , he majo i y o esea ch ha explo ed his heo y did so in a o o he EKC, including hose
by E ug ul e al. (2016), and o he s. Rahman & Kashem (2017) also shown ha he e was a connec ion be ween
economic g ow h, ene gy use, and CO2 emissions. As opposed o his, esea ch by Soy as & Sa i (2009), es ablished a
single di ec ela ionship be ween CO2 emissions, ene gy use, and economic g ow h.
2.2. Renewable ene gy and CO2
One o he main conce ns in he con empo a y ene gy economy li e a u e is how enewable ene gy a ec s
en i onmen al quali y. Fo example, In he ins ance o 19 indus ialized and de eloping coun ies, Ape gis and Payne
(2010) analyze he link be ween enewable ene gy, CO2 emissions, economic g ow h and nuclea ene gy o he pe iod
1984–2007. G ange 's causali y es esul s imply ha enewable ene gy does no , in he sho e m, help o lowe CO2
emissions. Mo eo e , o a g oup o 12 MENA na ions co e ing he pe iod 1975–2008, Fa hani (2013) e alua es he
ela ionship be ween economic g ow h, enewable ene gy usage and CO2 emissions. The empi ical indings
demons a e ha , wi h he excep ion o one-way causa ion om enewable ene gy usage o CO2 emissions, he e is no
sho - e m causal ela ionship be ween hese a iables. On he o he hand, he long- e m esul s also demons a e
unidi ec ional causali y, ex ending om CO2 emissions and economic g ow h o he use o enewable ene gy. Jin, (2022)
in es iga e he iabili y o he EKC hypo hesis o a g oup o 17 OECD na ions o he yea s 1977–2010 by adding
enewable ene gy as a new a iable o he en i onmen al equa ion. They disco e ha using mo e enewable ene gy
can help cu ca bon emissions, his inding also aligns wi h (Damak & Hasan 2023; Damak & Ewaede 2024; Ochanya &
Damak 2025). Thei esul s also e u e he alidi y o he EKC heo y. Mou inho and Robaina (2016) in es iga e he
sho - and long- e m causal ela ionships be ween CO2 emissions om powe gene a ion and eal income o 20
Eu opean na ions o he pe iod 1991–2010; 2001–2010. The indings o e compelling p oo o he EKC's alidi y and
imply ha enewable ene gy can bo h signi ican ly lowe CO2 emissions and be a ac o in he a ia ions in he
connec ions be ween emissions and income among Eu opean na ions. Zoundi (2017) in es iga es he impac o
enewable ene gy on en i onmen al deg ada ion o 25 A ican na ions chosen be ween 1980 and 2012. Acco ding o
hei indings, enewable ene gy s ill wo ks well in place o adi ional ossil uel ene gy despi e ha ing a nega i e sho -
e m impac on CO2 emissions. Using an ARDL coin eg a ion app oach, Belaïd and Yousse (2017) in es iga e he link
be ween CO2 emissions, enewable and non- enewable ene gy consump ion, and economic g ow h in he con ex o he
Alge ian economy o e he 1980–2012 pe iod. Thei indings demons a e ha economic expansion and he long- e m
e ec s o non- enewable ene gy usage on CO2 emissions a e nega i e. The indings also sugges ha u ilizing
sus ainable ene gy sou ces can imp o e he su ounding en i onmen . Kahia e al. (2017) examines he causal
connec ions be ween economic expansion and sus ainable ene gy using da a o MENA na ions and demons a e ha
enewable ene gy boos s economic g ow h while lowe ing CO2 emissions. Recen ly, Damak & Hasan (2023)
globaliza ion and ene gy consump ion in Japan; Chen e al. (2019) in es iga e China's 1980–2014 inc ease o he
economy, he amoun o ene gy p oduced, bo h enewable and non- enewable, and in e na ional comme ce. Acco ding
o hei esea ch, ca bon emissions ise wi h inc eases in non- enewable ene gy and pe capi a GDP bu all wi h
inc eases in enewable ene gy.
