How does financial development influence carbon emission intensity in the OECD countries: Some insights from the information and communication technology perspective

Tao, Miaomiao; Sheng, Mingyue; Wen, Li-Li

doi:10.1016/j.jenvman.2023.117553

Cited by 63 publications

(15 citation statements)

References 91 publications

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“…Also, the emerging digital finance is not yet mature, and the low‐cost and diversified technical services will prompt some remote and backward regions to invest their obtained funds in short‐term crude production areas to pursue production expansion, which will increase energy consumption (Zhao et al, 2021). Our finding is not in accordance with Tao et al (2023), who deem that high‐level financial development can attract cleaner technologies to the host country to cause the “pollution halo” and can alleviate CEI in OECD countries, and differences in research perspectives and samples can account for our differences. AGE has a negative impact on CEI, which aligns with Mehmood et al (2021).…”

Section: Empirical Analysescontrasting

confidence: 99%

“…Prior empirical evidence shows that high‐level financial development not only can influence the innovation process and improve economic efficiency but has an impact on regional energy consumption. Meanwhile, emerging digital financial inclusion is also an important financial channel to promote the enterprises' environmental performance (Zhao et al, 2021)； Referring to Tao et al (2023), the ratio of deposit and loan balances to GDP at the end of the year is chosen to measure FDL. Infrastructure construction (IC). Theoretically, rail and road are important transport infrastructures to enhance regional accessibility, the improvement of transportation can reduce transportation costs and strengthen the inter‐regional association, especially the construction of rail transit like high‐speed rail, which has been empirically proven to have a positive environmental externality.…”

Section: Methodology and Datamentioning

confidence: 99%

“…Referring to Tao et al (2023), the ratio of deposit and loan balances to GDP at the end of the year is chosen to measure FDL.…”

Section: Financial Development Level (Fdl) Prior Empirical Evidence S...mentioning

confidence: 99%

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Towards low‐carbon sustainable development under Industry 4.0: The influence of industrial intelligence on China's carbon mitigation

Tian

Qin

Cheng

et al. 2023

Sustainable Development

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Global climate change is becoming an increasingly serious issue. China, the largest carbon emitter, has a long way towards its sustainable development goals (SDGs) and take on its carbon reduction responsibility, especially in the industrial sector. In this vein, industrial intelligence, a key driver in the “Industry 4.0 era”, offers an opportunity in this carbon reduction campaign. This paper seeks to examine the influences of industrial intelligence on carbon emissions, their heterogeneous characteristics and transmission mechanisms, and the moderating role of human capital. Therefore, we properly probed theoretical aspects, and then we used China's provincial data from 2006 to 2019 and a number of tests, namely the fixed effect model, the two‐stage test, and the moderating effect model, to test the relevant assumptions. We first unfolded that industrial intelligence can significantly mitigate carbon emissions. Specifically, the heterogeneous analysis found that carbon reduction efforts are more pronounced in China's central and western regions and resource‐based regions. We further highlight the mechanism identification, which reveals that industrial structure upgrading and technological innovation are the main channels for industrial intelligence to abate CO2 emissions. Importantly, we pinpoint the role of human capital, which positively moderates the relationship between industrial intelligence and carbon emissions and can well amplify the industrial structure effect of industrial intelligence. These results are conducive to accurately assessing the environmental benefits of industrial intelligence and providing policy enlightenment for China to alleviate carbon emissions, and they will also offer a reference for other developing countries to learn from.

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Section: Empirical Analysescontrasting

confidence: 99%

Section: Methodology and Datamentioning

confidence: 99%

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Towards low‐carbon sustainable development under Industry 4.0: The influence of industrial intelligence on China's carbon mitigation

Tian

Qin

Cheng

et al. 2023

Sustainable Development

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“…Additionally, Safi et al's research from 2021 showed that increased financial volatility causes serious environmental harm. This proof supported Tao et al (2023)'s hypothesis that financial development has a negative impact on CEI.…”

Section: Literature Reviewsupporting

confidence: 85%

“…The effect of financial growth on CO2 emissions has received recent attention. The relationship between finance and growth as well as the effects of money on environmental deterioration has been studied by Aljadani et al (2023); Bekhet et al (2017); Ozturk and Acaravci (2013); Salahuddin et al (2018); Shahbaz et al (2018), Sheraz et al (2021); and Tao et al (2023). Similar findings were made by Ganda (2019) for OECD nations, Ahmed et al (2019) for the Malaysian context, Acheampong et al (2020) for developed and emerging financial economies, and Fakher et al (2021) for OECD countries.…”

Section: Literature Reviewmentioning

confidence: 99%

Does credit growth mitigate emission intensity in ASEAN countries?

