Green Economics and Urbanization in OIC Member Countries

Green Economics and Urbanization in OIC Member Countries

DOI: 10.4018/978-1-6684-5109-0.ch006
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Abstract

Although urbanization is often discussed in the context of economic modernization, it is nevertheless a population indicator that increases urban density and changes the structure of human behavior and, as a result, affects household energy consumption patterns. Accordingly, the purpose of this study is to investigate the effect of urbanization on carbon dioxide emissions in the member countries of the Organization of the Islamic Conference using the Paneldita approach and the application of the STIRPAT model. The method used in the present study is scientific-analytical and the purpose of the research is applied. Statistics and information about the variables used in the research are extracted from the WDI2014 CD. The econometric tools used in the research are EViews software and the econometric method used in the research is the Paneldita method. The research period is 2000 to 2020 and the research area is 43 countries selected from the member countries of the Islamic conference.
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Introduction

2010 was an important milestone in urbanization, with global urbanization exceeding 50%. Although urbanization is on the rise in developed countries, developing countries are expected to experience the greatest increase in urbanization, with the United Nations Population Division predicting that by 2025, urbanization in less developed areas will exceed 50 Percent will pass. In addition, urbanization in the less developed regions of the world is expected to more than triple, rising from 18 percent in 1950 to 67 percent in 2050(Alam et al., 2007). Although urbanization is often discussed in the context of economic modernization, it is nevertheless a demographic indicator that increases urban density and changes the structure of human behavior. As a result, it affects household energy consumption patterns. Three theories of ecological modernization, environmental change to urban space, and urban density are used to explain how urbanization can affect the natural environment, according to Pumani Wong and Kanko. The theory of ecological modernization explains how urbanization is a process of social transformation that is also an important indicator of modernization. According to this theory, as societies move from the lower stages of development to the middle stages of development, environmental problems may increase(Barnes et al., 2010). Because in these stages of development, economic growth takes precedence over environmental sustainability. As societies reach higher stages of development, environmental damage becomes more important and societies look for ways to make their societies more environmentally sustainable. The detrimental impact of economic growth on the environment may be reduced by technological innovation, urbanization, and the shift from a production-based economy to a knowledge-based economy. The theory of environmental change to urban space relates environmental issues to urban change at the city level. According to this theory, in the modern age, cities often become richer (more powerful) by increasing their production base, and this causes industrial pollution problems that affect land, air, and water.

As cities become more empowered, industrial pollution may be reduced through environmental regulation, technological innovation, or changes in the structure of the economic sector.

More affluent cities are creating more residual residences, and resilient residences are demanding more energy production, putting more pressure on the environment. Urban congestion theory also addresses the benefits of increasing urbanization. Higher urban density helps facilitate economies of scale for public infrastructures such as public transportation, water supply, electricity generation, schools, and hospitals, and these savings Economies of scale cause less environmental damage. Theories of ecological modernization and urban environmental change both show that urbanization can have negative and positive effects on the natural environment with a net impact, so that if urbanization has a positive and significant effect on carbon dioxide emissions, then it can Climate change forecasting policies and policies will be effective, and as a result, carbon dioxide emission forecasting models that are unable to calculate the impact of urbanization on carbon dioxide emissions will be able to predict carbon dioxide emissions(Burton, 2000).

If urbanization has a significant negative impact on carbon dioxide emissions, then it will make it easier to achieve sustainable development goals. Also, if urbanization has a statistically significant effect on carbon dioxide emissions, then it will not have a significant effect on carbon dioxide emissions, which with the negative and positive effects of urbanization on carbon dioxide emissions that neutralize each other, Is compatible. Therefore, considering that urbanization can have a different effect on carbon dioxide emissions, the present study seeks to investigate this issue in 34 selected countries of the Organization of the Islamic Conference using the STIRPAT0 model and using the distance panel data method. The time is 2000 to 2020. The hypothesis presented in the research is based on the existence of the effect of urbanization on carbon dioxide emissions in the member countries of the Organization of the Islamic Conference.