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2.3. Fossil uels and CO2
The changes in ca bon dioxide emissions om bu ning ossil uels (coal, gas, and oil) in 28 Eu opean coun ies om
1960 o 2018 a e displayed in his li e a u e s udy by And ew, (2020). Al hough he need o coal and oil s ill domina es
he ene gy sec o , he impo ance o na u al gas and enewable ene gy sou ces is g owing. One- hi d o all ene gy use
was made up o na u al gas in 2018; be ween 1960 and 2018, his pe cen age ose om 1.94% o 28.05%. Ge many
was he wo ld leade in CO2 emissions in 2018 wi h 759 M , ollowed by he UK (379 M ), Poland (344 M ), I aly (338
M ), and F ance (379 M ). In 2018, Ge many's CO2 emissions exceeded six imes he annual a e age o 123 million ons
o CO2. Ou o all he coun ies, only se en ha e ca bon dioxide emissions ha su pass he annual a e age, while 21 ha e
emissions ha a e conside ably lowe han he a e age o 2018. As o he da a, he CO2 emissions o he Czech Republic
and La ia inc eased by a meag e 7% be ween 1960 and 2018, bu he coun ies o Cyp us, Po ugal, G eece, and Spain
expe ienced he highes g ow h. In con as , I aly saw he la ges inc ease in CO2 emissions (229 M CO2), ollowed by
Spain (219 M CO2) and Poland (144 M CO2). Ne e heless, jus ou o he 28 na ions unde in es iga ion—Ge many,
Luxembou g, Sweden, and he Uni ed Kingdom—had CO2 emissions in 2018 ha we e compa able o o lowe han
hose in 1960.
Addi ionally, ca bon emissions and ossil uels a e discussed. Fo ins ance, acco ding o D uckman and Jackson's 2009
s udy, CO2 emissions ell in he i s hal o he 1990s when examining he ca bon oo p in o amilies in he Uni ed
Kingdom be ween 1990 and 2004, due o uel eplacemen s in he elec ic sec o . Bu since hen, mo e p oduc s and
se ices ha e come o include CO2 emissions, which ha e been ising. Zhang, & Wang, (2017) compa ison o ene gy
usage o Danish amily consump ion be ween 1966 and 1992 showed ha he e ec o inc eased o e all use was
subs an ially compensa ed by lowe ing ene gy in ensi y wi hin he indus ies p oducing goods, wi h he changing
composi ion o consump ion ha ing a a lesse ole. In con as , Baiocchi, (2010) concen a ed on a sho e pe iod o
ime o he US, namely om 1997 o 2004, and ound ha s uc u e had a g ea e in luence han shi ing sec o al ene gy
in ensi ies.
2.4. Globaliza ion and CO2
The global ou pu is s eadily inc easing as globaliza ion and indus ializa ion p og ess. Globaliza ion is he e m used
o desc ibe how na ional economies a e in eg a ed ega ding comme ce, inancial lows, and u he poli ical and
socioeconomic ace s, wi h he global economy. Mul iple ways exis o globaliza ion o impac en i onmen al quali y.
Acco ding o Shahbaz e al. (2017), he e a e a ious en i onmen al issues ha a e ela ed o globaliza ion. Many
en i onmen alis s belie e ha inc eased globaliza ion encou ages consume demand o p oduc s and se ices g ows
along wi h economic ac i i y and ou pu . This causes bo h en i onmen al damage and he deple ion o na u al esou ces
(Damak & Hasan 2024). En i onmen al bene i s o globaliza ion we e disco e ed by Dogan and Tu kekul (2016). In
addi ion, globaliza ion has been ound by Sha i e al. (2020) o ha e de imen al en i onmen al ex e nali ies.
Addi ionally, in con as o he poli ical, social, economic and globaliza ion index, u baniza ion has a nega i e impac on
CO2 emissions, acco ding o Dau e gne's (2008) analysis. Howe e , Dogan and Dege (2016) and o he s came o he
opposi e conclusion, ha he ansmission o en i onmen ally a o able echnologies, which is made easible by
globaliza ion, can imp o e en i onmen al quali y, and s essing how globaliza ion has a majo nega i e in luence on
CO2 emissions.
