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The impact of financial development on CO 2 emissions: new evidence from developed and emerging countries
- Research Article
- Published: 10 January 2022
- Volume 29 , pages 31453–31466, ( 2022 )
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- Umme Habiba 1 &
- Cao Xinbang 1
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Taking into account the complicated and multidimensional nature of financial development, this study aims to investigate the impact of overall financial market development, institution development, and their sub-indices on CO 2 emissions. To advance knowledge about the nexus between financial development and CO 2 emissions, four financial market indices (overall financial market development, FM-access, FM-depth, and FM-efficiency) and four financial institution indices (overall financial institution development, FI-access, FI-depth, and FI-efficiency) are used. The study used two-stage system GMM and panel data of developed and emerging countries over the period 2000–2018. The empirical results reveal that the overall financial market development and its sub-indices (FM-access, FM-depth, and FM-efficiency) reduce CO 2 emissions in developed and emerging countries. The results further show that the overall financial institution development and its sub-indices such as FI-access, FI-depth, and FI-efficiency foster the environment quality in developed economies, while these indices impede the environmental quality in emerging economies. The usage of renewable energy is found to be a viable solution to mitigate the CO 2 emissions in both groups of countries. Additionally, policies related to sustainable development are also discussed in the paper.
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Availability of data and materials
The datasets analyzed during the study are available in the website of IMF database, World Development Indicators (WDI), and International Energy Statistics (IEA).
See Svirydzenka (2016) for more detail regarding these indices.
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Habiba, U., Xinbang, C. The impact of financial development on CO 2 emissions: new evidence from developed and emerging countries. Environ Sci Pollut Res 29 , 31453–31466 (2022). https://doi.org/10.1007/s11356-022-18533-3
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Received : 17 July 2021
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Published : 10 January 2022
Issue Date : May 2022
DOI : https://doi.org/10.1007/s11356-022-18533-3
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Abstract. This dissertation studies the impact of financial institutions and information frictions on economic growth, as well as the effect of local economic fluctuations on aggregate financial outcomes. In the first chapter, co-authored with Chenzi Xu, we use a historical laboratory to show that banks impact real economic activity through the ...
The positive association between financial development and economic growth has. encouraged research in the area of the determinants of financial development. The main objective. of this paper is to identify the determinants of financial development of 69 developing countries.
Essays on Financial Development and Financial Inclusion PhD thesis to obtain the degree of PhD at the University of Groningen on the authority of the Rector Magnificus Prof. C. Wijmenga and in accordance with the decision by the College of Deans. This thesis will be defended in public on Monday 8 November 2021 at 14.30 hours by Yiqing Peng
This PhD thesis contributes to our understanding about financial development, focusing on three main topics: (1) the link between financial deepening and financial stability; (2) the determinants of financial inclusion; and (3) the effect of financial inclusion on improving economic welfare, which have received less attention in the literature.
Essays on Financial Development and Economic Growth By Reem Abdulaziz Lanjawi The thesis is submitted in partial fulfilment of the requirements for the award of the degree of Doctor of Philosophy University of Portsmouth Faculty of Business and Law Subject Group of Accounting and Financial Management March, 2019
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The conclusions drawn from this thesis are valuable outside academia. Our findings provide practical suggestions for policymakers who care about improving financial efficiency and reducing financial vulnerabilities through financial development. Policy implications derived from this thesis alert policymakers that, aggressive private
This thesis is organized as follows: Chapter 2 provides a literature review of some. prominent studies in the field of financial development, human capital and growth, Chapter 3 discusses the research methodology, model and data, including choice of. variables. Chapter 4 discusses the regression results in detail.
Financial development, financial inclusion and welfare dynamics . in sub-Saharan Africa . Anthanasius Fomum Tita . Dissertation presented for the degree Doctor of Philosophy (PhD) in Development Finance at the University of Stellenbosch . Supervisor: Professor Meshach Jesse Aziakpono . March 2017
two key variables that will promote financial development and inclusion in the ASEAN region. Individual employment and the ability to earn seem to the key determinants for financial market development in the region. Both of these variables have high correlation to the economic growth and development in the ASEAN countries. The result also
Essays in Financial Economics. A dissertation presented by. Christopher Anderson. to. The Committee for the Ph.D. Program in Business Economics. in partial fulfillment of the requirements for the degree of Doctor of Philosophy in the subject of Business Economics Harvard University Cambridge, Massachusetts April 2019.
Chapter one motivates the thesis and specifies the objectives particular to each empirical chapter. Chapter two focuses on providing evidence on the role of financial development in determining whether developing countries follow or defy their comparative advantage. This area has been largely ignored in the literature on finance and development.
This dissertation studies the role of different types of frictions — financial and political - in preventing optimal resource allocation in the economy. In the first chapter I show that bank supervision reduces distortions in the credit market and generates positive spillovers for the real economy. Combining a novel administrative
Chapter one motivates the thesis and specifies the objectives particular to each empirical chapter. Chapter two focuses on providing evidence on the role of financial development in determining whether developing countries follow or defy their comparative advantage. This area has been largely ignored in the literature on finance and development.
patience, time and inspiration during the course of my PhD study. Without their genuine guidance and suggestions, this thesis could have been very hard to accomplish. I owe the University of Stirling and the Accounting and Finance Division a debt of gratitude for financially supporting me over the first three years of the doctoral studies.
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currently a PhD, Economics student at Babcock University, Ogun State. Leonardo Chaves Borges Cardoso is an Associate Professor in the Department of Agricultural Economics at Universidade Federal de Viçosa, ... financial development can be a veritable tool of enhancing the industrial sector of any economy. As financial development plays a ...
part of corresponding author's PhD dissertation. Reviewing editor: David McMillan, University of Stirling, Stirling, United Kingdom Additional information is available at ... financial development and economic growth can be traced back to the seminal work by Schumpeter (1912). Schumpeter (1912) argued that a well-functioning financial system ...
4.3 Financial Development and Economic Growth 35 4.3.1 Trend of Investment, Financial Development and Trade 35 4.3.2 Empirical Results for the Finance-Growth Nexus in Nepal 37 CHAPTER-V: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 5.1 Summary 42
Taking into account the complicated and multidimensional nature of financial development, this study aims to investigate the impact of overall financial market development, institution development, and their sub-indices on CO2 emissions. To advance knowledge about the nexus between financial development and CO2 emissions, four financial market indices (overall financial market development, FM ...
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