The relationship between environment and logistics performance in the context of energy intensity: CMR convention member countries

Logistic activities facilitate market growth, increased employment, and the development of international trade by enabling the movement of goods and services. However, the intensive use of fossil fuels in the logistics sector contributes to increased CO2 emissions and raises energy intensity within the sector. Effective management of logistics activities can enhance sector efficiency and improve logistics performance. Increased logistics performance, in turn, can reduce energy intensity and subsequently decrease environmental pollution in the logistics sector. This study examines the role of energy intensity in the relationship between logistics performance and environmental pollution using Panel Smooth Transition Regression (PSTR) analysis for 54 CMR countries during the period 2007-2018. An energy intensity threshold value was identified through the analysis, calculated at 2.461%. The results indicate that when energy intensity is less than 2.461%, improved logistics performance leads to reduced environmental pollution. Conversely, when energy intensity exceeds 2.461%, increased logistics performance does not correspond to reduced environmental pollution. Additionally, the robustness of the model was tested by including control variables such as industrial value added, GDP per capita, and urban population rate in the PSTR analysis. The calculated threshold value for energy intensity from this analysis is 2.446%. Findings suggest that higher energy intensity exacerbates environmental pollution with increases in industrial sector activity and per capita income, while urban population growth decreases environmental pollution. Based on these results, adopting activities that reduce energy intensity in the sector plays a critical role in combating environmental issues threatening human life, such as global warming and climate change. Therefore, policymakers defining critical values for energy intensity when formulating sustainable policies will support environmental sustainability.