financial development and energy consumption evidence from a heterogeneous panel of asian countries abstract this paper examined relationships between financial development and energy consumption in asia for the period of 1980 2012 for the purpose of the empirical analysis it performed the heterogeneous panel causality test suggested by dumitrescu and hurlin 1 the findings of the panel cointegration test indicated that there was a long run equilibrium relationship between finance and energy consumption in the region moreover the heterogeneous panel causality test detected a unidirectional causality from energy consumption to financial development but not vice versa these results indicate that an expansion of energy usage could be a driving force behind financial development in asia

democracy financial openness and global carbon dioxide emissions heterogeneity across existing emission levels summary the determinants of co 2 emissions have attracted many researchers over the past few decades most of studies however ignore the possibility that effect of independent variables on co 2 emissions could vary throughout the co 2 emission distribution we address this issue by applying quantile regression methods we examine whether greater democracy and more financial openness consistently reduce emissions among the most and least emission nations our results show that the effect of democracy on co 2 emissions is heterogeneous across quantiles among the most emissions nations greater democracy appears to reduce emissions but more financial openness does not appear to reduce it

renewable energy consumption urbanization financial development income and co2 emissions in turkey testing ekc hypothesis with structural breaks abstract in this study the short and long run dynamic relationship between per capita gdp per capita carbon dioxide co2 emissions financial development per capita total renewable energy consumption hydropower consumption alternative energy consumption and urbanization was investigated by using ardl bounds testing approach gregory hansen and hatemi j cointegration tests for turkey during 1974 2014 the results of three cointegration test indicated that there was a long run relationship between these variables the coefficients obtained from the ardl fully modified least squares fmols and canonical cointegrating regression ccr estimators showed that economic growth financial development and urbanization increase environmental degradation while total renewable energy consumption hydropower consumption and alternative energy consumption had no effect on co2 emissions the findings showed that economic growth caused the greatest increases in co2 emissions followed by urbanization and financial development however renewable energy consumption was not at a desirable level to reduce co2 emissions the study also support environmental kuznets curve ekc hypothesis which establishes an inverted u shaped relationship between economic growth and co2 emissions the turning points of per capita gdp obtained from long run regressions were found to be around 13523 14077 us dollars outside the sample period the overall results indicated that turkey has not reached the level of per capita gdp that can reduce environmental pollution and renewable energy consumption is not a solution to reduce co2 emissions

co2 emissions energy consumption and economic growth in bric countries abstract this paper examines dynamic causal relationships between pollutant emissions energy consumption and output for a panel of bric countries over the period 1971 2005 except for russia 1990 2005 in long run equilibrium energy consumption has a positive and statistically significant impact on emissions while real output exhibits the inverted u shape pattern associated with the environmental kuznets curve ekc hypothesis with the threshold income of 5 393 in logarithms in the short term changes in emissions are driven mostly by the error correction term and short term energy consumption shocks as opposed to short term output shocks for each country short term deviations from the long term equilibrium take from 0 770 years russia to 5 848 years brazil to correct the panel causality results indicate there are energy consumption emissions bidirectional strong causality and energy consumption output bidirectional long run causality along with unidirectional both strong and short run causalities from emissions and energy consumption respectively to output overall in order to reduce emissions and not to adversely affect economic growth increasing both energy supply investment and energy efficiency and stepping up energy conservation policies to reduce unnecessary wastage of energy can be initiated for energy dependent bric countries

is trade good or bad for the environment sorting out the causality we seek to contribute to the debate over globalization and the environment by asking what is the effect of trade on a country s environment for a given level of gdp we take specific account of the endogeneity of trade using exogenous geographic determinants of trade as instrumental variables we find that trade tends to reduce three measures of air pollution statistical significance is high for concentrations of so2 moderate for no2 and lacking for particulate matter although results for other environmental measures are not as encouraging there is little evidence that trade has a detrimental effect on the environment

dynamic relationship between financial development energy consumption trade and greenhouse gas comparison of upper middle income countries from asia europe africa and america the paper explores the nexus between greenhouse gas financial development energy consumption trade and urbanization in 34 upper middle income countries from asia europe africa and america south and north by using panel data from 2001 to 2014 vector error correction model explored different results for different regions such as the causality of greenhouse gas for europe and america financial development for asia trade openness for asia europe and america and urbanization for africa and america the causality of greenhouse gas emission was bi directional with urbanization in america and trade in europe the bi directional causality of trade was observed with financial development in asia and urbanization in africa the generalized method of moment and fully modified ordinary least square explored a direct association of per capita greenhouse gas emission with financial development in europe energy consumption in all panels and renewable energy in africa and america but the relationship of per capita emission was reciprocal with financial development in asia africa and america renewable energy in europe trade in europe africa and america and urbanization in asia europe and america the relationship of variables changes from region to region and country to country a country based reciprocal effect on per capita greenhouse gas was observed for financial development renewable energy trade openness and urbanization for different countries this paper provides an insight to policy makers to re structure the financial system energy usage pattern trade and urbanization in accordance with the cleaning of environment at country and regional level

financial development and environmental quality in uae cointegration with structural breaks abstract this study extends the recent work of shahbaz et al 2014 by implementing recent unit root tests with multiple structural breaks and regime switching cointegration techniques considering for one and two unknown regime shifts to investigate the relationship between carbon dioxide emissions electricity consumption economic growth financial development trade openness and urbanization for the uae over the period spanning from 1975 to 2011 our results confirm the existence of environmental kuznets curve ekc moreover we find an inverted u shaped relationship between financial development and co2 emissions we also find that electricity consumption urbanization and trade openness contribute to improve environmental quality

the toxic intensity of industrial production global patterns trends and trade policy this paper exploits a newly developed data set to investigate recent changes in the international distribution of industrial pollution in particular the authors examine three issues 1 the relationship between the toxic intensity of industrial production and the level of economic development 2 the impact of oecd environmental regulation on global changes in toxic intensity and 3 the relationship between trade policy and the toxic intensity of industrial production in ldc s 10 refs

