This study examines the nonlinear dependence between carbon market and stock market in China under normal and extreme market conditions by employing two novel nonlinear approaches, namely, quantile coherency and causality-in-quantiles methods. Given our results on the overall and sector level of stock market, we find that there is a negative dependence between the two markets under bearish and normal market states in the short- and medium-term respectively, while the dependence becomes positive under bearish and bullish market states in the long-term. Furthermore, we also prove that the Granger causality from carbon market to stock market exists. However, no evident impacts from stock market to carbon market have been found. Additionally, at sector stock market, we discover heterogeneity across market conditions. And emission-intensive sector stock indices are more affected by carbon prices.

This research for the first time examines the influence of the financial development, stock market, globalization, institutional quality, economic growth, electricity, and renewable energy consumption on carbon dioxide emission from 1985 to 2018 in thirty-six (OECD) countries. Cointegrations exist in the used variables based on the examined findings of the Kao, Westerlund, and Pedroni cointegration. Findings of the pooled mean group (PMG) indicate that renewable energy consumption, globalization, and institutional quality assist to reduce the carbon dioxide emission that improve the environment while financial development, stock market, electricity consumption, and economic growth cause to increase the carbon dioxide emission in OECD countries both in the long and in the short run. To reduce carbon dioxide emission, important policy implications are suggested for OECD countries.

The relationship between financial development and energy consumption is the most frequently research field in finance and economy. The main objective of performing this study is to answer that is there a relationship between financial development and renewable energy consumption in emerging countries? In many studies carried out in literature, the empirical findings were pointing to the existence of thiss relationship. To examine the relationship between financial development and renewable energy consumption, a total of 20 emerging countries were obtained from annual frequency data between 1990 and 2015. The system GMM estimation was used as the method of study. As a result of the analysis performed, it indicates that financial development does not impact renewable energy consumption in emerging countries when financial development is measured using both banking and stock market variables. Additionally, it can be said that the financial development increases renewable energy consumption if it is measured by only stock market capitalization.

The effect of financial development on carbon emissions is a hot topic. Although some researches study the heterogeneous impacts of financial development on carbon emissions at the country level, few paper has investigated their heterogeneous relations within the same country. This paper, applying geographically and temporally weighted regression (GTWR), studies the spatial–temporal heterogeneity of the impacts of financial development on carbon emissions across China’s 30 provinces from 2003 to 2017. The results show that financial development proxied by bank credit indicators curbs carbon emissions in most provinces most of the time, while that proxied by stock market indicator exhibits nonlinear relationships in most provinces, such as U-shaped, inverse U-shaped, and inverse N-shaped. The paper concludes first that financial development proxied by different indicators may exert varied impacts on carbon emissions. Second, the impact of financial development on carbon emissions shows great heterogeneity among different provinces and different years: it may be curbing or increasing, and even it is curbing, its curbing effects differ greatly across provinces and years. Third, the impact of financial development on CO2 is not always monotonic; instead, it may be nonlinear. Regional segmentation of financial markets may explain the heterogeneity. Some policy suggestions are also given.

Economic policy uncertainty generally tends to induce a pessimistic view of future market behaviour. Furthermore, instabilities in global oil prices have serious implications for the economies of oil exporters and importers, due to their over-dependence on crude oil for revenue and production activities, respectively, and thereby on stock market indices. Against limited empirical evidence, this study examines the spillover effects from global economic policy uncertainty (GEPU) and oil price volatility to the volatility of the stock market indices of oil exporters and importers in both developed and emerging economies. The results show that the spillover effect from GEPU to oil exporters is relatively smaller than to oil importers, for both developed and emerging countries. Conversely, the volatility spillovers from oil prices to oil exporters are relatively larger than to oil importers, for both developed and emerging countries. Specifically, the volatility spillovers from oil prices to oil exporters (importers) in emerging countries are relatively stronger compared to oil exporters (importers) in developed countries. The findings indicate that the volatility of the stock markets of emerging countries is more sensitive to global factors such as GEPU and oil price volatility, and that oil exporters and importers in emerging economies are more sensitive to oil price volatility than oil exporters and importers in developed economies, which is in line with previous studies.

