Skip Navigation Links
Journal of Environmental Accounting and Management
António Mendes Lopes (editor), Jiazhong Zhang(editor)
António Mendes Lopes (editor)

University of Porto, Portugal


Jiazhong Zhang (editor)

School of Energy and Power Engineering, Xi'an Jiaotong University, Xi'an, Shaanxi Province 710049, China

Fax: +86 29 82668723 Email:

Do Human Capital and Export Diversification Decline or Augment CO$_{2}$ Emissions? Empirical Evidence from the MINT Countries

Journal of Environmental Accounting and Management 9(2) (2021) 111--125 | DOI:10.5890/JEAM.2021.06.002

Foday Joof$^1$, Aliya Zhakanova Isiksal$^2$

$^1$ Risk Management Department, Central Bank of The Gambia, 1-2 Ecowas Avenue Banjul, the Gambia

$^2$ Department of Banking and Accounting, Near East University, Nicosia TRNC, via Mersin 10, Turkey

Download Full Text PDF



This paper analyzes the consequence of human capital and export diversification on the CO$_{2 }$emissions of Mexico, Indonesia, Nigeria and Turkey (MINT). To attain the impartiality of the study, the Pooled Mean Group (PMG) is used on panel data from 1975-2010. The outcome from the PMG reveals that education (human capital) has a negative consequence on CO$_{2}$ in the long term. This indicates that an increase in education reduces the level of CO$_{2}$ emissions in the environment. Furthermore, export diversification is positively associated with carbon emissions in the long run. The findings also illustrated that the environmental Kuznets curve (EKC) hypothesis is invalid for these nations. The outcomes of Dumitrescu and Hurlin (DH) causality provided evidence for unidirectional causation running from export diversification to CO$_{2}$ emissions. Also, a feedback association amid human capital and CO$_{2}$ emissions is found. However, economic expansion, the quadratic term of GDP, and energy consumption have no causal association with carbon emissions.