determinants of emissions growth in oecd countries abstract this paper analyses the sources of growth in energy related greenhouse gas emissions for oecd countries over the period 1982 1997 it employs a decomposition formula that separates out the effects of changes in population economic growth energy intensity of output in aggregate and by sector primary energy use in final energy consumption the share of fossil fuels and the carbon intensity of fossil fuel combustion it is shown that in general growth in emissions depends on how effectively energy use can be changed to offset the effects of economic growth across the oecd as a whole growth in emissions has been mainly due to economic growth both gdp per capita and population growth as well as an increase in primary energy required for final energy consumption offset by falling energy intensities and a declining share of fossil fuels overall the large fall in the energy intensity of oecd economies over 1982 1997 has been driven primarily by falling energy intensities in the services and industry sectors of the usa and the services sector of the european union but these have been offset somewhat by rising energy intensity of services in japan the influence of falling energy intensities and the declining share of fossil fuels weakened in the five year period 1992 1997 resulting in faster emissions growth there were sharp difference between countries with population growth and worsening fuel mix playing a much stronger role in the usa compared to the eu and japan but with the us making much larger reductions in energy use per unit of gdp the analysis suggests that opportunities to reduce emissions are more limited in germany the uk and japan with more opportunities in the usa canada the netherlands and australia

economic development and co2 emissions a nonparametric panel approach we examine the empirical relation between co2 emissions per capita and gdp per capita during the period 1960 1996 using a panel of 100 countries relying on the nonparametric poolability test of baltagi et al baltagi b h hidalgo j li q 1996 a nonparametric test for poolability using panel data journal of econometrics 75 345 367 we find evidence of structural stability of the relationship we then specify a nonparametric panel data model with country specific effects estimation results show that this relationship is upward sloping nonparametric specification tests do not reject monotonicity but do reject the polynomial functional form which leads to the environmental kuznets curve in several studies

the effect of fdi on environmental emissions evidence from a meta analysis one important and frequently raised issue about foreign direct investment fdi is the potentially negative consequences for the environment the potential environmental cost due to increased emissions may undermine the economic gains associated with increases in fdi inflow although the literature is dominated with this adverse view of fdi on the environment there is also a possibility that fdi can contribute to a cleaner environment especially if fdi comes with green technologies and this creates spillovers for domestic industries theoretically the effect of fdi on the environment can be negative or positive to deal with the theoretical ambiguity about the fdi environment nexus many empirical studies have been conducted but their results only reinforce the controversy as they produce contrasting results we conduct a meta analysis of the effect of fdi on environmental emissions using 65 primary studies that produce 1006 elasticities our results show that the underlying effect of fdi on environmental emissions is close to zero however after accounting for heterogeneity in the studies we find that fdi significantly reduces environmental emissions results remain robust after disaggregating the effect for countries at different levels of development as well as for different pollutants

environmental kuznets curves real progress or passing the buck abstract recent research has examined the hypothesis of an environmental kuznets curve ekc the notion that environmental impact increases in the early stages of development followed by declines in the later stages these studies have focused on the relationship between per capita income and a variety of environmental indicators results imply that ekcs may exist for a number of cases however the measures of environmental impact used generally focus on production processes and reflect environmental impacts that are local in nature and for which abatement is relatively inexpensive in terms of monetary costs and or lifestyle changes significantly more consumption based measures such co2 emissions and municipal waste for which impacts are relatively easy to externalize or costly to control show no tendency to decline with increasing per capita income by considering consumption and trade patterns the author re examines the concept of the ekc and proposes the use of alternative consumption based measures of environmental impact the author speculates that what appear to be improvements in environmental quality may in reality be indicators of increased ability of consumers in wealthy nations to distance themselves from the environmental degradation associated with their consumption

financial development and energy consumption is the mena region different abstract this paper examines the relationship between financial development and energy consumption estimations in the major mena countries algeria bahrain egypt iran iraq israel jordan kuwait lebanon libya morocco oman qatar saudi arabia syria tunisia united arab emirates and yemen over the period 1996 to 2014 we consider the energy use in kg of oil equivalent per capita as a dependent variable that reflects the cross country energy consumption we measure the level of financial development in the mena countries by considering banking indicators extending the model of sadorsky 2011 we estimate both linear and non linear dynamic panel model we use new robust econometrics to take into account heterogeneity and nonlinearity and we control the estimation results for the period of the global financial crisis the results of the study report a positive and statistically significant relationship between the intermediation capacity of the banking system as well as its size and energy consumption the findings also confirm a non linear and inverted u shaped relationship between financial development and energy demand for the mena region this implies that initially energy demand increases with financial development and then at a turning point of financial development it declines the policy implications of these results are discussed

impact of financial development on trade embodied carbon dioxide emissions evidence from 30 provinces in china abstract the literature on financial development and carbon dioxide co2 emissions is extensive however previous studies have not found the impact of financial development on trade embodied co2 emissions therefore we build a dynamic panel model based on the extension of the stirpat model to verify the overall and indirect impact of financial development we calculate trade embodied co2 emissions of 30 provinces in china in 2000 2014 using the single region input output model srio by eliminating the impact of imported intermediate products on co2 emissions embodied in exports exc in order to measure financial development in china more comprehensively we use financial scale development financial efficiency and financialization to define it results show that the environmental kuznets curve is confirmed at the level of china s provinces in most provinces exc began to increase in 2006 and decline in 2010 but co2 embodied in net exports ec began to decrease in 2005 and increase in 2010 the results of overall impact indicate that different financial development indicators have different effects on ec but they all reduce exc the results of indirect impact through imitation innovation ic and independent research and development rd find that financial scale development increases exc however financial efficiency and financialization decreases exc financial scale development and financial efficiency can decrease ec but financialization increases ec the results of indirect impact through fdi show that financial scale development and financial efficiency can decrease exc and ec financialization decreases exc but the impact of financialization on ec has obvious threshold characteristics when the level of financialization is lower than the threshold value financialization will reduce ec there is regional heterogeneity in the impact of financial development on trade embodied co2 emissions the conclusions of this paper are of great reference value for improving the level of financial development so as to realize the development of china s green trade

