scholarly journals THE IMPACT OF FINANCIAL DEVELOPMENT ON DECARBONIZATION FACTORS OF CARBON EMISSIONS: A GLOBAL PERSPECTIVE

2021 ◽  
Vol 11 (6) ◽  
pp. 353-364
Author(s):  
N. Thangaiyarkarasi ◽  
S. Vanitha
Keyword(s):  
Financial Development ◽  
Carbon Emissions ◽  
Global Perspective ◽  
The Impact

scholarly journals The Impact of Financial Development on Carbon Emissions: A Global Perspective

2019 ◽  
Vol 11 (19) ◽  
pp. 5241 ◽  
Author(s):  
Chun Jiang ◽  
Xiaoxin Ma
Keyword(s):  
Developing Countries ◽  
Financial Development ◽  
Carbon Emissions ◽  
Emerging Market ◽  
Generalized Method Of Moments ◽  
Specific Effect ◽  
Developed Countries ◽  
Global Perspective ◽  
Empirical Results ◽  
The Impact

Financial development has been deemed to be an important factor influencing carbon emissions; however, the specific effect generated by financial development is still disputed. In this study, we examined the relationship between financial development and carbon emissions based on a system generalized method of moments and the data of 155 countries, and we further analyzed the national differences by dividing the sample countries into two sub-groups: developed countries, and emerging market and developing countries. The empirical results indicated that from a global perspective, financial development could significantly increase carbon emissions, and the analysis of the emerging market and developing countries reached the same conclusion; however, the results indicated that for developed countries, the effect of financial development on carbon emissions is insignificant. A series of robustness checks were conducted and confirmed that our empirical results were reliable. We suggest that policymakers in emerging market and developing countries should carefully balance financial development and environmental protection, as financial development will promote carbon emissions before countries reach a relatively high development level.

Financial development, energy consumption, technology, urbanization, economic output and carbon emissions nexus in BRICS countries: an empirical analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chandrashekar Raghutla ◽  
Krishna Reddy Chittedi
Keyword(s):  
Energy Consumption ◽  
Financial Development ◽  
Emerging Economies ◽  
Carbon Emissions ◽  
Urban Population ◽  
Content Type ◽  
Economic Output ◽  
Long Run ◽  
Short Run ◽  
The Impact

PurposeThe study investigates the impact of financial development, urban population, technology and energy consumption on economic output and carbon emissions in Brazil, Russia, India, China and South Africa (BRICS) economies.Design/methodology/approachThe study uses Johansen Fisher type panel cointegration, fully modified ordinary least square and heterogeneous panel causality tests to examine long-run, long-run elasticities and short-run relationships. For conducting the tests, the study selected five emerging economies, i.e. Brazil, Russia, India, China and South Africa and used balanced panel data for the period between 1998 and 2016.FindingsThe empirical results confirm the presence of a long-run cointegration relationship among the variables. We find that financial development, technology and energy consumption have a considerable positive impact on economic output. Also, financial development, urban population and technology help reduce carbon (CO2) emissions and ensure an improved environmental quality in the long run in the five emerging economies. In the short run, a bidirectional causal relationship is noticed between financial development and CO2 emissions.Practical implicationsClean energy, technological development and investments by public–private partnerships are required in the public and private sectors to reduce carbon emissions. This not only ensures improved environmental quality but also increases energy efficiency, thereby reducing dependency on traditional energy consumption.Originality/valueAs its contribution to the extant literature, the study examines the impact of financial development, energy consumption, technology, urbanization, economic output and carbon emissions in BRICS economies. The findings of the research suggest both the governments and policymakers of these five emerging economies to develop more effective policies toward bolstering the financial development and increasing the use of technology. These, in turn, ensure sustainable development with low CO2 emission in the future and, eventually, pushing those five emerging market economies toward sustainable economic growth.

scholarly journals The Impact of Financial Development on CO2 Emissions of Global Iron and Steel Industry

2021 ◽  
Author(s):  
Yanmin Shao ◽  
Junlong Li ◽  
Xueli Zhang
Keyword(s):  
Financial Development ◽  
Steel Industry ◽  
Least Square ◽  
Global Perspective ◽  
Policy Implications ◽  
Iron And Steel Industry ◽  
Iron And Steel ◽  
Carbon Neutrality ◽  
Steel Sector ◽  
The Impact

Abstract As carbon peaking and carbon neutrality have become a global consensus, more and more countries have introduced relevant policies to adapt to their own countries and formulated corresponding time roadmap. The industrial sector, especially the steel sector, which produces high levels of pollution and carbon emissions, is facing significant pressure to transform its operations to reduce CO2 emissions. Previous studies have shown the importance of financial development (FD) in environmental protection, however, the impact of FD on the CO2 emissions of the steel sector is ignored. This paper examines the impact of FD on the CO2 emissions of the iron and steel industry from a global perspective using comprehensive panel data from a total of 30 countries during the period from 1990 to 2018. Empirical results show that an improved level of FD in a given country reduces the CO2 emissions of the iron and steel industry. Our results also show that the effect of FD on reducing the CO2 emissions of the iron and steel industry in developing countries is less than its effect in developed countries. Estimation results also show the existence of the Environmental Kuznets Curve hypothesis in the iron and steel industry. The mechanism analysis indicates that FD promotes the upgrading of the structure of the iron and steel industry and the reduction of the CO2 emissions by means of the three-stage least square method. Finally, we discuss the policy implications of achieving carbon neutrality in the steel sector.

scholarly journals The Impact of Financial Development on Carbon Emission: Evidence from China

2020 ◽  
Vol 12 (17) ◽  
pp. 6959 ◽  
Author(s):  
Mingyuan Guo ◽  
Yanfang Hu
Keyword(s):  
Financial Development ◽  
Carbon Emissions ◽  
Term Effect ◽  
Short Term ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Autoregressive Distributed Lag ◽  
Lag Model ◽  
The Impact

This paper studies the impact of financial development on carbon emissions in China from 1997 to 2016. First, this paper uses the entropy method to construct a synthetical index to measure the financial development. Meanwhile, a two-dimensional panel framework is introduced to group provinces in the panel analysis. The estimation results of the time series autoregressive distributed lag model show that for China as a whole, there is a weak carbon emissions reduction effect of financial development, whether it is a long-term effect or a short-term effect. The estimation results of the panel autoregressive distributed lag model also support that an increase in financial development suppresses carbon emissions. Although financial development inhibits carbon emissions both in the short run and in the long run, the absolute value of the long-term coefficient of financial development is significantly greater than that of the short-term coefficient.

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