  1. [1] Aditya, A, and Acharyya, R. (2013), Export diversification, composition, and economic growth: evidence from cross-country analysis, J Int Trade Econ Dev , 22(7), 959-992.
  2. [2] Ahmed, K. (2017), Revisiting the role of financial development for energy-growth-trade nexus in BRICS economies, Energy, 128, 487-95.
  3. [3] Ahmed, Z. and Wang, Z. (2019), Investigating the impact of human capital on the ecological footprint in India: An empirical analysis, Environmental Science and Pollution Research, 26, 26782-26796. /s11356-019-05911-7.
  4. [4] Akbostanc\i, E., T\"{u}r\"{u}t-A\c{s}\i k, S. and Tun\c{c}, G.I. (2009), The relationship between income and environment in Turkey: is there an environmental Kuznets curve? Energy Policy, 37(3), 861-7.
  5. [5] Alam, M.M., Murad, M.W., Noman, A.H.M., and Ozturk, I. (2016), Relationships among carbon emissions, economic growth, energy consumption and population growth: testing Environmental Kuznets Curve hypothesis for Brazil, China, India and Indonesia, Ecol. Indic., 70, 466-479.
  6. [6] Alam, M.M., Alam, K. ,and Shahbaz, M. (2017), Climate change perception and local adaptation strategy of hazard-prone rural households in Bangladesh, Climate and Risk Management. DOI:10.1016/,$\backslash $m.2017.06.006.
  7. [7] Alam, M.S. and Paramati, S.R. (2015). Do oil consumption and economic growth intensify environmental degradation? Evidence from developing economies, Appl. Econ., 47, 5186-5203.
  8. [8] Al-Mulali, U., Tang, C.F., and Ozturk, I. (2015), Estimating environment Kuznets Curve hypothesis: Evidence from Latin America and Caribbean countries, Renewable and Sustainable Energy Reviews, 50, 918-924.10.1016/j.rser.2015.05.017.
  9. [9] Apergis, N., Eleftheriou, S., and Payne, J.E. (2013), The relationship between international financial reporting standards, carbon emissions, and R&D expenditures: Evidence from European manufacturing firms, Ecological Economics 88, 57-66.
  10. [10] Apergis, N., Can, M., Gozgor, G., and Lau, C.K.M. (2018), Effects of export concentration on CO2 emissions in developed countries: an empirical analysis, Environmental Science and Pollution Research 25, 14106-14116.
  11. [11] Arouri, M.E.H., Ben Youssef, A., MHenni, H., and Rault, C. (2012), Energy consumption, economic growth and CO2 emissions in Middle East and North African countries, Energy Policy, 45, 342-349.
  12. [12] Ayoade, J.O. (2003), Climate change (p.128). Ibadan: Vantage publishers.
  13. [13] Assi, A.F., Isiksal, A.Z., and Tursoy. T. (2020), Highlighting the connection between financial development and consumption of energy in countries with the highest economic freedom, Energy Policy, 147, 111897,
  14. [14] Bano, S., Zhao, Y., Ahmad, A., Wang, S., and Liu, Y. (2018), Identifying the impacts of human capital on carbon emissions in Pakistan, J Clean Prod, 183, 1082-1092.
  15. [15] Bekhet, H.A., Matar, A., and Yasmin, T. (2017), CO2 emissions, energy consumption, economic growth, and financial development in GCC countries: dynamic simultaneous equation models, Renew. Sust. Energ. Rev., 70, 117-132
  16. [16] Bilgili, F., Ko\c{c}ak, E., and Bulut, \"{U}. (2016), The dynamic impact of renewable energy consumption on CO2 emissions: a revisited Environmental Kuznets Curve approach. Ren Sustain Energy Rev, 54, 838-45.
  17. [17] B\"{o}l\"{u}k, G. and Mert, M. (2014), Fossil & renewable energy consumption, GHGs (greenhouse gases) and economic growth: evidence from a panel of EU (European Union) countries, Energy, 74, 439-46.
  18. [18] Botkin, D.B. and Keller, E.A. (1997), Environmental science (p.245), New York, NY: John Willey and Sons.
  19. [19] Breitung, J. (2000), Nonparametric Tests for Unit Root and Cointegration, Journal of Econometrics, 108, 343-363.
  20. [20] Cadot, O, Carrere, C., and Strauss-Kahn, V. (2011), Export diversification: Whats behind the hump? Review of Economics and Statistics, 93(2), 590-605.