stoking the fires co2 emissions and economic growth abstract we examine the relationship between economic development and carbon dioxide emissions a greenhouse gas central to global warming predictions estimates derived from global panel data suggest a diminishing marginal propensity to emit mpe carbon dioxide as gdp per capita rises despite this global carbon dioxide emissions growth will continue at 1 8 percent per annum for the foreseeable future a result that is not sensitive to average output growth instead emissions growth continues because output and population will grow most rapidly in lower income nations with high mpes this latter feature emphasizes the distributional consequences of policies to reduce emissions

economic growth co2 emissions and energy consumption what causes what and where abstract this paper applies panel vector autoregression pvar along with a system generalized method of moment system gmm to examine the dynamic causal relationship between economic growth carbon emissions and energy consumption for 116 countries over the period 1990 2014 using multivariate model the empirical results from this study have established key relationships which have important policy implications first at the global and regional levels economic growth does not cause energy consumption second with the exception of the global and caribbean latin america economic growth has no causal impact on carbon emissions however economic growth has a negative impact on carbon emissions at the global level and the caribbean latin america third carbon emissions positively cause economic growth fourth energy consumption positively causes economic growth in sub saharan africa while it negatively causes economic growth at the global middle east and north africa mena asia pacific and caribbean latin america fifth energy consumption positively causes carbon emissions in mena but causes carbon emissions negatively in sub saharan africa and caribbean latin america lastly with the exception of mena and the global sample carbon emissions do not cause energy consumption the impulse response function shows evidence of environmental kuznets curve at the global scale and sub saharan africa the policy implications of this paper are discussed

financial development and environmental degradation does political regime matter abstract the paper examines the determinants of environmental degradation for 26 african countries over the period 1985 2011 using a wide range of econometric techniques chow test cross country regressions and the generalized method of moments gmm we find that environmental degradation measured by co2 emissions in 2000 2011 experience a structural change which is far more intense than 1985 1999 furthermore cross country regressions show that economic growth and urbanization are significant determinants of environmental degradation financial development however is a significant determinant of environmental degradation after accounting for political regime finally the gmm estimator confirms a robust positive link between environmental degradation and economic growth the policy implications of our findings are discussed in the concluding section

does fdi influence renewable energy consumption an analysis of sectoral fdi impact on renewable and non renewable industrial energy consumption this study examines the link between foreign direct investment fdi and energy demand fdi is a source of financing that allows businesses to grow at the same time fdi can be a source of innovation that promotes energy efficiency existing evidence on the impact of aggregate fdi inflows on energy consumption is scarce and inconclusive in the current study we disaggregate fdi inflows into mining manufacturing total services and financial services components and examine the impact of these fdi flows on renewable and non renewable industrial energy sources for 74 countries for the period 1985 2012 we employ a blundell bond dynamic panel estimator to control for endogeneity and omitted variable biases in our panels the results point broadly to an energy consumption reducing effect with respect to non renewable sources of energy and an energy consumption augmenting effects with respect to renewable energy we find that these effects vary in magnitude and significance by sectoral fdi

financial development and energy consumption in central and eastern european frontier economies this study examines the impact of financial development on energy consumption in a sample of 9 central and eastern european frontier economies several different measures of financial development are examined including bank related variables and stock market variables the empirical results obtained from dynamic panel demand models show a positive and statistically significant relationship between financial development and energy consumption when financial development is measured using banking variables like deposit money bank assets to gdp financial system deposits to gdp or liquid liabilities to gdp of the three stock market variables investigated only one stock market turnover has a positive and statistically significant impact on energy consumption both short run and long run elasticities are presented the implications of these results for energy policy are discussed

does financial agglomeration promote the increase of energy efficiency in china abstract whether financial agglomeration is conducive to the improvement of energy efficiency is of great significance for china to better follow the path of energy conservation and emission reduction and green sustainable development based on the balanced panel data of 285 cities in china from 2005 to 2017 this paper analyzes the impact of financial agglomeration on energy efficiency theoretical analysis shows that financial agglomeration can influence energy efficiency through scale economy effect innovation driving effect information spillover effect and structural adjustment effect dynamic spatial econometric results show that from a national perspective financial agglomeration has a positive impact on energy efficiency however from the perspective of different regions and different city sizes it is found that financial agglomeration can have different effects on energy efficiency financial agglomeration has a significant positive impact on energy efficiency in eastern and central regions megacities and big cities financial agglomeration has a significant negative impact on energy efficiency in western china and has no significant effect on energy efficiency in medium sized and small cities finally based on the conclusions of the study specific proposals for financial agglomeration to improve energy efficiency are proposed

how does financial development affect energy consumption evidence from 21 transitional countries abstract financial development significantly impacts energy consumption this paper uses cross country panel data from 21 transitional countries for the period 2006 2015 while considering different financial development indicators and nonlinear relationships between financial development and energy consumption this is done by selecting five financial development indicators to measure financial development and testing linear and nonlinear relationships between financial development and energy consumption it found the following first there are no significant linear relationships between financial development and energy consumption financial development does have significant nonlinear impacts on energy consumption in transitional countries with estimated nonlinear parameters that are significant second financial development affects energy consumption in transitional countries in differing ways financial intermediation development positively affected energy consumption in all the countries studied stock markets development led decreased energy consumption in china and poland financial openness development reduced energy use except in georgia and the kygyz republic