2.5. Regula o y quali y and CO2
The g ea es s a egy o p omo e excellen en i onmen al p ac ices, acco ding o many expe s, is h ough s a e
en i onmen al egula ions combined wi h e ec i e moni o ing and unambiguous penal ies o non-compliance. (2013)
Zapa a e al.Acco ding o some esea ch conduc ed in he pas ew yea s, ins i u ional p essu es ha e an e ec on
business en i onmen al p ac ices Be one & Gomez-Mejia, (2009). Compa ably, esea ch by Khanna and An on (2002)
and Delmas & To el (2004) indica es ha ins i u ional quali y, which includes "coe ci e p essu e, no ma i e in luence
o mimic y," can a ec how quickly en i onmen al ac ions sp ead h oughou high-pollu ion i ms in an economy,
including he obse ance o sound ecological managemen plans. Howe e , de ac o s con end ha ins i u ional
measu es like hi d-pa y inspec ion, public humilia ion, and penal ies can only p oduce isomo phic adhe ence o
en i onmen al compliance no ms wi hin an economy Delmas e al., (2019). They ypically asse ha p oac i e laws
enhance inno a ion-based pe o mance o e ime, whe eas eac iona y me hods inc ease co po a e en i onmen al
pe o mance in he sho e m. They also a gue ha businesses looking o engage in sus ainabili y h ough legisla ion
a e essen ially simply acing challenges o hei egula business ope a ions. They disco e , howe e , ha p oduc s and
p ocesses a e edesigned, con olling sys ems include esh da a se s, communica ion s a egies a e upda ed, and
knowledge and alues sys ems wan esh in o ma ion. Thus, i ms unde s and ha o ganiza ional lea ning— a he
han egula ions—is a key ool o e icien ly ealizing en i onmen al sus ainabili y in hei ope a ions Siebenhüne &
A nold (2007). Discussions abou co po a e sus ainabili y deli e y in ecen yea s ha e ypically called o " o al
Wo ld Jou nal o Ad anced Resea ch and Re iews, 2025, 26(02), 234-253
238
o ganiza ional edesign and app oaches," which ask o he capaci y o adap a ion and lea ning an Ma ewijk &
Ha djono (2003).Mo eo e , a lo o expe s in sus ainabili y deli e y hink ha he implemen a ion o manda o y
en i onmen al laws wi h s ong moni o ing and clea consequences o non-compliance ypically shows use ul
ins umen s o gua an eeing ha people and businesses implemen sus ainable en i onmen al p ac ices Chams &
Ga cía-Blandón (2019). Ta oglu e al. (2020) asse ha he capaci y o poli icians o con ol co po a e beha io in an
economy h ough he absence o laws and ines is impo an . Analogously, i has been obse ed ha indi iduals and
o ganiza ions a e signi ican ly mo i a ed o pa icipa e in olun a y en i onmen al ac i i ies when hey a e awa e o
en i onmen al legisla ion and ge incen i es o aking ac ion beyond compliance wi h en i onmen al conce ns
(Ta oglu e al., 2020). Fo ins ance, ins i u ional ules go e ning he au omobile sec o o en gua an ee a dec ease in
a mosphe ic pollu an s and manda e ha businesses modi y and implemen sus ainable manu ac u ing p ac ices o do
away wi h nega i e emissions by c ea ing eco- iendly p oduc s like elec ical and hyd ogen-powe ed ehicles. C i ics
coun e ha o ganiza ions ei he delibe a ely manipula e public ins i u ions o ebel agains ins i u ional o e sigh and
egula ions Bui & Fowle , 2019; Ryngelblu e al. (2019). Oli e (1991) s a es ha his kind o esis ance ypically akes
he o m o openly challenging en o ced s anda ds, suing ins i u ions, launching legal challenges, o di ec ly a acking
ins i u ional es ic ions.
Regula ions pe aining o ossil uels a e imposed on people and co po a ions in he con ex o en i onmen al
sus ainabili y o ganiza ions wi h he goal o lowe ing g eenhouse gas (GHG) emissions. Howe e , o he expe s say ha
in ega d o mul ina ional en e p ises, pushing e e y en i onmen al agency and go e nmen o lowe egula ion
equi emen s is no p ac icable in ecen imes Bunea & Ch isp (2023). Fu he mo e, consume s ejec and denounce
companies ha o e subpa and en i onmen ally ha m ul goods and se ices because hey ca e abou he en i onmen
Delmas & To le, (2004a).
