Exploring the dynamic relationship between financial development, renewable energy, and carbon emissions: A new evidence from belt and road countries
2022
Sheraz, Muhammad | Deyi, Xu | Mumtaz, Muhammad Zubair | Ullah, Atta
This empirical study examines the endogenous relationship between carbon emissions (CO₂), financial development, renewable energy, globalization, and institutional quality in 64 belt and road initiative countries (BRI) using a two-step system generalized method of moments (GMM) approach with panel data over the period 2003 to 2018. Furthermore, this study used (Dumitrescu & Hurlin, 2012) causality test to estimate the variables’ causal relationship. The results indicate that financial development significantly increases CO₂ emissions and causes environmental degradation in BRI countries. However, renewable energy and globalization mitigate CO₂ emissions and improve the quality of the environment. Institutional quality was positive in correlation with CO₂ emission and indicates bad governance, corruption, weak bureaucracy, and improper implementation of environmental laws cause environmental degradation. Further, the study also reports a bidirectional relationship of financial development, renewable energy, and institutional quality with CO₂ emissions and a unidirectional causality running from globalization to CO₂ emissions in BRI countries. This study offers policymakers insight into restructuring the financial system, energy consumption pattern, and global integration and improving institutions’ quality for a sustainable environment and the economy at the national and regional levels.
اظهر المزيد [+] اقل [-]الكلمات المفتاحية الخاصة بالمكنز الزراعي (أجروفوك)
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