the effects of electricity consumption economic growth financial development and foreign direct investment on co2 emissions in kuwait abstract this study examined the empirical effects of economic growth electricity consumption foreign direct investment fdi and financial development on carbon dioxide co2 emissions in kuwait using time series data for the period 1980 2013 to achieve this goal we applied the autoregressive distributed lag ardl bounds testing approach and found that cointegration exists among the series findings indicate that economic growth electricity consumption and fdi stimulate co2 emissions in both the short and long run the vecm granger causality analysis revealed that fdi economic growth and electricity consumption strongly granger cause co2 emissions based on these findings the study recommends that kuwait reduce emissions by expanding its existing carbon capture utilization and storage plants capitalizing on its vast solar and wind energy reducing high subsidies of the residential electricity scheme and aggressively investing in energy research to build expertise for achieving electricity generation efficiency

co2 emissions and financial development in an emerging economy an augmented var approach abstract this paper explores the influence of economic and financial development on carbon emissions in a small emerging economy the study employs ardl approach to investigate the long run relationship between carbon emissions and a set of economic and financial variables an error correction model ecm to capture the short run dynamics granger causality in an augmented var framework to check the causality direction and variance decomposition based on an estimated vector error correction model vecm to determine the relative contributions of economic and financial variables to the evolution of per capita carbon emissions the periods considered were the full sample 1971 2011 and a reduced sample sub period 1988 2011 that corresponded to greater liberalization and financial sector development the financial variables played a role in emission mitigation only in the latter period where greater degree of liberalization and financial sector development occurred even then the relative magnitude of emissions mitigation attributable to financial variables was much smaller compared to the emissions raising impact of rising per capita incomes this underscores the need for adopting other mitigation policies for reducing carbon footprints in those emerging economies where a sufficient degree of financial deepening and financial sector development has not yet taken place

are inflation expectations rational abstract several recent papers report evidence of an apparent statistical bias in inflation expectations and interpret these findings as overturning the rational expectations hypothesis in this paper we investigate the validity of such an interpretation we present a computational dynamic general equilibrium model capable of generating aggregate behavior similar to the data along several dimensions by construction model agents form rational expectations we run a standard regression on equilibrium realizations of inflation and inflation expectations over sample periods corresponding to those tests performed on actual data and find evidence of an apparent bias in inflation expectations our experiments suggest that this incorrect inference is largely the product of a small sample problem exacerbated by short run learning dynamics in response to infrequent shifts in monetary policy regimes

environment and development theory and international evidence the environmental effects of economic development have significant implications for a wide array of policy questions facing both low and high income countries today internationally agricultural research centers are considering how to incorporate sustainability issues into their research agendas while international lending institutions are taking a close look at the environmental consequences of industrial projects domestically the north american free trade agreement has brought the relationship between economic development and environmental quality to the forefront of u s public policy debate it is surprising that despite the postwar growth of development economics the genesis of environmental economics and the fusion of ideas from both fields into the theme of sustainable development economists have not made much progress in describing the impacts of long term economic growth on environmental quality yet a vigorous public debate has arisen between individuals who maintain that environmental degradation is a necessary outcome of economic growth and those who believe that economic growth and environmental quality go hand in hand this debate was highlighted at the 1992 united nations conference on environment and development in rio de janeiro in part this debate hinges on the properties of the aggregate demand for and supply of environmental quality if the income elasticity of demand for environmental quality or amenities is high then the increased prosperity engendered by economic growth could lead to significantly higher demand for environmental quality proponents of economic growth believe this demand will translate into a higher realized level of quality as both public and private institutions and organi

co2 gdp and ret an aggregate economic equilibrium analysis for turkey there is a worldwide interest in renewable electricity technologies rets due to growing concerns about global warming and climate change as an eu candidate country whose energy demand increases exponentially turkey inevitably shares this common interest on ret this study using an aggregate economic equilibrium model explores the economic costs of different policy measures to mitigate co2 emissions in turkey the model combines energy demands capital requirements and labor inputs at a constant elasticity of substitution under an economy wide nested production function growing energy demand triggered by economic growth is met by increased supply and initiates new capacity additions investment into ret is encouraged via the incorporation of a endogenous technological learning through which the ret cost declines as a function of cumulative capacity and b a willingness to pay wtp function which imposes the wtp of consumers as a lower bound on ret installation the wtp equation is obtained as a function of consumer income categories based on data gathered from a pilot survey in which the contingent valuation methodology was employed the impacts of various emission reduction scenarios on gdp growth and ret diffusion are explored as expected ret penetration is accelerated under faster technological learning and higher wtp conditions it is found that stabilizing co2 emissions to year 2005 levels causes economic losses amounting to 17 and 23 of gdp in the years 2020 and 2030 respectively

dynamic linkages among energy consumption environment health and wealth in brics countries green growth key to sustainable development abstract the objective of the study is to examine the four pillars of green growth or green environment i e energy environment health and wealth in brics countries namely brazil russia india china and south africa over the period of 1975 2013 the study examines the relationship between energy consumption environment health and its resulting impact on brics economic growth the study used three environmental variables i e agricultural technology carbon dioxide emissions and population density three energy sources i e nuclear energy consumption electricity production from renewable sources and combustible renewable waste two health proxies i e fertility rate total i e births per woman and infant mortality rate and gdp per capita for economic growth these variables were selected due to the vital importance in the brics nations the overall results indicate that environmental variables have a deleterious effect on the brics economic growth while energy sources significantly increases economic growth in the countries health expenditures and infrastructure required proper care of fertility and mortality related health issues in the brics countries the results emphasized the importance of green growth and sustainable developmental policies that help to expedite growth process and welfare of the countries

disclosure of environmental violations and the stock market in the republic of korea for almost 20 years the ministry of environment of the republic of korea has published on a monthly basis a list of enterprises that fail to comply with national environmental laws and regulations in this paper the authors examine the reaction of investors to the publication of these lists and show that enterprises appearing on these lists have experienced a significant decline in their market valuation firms in developing countries are often said to have no incentives to invest in pollution control because they typically face weak monitoring and enforcement of environmental regulations the findings of the authors however indicate that the inability of formal institutions to control pollution through fines and penalties may not be as serious an impediment to pollution control as is generally argued environmental regulators in developing countries could harness market forces by introducing structured programs to release firm specific information about environmental performance

