The Role of Human Capital in Strengthening Energy Mix-Climate Change Relation: A Study of Selected Low and High Vulnerable Economies

Authors

  • Anam Javaid PhD Scholar, Department of Economics and Quantitative Methods, Dr. Hasan Murad School of Management (HSM), University of Management and Technology, Lahore, Pakistan Author
  • Rukhsana Kalim Professor of Economics, Department of Economics and Quantitative Methods, Dr. Hasan Murad School of Management (HSM), University of Management and Technology, Lahore, Pakistan Author
  • Muhammad Shahid Hassan Assistant Professor, Department of Economics and Quantitative Methods, Dr. Hasan Murad School of Management (HSM), University of Management and Technology, Lahore, Pakistan Author

DOI:

https://doi.org/10.61506/01.00190

Keywords:

Human Capital, Vulnerability, Energy Mix, renewable energy

Abstract

Adaptive capacity of human is influenced by socio-economic factors such as skills, resources, technology and governance. Human-induced climate change is affecting all the nations of world. Adaptation measures are required to mitigate its effects. The aims of current research are: a) to identify the factors that can reduce vulnerability in low and high vulnerable countries, b) to find the factors that can moderate the effect of climate change in these countries, c) to compare the effect of these factors in high and low vulnerable economies. Panel Quantile Regression is used as an econometric technique to get the final results of the study. Sample is comprised of 40 low and high vulnerable countries, and data range from 1995-2020. Division of sample countries is based on the ranking of ND-GAINS. Data for present study is collected from ND-GAINS, WDI and PWT. Results exposed negative relationship between Human Capital and climate change vulnerability. Moreover, human capital along with energy-mix reduces climate change vulnerability in case of low and high vulnerable countries. Communication and education increase capacity-building skills and knowledge which help to reduce the risk associated with hazard and prepare us to deal with that hazard. Present study is conducted to highlight the importance of Socio-Economic factors in strengthening energy-mix climate change relation. This study will help the Policy makers and governments to cope with the adverse impact of climate change.

References

Abbass, K., Qasim, M. Z., Song, H., Murshed, M., Mahmood, H., & Younis, I. (2022). A review of the global climate change impacts, adaptation, and sustainable mitigation measures. Environmental Science and Pollution Research, 29(28), 42539-42559.

Abdelzaher, D. M., Martynov, A., & Zaher, A. M. A. (2020). Vulnerability to climate change: Are innovative countries in a better position?. Research in International Business and Finance, 51, 101098.

Adger, W. N. (Ed.). (2006). Fairness in adaptation to climate change. MIT press.

Ali, A., & Audi, M. (2016). The Impact of Income Inequality, Environmental Degradation and Globalization on Life Expectancy in Pakistan: An Empirical Analysis. International Journal of Economics and Empirical Research, 4 (4), 182-193.

Ali, A., Audi, M., & Roussel, Y. (2021). Natural Resources Depletion, Renewable Energy Consumption and Environmental Degradation: A Comparative Analysis of Developed and Developing World. International Journal of Energy Economics and Policy, 11(3), 251-260.

Amegavi, G. B., Langnel, Z., Ofori, J. J. Y., & Ofori, D. R. (2021). The impact of adaptation on climate vulnerability: Is readiness relevant?. Sustainable Cities and Society, 75, 103325.

Audi, M. & Ali, A. (2023). Unveiling the Role of Business Freedom to Determine Environmental Degradation in Developing countries. International Journal of Energy Economics and Policy, 13(5), 157-164.

Audi, M., & Ali, A. (2023). The role of environmental conditions and purchasing power parity in determining quality of life among big Asian cities. International Journal of Energy Economics and Policy, 13(3), 292-305.

Baqir, M., Bharti, S. K., Kothari, R., & Singh, R. P. (2019). Assessment of an energy-efficient metal chulha for solid biomass fuel and evaluation of its performance. International Journal of Environmental Science and Technology, 16, 6773-6784.

Baste, I. A., & Watson, R. T. (2022). Tackling the climate, biodiversity and pollution emergencies by making peace with nature 50 years after the Stockholm Conference. Global Environmental Change, 73, 102466.

Canay, I. A. (2011). A simple approach to quantile regression for panel data. The econometrics journal, 14(3), 368-386.

Cao, X., Kung, C. C., & Wang, Y. (2017). An environmental and economic evaluation of carbon sequestration from pyrolysis and biochar application in China. Agricultural Economics, 63(12), 569-578.

Chen, C. C., McCarl, B., Chang, C. C., & Tso, C. (2011). Evaluation the potential economic impacts of Taiwanese biomass energy production. Biomass and bioenergy, 35(5), 1693-1701.

Christou, O. (2021). Energy security in turbulent times towards the European Green Deal. Politics and Governance, 9(3), 360-369.

Dawson, J. F. (2014). Moderation in management research: What, why, when, and how. Journal of business and psychology, 29(1), 1-19.

Dong, K., Sun, R., Jiang, H., & Zeng, X. (2018). CO2 emissions, economic growth, and the environmental Kuznets curve in China: what roles can nuclear energy and renewable energy play?. Journal of cleaner production, 196, 51-63.

