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.

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The agriculture sector may help to improve the environment of any country. The purpose of this research is to test the existence of environmental Kuznets curve (EKC) hypothesis while keeping the energy consumption and agriculture share in income into account and analyze their effects on the CO2 emissions per capita of Saudi Arabia. We test both symmetrical, asymmetrical and quadratic effects of agriculture sector on the CO2 emissions. An inverted U-shaped relationship between gross domestic product (GDP) per capita and CO2 emissions per capita is found. Hence, EKC hypothesis is validated with a turning point at GDP per capita of 77,068 constant Saudi Riyal. Further, a negative and significant effect of agriculture sector on the CO2 emissions per capita has been found both in symmetrical and asymmetrical analyses. The magnitudes of effects of increasing and decreasing agriculture share are found statistically different on the CO2 emissions, and rising agriculture share in GDP has larger effect than that of decreasing agriculture share. An inverted U-shaped relationship is also found between agriculture share in GDP and CO2 emissions per capita with a turning point at 3.22% agriculture share in GDP.