a new database on the structure and development of the financial sector this article introduces a new database of indicators of financial structure and financial development across countries and over time the database is unique in that it combines a wide variety of indicators that measure the size activity and efficiency of financial intermediaries and markets it improves on previous efforts by presenting data on the public share of commercial banks introducing indicators of the size and activity of nonbank financial institutions and constructing measures of the size of bond and primary equity markets this article introduces a new database the first to provide comprehensive measures of the development structure and performance of the financial sector this database is the first to define and construct indicators of the size and activity of nonbank financial intermediaries such as insurance companies pension funds and non deposit money banks it is also the first to include indicators of the size of primary equity markets and primary and secondary bond markets in constructing the database authors carefully deflate measures and match stock and flow variables

economic growth trade and energy implications for the environmental kuznets curve abstract the environmental kuznets curve ekc hypothesis asserts that pollution follows an inverted u path with respect to economic growth the ekc has been explained in terms of structural changes in the composition of economic output and increased environmental regulation at higher income levels while some authors have incorporated the impact of trade policy orientation on the ekc the impact of the actual movement between countries of goods that embody pollution has not been considered this paper attempts to econometrically quantify the effect using pooled cross country and time series data the ekc hypothesis is examined with respect to commercial energy consumption the source of many serious environmental problems it was found that while both industrializing and industrialized countries have added to their energy requirements by exporting manufactured goods the growth has been substantially higher in the former at the same time industrialized countries have been able to reduce their energy requirements by importing manufactured goods exports of manufactured goods by industrialized countries has thus been an important factor in generating the upward sloping portion of the ekc and imports by industrialized countries have contributed to the downward slope

does the private sector help or hurt the environment evidence from carbon dioxide pollution in developing countries abstract how does the nature of enterprise ownership affect the environment in an economy conventional wisdom and theoretical conjectures are split on this important question in this paper we estimate a reduced form random effects model using data from 44 developing countries over nine years 1987 95 to study for any systematic empirical relationship between the relative level of private sector involvement in an economy and the environmental performance of the economy in terms of its emission of industrial carbon dioxide we control for both observed and unobserved crosscountry heterogeneity along various institutional and structural dimensions such as the scope of financial market industrial sector composition and level of foreign direct investment the regression results indicate that the higher the degree of private sector involvement in a developing economy the lower is its environmental degradation in addition its environmental degradation is likely to be further reduced in presence of a well functioning domestic capital market and through increased participation by developed economies in its private sector development

environmental kuznets curve and financial development in pakistan abstract in this study we analyzed the effects of financial development per capita real income the square of per capita real income per capita energy consumption and openness on per capita co 2 emissions for pakistan during 1972 2013 the bound f test for cointegration yielded evidence of a long term relationship among these variables the results confirm the existence of an environmental kuznets curve in pakistan for both the short and long term this finding indicates that at the initial stage of development the level of co 2 increases with income and after some threshold level of income this relationship may change from positive to negative as more efficient infrastructure and energy efficient technology are implemented during the development process of the country the findings of this study also reveal a significantly positive sign for the coefficient of financial development suggesting that financial development has occurred at the expense of environmental quality the results further indicate that the key contributing factors to carbon emissions in pakistan are income energy consumption and financial development in addition the openness variable has no significant influence on carbon emission in either the short or long term

room for improvement in low carbon economies of g7 and brics countries based on the analysis of energy efficiency and environmental kuznets curves abstract carbon emissions which are nowadays targeted for significant reduction cause global warming with climate change producing a series of side effects including economic losses and ecological extinction the data envelopment analysis approach has recently been employed for environmental estimations the target of this study is to introduce a new data envelopment analysis method in order to provide environmental improvement suggestions this study measures the room for improvements in low carbon economies of g7 group and brics group based on the analysis of energy efficiency and environmental kuznets curves the main findings are as follows i the g7 group has greater room for improvement in its carbonization value than the brics group before 2005 however the latter has greater room for improvement in carbonization value than the former after 2005 ii countries with the backfire effect of a high carbon economy include germany italy and south africa iii during the data period three environmental kuznets curves including energy intensity emission intensity and carbonization value do not satisfy the environmental kuznets curve hypothesis that the curves are inverted u shaped on the contrary the three environmental kuznets curves in this study are u shaped

do financial development urbanization and trade affect environmental quality evidence from china abstract it is of great significance to study the impact of financial development on carbon emissions for the development of low carbon economy although many empirical studies reveal significant correlations between financial development and various environmental pollution variables few studies differentiate financial scale and efficiency from other factors and pay attention to the impact of securities capital market on carbon emissions in view of the complexity of financial development impact mechanism on carbon emissions in china this paper classifies financial development into two dimensions financial scale and securities size we establish a broader autoregressive distributed lag error correction model ardl ecm which is used to measure the dynamic relationship among financial scale securities size urbanization economic development trade openness and china s carbon emission intensity the study indicates that there is positive short run and long run relationship among financial scale economic growth and carbon emission intensity this reflects that the current development of financial scale has stimulated the development of china s economy but brought carbon emissions the size of securities has a relatively small impact on carbon emission intensity both in the short run and long run this shows that china s current securities market mechanism of regulating carbon emissions needs further improvement the above conclusions are convinced by the robustness tests this paper provides empirical evidence for policy makers to support the implementation of financial and low carbon economy growth

the impact of energy consumption and co2 emission on the economic and financial development in 19 selected countries abstract this study investigated the impact of energy consumption on the economic and financial development in 19 countries these countries were selected due to the fact that the financial development indicators contribute an important share to their total gdp the panel model was employed taking the period of 1980 to 2008 the results show that energy consumption enables these countries to achieve high economic and financial development however the high development that these countries have achieved in the late three decades increased the co 2 emission it is important that these countries should reduce the level of pollution through utilizing energy protection policies such as rationing energy consumption and controlling carbon dioxide emissions or increasing the share of clean energy of their total energy consumption

