The impact of economic growth, energy consumption, trade openness, and financial development on carbon emissions: empirical evidence from Malaysia

2021 ◽  
Author(s):  
Zhanar Nurgazina ◽  
Arif Ullah ◽  
Uzair Ali ◽  
Mansoor Ahmed Koondhar ◽  
Qian Lu
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Empirical Evidence ◽  
Financial Development ◽  
Carbon Emissions ◽  
Trade Openness ◽  
Growth Energy ◽  
The Impact

The Nexus between Financial Development, Economic Growth and Energy Consumption in India: A VECM Technique

2020 ◽  
pp. 602-612
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Financial Development ◽  
Consumer Price Index ◽  
Development Economic ◽  
Energy Prices ◽  
Vector Error Correction ◽  
Percent Increase ◽  
Growth Energy ◽  
The Impact

The demand for energy consumption requires efficient financial development in terms of bank credit. Therefore, this study examines the nexus between Financial Development, Economic Growth, Energy Prices and Energy Consumption in India, utilizing Vector Error Correction Model (VECM) technique to determine the nature of short and long term relationships from 2010 to 2019. The estimation of results indicates that a one percent increase in bank credits to private sector results in 0.10 percent increase in energy consumption and 0.28 percent increase in energy consumption responses to 1 percent increase in economic growth. It is also observed that the impact of energy price proxied by consumer price index is statistically significant with a negative sign indicating the consistency with the theory.

scholarly journals The Impact of Industrialization, Trade Openness, Financial Development, and Energy Consumption on Economic Growth in Indonesia

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 174
Author(s):  
Khalid Eltayeb Elfaki ◽  
Rossanto Dwi Handoyo ◽  
Kabiru Hannafi Ibrahim
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Least Squares ◽  
Financial Development ◽  
Correction Term ◽  
Trade Openness ◽  
Ordinary Least Squares ◽  
Distributed Lag ◽  
Long Run ◽  
The Impact

This study aimed to scrutinize the impact of financial development, energy consumption, industrialization, and trade openness on economic growth in Indonesia over the period 1984–2018. To do so, the study employed the autoregressive distributed lag (ARDL) model to estimate the long-run and short-run nexus among the variables. Furthermore, fully modified ordinary least squares (FMOLS), dynamic least squares (DOLS), and canonical cointegrating regression (CCR) were used for a more robust examination of the empirical findings. The result of cointegration confirms the presence of cointegration among the variables. Findings from the ARDL indicate that industrialization, energy consumption, and financial development (measured by domestic credit) positively influence economic growth in the long run. However, financial development (measured by money supply) and trade openness demonstrate a negative effect on economic growth. The positive nexus among industrialization, financial development, energy consumption, and economic growth explains that these variables were stimulating growth in Indonesia. The error correction term indicates a 68% annual adjustment from any deviation in the previous period’s long-run equilibrium economic growth. These findings provide a strong testimony that industrialization and financial development are key to sustained long-run economic growth in Indonesia.

THE DRIVERS OF ENVIRONMENTAL DEGRADATION IN ASEAN+China: DO FINANCIAL DEVELOPMENT AND URBANIZATION HAVE ANY MODERATING EFFECT?

2020 ◽  
pp. 2050024 ◽  
Author(s):  
KIZITO UYI EHIGIAMUSOE
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
Financial Development ◽  
Environmental Degradation ◽  
Trade Openness ◽  
High Carbon ◽  
Cross Sectional ◽  
Cross Sectional Dependence ◽  
Growth Energy ◽  
The Impact

This study examines the drivers of environmental degradation in [Formula: see text]. It focusses on three unresolved questions: (i) Does the inclusion of China in ASEAN panel aggravate environmental degradation, given that China is a high carbon emissions country? (ii) Does financial development moderate the impact of energy consumption on environmental degradation in ASEAN? (iii) Does urbanization moderate the impact of energy consumption on environmental degradation in ASEAN? It employs empirical strategies that account for heterogeneity, endogeneity and cross-sectional dependence. The results show that economic growth, energy consumption and non-renewable energy aggravate environmental degradation, whereas renewable energy, foreign direct investment and trade openness mitigate it. The inclusion of China in ASEAN panel weakens the EKC hypothesis. Financial development favorably moderates the effect of energy consumption on environmental degradation in ASEAN, but adversely moderates the effect in [Formula: see text]. Urbanization adversely moderates the impact of energy consumption on environmental degradation in both panels. Hence, efforts to address environmental degradation should consider these different drivers.

scholarly journals Assessing the Impact of Factors Driving Global Carbon Dioxide Emissions