Dong, X. Y., Ran, Q., & Hao, Y. (2019). On the nonlinear relationship between energy consumption and economic development in China: new evidence from panel data threshold estimations. Quality & Quantity, 53, 1837-1857.

Eckstein, D., Künzel, V., & Schafer, L. (2021). Global Climate Risk Index 2021 Who Suffers Most from Extreme Weather Events? Westher-Related Loss Events in 2019 and 2000–2019, Germanwatch eV.

Edmonds, H. K., Lovell, J. E., & Lovell, C. A. K. (2020). A new composite climate change vulnerability index. Ecological Indicators, 117, 106529.

Ellabban, O., Abu-Rub, H., & Blaabjerg, F. (2014). Renewable energy resources: Current status, future prospects and their enabling technology. Renewable and sustainable energy reviews, 39, 748-764.

Ensor, J., & Berger, R. (2009). Understanding climate change adaptation: lessons from community-based approaches. Practical Action Publishing.

Field, C. B., & Barros, V. R. (Eds.). (2014). Climate change 2014–Impacts, adaptation and vulnerability: Regional aspects. Cambridge University Press.

Froemelt, A., Durrenmatt, D. J., & Hellweg, S. (2018). Using data mining to assess environmental impacts of household consumption behaviors. Environmental science & technology, 52(15), 8467-8478.

Gielen, D., Boshell, F., Saygin, D., Bazilian, M. D., Wagner, N., & Gorini, R. (2019). The role of renewable energy in the global energy transformation. Energy strategy reviews, 24, 38-50.

Haans, R. F., Pieters, C., & He, Z. L. (2016). Thinking about U: Theorizing and testing U‐and inverted U‐shaped relationships in strategy research. Strategic management journal, 37(7), 1177-1195.

Hainsch, K., Göke, L., Kemfert, C., Oei, P. Y., & von Hirschhausen, C. R. (2020). European green deal: Using ambitious climate targets and renewable energy to climb out of the economic crisis. DIW Weekly Report, 10(28/29), 303-310.

Hamidi, A. R., Zeng, Z., & Khan, M. A. (2020). Household vulnerability to floods and cyclones in Khyber Pakhtunkhwa, Pakistan. International journal of disaster risk reduction, 46, 101496.

Intergovernmental Panel on Climate Change. (1992). Climate change: the 1990 and 1992 IPCC assessments. WMO.

Joof, F., Samour, A., Tursoy, T., & Ali, M. (2023). Climate change, insurance market, renewable energy, and biodiversity: double-materiality concept from BRICS countries. Environmental Science and Pollution Research, 30(11), 28676-28689.

Kedward, K., & Ryan-Collins, J. (2022). A green new deal: opportunities and constraints. Economic Policies for Sustainability and Resilience, 269-317.

Lebel, L. (2013). Local knowledge and adaptation to climate change in natural resource-based societies of the Asia-Pacific. Mitigation and Adaptation Strategies for Global Change, 18, 1057-1076.

Lemos, M. C., Boyd, E., Tompkins, E. L., Osbahr, H., & Liverman, D. (2007). Developing adaptation and adapting development. Ecology and Society, 12(2).

Lucas, H., Fifita, S., Talab, I., Marschel, C., & Cabeza, L. F. (2017). Critical challenges and capacity building needs for renewable energy deployment in Pacific Small Island Developing States (Pacific SIDS). Renewable energy, 107, 42-52.

Mahmood, N., Wang, Z., & Hassan, S. T. (2019). Renewable energy, economic growth, human capital, and CO 2 emission: an empirical analysis. Environmental Science and Pollution Research, 26, 20619-20630.

Manandhar, S., Vogt, D. S., Perret, S. R., & Kazama, F. (2011). Adapting cropping systems to climate change in Nepal: a cross-regional study of farmers’ perception and practices. Regional Environmental Change, 11, 335-348.

McCarthy, J. J. (Ed.). (2001). Climate change 2001: impacts, adaptation, and vulnerability: contribution of Working Group II to the third assessment report of the Intergovernmental Panel on Climate Change (Vol. 2). Cambridge University Press.

McInerney, C., & Bunn, D. W. (2019). Expansion of the investor base for the energy transition. Energy Policy, 129, 1240-1244.

Mertz, O., Halsnæs, K., Olesen, J. E., & Rasmussen, K. (2009). Adaptation to climate change in developing countries. Environmental management, 43, 743-752.

Millner, A., & Dietz, S. (2015). Adaptation to climate change and economic growth in developing countries. Environment and Development Economics, 20(3), 380-406.

Narayan, P. K., & Smyth, R. (2006). What determines migration flows from low‐income to high‐income countries? An empirical investigation of Fiji–Us migration 1972–2001. Contemporary economic policy, 24(2), 332-342.