industrial ownership and environmental performance evidence from china the authors explore the differences in pollution control performance of industries with different types of ownership in china state owned soe collectively or community owned coe privately owned poe companies with foreign direct investment fdi and joint ventures about 1 000 industrial firms in three provinces of china were surveyed and detailed 1999 firm level information was obtained the authors analyzed the differences between firms in receiving and reacting to environmental regulatory enforcement community pressure environmental services as well as in the firm s internal environmental management among the different types of ownership the authors also conducted econometric analyses on the determinants of pollution discharge performance the results show that foreign direct investment and collectively owned enterprises have better environmental performances in terms of water pollution discharge intensity while state owned enterprises and privately owned enterprises in china are the worst performers the results also suggest that collectively owned enterprises in china do internalize environmental externalities

the impact of environmental management on firm performance environmental management has the potential to play a pivotal role in the financial performance of the firm many individuals suggest that profitability is hurt by the higher production costs of environmental management initiatives while others cite anecdotal evidence of increased profitability a theoretical model is proposed that links strong environmental management to improved perceived future financial performance as measured by stock market performance the linkage to firm performance is tested empirically using financial event methodology and archival data of firm level environmental and financial performance significant positive returns were measured for strong environmental management as indicated by environmental performance awards and significant negative returns were measured for weak environmental management as indicated by environmental crises the implicit financial market valuation of these events also was estimated cross sectional analysis of the environmental award events revealed differences for first time awards and between industries first time award announcements were associated with greater increases in market valuation although smaller increases were observed for firms in environmentally dirty industries possibly indicative of market skepticism this linkage between environmental management and financial performance can be used by both researchers and practitioners as one measure of the benefits experienced by industry leaders and as one criterion against which to measure investment alternatives

capital market liberalization economic growth and instability summary this paper reviews briefly the arguments for capital market liberalization and identifies their theoretical and empirical weaknesses this provides the foundations for the argument for intervention in short term capital flows the paper concludes with a brief discussion of the various ways in which such interventions may be implemented 2000 elsevier science ltd all rights reserved

impact of corruption in public sector on environmental quality implications for sustainability in brics and next 11 countries abstract this study investigates the impact of corruption in public sector on carbon emissions in presence of energy use segregation following the environmental kuznets curve ekc framework the study has been carried out for brazil russia india china south africa brics and next 11 countries over the period of 1990 2017 along with the finding of inverted n shaped ekc for both the cases we find that incidents of corruption enhance environmental degradation by reducing the positive impact of renewable energy consumption on environmental quality and increasing the negative impact of fossil fuel consumption this study has also divulged that the corruptive practices are more prone in case of the countries where the development is mature and institutionalization is more stringent based on these findings we suggest that environmental policies should take account of the corruption and thereby making the policies more robust and effective

environmental degradation in france the effects of fdi financial development and energy innovations abstract this paper explores the determinants of carbon emissions in france by accounting for the significant role played by foreign direct investment fdi financial development economic growth energy consumption and energy research innovations in influencing co 2 emissions function in this endeavour we employ the novel sor shahbaz et al 2017 unit root test on french time series data over the period 1955 2016 to examine the order of integration in the presence of sharp and smooth structural breaks in the variables we also apply the bootstrapping bounds testing approach recently developed by mcnown et al 2018 to investigate the presence of cointegration and the empirical findings underscore the presence of cointegration among the time series moreover we find that fdi has a positive impact while energy research innovations have a negative impact on french carbon emissions financial development lowers carbon emissions thereby improving the french environmental quality fdi degrades the environment and thus supports the pollution haven hypothesis in france similarly financial development suggests that financial stability is a required condition for improving environmental quality so are energy research innovations contrarily energy consumption is positively linked with carbon emissions however the relationship between economic growth and co 2 emissions is an inverted u which is a validation of the environmental kuznets curve ekc

the impact of financial development on energy consumption in emerging economies abstract financial development is often cited as a very important driver of economic growth in emerging economies and it is thus likely that financial development affects energy demand this study uses generalized method of moments estimation techniques to examine the impact of financial development on energy consumption in a sample of emerging countries several different measures of financial development are examined using a panel data set on 22 emerging countries covering the period 1990 2006 the empirical results show a positive and statistically significant relationship between financial development and energy consumption when financial development is measured using stock market variables like stock market capitalization to gdp stock market value traded to gdp and stock market turnover the implications of these results for energy policy are discussed

the effect of foreign direct investment and stock market growth on clean energy use across a panel of emerging market economies this study investigates the impact of both fdi inflows and stock market developments on clean energy use across 20 emerging market economies spanning the period 1991 2012 it accounts for cross sectional dependence and heterogeneity in the analysis and employs robust panel econometric techniques the empirical results on long run elasticities display that economic output fdi inflows and stock market developments have all a significant positive impact on clean energy consumption finally the results on heterogeneous panel non causality tests indicate the presence of unidirectional causality running from fdi to clean energy consumption in the short run for robustness purposes the paper also estimates long run elasticities for individual countries with the findings documenting that both fdi inflows and stock market developments have a considerable positive impact on clean energy uses the findings urge that both policy makers and governments in these emerging market economies should initiate effective public private partnership investments in clean energy projects by providing lucrative incentives which in turn will encourage both domestic and foreign investors to invest more in clean energy projects and eventually moving these economies towards sustainable economic growth

literature survey on the relationships between energy environment and economic growth abstract the aim of this study is to exhibit an exhaustive survey which is related to the great flight of the literature of energy environment growth nexus at the individual and regional scale studies covering the period from 1978 to 2014 the survey takes into consideration the sample country region etc periods covering econometric strategies and conclusions our survey is based on the causality direction among i the energy use variables electricity nuclear renewable and non renewable and output growth ii between economic growth and environment and between the three variables at the same time globally these surveys provide paradoxical and not conclusive results which energy consumption can boost economic growth through the productivity enhancement and it can boost also the environmental damages through the enhancement of pollutant emissions our survey sheds more the lights on the energy environment growth literature by giving an extensive listing 1978 2014 of these causal linkages among the energy use variables environment and economic growth for both individual and collective cases there is a unanimous consensus about the importance of dealing with such dynamic relationship which is seems to be a cornerstone element in setting any ambition strategies energy ecological and economics