  21. [21] Cadot, O., Carr\`{e}re, C., and Strauss-Kahn, V. (2013), Trade diversification, income, and growth: what do we know? Journal of Economic Surveys, 27(4), 790-812. 2011.00719.
  22. [22] Can, M. and Gozgor, G. (2017), The impact of economic complexity on carbon emissions: evidence from France. Environmental Science and Pollution Research, 24(19), 1636-470.
  23. [23] Danish, Hassan, S.T. and Baloch, M.A. (2019), Linking economic growth and ecological footprint through human capital and biocapacity, Sustain Cities Soc, 47, 101516. 101516.
  24. [24] Dennis, A. and Shepherd, B. (2007), Trade Costs, Barriers to Entry, and Export Diversification in Developing Countries, Journal of International Trade, DOI:10.1596/1813-9450-4368
  25. [25] Dennis, A. and Shepherd, B. (2011), Trade facilitation and export diversification, The World Economy, 34(1), 101-22.
  26. [26] Desha, C., Robinson, D., and Sproul, A. (2015), Working in partnership to develop engineering capability in energy efficiency. J Clean Prod, 106, 283-291.
  27. [27] Dumitrescu, E.I. and Hurlin, C. (2012), Testing for Granger non-causality in heterogeneous panels, Econ Modell, 29(4), 1450-60.
  28. [28] EIA. (2015a), Country analysis brief: Nigeria. U.S. Energy Information Administration. Retrieved from www.eia. gov/beta/international/analysis{\_}includes/countries{\_}long/ Nigeria/nigeria.pdf.
  29. [29] Fang, Z. and Chang, Y. (2016), Energy, human capital and economic growth in Asia Pacific countries - evidence from a panel cointegration and causality analysis, Energy Econ, 56, 177-184. 1016/j.eneco.2016.03.020.
  30. [30] Fang, Z. and Chen, Y. (2017), Human capital and energy in economic growth-evidence from Chinese pr.ovincial dada, Energy Economics, 68, 340-358. DOI:10.1016/j.eneco.2017.10.007
  31. [31] Grossman, G.M. and Krueger, A.B. (1991), Environmental impacts of a North American free trade agreement (No. w3914). National Bureau of Economic Research.
  32. [32] Gozgor, G. and Can, M. (2016), Export product diversification and the environmental Kuznets curve: evidence from Turkey, Environmental Science and Pollution Research, 23(21), 21594-21603.
  33. [33] Gozgor, G. and Can, M. (2016a), Effects of the product diversification of exports on income at different stages of economic development, Eurasian Bus Rev, 6(2), 215-235
  34. [34] Gozgor, G. and Can, M. (2016b), Export product diversification and the environmental Kuznets curve: evidence from Turkey. Environ Sci Pollut Res, 23(21), 21594-21603
  35. [35] Gozgor, G. and Can, M. (2017a), Causal linkages among the product diversification of exports, economic globalization, and economic growth, Rev Dev Econ, 21(3), 888-908
  36. [36] Gozgor, G. (2017), Does trade matter for carbon emissions in OECD countries? Evidence from a new trade openness measure, Environ Sci Pollut Res, 24(36), 27813-27821
  37. [37] Halicioglu, F. (2009), An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey. Energy Policy 37 (3), 1156-1164. 10.1016/j.enpol.2008.11.012.
  38. [38] Hassan, S.T., Xia, E., Khan, N.H., and Shah, S.M.A. (2018), Economic growth, natural resources, and ecological footprints: evidence from Pakistan, Environ Sci Pollut Res 26, 2929-2938. {}
  39. [39] Holtz-Eakin, D. and Selden, T.M. (1995), Stoking the fires? CO2 emissions and economic growth, J Public Econ, 57(1), 85-101.
  40. [40] Hummels, D. and Klenow, P.J. (2002), The variety and quality of a nations export. Am Econ Rev, 95(3), 704-723.
  41. [41] Imbs, J. and Wacziarg, R. (2003). Stages of diversification. American Economic Review, 93(1), 63-86.
  42. [42] International Monetary Fund. (2014), Sustaining Long-Run Growth and Macroeconomic Stability in Low-Income Countries: The Role of Structural Transformation and Diversification. IMF Policy Paper: International Monetary Fund, Washington, DC.
  43. [43] Inglesi-Lotz, R. and Dogan, E. (2018), The role of renewable versus nonrenewable energy to the level of CO2emissions a panel analysis of sub- Saharan Africas Big 10 electricity generators. Renew Energy, 123, 36-43.
