Does financial development lower energy intensity?

Adom, Philip Kofi; Appiah, Michael Owusu; Agradi, Mawunyo Prosper

doi:10.1007/s11708-019-0619-x

Cited by 32 publications

(13 citation statements)

References 37 publications

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“…Our findings on the contributions of sustainable financial development variables on energy efficiency are contrary to those of Adom et al [53] in the case of Ghana (a non-OECD country). They showed that financial development influences a decline in energy intensity (i.e., increased energy efficiency).…”

Section: Discussioncontrasting

confidence: 99%

“…Chen, Huang and Zheng [52] found that financial development has limited impact on declining energy in OECD countries as a result of mature financial systems. Adom et al [53] confirmed that financial development decreases energy intensity. Aydin and Onay [54] came up with three energy intensity threshold points; above those points, financial development influences CO 2 emissions.…”

Section: Energy Efficiency Sustainable Economic and Financial Develomentioning

confidence: 96%

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Link between Energy Efficiency and Sustainable Economic and Financial Development in OECD Countries

et al. 2020

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The growing risk of climate change caused by the emission of greenhouse gases poses new challenges to contemporary countries. The development of economies is usually related to increasing levels of greenhouse gas emissions. Therefore, the question arises whether it is possible to achieve sustainable economic and financial development and simultaneously reduce greenhouse gas emissions. This paper assumes it is possible if energy efficiency is increased. The aim of the paper is to show the link between energy efficiency and sustainable economic and financial development in Organisation for Economic Co-operation and Development (OECD) countries for the period 2000–2018 by using data envelopment analysis (DEA) and regression analysis. The results show a slight upward trend of total factor energy efficiency (TFEE) in OECD countries for the analysed period; however, there is a difference in TFEE levels. Developed OECD countries have higher TFEE levels than developing OECD countries. The links between total factor energy efficiency and sustainable economic and financial development reveal different impacts depending on the variables taken into consideration.

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Section: Discussioncontrasting

confidence: 99%

Section: Energy Efficiency Sustainable Economic and Financial Develomentioning

confidence: 96%

Link between Energy Efficiency and Sustainable Economic and Financial Development in OECD Countries

et al. 2020

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“…The development of the financial sector can also trigger changes in energy indices, such as energy consumption (inter alia, Alsaleh and Abdul-Rahim 2019) and energy efficiency (Amuakwa-Mensah et al 2018;Adom et al 2019a). These results suggest that Fig.…”

Section: Addressing Reverse Causalitymentioning

confidence: 97%

Degree of financialization and energy efficiency in Sub-Saharan Africa: do institutions matter?

2020

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The United Nations Sustainable Development Goal 7 emphasizes the need for economies around the world to double their efforts in energy efficiency improvements. This is because improvements in energy efficiency can trigger economic growth and considered as one of the ‘green’ growth strategies due to its carbon free content. To this end, some empirical studies have investigated the nexus between economic growth and energy efficiency, but the effects of the latter on financial indicators have not been sufficiently studied in the literature, at least in developing economies like Africa. This study examines the effect of energy efficiency improvements on commercial bank profitability under different political regimes (i.e., autocratic and democratic political regimes); something previous literature had neglected. The study uses panel data, consisting of 43 African countries and the simultaneous System Generalized Method of Moments. We found that energy efficiency improvement is more likely to induce higher bank profitability in political institutions with the characteristics of centralization of power compared with those with decentralization of power. Furthermore, for the banking sector, the findings suggest that energy utilization behavior of clients should be included in the loan or credit valuation process. For the government, the agenda of energy efficiency should be aggressively pursued while taking cognizance of creating a political environment that weans itself from a ‘grandfathering’ behavior.

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“…In Ghana, Adom, et al . (2019) empirically analysed the linkage between financial development variables and energy efficiency with time series data spanning 1970 to 2016. They employed ARDL technique and found that CPS and M2 reduced energy use significantly.…”

Section: Literature Reviewmentioning

confidence: 99%

What drives the energy consumption mix in Nigeria? The role of financial development, population age groups, urbanization and international trade: insight from ARDL Analysis

Okere

Ogbulu

Onuoha³

et al. 2021

OPEC Energy Review

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This study aims to investigate the influence and the direct causal relationship between energy consumption and the selected explanatory variables in the Nigerian economic system. Using ARDL‐VECM over the period of 1972–2014, the results are that financial development exerts negative and significant influence on energy consumption. Trade openness and urbanisation exert positive and significant effect on energy consumption both in the short and long run, the active age (15–64) and old age (65 and >) have different effects on energy consumption. Although the number of the older population (age 65 and above) causes the energy consumption level to fall, the size of the working/active population (age 15–64) causes the energy consumption level to increase. Further results revealed (i) unidirectional causality runs from working population to energy consumption, (ii) uni‐directional causality runs from energy consumption to credit to private sector, (iii) uni‐directional from trade openness to real GDP per capita, (iv) bi‐directional causal relationship is observed between urbanisation and energy consumption, (v) bi‐directional relationship between trade openness and energy consumption. These findings may be a guide to policymakers in evaluating Nigerian economy's energy needs and effective energy policies needed to address environmental issues related to fossil fuel use.

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Does financial development lower energy intensity?

Cited by 32 publications

References 37 publications

Link between Energy Efficiency and Sustainable Economic and Financial Development in OECD Countries

Link between Energy Efficiency and Sustainable Economic and Financial Development in OECD Countries

Degree of financialization and energy efficiency in Sub-Saharan Africa: do institutions matter?

What drives the energy consumption mix in Nigeria? The role of financial development, population age groups, urbanization and international trade: insight from ARDL Analysis

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