does higher economic and financial development lead to environmental degradation evidence from bric countries abstract a vast number of studies addressed the environmental degradation and economic development but not financial development moreover as argued by stern 2004 the rise and fall of the environmental kuznets curve world development 32 1419 1439 they present important econometric weaknesses using standard reduced form modeling approach and controlling for country specific unobserved heterogeneity we investigate the linkage between not only economic development and environmental quality but also the financial development panel data over period 1992 2004 is used we find that both economic and financial development are determinants of the environmental quality in bric economies we show that higher degree of economic and financial development decreases the environmental degradation our analysis suggests that financial liberalization and openness are essential factors for the co 2 reduction the adoption of policies directed to financial openness and liberalization to attract higher levels of r d related foreign direct investment might reduce the environmental degradation in countries under consideration in addition the robustness check trough the inclusion of us and japan does not alter our main findings

financial stability energy consumption and environmental quality evidence from south asian economies abstract a few studies are found on the relationship between financial instability energy consumption and environmental quality in energy economics literature the current study is an endeavor to fill this gap by investigating the relationship between financial stability economic growth energy consumption and carbon dioxide co 2 emissions in south asian countries over the period 1980 2012 using a multivariate framework bounds test for cointegration and granger causality approach are employed for the empirical analysis estimated results suggest that all variables are non stationary and cointegrated the results show that financial stability improves environmental quality while the increase in economic growth energy consumption and population density are detrimental for environment quality in the long run the results also support the environmental kuznets curve ekc hypothesis which assumes an inverted u shaped path between income and environmental quality moreover the study found the evidence of unidirectional causality running from financial stability to co 2 emissions in two countries i e pakistan and sri lanka the findings of this study open up new insight for policy makers to design a comprehensive financial economic and energy supply policies to minimize the detrimental impact of environmental pollution

the long run and causal analysis of energy growth openness and financial development on carbon emissions in turkey abstract the aim of this paper is to examine the causal relationship between financial development trade economic growth energy consumption and carbon emissions in turkey for the 1960 2007 period the bounds f test for cointegration test yields evidence of a long run relationship between per capita carbon emissions per capita energy consumption per capita real income the square of per capita real income openness and financial development the results show that an increase in foreign trade to gdp ratio results an increase in per capita carbon emissions and financial development variable has no significant effect on per capita carbon emissions in the long run these results also support the validity of ekc hypothesis in the turkish economy it means that the level of co 2 emissions initially increases with income until it reaches its stabilization point then it declines in turkey in addition the paper explores causal relationship between the variables by using error correction based granger causality models

financial development and environmental quality the way forward the present paper re examines the asymmetric impact of financial development on environmental quality in pakistan for the period 1985q1 to 2014q4 a comprehensive index of financial development is generated using bank and stock market based financial development indicators the results show that inefficient use of energy adversely affects the environmental quality this suggests adoption of energy efficient technology at both production and consumption levels these technologies would be helpful to improve environmental quality enhance the productivity in long run and save energy bank based financial development also impedes the environment the government should encourage lenders to ease the funding for energy sector and allocate financial resources for environment friendly businesses rather than wasting them in consumer financing

r d investment strategy for climate change abstract the economic costs of stabilizing greenhouse gas concentrations over the coming century depend critically on the development of new technologies in the energy sector our research and development r d investment strategy is the control variable for technology availability this paper proposes an analytic framework for determining optimal r d investment allocation and presents some numerical results to demonstrate the implementation of the methodology the value of technological advance in three targeted areas fossil based generation renewables and carbon capture and storage is represented by the increase in expected welfare in the presence of an emissions policy constraint of initially uncertain stringency r d expenditure increases the probability of advance optimal investment is determined by its relationship with success probability which is assumed to exhibit decreasing returns to scale relative to the value of success while the numerical results are speculative the paper offers insights into the nature of an optimal technology strategy for addressing climate change

allocation of co2 emission permits economic incentives for emission reductions in developing countries the economic impacts on developing regions following a global cap and trade system for carbon dioxide are assessed through the use of an energy economy systems model both an equal per capita allocation and a contraction and convergence allocation with convergence of the per capita emissions by 2050 are shown to offer economic incentive for africa india and probably also latin america to accept binding emissions commitments under a 450 ppm carbon dioxide stabilization scenario the gain for latin america is mainly a result of increased export revenues from sales of bio fuels as a result of the climate policy it is on the other hand unlikely that these allocation approaches would offer an economic incentive for china to join the regime because of its high economic growth present higher per capita emissions than india and africa and more costly mitigation options than latin america a more stringent allocation for developing countries such as contraction with convergence of the per capita emissions by the end of this century is estimated to generate reduced net gains or increased net losses for the developing regions though africa is still expected to gain

the relative earnings of young mexican black and white women this analysis of data from the national longitudinal survey of youth indicates that young mexican women and young black women earned respectively 9 5 and 13 2 less than young white women in 1994 differences in education appear to be the most important explanation for the mexican white wage gap whereas differences in labor force attachment are the most important determinant of the black white wage gap the authors show that accounting for actual labor market experience rather than simply imputing experience based on years since leaving school is crucially important in such analyses recent research has renewed interest in the relatively poor labor market performance of mexican men trejo 1997 1998 reimers 1994 chavez 1991 chapa 1990 trejo 1997 found that lower levels of education english deficiencies and the relative youth of mexican men explain 75 of the gap between mexican and white wages in contrast these factors explain less than 30 of the wage gap between black and white men despite the flurry of recent research exploring the poor performance of mexican men we are aware of