  44. [44] Inglesi-Lotz, R. and Morales, L.C. (2017), The effect of education on a countrys energy consumption: Evidence from developed and developing countries. Department of Economics, University of Pretoria Working Papers 2017; No: 201733.
  45. [45] Isiksal, A.Z., Samour, A., and Isiksal, H. (2019a). Revisiting Renewable and Non-Renewable Energy Consumption and CO{\_}2 Emissions in Caspian Basin. International Journal of Ecological Economics and Statistics, 40(4), 13-24.
  46. [46] Isiksal, A.Z., Samour, A., and Resatoglu, N.G. (2019b), Testing the impact of real interest rate, income, and energy consumption on Turkeys CO$_{2}$~emissions, Environmental Science and Pollution Research, 26, 20219-20231
  47. [47] Iwata, H., Okada, K., and Samreth, S. (2011). A note on the environmental Kuznets curve for CO2: a pooled mean group approach. Appl Energy, 88(5), 1986-96.
  48. [48] Katircio\v{g}lu, S.T. and Ta\c{s}pinar, N. (2017). Testing the moderating role of financial development in an environmental Kuznets curve: Empirical evidence from Turkey, Ren Sustain Energy Rev, 68, 572-86.
  49. [49] Klinger, B. and Lederman, D. (2006), Diversification, innovation, and imitation inside the global technology frontier. World Bank Policy Research Working Paper, No. 3872, Washington, D.C.: World Bank.
  50. [50] Levin, A., Li, C.F., and Chu, J. (2002), Unit root tests in panel data: asymptotic and finite-sample properties, Journal of Econometrics, 108(1): 1-24.
  51. [51] Lise, W. (2006). Decomposition of CO2 emissions over 1980-2003 in Turkey, Energy Policy, 34(14), 1841-52.
  52. [52] Machado, G.M., Schaeffer, R., and Worrel, E. (2001), Energy and carbon embodied in the international trade of Brazil: an input output approach, Ecological Economics, 409-424.
  53. [53] Mahmood, N., Wang, Z., and Hassan, S,T. (2019), Renewable energy, economic growth, human capital, and CO2 emission: an empirical analysis, Environ Sci Pollut Res, 26, 20619-20630.
  54. [54] Magazzino, C. (2016), CO2 emissions, economic growth, and energy use in the Middle East countries: A panel VAR approach. Energy Sources, Part B: Economics, Planning, and Policy, 11, 960-968.
  55. [55] Mania, E. (2019), Export Diversification and CO2 Emissions: An Augmented Environmental Kuznets Curve, Journal of International Development, DOI: 10.1002/jid.3441
  56. [56] Mert, M. and Boluk, G. (2016), Do foreign direct investment and renewable energy consumption affect the CO2 emissions? New evidence from a panel ARDL approach to Kyoto Annex countries. Environ Sci Pollut Res, 23(21), 21669-21681.
  57. [57] Mirza, F.M. and Kanwal, A. (2017), Energy consumption, carbon emissions and economic growth in Pakistan: dynamic causality analysis, Renew. Sust. Energ. Rev., 72 (C), 1233-1240. 10.1016/j.rser.2016.10.081.
  58. [58] Nnaemeka, V.E. and Kyung-Jin, B. (2016), Decomposition analysis of oil export dependency: a case study of Mexico, Indonesia and Nigeria, Geosystem Engineering, 19(1), 19-31, DOI: 10.1080/12269328.2015.1083486
  59. [59] Omri, A. (2013), CO2 emissions, energy consumption and economic growth nexus in MENA countries: evidence from simultaneous equations models, Energy Econ, 40, 657-664. {}
  60. [60] Ozturk, I. and Acaravci, A. (2010), CO2 emissions, energy consumption and economic growth in Turkey, Ren Sustain Energy Rev, 14(9):3220-5.
  61. [61] Panayotou, T. (1993), Empirical tests and policy analysis of environmental degradation at different stages of economic development, working paper WP238. Geneva, Switzerland: International Labor Office.
  62. [62] Paramati, S.R., Ummala, M., and Apergis, N. (2016), The effects of foreign direct investment and stock market growth on clean energy use across a panel of emerging market economies, Energy Economics, 56, 29-41.
  63. [63] Pata, U.K. (2018), The influence of coal and noncarbohydrate energy consumption on CO2 emissions: Revisiting the environmental Kuznets curve hypothesis for Turkey, Energy, doi: 10.1016/