I is clea using he e iewed li e a u e ha he conclusions a e con adic o y, highligh ing he need o addi ional
esea ch on he connec ions be ween CO2 emissions and egula o y quali y, he globaliza ion index, economic g ow h,
and ene gy use. To he au ho s' knowledge, no p e ious esea ch has looked a he e ec s o economic g ow h, ene gy
consump ion, he globaliza ion index, and egula o y quali y on CO2 emissions in Japan using he ARDL model.
Consequen ly, he p esen wo k ills a knowledge gap in he ield. This esea ch explo es he connec ions be ween CO2
and egula o y quali y, he globaliza ion index, economic g ow h, and ene gy use. This empi ical s udy's da ase
includes da a om 1990 h ough 2021.
3. Theo e ical F amewo k
Acco ding o he deba e o e en i onmen al p o ec ion and economic g ow h, he undamen al d i e o income g ow h
is he combina ion o ac o s ha a ec p oduc ion which inc eases businesses' equi ed inpu s ha c ea e pollu ion
(Lopez 2017). Based on he mo e comp ehensi e En i onmen al Kuzne s Cu e (EKC) pa adigm (Kuzne s 1955),
economic g ow h and en i onmen al quali y a e ela ed in bo h posi i e and nega i e ways. The idea con ends ha
while a posi i e ou come is an icipa ed in he sho e m, a nega i e ou come is an icipa ed in he long e m (G ossman
& K uege , 1991). The scale e ec has a posi i e associa ion, whe eas he echnique e ec has a nega i e one, acco ding
o Udeagha & Muchapondwa (2022). This sugges s ha , in he sho e m, as he ag icul u al sec o expand, he
en i onmen will also ge wo se; howe e , as weal h inc eases, P oduc ion echnique will shi away om being
ex emely indus ialized, which p oduces mo e emissions, and owa d being mo e se ice o ien ed, which p oduces
ewe emissions. Bu doing so hu s he economies o less de eloped coun ies. As s a ed by he "pollu ion ha en"
heo y, less de eloped na ions wi h laxe en i onmen al ules ecei e indus ial ope a ions ha a e haza dous o he
en i onmen om weal hy na ions (Ba di & H aiedh 2021). The undamen al cause o his is ha when ea nings ise,
people place g ea e impo ance on o imp o e hei s anda d o li ing and inc ease p essu e on he go e nmen o
enac en i onmen al p o ec ion laws. Acco ding o Usman e al. (2022), businesses wi h shoddy g een echnology o en
eloca e o unde de eloped na ions, which is bad o he en i onmen . The p e-indus ial up end s age, which is
cha ac e ized by low income (caused by economic ine iciencies), he phase o indus ial mass p oduc ion, whe e he
pos -indus ial g een s age and ising income a e p ominen , which is cha ac e ized by ising income bu mo e
en i onmen ally iendly echnology, a e he h ee s ages o he EKC (Dinda, 2004). Openness o ade has g own in
popula i y has g own o e ime and demons a ed o be c ucial o economic g ow h. Ea ly in he 1980s, economic
libe aliza ion policies ha e been d i en by he deb issue in he as majo i y o de eloping na ions. T ade has imp o ed
and GDP g ow h has inc eased as a esul o Asian economies' ini ia i es o global opening up (Tisso e al., 2019).
G ow h, ade, and enewable ene gy wo k oge he o c ea e an en i onmen ha has a snowball e ec . The e o e,
ade may p omo e he g ow h o enewable ene gy, which in u n can p omo e i s use, which in u n can p omo e e en
mo e enewable ene gy p oduc ion. The supply, demand, impo s, and expo s a e only a ew o he a iables ha ha e
an e ec on he ene gy ma ke s equen ly (Vanham e al. 2019). I is be e o he en i onmen i ag icul u al economic
g ow h occu s concu en ly wi h he g ow h o he enewable ene gy indus y since i p oduces ene gy mo e cleanly.

Wo ld Jou nal o Ad anced Resea ch and Re iews, 2025, 26(02), 234-253
239
On he basis o his s uc u e, he esea ch makes an e o o e alua e he na u e o he in e ac ion be ween he
ag icul u al economy, he p oduc ion o enewable ene gy as a consump ion s imulan , he en i onmen , and ade.