The financial system development has got considerable attention due to its association with the environment of the country. To address the apprehension of the researchers about the effect of the determinants of the financial system on the environmental quality of high-income developed countries, we analyze the data of twenty developed countries with sound and strong financial systems for the period 2001 to 2018. We consider both banking development and stock market development as the main key determinants of the financial system. We employ numerous modern-day penal data estimation techniques, namely Dynamic Penal GMM in both linear and non-linear form, Common Correlated Effect Mean Group (CCEMG), and Dynamic Fixed Effect for capturing the issues of heterogeneity, endogeneity, and cross-sectional dependence. Our results show that banking development substantiates the environmental quality in high-income developed countries. The positive gesture of the banking development on environmental quality could be the reason for the established environmentally friendly policies in the developed part of the world. Hence, we conclude that banking development in high-income developed countries significantly reduces the emissions of dangerous gases, which resultantly enhances the environmental quality. The study reveals an insignificant and tenuous impact of the market development on the environmental quality that might be due to the adoption of cleaner technologies by firms in the developed world that are environmentally friendly. The results of our long-term estimations also predict the significant effect of banking development and an insignificant effect of the market development on environmental quality. In addition, our results also demonstrate an inverted U-shaped relationship of the determinants of the financial system and environmental quality. More institutional and legal initiatives must be made for a more robust banking and stock market development framework by the policy makers with a view to substantiating the quality of the environment to a more sustainable level in the developed world.

In recent years, the frequent occurrence of smog in Chinese cities has prompted great changes in the policy environment faced by enterprises. In this study, we address the question whether the decision-making behavior of enterprises will be affected by smog. This paper studied the 2010–2018 data of 218 listed Chinese polluting companies to investigate the impact of smog on corporate social responsibility (CSR). The subjects of this study were all listed on China’s A-share market on either the Shenzhen or Shanghai Stock Exchange. The empirical results indicate the following: (1) the more serious the smog, the more likely enterprises are to perform CSR; (2) smog exerts a higher impact on the social responsibility of enterprises that receive more media attention. Further research determined that media attention, whether positive, negative, or neutral, plays the same role in moderating the relationship between smog and CSR; and (3) compared to private enterprises, the function of smog in promoting the CSR fulfillment of state-owned enterprises (SOEs) is more obvious. Based on the reality of Chinese polluting industries, this research combined smog and media attention in the exploration of CSR, which not only enriches CSR research but also provides positive guidance for the sustainable development of polluting enterprises.

This paper has empirically explored the impact of macroeconomic and financial development on CO₂ emissions by utilizing a novel dynamic simulated ARDL model for annual time series data from 1982 to 2018 for Pakistan. The results of a novel dynamic simulated ARDL disclosed that the growth of stock market, FDI, economic growth, and consumption of oil wield a positive impact on CO₂ emission, while domestic credit exerts a negative effect on CO₂ emission both in the short and the long run in Pakistan. The stock market development and domestic credit wield a significant influence on carbon dioxide emission in Pakistan both in the long and the short run. FDI exerts significant impact only in the long run, while economic growth and consumption of oil wield significant impact only in the short run on CO₂ emission in Pakistan. This study opens up new visions for the economy of Pakistan to sustain financial and economic growth by protecting environment from pollution through its efficient national environmental policy, fiscal policy, and monetary policy.

The high energy consumption of cryptocurrency transactions has raised concerns about the environment and sustainability among green investors and regulatory authorities. The current study examines the connectedness among clean energy, Bitcoin, the stock market, and crude oil empirically. The time-varying parameter vector autoregression (TVP-VAR) is used to estimate the dynamics of connectedness in a daily dataset spanning the period November 11, 2013 to September 30, 2021. We find that the clean energy and traditional stock markets transmit shocks to Bitcoin and oil in terms of return, and they receive shocks in terms of volatility from Bitcoin and oil. Additionally, Bitcoin and other financial markets are only tenuously linked during non-crisis periods. Nonetheless, their connection strengthens substantially during times of crisis, such as the great cryptocurrency crash of 2018 and the COVID-19 pandemic of 2020. We believe that these findings can help explain how clean energy and cryptocurrency markets are linked during times of crisis.

This study examined the influence of tail risks on global financial markets, which aids in better understanding of the emergence of COVID-19. This study looks at the global and Vietnamese stock markets impacted by the COVID-19 pandemic to identify systemic emergencies. Risk dependent value (CoVaR) and Delta link VaR are two important tail-related risk indicators used in Conditional Bivariate Dynamic Correlation (DCC) (CoVaR). The empirical findings demonstrate that when COVID-19's worldwide spread widens, the volatility transmission of systemic risks across the global stock market and multiple exchanges shifts and becomes more relevant over time. At the time of COVID-19, the world industrial market was larger than the Vietnamese stock market, and the Vietnamese stock market posed a lesser danger to the global market. A closer examination of the link between the Vietnam value-at-risk (VaR) range index sample and the world stock index indicates a significant degree of downside risk integration in key monetary systems, particularly during the COVID-19 era. Our study findings may help regulators, politicians, and portfolio risk managers in Vietnam and worldwide during the unique moment of uncertainty created by the COVID-19 epidemic.