Asymmetric Effects of Globalization on Environment Quality: New Evidence from the Sultanate of Oman Using a Novel NARDL Model

الملخص

In a world where the influences of globalization are extending and diversifying across social, political, and economic dimensions, given the rise in greenhouse gas emissions, understanding the association between globalization and environmental quality has become pivotal in attaining sustainable environmental objectives. The main object of this study is to investigate the roles that globalization plays in such situations. For this purpose, the non-linear autoregressive-distributed lag model (NARDL) was employed to evaluate the asymmetric impact of globalization on environmental quality, represented by CO2 emissions, in the Sultanate of Oman.  Foreign direct investment, energy consumption, and economic growth were employed as control variables. The data series spans from 1980 to 2021.  Post-request tests were employed to ensure the robustness of the data series used in this study. The results identify the existence of both short-term and long-term asymmetric effects of globalization on environmental quality.  Furthermore, the study found that economic growth and FDI have a statistically significant detrimental impact on environmental quality.  In addition, it is detected that Energy consumption has no retarding long-run effect on environmental quality, but it plays a significant role in the short-run.
The study findings carry substantial policy implications for the Sultanate of Oman.  First and foremost, employ a well-balanced mode of development that acknowledges the trade-off between economic growth strategies and clean environment requirements. Second, foreign direct investment has to promote a clean environment by driving best practice techniques, and high-tech innovation. Third, take advantage of globalization’s opportunities without sacrificing the quality of the environment.