4. Da a P esen a ion
This esea ch does an empi ical analysis o he mul i a ia e ime se ies echnique. To sol e he ime se ies issues, he
se ies a e ans o med in o he o m o a na u al loga i hm. We use he Au o eg essi e Dis ibu ed Lag (ARDL) model,
Fully Modi ied O dina y Leas Squa e (FMOLS), Dynamic O dina y Leas Squa e (DOLS), and Canonical Coin eg a ing
Reg ession (CCR). A common applica ion o ARDL models is in ime se ies da a. Because he e a e 80 o ewe indings
in he Pesa an, Shin, and Smi h (2001) es ablished ARDL co-in eg a ion p ocedu e compa ed o he " wo-s ep" me hod
p ocedu e o co-in eg a ion by Engle and G ange (1987), i is claimed o be mo e s ingen in small samples ypical o
he social sciences. This claim s a es ha when using an e o co ec ion o m o an ARDL model, co-in eg a ion es ing
becomes essen ial. Despi e his, his co-in eg a ion indica o is no di ec ly used in con en ional s a is ical applica ions.
The ARDL pa adigm's e o -co ec ing me hod, in addi ion o i s inhe en inconsis encies, a ious lags, and lagging
equi emen s, may be unduly complex. As a esul , i ge s ha de o analyze he e ec s o changing he independen
a iable o a iables, especially o e he long and sho e ms. In o de o comba his, an added p og ammable ea u e
gi es use s he abili y o dynamical imi a e a a ie y o ARDL echniques while simul aneously including he model o
ec i ying e o s.
He e a e how he models a e shown:
CO2 = (GDP, REW, FOSSIL, GLOBA, RQ) ………. (1)
To emo e da a disc epancies and make i simple o assess he ou comes, e e y a iable is ans o med o hei log
o ms. Ene gy usage encompasses consump ion o ossil uels, which s ands in o he usage o non enewable ene gy
and enewable ene gy sou ces.
LNCO2 = α0+ 𝛶1LNGDP + 𝛶2LNREWB+𝛶3LNFOSSIL+𝛶4LNAGLOBA + 𝛶5LNRQ+μ (2)
The e m "na u al log" (LN), α0 indica es in e cep , 𝛶1−𝛶5; shows he slope o he pa ame e s 𝜇𝑡= s ochas ic a iable
o dis u bance a iable and he ap io i assump ions a e supposed o be 𝛶1> 0 - 𝛶5> 0. Equa ion (1) uses LNGDP o
ep esen economic g ow h and LNCO2 o ep esen ca bon dioxide emissions. LNREWB o consump ion o enewable
ene gy, LNFOSSIL o consump ion o non enewable ene gy, LNGLOBA o economic, social, and poli ical dimensions
a e aken in o conside a ion o p oduce he globaliza ion index. Each o he h ee componen s o globaliza ion a e
poli ical, social, and economic—makes up 26%, 38%, and 36% o he whole. This e alua ion is based on D ehe (2006),
and LNRQ o egula o y quali y in Japan. Table 1 p o ides de ailed in o ma ion on he a iables unde in es iga ion.
All o he a iables a e sou ced om he Wo ld Bank Indica o (h ps://da a.wo ldbank/) and Swiss Economic Ins i u e
(SEI) h ps: indica o s/ko -globalisa ionindex. h ml
Table 1 Va iables sou ces
Va iables
De ails o he Va iables
Measu ing Ins umen s
Sou ces o Da a
LNCO2
Ca bon dioxide
Pe cen age (%)
Wo ld De . Ind.
LNGDP
Economic g ow h
Cons an 2015 US$
Wo ld De . Ind.
LNFOSSIL
Fossil uel
Pe cen age (%) o o al
Wo ld De . Ind.
LNREWB
Renewable ene gy
Pe cen age (%) o ene gy consump ion
Wo ld De . Ind.
LNGLOBA
Globaliza ion
Pe cen age (%)
KOF SEI
LNRQ
Regula o y quali y
Es ima e
Wo ld De . Ind.
All o he a iables in Wo ld De elopmen Indica o s, a e in loga i hmic o m and KOF Index o Globaliza ion.
Wo ld Jou nal o Ad anced Resea ch and Re iews, 2025, 26(02), 234-253
240
Figu e 1 The analysis's wo k low cha
4.1. Uni Roo Tes
Spu ious eg ession will occu i he p oblem o non-s a iona i y in ime se ies is no add essed Nelson and Plosse
(1982). Va iables wi h a uni oo gene a ed e oneous in e p e a ions. I is necessa y o pe o m a seasonal uni oo
es o make su e ha he e a e no in eg a ed se ies o o de 2 o highe in o de o add ess he explosi eness p oblem.