  64. [64] Pedroni, P. (1999), Critical values for cointegration tests in heterogeneous panels with multiple regressors, Oxf. Bull. Econ. Stat., 61, 653-670.
  65. [65] Pedroni, P. (2000), Fully modified OLS for heterogeneous cointegrated panels. Advances in Econometrics, 15, 93-130.
  66. [66] Pedroni, P. (2004), Panel Cointegration: Asymptotic And Finite Sample Properties Of Pooled Time Series TestsWith An Application To The Ppp Hypothesis, Econometric Theory, 20(3), 597-625.
  67. [67] Pesaran, M.H. and Smith, R.J. (1995), New Directions in Applied Macroeconomic Modeling, Cambridge Working Papers in Economics .
  68. [68] Pesaran, M.H., Shin, Y., and Smith, R.J. (1999), Pooled Mean Group Estimation of Dynamic Hetrogeneous Panels, Journal of the American Statistical Association, 94, 446-634, DOI: 1999.10474156
  69. [69] Salahuddin, M., Alam, K., Ozturk, I., and Sohag, K. (2018), The effects of electricity consumption, economic growth, financial development and foreign direct investment on CO2 emissions in Kuwait. Renew. Sust. Energ. Rev. 81, 2002-2010. rser.2017.06.009
  70. [70] Salim, R., Yao, Y., and Chen, G. (2017), Does human capital matter for energy consumption in China? Energy Econ 67, 49-59.
  71. [71] Samour, A,, Isiksal, A.Z., and Resatoglu, N.G. (2019), Testing the impact of banking sector development on Turkeys CO2 emissions, Applied Ecology and Environmental Research, 17(3), 6497-6513.
  72. [72] Seker, F., Ertugrul, H.M., and Cetin, M. (2015), The impact of foreign direct investment on environmental quality: a bounds testing and causality analysis for Turkey, Renew Sust Energ Rev, 52, 347-356.
  73. [73] Shabaan, M.T., Attia, M., Turky, A.S., and Mowafty, E. (2012), Production of some biopolymers by some selective Egyptian soil bacterial isolates, Journal of applied Sciences Research, 8, 94-105.
  74. [74] Shahabaz, M., Khan, S., and Tahir, M.I. (2013), The dynamic links between energy consumptions, economic growth, financial development and trade in China: fresh evidence from multivariate framework analysis, Energy Economics, 40, 8-21.
  75. [75] Shahbaz, M., Gozgor, G., and Hammoudeh, S. (2019), Human capital and export diversification as new determinants of energy demand in the United States. Energy Economics, 78, 335-349.
  76. [76] Shafik, N. and Bandyopadhyay, S. (1992) Economic growth and environmental quality: time-series and cross-country evidence, World Bank Policy Research working paper, 904.
  77. [77] Shafik, N. (1994), Economic development and environmental quality: an econometric analysis, Oxf Econ Pap, 46, 757-73.
  78. [78] Uddin, G, Salahuddin, M, Alam, K., and Gow, J. (2017), Ecological footprint and real income: Panel data evidence from the 27 highest emitting countries, Ecological Indicators, 77, 166-175. 10.1016/j.ecolind.01.003.
  79. [79] UNDP (2018), Human Development Indices and Indicators: 2018 Statistical Update.
  80. [80] UNESCO United Nations Educational, Scientific and Cultural Organization (2010). Climate change education for sustainable development. 190101E.pdf. Accessed 12 June 2018
  81. [81] Wijaya, M.E. and Tezuka, T. (2013), Measures for improving the adoption of higher efficiency appliances in Indonesian households: an analysis of lifetime use and decision-making in the purchase of electrical appliances. Appl Energy, 112, 981-987. apenergy.2013.02.036
  82. [82] World Bank. World Development Indicators 2018; Washington D.C.: World Bank.
  83. [83] Xu, J.H., Fleiter, T., Eichhammer, W., and Fan, Y. (2012), Energy consumption and CO2 emissions in Chinas cement industry: A perspective from LMDI decomposition analysis, Energy Policy, 50, 821-832.
  84. [84] Yavuz, N.C. (2014), CO2 emission, energy consumption, and economic growth for Turkey: evidence from a cointegration test with a structural break. Energy Sources, Part B: Econ, Plan, Policy, 9(3), 229-235.
  85. [85] Zen, I.S., Noor, Z.Z., and Yusuf, R.O. (2014), The profiles of household solid waste recyclers and non-recyclers in Kuala Lumpur, Malaysia. Habitat Int, 42, 83-89.