2019 ◽  
pp. 1-15
Author(s):  
Redwan Ahmed ◽  
Gabriela Sabau ◽  
Morteza Haghiri
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Financial Development ◽  
Carbon Dioxide Emissions ◽  
Well Being ◽  
Testing Procedures ◽  
Cointegration Tests ◽  
Growth Energy ◽  
The Impact

The aim of this study is to empirically investigate the causal relationship between global CO2 emissions and six of their potentially contributing factors (i.e., economic growth, energy consumption, population, trade openness, financial development and corruption), by using a panel data collected from 65 countries during 1995 to 2013. We developed a dynamic model and used a four-step testing procedures (i.e., panel unit root tests, panel cointegration tests, long-run estimates, i.e. FMOLS estimates and a Granger causality test). The results showed that the most important factors driving global CO2 emissions were economic growth, energy consumption, corruption and financial development. It is recommended that countries develop their own CO2 reducing policies by designing an appropriate combination/mix of policy tools, such as regulation, economic, voluntary and educational/ informational instruments to address their environmental pollution. Countries could consider all dimensions of well-being when they measure their economic development. Imposing pollution taxes on fossil fuel based energy supplies, developing emissions standards, strengthening anti-corruption strategies and educating people about the adverse effects of CO2 emissions on the natural environment and human health are potential policy measures.

scholarly journals Modelling Energy Consumption, Carbon Dioxide Emissions and Economic Growth Nexus in Ethiopia: Evidence from Cointegration and Causality Analysis

2018 ◽  
Vol 6 (6) ◽  
pp. 699 ◽  
Author(s):  
Shemelis Kebede Hundie
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Financial Development ◽  
Environmental Sustainability ◽  
Carbon Dioxide Emissions ◽  
Positive Impact ◽  
Trade Openness ◽  
Causality Analysis ◽  
The Impact

Policy makers need to know the relationship among energy use, economic growth and environmental quality in order to formulate rigorous policy for economic growth and environmental sustainability. This study analyzes the nexus among energy consumption, affluence, financial development, trade openness, urbanization, population and CO2 emissions in Ethiopia using data from 1970–2014. The ARDL cointegration results show that cointegration exists among the variables. Energy consumption, population, trade openness and economic growth have positive impact on CO2 in the long-run while economic growth squared reduces CO2 emissions which confirms that the EKC hypothesis holds in Ethiopia. In the short-run urbanization and energy consumption intensify environmental degradation. Toda-Yamamoto granger causality results indicate the bi-directional causality between energy consumption and CO2 emissions, CO2 emissions and urbanization. Financial development, population and urbanization cause economic growth while economic growth causes CO2 emissions. Causality runs from energy consumption to financial development, urbanization and population which in turn cause economic growth. From the result, CO2 emissions extenuation policy in Ethiopia should focus on environmentally friendly growth, enhancing consumption of cleaner energy, incorporating the impact of population, urbanization, trade and financial development.

Impact of economic and financial development on carbon emissions: evidence from emerging Asian economies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Surendra Singh Rajpurohit ◽  
Rajesh Sharma
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Financial Development ◽  
Carbon Emissions ◽  
Kuznets Curve ◽  
Fdi Inflows ◽  
Content Type ◽  
Pooled Mean Group ◽  
Asian Economies ◽  
The Impact

PurposeThis paper not only aims to validate the environment Kuznets curve concerning five Asian economies but also attempts to analyze the impact of some additional factors like financial development, energy consumption and foreign direct investment (FDI) on carbon emissions.Design/methodology/approachThis paper applies pooled mean group approach on the variables of a panel of five Asian economies namely India, Pakistan, Bangladesh, Sri Lanka and Malaysia for a period of 35 years from 1980 to 2014.FindingsThis study finds that while moderate economic growth as well as moderate financial development increase carbon emissions, accelerated or exponential economic growth as well as exponential financial development eventually reduce the level of carbon emissions. Energy consumption was found to have a direct and significant relationship with carbon emissions. FDI inflows when analyzed on a stand-alone basis were observed to have an inverse relationship with carbon emissions, while FDI inflows when clubbed with financial development were observed to have a direct relationship with carbon emissions.Practical implicationsThe findings of this study, which validate the environmental Kuznets curve, suggest striving for higher economic growth, even if it causes increased carbon emissions to begin with, as the effects on carbon emissions would eventually get reversed when the economic growth accelerates at a higher rate. This study also suggests the appropriate routing of FDI through a mature and developed financial sector to leverage its impact on the environment in a positive way.Originality/valueTo the best of the knowledge of the authors of this paper, there has not been any research carried out so far, which has analyzed the impact of the combination of variables selected for this study concerning the five Asian economies covered in this paper.

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