How do financial development, energy consumption, natural resources, and globalization affect Arctic countries' economic growth and environmental quality? An advanced panel data simulation

Abstract The use of renewable energy improves environmental quality by reducing carbon emission and influence economics growth where carbon emission also effect economic growth of a country. The economic theory of tourism also indicates that tourism development enhance economic growth though spillovers as well contribute to climate change. The inflow of FDI and financial development enhance economic growth however its also effect environmental quality. Based on the ongoing debate, the present research trying attempts to explore the effect of CO2 emission and renewable energy consumption, FDI and financial development on economic growth in different income grouped countries to know whether these impacts are the same for the low income, middle income and high income countries on economic growth? Using panel data for high income, low income & middle income countries for the period of 1980–2018, the current study found that all variables effect economic growth significantly where FDI and carbon emission are positive while renewable energy consumption and financial development are negative for economic growth in the whole sample while its differ in the income groups. These studies have shown that these variables are not the same as the economic growth of economic growth and different income groups are not the same, but it changes. In addition, the foundation of this study has a great deal of recommendations for income Group economic decision make-up.

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Financial development, energy consumption and China's economic growth: New evidence from provincial panel data

International Review of Economics & Finance ◽

10.1016/j.iref.2018.12.006 ◽

2020 ◽

Vol 69 ◽

pp. 1132-1151 ◽

Cited By ~ 12

Author(s):

Yu Hao ◽

Ling-Ou Wang ◽

Chien-Chiang Lee

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Panel Data ◽

Financial Development ◽

New Evidence

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Testing Environmental Kuznets Curve in the USA: What Role Institutional Quality, Globalization, Energy Consumption, Financial Development, and Remittances can Play? New Evidence From Dynamic ARDL Simulations Approach

Frontiers in Environmental Science ◽

10.3389/fenvs.2021.789715 ◽

2021 ◽

Vol 9 ◽

Author(s):

Muhammad Imran Khan ◽

Muhammad Kamran Khan ◽

Vishal Dagar ◽

Bahareh Oryani ◽

Syeda Saba Akbar ◽

...

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Financial Development ◽

Environmental Quality ◽

Environmental Kuznets Curve ◽

Institutional Quality ◽

The United States ◽

Kuznets Curve ◽

The Usa ◽

The Impact

This study intends to examine the validity of the Environmental Kuznets Curve (EKC) in the United States of America (USA), considering the vital role of macroeconomic variables, such as economic growth, institutional quality, globalization, energy consumption, financial development, urbanization, and remittance from 1985 to 2020. The impact of positive/negative shock in a regressor on CO2 emissions keeps other regressors unchanged and has been investigated using the novel dynamic stimulated autoregressive distributed lag (ARDL) model. The empirical findings revealed the positive impact of economic growth and negative impact of the square economic growth on environmental degradation in the short- and long term. It indicates the validity of the EKC hypothesis in the case of the USA. Moreover, financial development, energy consumption, globalization, remittances inflow, and urbanization reduce the environmental quality. On the contrary, institutional quality improves the environmental quality by reducing CO2 emissions. The appropriate recommendations to design the inclusive economic-environment national energy policy were proposed.

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Do macroeconomic uncertainty and financial development cause environmental degradation? Evidence from an emerging economy

International Journal of Social Economics ◽

10.1108/ijse-10-2020-0690 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Bijoy Rakshit ◽

Yadawananda Neog

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Financial Development ◽

Environmental Degradation ◽

Environmental Quality ◽

Content Type ◽

Inflation Volatility ◽

Macroeconomic Uncertainty ◽

Consumption Intensity

PurposeThe main purpose of this paper is to empirically investigate the effect of macroeconomic uncertainty on environmental degradation in India over the period 1971–2016. Additionally, this paper considers the role of financial development, energy consumption intensity and economic growth in explaining the variation of environmental degradation in India.Design/methodology/approachThe authors applied the power generalized autoregressive conditional heteroskedasticity model to measure inflation volatility and used it as a proxy for macroeconomic uncertainty. From a methodological perspective, the authors employ the autoregressive distributive lag bound testing model to establish the long-run equilibrium association between the variables. The Toda–Yamamoto causality approach has been used to examine the direction of causality between the variables.FindingsFindings suggest that macroeconomic uncertainty exerts a positive effect on carbon emissions, indicating that higher inflation volatility, as a proxy for macroeconomic uncertainty, hinders India's environmental quality. Financial development, economic growth and energy consumption intensity have also adversely impacted environmental quality.Practical implicationsThe negative association between macroeconomic uncertainty and environmental degradation calls for some stringent policy actions. While formulating policies to promote growth and maintain stability, policymakers and government stakeholders should take into account the environmental effects of macroeconomic policies. There is a need to implement more environmental-friendly technologies in the financial sector that could reduce carbon emission.Originality/valueTo the best of the authors' knowledge, this study is the first that considers the role of macroeconomic uncertainty along with financial development and energy intensity in an emerging economy like India.

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A Dynamic Panel Data Analysis for Relationship between Energy Consumption, Financial Development and Economic Growth

International Journal of Econometrics and Financial Management ◽

10.12691/ijefm-7-1-3 ◽

2019 ◽

Vol 7 (1) ◽

pp. 20-26 ◽

Cited By ~ 1

Author(s):

Tarek Sadraoui ◽

Hamid Hamlaoui ◽

Zine Youness ◽

Imen Ben Sadok

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Data Analysis ◽

Panel Data ◽

Financial Development ◽

Panel Data Analysis ◽

Dynamic Panel Data ◽

Dynamic Panel ◽

Dynamic Panel Data Analysis

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

Indian Journal of Economics and Development ◽

10.35716/ijed/20131 ◽

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.

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