In o he wo ds, i he ou comes show ha he ini ial di e ence doesn' ha e a uni oo and he se ies is s a iona y a
le els I(0) and I(1). Because o he le el o s a iona i y disco e ed in a combina ion o o de le els I (0) and I(1), he
ARDL app oach is sui able o he inqui y (Jo dan & Philips 2018). To es he uni oo , he augmen ed Dickey-Fulle
(ADF) amewo ks we e u ilized. Al hough s uc u al ac u es a e no aken in o accoun by con en ional s a iona i y
es ing, he da a did no show any. A se ies eaches s a iona i y when he mean, a iance, and co a iance a e all
cons an s. The ADF and Philips – Pe on (PP) indings demons a ing ha each a iable is in eg a ed a I (0) and I (1) is
one o he mo i a ions o using ARDL me hod.
△Y =β D + π△Y −1 + ∑θ△Y −1
𝑝
j=1 +ε ………….(3)
△Y = (p-1) Y −1 + ε ………… (4)
Equa ion 3 ep esen s he ADF es equa ion o he uni oo , and Equa ion 4 ep esen s he PP, which a e used o
con i m he s a iona i y o he da a se ies. The i s di e ence ope a o is ep esen ed by he symbol △, and Y shows
a signi ican amoun o ime- ela ed au oco ela ion. The independen a iables a e deno ed by Y −1. The e o e m
is deno ed by ε in Equa ions 3 and 4.
Table 2 ADF
Va iable a Le el
Cons an
P ob.
Cons an & end
P ob.
Rema k
LN CO2
-2.567
0.111
-2.359
0.392
-
LNGDP
-1.573
0.484
-3.163
0.110
-
LNREWB
0.243
0.971
-2.009
0.574
-
LNFOSSIL
-0.450
0.887
-2.620
0.275
-
LNAGLOBA
-2.390
0.153
-1.816
0.673
-
LNRQ
-1.5767
0.4818
-3.1081
0.1226
-
Fi s Di e ence
D(LN CO2)
-4.709
0.001***
-3.728
0.039**
I (1)
D(LNGDP)
-5.755 0.000***
-5.666
0.000***
I (1)
D(LNREWB)
-6.434
0.000***
-7.627
0.000***
I (1)
D(LNFOSSIL)
-4.435
0.001***
-4.546
0.006***
I (1)
D(LNGLOBA)
-5.3303
0.000***
-5.9153
0.000***
I (1)
D(LNRQ)
-4.497
0.002***
-4.0001
0.019**
I (1)
Sou ce: Au ho ’s Compila ion, E- iews 12
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241
Table 3 PP
Va iable a Le el
Cons an
P ob.
Cons an & end
P ob.
Rema k
LN CO2
-2.3614
0.1604
-2.0141
0.5711
-
LNGDP
-1.7331
0.4054
-2.7620
0.2209
-
LNREWB
0.7006
0.9902
-1.5025
0.8070
-
LNFOSSIL
-0.6561
0.8433
-2.0404
0.5572
-
LNGLOBA
-5.5309
0.0001
-1.4323
0.8308***
I (1)
LNRQ
-1.2522
0.6386
-2.3533
0.3950
-
Fi s Di e ence
D(LN CO2)
-4.6710
0.0008
-6.5447
0.0000***
I (1)
D(LNGDP)
-8.1353 0.0000
-8.9904
0.0000***
I (1)
D(LNREWB)
-5.7649
0.0000
-7.4625
0.0000***
I (1)
D(LNFOSSIL)
-4.0087
0.0043
-4.8440
0.0027***
I (1)
D(LNGLOBA)
-5.3515
0.0001
-12.0740
0.0000***
I (1)
D(LNRQ)
-4.3045
0.0021
-4.3475
0.0089***
I (1)
Tables 2 and 3 show ha he a iables we e examined using he loga i hm o m, p- alues, and -s a is ics. The as e isks (***) and (**) deno e
signi icance alues o 1% and 5%.