ND-GAINS. (2023, January 02). Retrieved from ND-GAINS: https://gain.nd.edu/our-work/country-index/rankings/

Pachauri, R. K., Allen, M. R., Barros, V. R., Broome, J., Cramer, W., Christ, R., ... & van Ypserle, J. P. (2014). Climate change 2014: synthesis report. Contribution of Working Groups I, II and III to the fifth assessment report of the Intergovernmental Panel on Climate Change (p. 151). Ipcc.

Pismel, G. O., Marchezini, V., Selaya, G., de Paula, Y. A., Mendoza, E., & Anderson, L. O. (2023). Wildfire governance in a tri-national frontier of southwestern Amazonia: Capacities and vulnerabilities. International Journal of Disaster Risk Reduction, 86, 103529.

Regmi, B. R., & Bhandari, D. (2013). Climate change adaptation in Nepal: Exploring ways to overcome the barriers. Journal of Forest and Livelihood, 11(1), 43-61.

Rekacewicz, P., & Bournay, E. (2005). Climate change: processes, characteristics and threats. UNEP/Grid-Arendal Maps and Graphics Library.

Saeed, S., Makhdum, M. S. A., Anwar, S., & Yaseen, M. R. (2023). Climate Change Vulnerability, Adaptation, and Feedback Hypothesis: A Comparison of Lower-Middle, Upper-Middle, and High-Income Countries. Sustainability, 15(5), 4145.

Sahoo, S. K. (2016). Renewable and sustainable energy reviews solar photovoltaic energy progress in India: A review. Renewable and Sustainable Energy Reviews, 59, 927-939.

Sarkodie, S. A., & Strezov, V. (2019). Economic, social and governance adaptation readiness for mitigation of climate change vulnerability: Evidence from 192 countries. Science of the Total Environment, 656, 150-164.

Sarkodie, S. A., & Strezov, V. (2019). Economic, social and governance adaptation readiness for mitigation of climate change vulnerability: Evidence from 192 countries. Science of the total Environment, 656, 150-164.

Sarkodie, S. A., Adams, S., & Leirvik, T. (2020). Foreign direct investment and renewable energy in climate change mitigation: does governance matter?. Journal of Cleaner Production, 263, 121262.

Sarkodie, S. A., Ahmed, M. Y., & Owusu, P. A. (2022). Global adaptation readiness and income mitigate sectoral climate change vulnerabilities. Humanities and Social Sciences Communications, 9(1).

Schipper, E. L. F., & Burton, I. (2009). Understanding adaptation: origins, concepts, practice and policy. The earthscan reader on adaptation to climate change. London, UK and Sterling, VA, USA, 1-9.

Schoenefeld, J. J. (2021). The European Green Deal: What prospects for governing climate change with policy monitoring?. Politics and Governance, 9(3), 370-379.

Searle, S., & Malins, C. (2015). A reassessment of global bioenergy potential in 2050. Gcb Bioenergy, 7(2), 328-336.

Smit, B. (1994). Adaptation to climatic variability and change. Report of the task force on climate adaptation (No. GU/G--CE04610). Guelph Univ..

Smithers, J., & Smit, B. (1997). Human adaptation to climatic variability and change. Global environmental change, 7(2), 129-146.

Tang, C. F., Abosedra, S., & Naghavi, N. (2021). Does the quality of institutions and education strengthen the quality of the environment? Evidence from a global perspective. Energy, 218, 119303.

Tessema, K. B., Haile, A. T., & Nakawuka, P. (2021). Vulnerability of community to climate stress: An indicator-based investigation of Upper Gana watershed in Omo Gibe basin in Ethiopia. International Journal of Disaster Risk Reduction, 63, 102426.

Wang, B., Wang, Q., Wei, Y. M., & Li, Z. P. (2018). Role of renewable energy in China’s energy security and climate change mitigation: An index decomposition analysis. Renewable and sustainable energy reviews, 90, 187-194.

Wang, Z., Zhang, B., & Wang, B. (2018). Renewable energy consumption, economic growth and human development index in Pakistan: evidence form simultaneous equation model. Journal of cleaner production, 184, 1081-1090.

Zahid, T., Arshed, N., Munir, M., & Hameed, K. (2021). Role of energy consumption preferences on human development: A study of SAARC region. Economic Change and Restructuring, 54, 121-144.

Ziska, L. H., Runion, G. B., Tomecek, M., Prior, S. A., Torbet, H. A., & Sicher, R. (2009). An evaluation of cassava, sweet potato and field corn as potential carbohydrate sources for bioethanol production in Alabama and Maryland. biomass and bioenergy, 33(11), 1503-1508.

Downloads

Published

2024-03-27

Issue

Section

Articles

How to Cite

Javaid, A. ., Kalim, R. ., & Hassan, M. S. . (2024). The Role of Human Capital in Strengthening Energy Mix-Climate Change Relation: A Study of Selected Low and High Vulnerable Economies. Bulletin of Business and Economics (BBE), 13(1). https://doi.org/10.61506/01.00190

Similar Articles

1-10 of 138

You may also start an advanced similarity search for this article.

Most read articles by the same author(s)

1 2 3 4 5 6 7 8 9 10 > >>