Masud,

Noman,

Akhtar

et al. 2023

J of Intl Development

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In empirical studies, the disparity between financial development and environmental quality has prompted us to examine the impact of credit growth on environmental quality in ASEAN countries. These countries have experienced phenomenal credit growth over the past three decades due to their adoption of financial liberalisation, integration and innovation. In this study, we investigated the role of credit growth on environmental quality while controlling for several macroeconomic variables, including regulatory quality, natural resources, foreign direct investment, globalisation and per capita gross domestic product growth. Using static models (ordinary least square [OLS], random effect model, Panel Corrected Standard Error and partial spatial cross correlation) and dynamic models (dynamic OLS, dynamic random effect and two‐step system generalised methods of moments (GMM) on data spanning from 1984 to 2019, we observed a nonlinear association between credit growth and environmental quality. The findings suggest that credit growth may simultaneously have favourable and detrimental effects on environmental quality. High credit growth can lead to increased emissions and environmental degradation through the promotion of fossil fuel‐driven energy consumption, production and distribution of economic resources. However, if the government promotes regulatory quality and encourages lenders to invest more in green technologies and renewable and sustainable energy sources, credit growth may contribute to improved environmental quality. These results carry important policy implications.

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Do institutional quality and its threshold matter in the sensitivity of the renewable energy transition to financial development? New empirical perspectives

Olaniyi,

Al‐Faryan,

Ogbaro

2023

Int. J Fin Econ

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The transition to renewable energy is critical for environmental sustainability, consistent with sustainable development goals (SDGs) 7, 8, 11, 12, and 13 of the United Nations Development Programme (UNDP). Scholars have identified financial development and institutional quality as significant factors determining the renewable energy transition in developing countries. This study opines that the efficiency of the financial system in supporting and providing the substantial financial implications that a switch to renewable energy necessitates depends on the quality of the institutional framework. Weak institutions in developing countries produce loopholes and inherent flaws in the financial system that facilitate corruption and opportunism, ultimately promoting dirty energy usage and technology at the expense of renewable energy. This process suggests that the interaction between financial development and institutions can either accelerate or impede the transition to renewable energy, depending on an economy's institutional architecture. Considering Africa's enormous renewable energy resources, previous research has overlooked the implications of the interplay between institutional quality and financial development in spurring Africa's transition to renewable energy. Thus, this study looks at the role of institutions in moderating the relationship between financial development and renewable energy in Africa from 1990 to 2019, using first‐ and second‐generation estimators to capture econometrics' pitfalls such as endogeneity, cross‐sectional dependence, and heterogeneity inherent in the panel dataset. This study departs from previous research in that it uses a dynamic panel threshold to determine the threshold of institutions beyond which financial development is stimulated to spur Africa's transition to renewable energy. The findings show that institutions create loopholes that allow rent‐seeking, opportunism, and sharp practices in the African financial system. These inherent flaws divert financial resources to support dirty energy and undermine the financial sector's ability to support a renewable energy transition on the continent. Also, the findings from the threshold of institutions affirm that African countries operate predominantly below the threshold of institutions, over which institutions enable financial development to expedite the continent's transition to renewable energy. The study suggests that institutional quality is essential in the relationship between financial development and Africa's shift to renewable energy. The findings' policy implications are discussed and outlined.

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How does financial development influence carbon emission intensity in the OECD countries: Some insights from the information and communication technology perspective

Cited by 63 publications

References 91 publications

Towards low‐carbon sustainable development under Industry 4.0: The influence of industrial intelligence on China's carbon mitigation

Towards low‐carbon sustainable development under Industry 4.0: The influence of industrial intelligence on China's carbon mitigation

Does credit growth mitigate emission intensity in ASEAN countries?

Do institutional quality and its threshold matter in the sensitivity of the renewable energy transition to financial development? New empirical perspectives

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