Acco ding o Table 2, he se ies is s a iona y. Applying a signi icance c i e ion o 5%, he ou come o he ADF and PP
es s show ha a uni oo does no exis . The null hypo hesis is disp o ed a he 5% le el o signi icance because all o
he a iables a e s a iona y a he i s di e ences, I (1) excep LNGLOBA ha is s a iona y a I (0) using PP.
Each a iable was e alua ed using p- alues, -s a is ics, and he loga i hm o m. The as e isks (***) & (**) able 2 and 3
indica es ha he expec a ion ha i has been ejec ed, hence a he 1% and 5% signi icance le els, he a iables ha e
uni oo s. The uni oo model, which was de eloped o desc ibe he gene ic model o m, began wi h he in e cep
pa ame e , whe e each model displays a end, as seen in able 2 and 3. Addi ionally, i had been shown ha one a iable
is s a iona y a le el and all o he a iables we e ei he i s -o de in eg a ed o s a iona y a he ini ial di e ence.
4.2. Desc ip i e S a is ics and Spikes o he Va iables
Table 4 Desc ip i e S a is ics
LN CO2
LNGDP
LNREWB
LNFOSSIL
LNGLOBA
LNRQ
Mean
13.96808
10.38724
1.556560
4.452159
4.232102
6.362516
Median
13.97173
10.39599
1.490159
4.423036
4.244342
6.350415
Maximum
14.04883
10.49453
2.039921
4.550009
4.360103
6.526504
Minimum
13.89392
10.25493
1.252763
4.374482
4.014806
6.219704
S d. De .
0.041210
0.068333
0.233424
0.065606
0.102458
0.106301
Skewness
-0.032561
-0.14310
0.848508
0.556976
-0.559245
0.276946
Ku osis
2.136550
1.972259
2.494635
1.531733
2.193060
1.490351
Ja que-Be a
0.999716
1.517548
4.180341
4.528928
2.536229
3.447779
P obabili y
0.606617
0.468240
0.123666
0.103886
0.281362
0.178371
Obse a ions
32
32
32
32
32
32
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242
Table 4 abo e is he desc ip i e s a is ics which we e u ilized o ga he mo e in o ma ion abou how he da a a e sp ead
ou and dis ibu ed ha we e employed in he analysis du ing he s udy pe iod. The desc ip i e s a is ics mean, median,
max, min, s d, skewness, ku osis, Ja que-Be a, and p obabili y alues a e examined in he s udy ha ollows. Table 4
abo e displays he desc ip i e s a is ics o each a iable, whe e he dependen a iable's mean LN CO2 13.96 and he
s d. de . is 0.04. The independen a iables' mean alues o LNGDP, LNREWB, LNFOSSIL, LNGLOBA, LNRQ we e
10.39,1.56,4.45,4.23 and 6.36 espec i ely, and he s d, we e 0.07,0.23, 0.07, 0.1. and 0.11 espec i ely. LNREWB,
LNFOSSIL and LNRQ a e posi i ely skewed, while LN CO2, LNGDP, and LNGLOBA a e all nega i ely skewed. While he
Ja que-Be a es o no mali y was mo e han 1% and he p obabili y alues a e mo e han 5%, which indica e he
Ku osis alue o each a iable was unde 3, indica ing ha each had a no mal dis ibu ion.
Figu e 2 Owing o luc ua ions in he independen a iables, igu e 2 abo e displays he se ies' spikes and a seasonal
pa e n in LNCO2. Wi h a s uc u al b eak in bo h 2010 and 2020, he LNGDP shows an inc easing end. Compa ably,
LNREWB exhibi s an expec ed ising pa e n, while LNFOSSIL has a seasonal endency wi h a consis en inc ease om
2010 o 2020. LNGLOBA has a ising pa e n. Al hough LNGOBA and LNRQ exhibi a declining endency in his
esea ch, hey a e s a is ically insigni ican o e he long e m when i comes o Japan in ou analysis.