the effects of financial development economic growth coal consumption and trade openness on co2 emissions in south africa abstract this paper explores the effects of financial development economic growth coal consumption and trade openness on environmental performance using time series data over the period 1965 2008 in case of south africa the ardl bounds testing approach to cointegration has been used to test the long run relationship among the variables while short run dynamics have been investigated by applying error correction method ecm the unit root properties of the variables are examined by applying saikkonen and lutkepohl 2002 econometric theory 18 313 348 structural break unit root test our findings confirmed long run relationship among the variables results showed that a rise in economic growth increases energy emissions while financial development reduces it coal consumption has significant contribution to deteriorate environment in south african economy trade openness improves environmental quality by reducing the growth of energy pollutants our empirical results also verified the existence of environmental kuznets curve this paper opens up new insights for south african economy to sustain economic growth by controlling environment from degrdation through efficient use of energy

the effects of internet usage and economic growth on co2 emissions in oecd countries a panel investigation this paper estimates the short and long run effects of internet usage and economic growth on carbon dioxide co2 emissions using oecd panel data for the period 1991 2012 the pedroni panel cointegration test confirms that the variables are cointegrated although pooled mean group pmg estimates indicate a positive significant long run relationship between internet usage and co2 emissions the coefficient is very small and no causality exists between them which both imply that the rapid growth in internet usage is still not an environmental threat for the region the study further indicates that economic growth has no significant short run and long run effects on co2 emissions internet use stimulates both financial development and trade openness the findings offer support in favor of the argument that oecd countries can promote their internet usage without being significantly concerned about its environmental consequences but the future emissions effect of internet usage cannot be ruled out as is evident from the variance decomposition analysis therefore this study recommends that in addition to boosting the existing measures for combating co2 emissions oecd countries need to use ict equipment not to simply reduce its own carbon footprint but also to exploit ict enabled emissions abatement potential to reduce emissions in other sectors such as the power energy agricultural transport and service sectors

the impact of foreign direct investment on environmental quality a bounds testing and causality analysis for turkey abstract this study aims to investigate the impact of foreign direct investment fdi together with gross domestic product gdp the square of gdp and energy consumption on carbon dioxide co2 emissions in turkey over the period 1974 2010 we employ both the bounds test approach which has superior properties especially in small samples and the hatemi j test which takes structural breaks into consideration in the co integration analysis due to the co integration relationship between co2 emissions and other variables the autoregressive distributed lag ardl model is used in order to investigate short and long run elasticity between the variables the long run coefficients of the ardl model indicate that the effect of fdi on co2 emissions is positive but relatively small while the effects of the gdp and energy consumption on co2 emissions are quite considerable moreover the short run coefficients obtained by the error correction model ecm are found to be similar to those of the long run model the findings support the validity of the environmental kuznets curve ekc hypothesis in both time horizons the vector ecm based granger causality test is also applied to investigate the causal link the causality test results indicate the existence of a causality running from all explanatory variables to co2 emissions in the long run overall the findings suggest that turkey should promote energy efficiency with sustainable growth and encourage more fdi inflows particularly in technology intensive and environment friendly industries to improve environmental quality

the dynamic links between energy consumption economic growth financial development and trade in china fresh evidence from multivariate framework analysis abstract this study investigates the relationship between energy use and economic growth by incorporating financial development international trade and capital as important factors of production function in case of china over the period of 1971 2011 the ardl bounds testing approach to cointegration was applied to examine long run relationship among the series while stationarity properties of the variables was tested by applying structural break test our empirical evidence confirmed long run relationship among the variables the results showed that energy use financial development capital exports imports and international trade have positive impact on economic growth the granger causality analysis revealed that unidirectional causal relationship running from energy use to economic growth financial development and energy use granger cause each other there is bidirectional causality between international trade and energy use the feedback relation exists between financial development and international trade there is also bidirectional causality exists between capital and energy demand financial development and economic growth and international trade and economic growth this paper makes significant contribution in energy economics and opens up new direction for policy makers to explore new and alternative sources of energy which would be helpful in meeting the rising demand of energy due to sustained rate of economic growth

energy demand and stock market development in oecd countries a panel data analysis abstract this paper investigates the impact of stock market developments on oil and electricity demand of oecd member countries we conduct different panel data methodologies and use annual data ranging from 1996 to 2011 the overall findings substantiate that income real prices size of the stock market and liquidity are important determinants for both oil and electricity demand we also compute long run elasticity coefficients by using a simple partial adjustment model pam and find that the long run elasticity coefficients are larger than the short run parameters moreover our results show that the demand for oil and electricity is inelastic with respect to both own real price and real income over the short run and the long run from a policy making perspective the findings suggest that potential policy tools to reduce energy consumption may not be useful as the demand for energy is inelastic with respect to energy prices our results also manifest that although stock market deepening variables do not have a large effect on energy use as energy price and economic growth have market size and liquidity significantly affect energy consumption therefore energy demand estimations based on solely energy price and income may be inaccurate when some stock market development indicators are excluded the empirical findings of this paper provide further insights for policy makers energy companies and energy economists in terms of demand management policies and pricing decisions

the impact of financial development on carbon emissions an empirical analysis in china given the complexity between china s financial development and carbon emissions this paper uses some econometric techniques including cointegration theory granger causality test variance decomposition etc to explore the influence of financial development on carbon emissions results indicate that first china s financial development acts as an important driver for carbon emissions increase which should be taken into account when carbon emissions demand is projected second the influence of financial intermediation scale on carbon emissions outweighs that of other financial development indicators but its efficiency s influence appears by far weaker although it may cause the change of carbon emissions statistically third china s stock market scale has relatively larger influence on carbon emissions but the influence of its efficiency is very limited this to some extent reflects the relatively lower liquidity in china s stock markets finally among financial development indicators china s fdi exerts the least influence on the change of carbon emissions due to its relatively smaller volume compared with gdp but it is mainly utilized in carbon intensive sectors now therefore with the increase of china s fdi in the future many efforts should be made to adapt its utilizing directions and play its positive role in promoting low carbon development