Impact of financial structure on environmental quality: evidence from panel and disaggregated data

Ehigiamusoe, Kizito Uyi; Guptan, Vinitha

doi:10.1080/15567249.2020.1727066

Cited by 38 publications

(14 citation statements)

References 66 publications

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“…Ehigiamusoe and Lean (2019) also noted that GDP has a detrimental impact on carbon emissions in low- and middle-income nations, but has the opposite impact in nations with high income. Besides, Ehigiamusoe, Guptan, and Lean (2019) and Ehigiamusoe, Lean, and Smyth (2020) also discovered that energy use adversely impacts carbon emissions in 58 nations and 64 middle-income nations respectively. Furthermore, the R 2 indicates that changes in the regressors account for a significant amount of changes in carbon emissions.…”

Section: Resultsmentioning

confidence: 99%

How Does Globalization Influence the Impact of Tourism on Carbon Emissions and Ecological Footprint? Evidence from African Countries

Ehigiamusoe

Shahbaz

2022

Journal of Travel Research

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Tourism and globalization are considered as drivers of economic growth since they boost income, job opportunities, infrastructural development, international trade, foreign direct investment, capital flows, and technological diffusion. However, the economic benefits of tourism and globalization could occur at the expense of increased energy consumption (from fossil fuels) and other pollution-intensive activities that worsen environmental degradation, especially in countries with lax institutions and environmental standards. The roles of tourism, globalization, and their interaction term on environmental degradation have not been thoroughly investigated. Hence, this study analyzes the moderating role of globalization on the impact of tourism on environmental degradation (carbon emissions and ecological footprint) in 31 African countries using different dimensions of tourism and globalization. It uncovers the marginal effect of tourism on environmental degradation at different levels of globalization. It utilizes strategies that account for cointegration, dynamism, endogeneity, heterogeneity, cross sectional dependency, and causality. Evidence from this study shows that globalization and its dimensions play favorable moderating roles on the impact of tourism on carbon emissions. The marginal effect of tourism on carbon emissions decreases as globalization increases, suggesting that a simultaneous increase in tourism and globalization can mitigate carbon emissions. However, no evidence to show that globalization can mitigate the environmental impact of tourism on ecological footprint. The findings differ probably because carbon emissions and ecological footprint measure different aspects of environmental degradation. This analysis emphasizes the need for countries to consider the interaction between tourism and globalization in their quest to ensure environmental sustainability. JEL Classification: F64, Q53, Z32

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Section: Resultsmentioning

confidence: 99%

How Does Globalization Influence the Impact of Tourism on Carbon Emissions and Ecological Footprint? Evidence from African Countries

Ehigiamusoe

Shahbaz

2022

Journal of Travel Research

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“…erefore, preferential policies such as financial subsidies, tax relief and financial incentives should be implemented as soon as possible to encourage more institutions to participate in the development of green finance. [61][62][63].…”

Section: Policy Recommendationsmentioning

confidence: 99%

The Moderating Effect and Threshold Effect of Green Finance on Carbon Intensity: From the Perspective of Capital Accumulation

Zhang

2022

Complexity

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Climate change has caused serious threats to global economic development and human well-being, and green finance is a new way to achieve ecological, economic, and social sustainable development, and it also has important theoretical significance and policy value. This study firstly aims to study the impact of green finance on regional carbon intensity. Then, it aims to determine the moderating effect of capital stock per capita on the relationship between green finance and carbon intensity based on moderating effect model as well as to investigate the threshold effect of capital stock per capita on the relationship between green finance and carbon intensity based on threshold effect model. The main conclusions are as follows: (1) Every 1% increase in green finance will lead to a 2% decrease in carbon intensity, and the inhibition of green finance on carbon intensity is most obvious in northeast and east China. (2) The capital stock per capita has a significant moderating effect, which could enhance the restraining effect of green financial development on carbon intensity, and this moderating effect is most obvious in northeast China. (3) The capital stock per capita has a threshold effect in the process of green finance development to suppress carbon intensity. The higher the capital stock per capita, the stronger the inhibition effect of green finance development on carbon intensity. Therefore, in the process of capital accumulation, attention should be paid to improve the relevant legal system and policy guarantee, optimization of financial structure, and stimulation of the capital allocation effect of green finance. Simultaneously, in order to strengthen the inhibitory effect of green finance on carbon intensity, differentiated green finance development policies should be formulated based on factor endowment structure and comparative advantages of different regions.

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“…They divided the data into groups of high-income countries, upper-middle-income countries, lower-middle-income countries, and low-income countries, and their results showed that financial development as measured by domestic credit to the private sector as a ratio of GDP reduces CO 2 emissions in high-income and upper-middle-income countries. A study by Ehigiamusoe et al (2019) concluded that the structure of the financial system matters in safeguarding environmental quality by analyzing 58 countries. For G20 countries, Yao and Tang (2021) examined the connection between financial structure and CO 2 emissions by employing two-way fixed effects for the period 1971 to 2014.…”

Section: Literature Reviewmentioning

confidence: 99%

An Investigation of the Dynamic Relationships Between Financial Development, Renewable Energy Use, and CO₂ Emissions

Habiba

Xinbang

2022

Sage Open

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Understanding the drivers of CO2 emissions has been necessary in drafting policies to curb global warming. In this study, we examine the impact of disaggregated financial development components on CO2 emissions by taking into account the multifaceted and complicated structure of modern financial systems in 46 countries of Sub-Saharan Africa between 1991 and 2016. The empirical models are estimated using a system-GMM approach. The analysis shows that the development of financial markets and their components, including access, depth, and efficiency, contribute to CO2 emissions in the region. For financial institutions development and its sub-measures, similar effects are observed. However, financial market development has less adverse environmental effects than the development of financial institutions. Renewable energy consumption also leads to substantial reductions in CO2 emissions. The financial markets are playing an increasingly important role in complementing renewable energy for environmental improvement. The study also indicates that the relationship between these variables and CO2 emissions varies at a country-level depending on the economy of the country. The study also discusses the policy implications of these findings.

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Impact of financial structure on environmental quality: evidence from panel and disaggregated data

Cited by 38 publications

References 66 publications

How Does Globalization Influence the Impact of Tourism on Carbon Emissions and Ecological Footprint? Evidence from African Countries

How Does Globalization Influence the Impact of Tourism on Carbon Emissions and Ecological Footprint? Evidence from African Countries

The Moderating Effect and Threshold Effect of Green Finance on Carbon Intensity: From the Perspective of Capital Accumulation

An Investigation of the Dynamic Relationships Between Financial Development, Renewable Energy Use, and CO₂ Emissions

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Impact of financial structure on environmental quality: evidence from panel and disaggregated data

Cited by 38 publications

References 66 publications

How Does Globalization Influence the Impact of Tourism on Carbon Emissions and Ecological Footprint? Evidence from African Countries

How Does Globalization Influence the Impact of Tourism on Carbon Emissions and Ecological Footprint? Evidence from African Countries

The Moderating Effect and Threshold Effect of Green Finance on Carbon Intensity: From the Perspective of Capital Accumulation

An Investigation of the Dynamic Relationships Between Financial Development, Renewable Energy Use, and CO2 Emissions

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An Investigation of the Dynamic Relationships Between Financial Development, Renewable Energy Use, and CO₂ Emissions