4.3. Co-in eg a ion Using a Bounds Examina ion App oach
The coin eg a ion es looks o an equilib ium s a e ac oss he long- un connec ion in ol ing he independen and
dependen a iables. The e a e only a iables ha a e in eg a ed in he same o de , when applying es s such as hose
by Engle & G ange (1987), and Johansen (1988). Pesa an e al. (2001) did, howe e , o e a esolu ion o he a iables'
Wo ld Jou nal o Ad anced Resea ch and Re iews, 2025, 26(02), 234-253
249
6. Conclusion
Ou analysis emphasizes he connec ion be ween economic g ow h, ene gy usage, globaliza ion, and egula o y quali y
on CO2 emissions u ilizing yea ly da a o Japan om 1990 o 2021. Applying he ARDL echnique is mo i a ed by he
ac ha e e y a iable is in eg a ed o o de ze o I (0) and I (1), using he ADF and PP es . The ARDL limi s F- es
demons a e a long- un associa ion be ween CO2, GDP, enewable ene gy, ossil uels, globaliza ion, and egula o y
quali y a a signi icance le el o 5%. The ou come o he es ima ion o he long- un coe icien s p o ed ha while he
GDP and CO2 ha e a a o able and signi ican associa ion, meaning inc ease in GDP inc eases CO2 in bo h sho and long-
un pe iod in Japan. The e is a s ong nega i e co ela ion be ween CO2 emissions and he u iliza ion o enewable
ene gy, sugges ing ha using g een ene gy mo e equen ly will imp o e en i onmen al sus ainabili y in Japan.
Addi ionally, he p edic ed ECT coe icien s a e s a is ically signi ican nega i e alues which is he quickness o
adjus men o each long- e m balance. The esea ch' esul s demons a e ha , wi h a posi i ely and s a is ically
signi ican sign o he coe icien o ossil uel consump ion, en i onmen al de e io a ion in Japan is p ojec ed o
wo sen as ossil uel consump ion ises. Fu he mo e, egula o y quali y has a nega i e and insigni ican coe icien ,
whe eas he globaliza ion index has a nega i e and insigni ican coe icien in he long- e m. FMOLS, DOLS, and CCR a e
used o calcula e he long- e m elas ici ies o he ele an associa ion be ween he a iables, demons a ing he
obus ness o he esul s om he ARDL coin eg a ion.
6.1. Sugges ed Policy
Acco ding o he s udy's empi ical indings, sus ainable de elopmen and cleane g ow h a e highly alued in Japan's
long- e m economic objec i es. On he o he hand, en i onmen al deg ada ion may make i mo e challenging o mee
sus ainable de elopmen objec i es. Japan should hus begin aising public awa eness, implemen he necessa y
s uc u al changes o enable income le els o inc ease wi hou aising emissions, and endea o o lessen i s dependency
on ossil uels in o de o educe pollu ion. O e all, ou s udy suppo s he indings o ea lie esea ch and sugges s ha
enewable ene gy sou ces could be used as a policy ins umen o lessen pollu ion and en i onmen al ha m.
We can o e some pe cep i e sugges ions o a mo e sus ainable and ecologically iendly en i onmen based on he
ac ual ac s o Japan desc ibed abo e. A cleane , g eene en i onmen and inc eased ene gy e iciency a e wo UN
Sus ainable De elopmen Goals ha Japan may be able o accomplish wi h he help o hese policy implica ions.
Acco ding o he s udy's indings, go e nmen s should en o ce s ingen laws, p omo e in es men s in enewable
ene gy sou ces, and discou age he use o ossil uels in o de o lowe en i onmen al deg ada ion. This is because
people's quali y o li e is imp o ed when hey employ enewable ene gy sou ces. Con e ing ex a ene gy om
economic g ow h in o enewable ene gy sou ces, which equi es a echnology shi , is an e icien way o educe CO2.
6.2. Limi a ion
A limi a ion ega ding his s udy is ha i does no accoun o ade openness, u baniza ion, o eign di ec in es men ,
o o he ac o s ha con ibu e o en i onmen al deg ada ion. Ins ead, i is an empi ical in es iga ion ha is subjec i e
ega ding he e ec s o ene gy use, economic g ow h, globaliza ion, and egula o y quali y on CO2 emissions. In o de
o e alua e hese ela ionships, u u e esea ch should also make use o addi ional en i onmen al deg ada ion p oxies,
such as ecological oo p in , load ac o , and consump ion-based ca bon emissions. Finally, a signi ican limi a ion o
his in es iga ion is he inaccessibili y o da a a e he designa ed ime ame.
Compliance wi h e hical s anda ds
Disclosu e o con lic o in e es
No con lic o in e es o be disclosed.
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