Key Terms in this Chapter

Low-Carbon Economy: A low-carbon economy (LCE) or decarbonized economy is based on low-carbon power sources with minimal greenhouse gas (GHG) emissions into the atmosphere, specifically carbon dioxide. GHG emissions due to anthropogenic (human) activity are the dominant cause of observed climate change since the mid-20th century. Continued emission of greenhouse gases may cause long-lasting changes worldwide, increasing the likelihood of severe, pervasive, and irreversible effects for people and ecosystems.

Green Politics: Green politics, or ecopolitics, is a political ideology that aims to foster an ecologically sustainable society often, but not always, rooted in environmentalism, nonviolence, social justice, and grassroots democracy. It began taking shape in the western world in the 1970s; since then, Green parties have developed and established themselves in many countries around the globe and have achieved some electoral success.

Green Economy: A green economy is an economy that aims at reducing environmental risks and ecological scarcities and that aims for sustainable development without degrading the environment. It is closely related to ecological economics but has a more politically applied focus. The 2011 UNEP Green Economy Report argues “that to be green, and an economy must be not only efficient but also fair. Fairness implies recognizing global and country-level equity dimensions, particularly in assuring a Just Transition to an economy that is low-carbon, resource-efficient, and socially inclusive.”

Eco Commerce: Eco commerce is a business, investment, and technology-development model that employs market-based solutions to balancing the world’s energy needs and environmental integrity. Through green trading and green finance, eco-commerce promotes the further development of “clean technologies” such as wind power, solar power, biomass, and hydropower.

Eco-Tariffs: An Eco-tariff, also known as an environmental tariff, is a trade barrier erected to reduce pollution and improve the environment. These trade barriers may take the form of import or export taxes on products with a large carbon footprint or imported from countries with lax environmental regulations.

Environmental Enterprise: An environmental enterprise is an environmentally friendly/compatible business. Specifically, an environmental enterprise is a business that produces value in the same manner which an ecosystem does, neither producing waste nor consuming unsustainable resources. In addition, an environmental enterprise rather finds alternative ways to produce one’s products instead of taking advantage of animals for the sake of human profits. To be closer to being an environmentally friendly company, some environmental enterprises invest their money to develop or improve their technologies which are also environmentally friendly. In addition, environmental enterprises usually try to reduce global warming, so some companies use environmentally friendly materials to build their stores. They also set in environmentally friendly place regulations. All these efforts of the environmental enterprises can bring positive effects both for nature and people. The concept is rooted in the well-enumerated theories of natural capital, the eco-economy, and cradle-to-cradle design. Examples of environmental enterprises would be Seventh Generation, Inc., and Whole Foods.

Sustainable Development: Sustainable development is an organizing principle for meeting human development goals while simultaneously sustaining the ability of natural systems to provide the natural resources and ecosystem services on which the economy and society depend. The desired result is a state of society where living conditions and resources are used to continue to meet human needs without undermining the integrity and stability of the natural system. Sustainable development can be defined as development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Sustainability goals, such as the current UN-level Sustainable Development Goals, address the global challenges, including poverty, inequality, climate change, environmental degradation, peace, and justice.

Emissions Trading: Emissions trading (also known as cap and trade, emissions trading scheme, or ETS) is a market-based approach to controlling pollution by providing economic incentives for reducing the emissions of pollutants.

Natural Resource Economics: Natural resource economics deals with the supply, demand, and allocation of the Earth’s natural resources. One main objective of natural resource economics is to understand better the role of natural resources in the economy to develop more sustainable methods of managing those resources to ensure their future generations. Resource economists study interactions between economic and natural systems intending to develop a sustainable and efficient economy.

Circularity: A circular economy (also referred to as “circularity”) is an economic system that tackles global challenges like climate change, biodiversity loss, waste, and pollution. Most linear economy businesses take a natural resource and turn it into a product that is ultimately destined to become waste because it has been designed and made. This process is often summarised by “take, make, waste.” By contrast, a circular economy uses reuse, sharing, repair, refurbishment, remanufacturing, and recycling to create a closed-loop system, minimize resource inputs, and create waste, pollution, and carbon emissions. The circular economy aims to keep products, materials, equipment, and infrastructure in use for longer, thus improving the productivity of these resources. Waste materials and energy should become input for other processes through waste valorization: either as a component or recovered resource for another industrial process or as regenerative resources for nature (e.g., compost). This regenerative approach contrasts with the traditional linear economy, which has a “take, make, dispose of” production model.

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