The nexus between financial development, income level, and environment in Central and Eastern European Countries: a perspective on Belt and Road Initiative

Saud, Shah; Chen, Songsheng; Haseeb, Abdul; Khan, Khalid; Imran, Muhammad

doi:10.1007/s11356-019-05004-5

Cited by 104 publications

(56 citation statements)

References 104 publications

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“…Udemba and Agha (2020) studied the nexus amid EC and the excretion of CO 2 and validated EC as a major contributor of CO 2 effusions. This disclosure collaborates those of Saud et al (2019) and Ali et al (2018), but conflicts that of Pata (2018). These contradictory revelations imply, the EC-CO 2 emanation argument is not over yet and demanded for more investigations like ours.…”

Section: Energy Consumption -Co 2 Emission Nexussupporting

confidence: 87%

The link between urbanization, energy consumption, foreign direct investments and CO₂ emanations: An empirical evidence from the emerging seven (E7) countries

Musah

et al. 2021

Energy Exploration & Exploitation

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This study investigated the link between energy consumption (EC), foreign direct investments (FDI), urbanization (URB) and CO2 emissions in the emerging seven (E7) countries for the period 1991 to 2014. The exploration made a methodological contribution by employing modern econometric methods that are robust to the issues of cross-sectional dependence and slope heterogeneity, so as to obtain valid and reliable outcomes. From the results, the panel under consideration was heterogeneous and cross-sectionally correlated. Also, the series were first differenced stationary and cointegrated in the long-run. The DCCEMG and the DCCEPMG estimators were engaged to explore the long-run elastic effects of the covariates on the response variable, and from the results, EC and URB were key promoters of CO2 effusions in the countries. However, FDI mitigated the emanation of CO2 in the nations. Additionally, economic growth (GDP) and population growth (POP) escalated the emittance of CO2 in the E7. On the D-H causality test outcomes, a feedback causality amid POP and CO2 effusions; GDP and CO2 excretions; FDI and CO2 emissivities; and between URB and CO2 secretions were discovered. Finally, a one-way causation from URB to the effluents of CO2 was unfolded. Based on the verdicts, policy suggestions were proposed to help abate the rate of CO2 exudations in the countries.

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Section: Energy Consumption -Co 2 Emission Nexussupporting

confidence: 87%

The link between urbanization, energy consumption, foreign direct investments and CO₂ emanations: An empirical evidence from the emerging seven (E7) countries

Musah

et al. 2021

Energy Exploration & Exploitation

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“…The bidirectional causality also exists between GDP and CO 2 . Saud et al [15] also reveal similar findings. The direction of causality demonstrates that GDP causes CO 2 and vice versa.…”

Section: Empirical Results and Discussionmentioning

confidence: 56%

“…In this framework, by ignoring indicators that are significant factors of environmental issues, omitted variable bias could create a severe issue in prior research works [12]. The latest research studies indicate that financial development (FD), urbanization (UR), energy consumption (EC), trade openness (TOP), and foreign direct investments (FDI) are factors that affect environmental performance [13][14][15]. However, financial instability and income distribution, which have notable economic and social effects, are usually not utilized as factors in ecological investigations and, thus, have been overlooked [7,16,17].…”

Section: Introductionmentioning

confidence: 99%

Income Inequality and CO2 Emissions in Developing Countries: The Moderating Role of Financial Instability

et al. 2020

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This paper studies the effects of income inequality and financial instability on CO2 emissions in the presence of fossil fuel energy, economic development, industrialization, and trade openness. Moreover, the present study is the first to examine the moderating role of financial instability between income inequality and CO2 emissions. We utilized panel data of forty-seven developing countries for the period 1980–2016 by utilizing the stochastic impacts by regression on population, affluence, and technology (STIRPAT) model. The empirical outcomes in all models indicate that income inequality and industrialization significantly reduce environmental degradation, while fossil fuel, trade openness, and economic growth decrease the quality of the environment. However, financial instability (with interaction term) shows no significant link to environmental quality, whereas (with interaction term) it shows a significant negative effect on CO2 emissions. In addition, the result of the interaction variable reveals that an increase in inequality, ceteris paribus, in combination with the rise in financial instability, is expected to increase pollution. Furthermore, there exists a bidirectional causal association among income inequality, financial instability, fossil fuel, trade openness, industrialization, economic growth, and the interaction variable with CO2 emissions.

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“…One school of thought is that financial development facilitates individuals’ and firms’ ability to access credit facilities. The effect is that consumption by households increase and production activities by firms increases (Saud et al , 2019). As consumption and production depend on energy, stress is put on energy which invariably increases carbon emission.…”

Section: Theoretical and Empirical Literature Reviewmentioning

confidence: 99%

The long-run effects of energy use, urbanization and financial development on carbon dioxide emissions

Kwakwa

2020

IJESM

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Purpose This study aims to fill the gap in existing studies that have analyzed the drivers of carbon dioxide (CO2) emissions. The author investigate the long-run effects of energy types, urbanization, financial development and, the interaction between urbanization and financial development on CO2 emissions. Design/methodology/approach Stochastic impacts by regression on population, affluence and technology model served as the framework for empirical modeling. Using annual time-series data for Tunisia, autoregressive distributed lag bounds test was used to examine the cointegration of the variables. Also, the fully modified ordinary least squares was used to estimate the emission effect of the explanatory variables. Further investigations were done using the principal component analysis and variance decomposition analysis. Findings Income, urbanization, trade and financial development exert upward pressure on CO2 emissions. However, the interaction between urbanization and financial development reduces the emission of CO2. Furthermore, primary energy use, energy intensity, electricity consumption and fossil fuel consumption have positive effects on carbon emission, while combustible renewables and waste, and electricity production from natural gas have negative effects on carbon emission. Practical implications The policy implication/recommendation indicates that the financial sector’s authorities can combat carbon emission by properly regulating the development and activities of the financial sector in urban areas in Tunisia. The promotion of the development and usage of cleaner energy is recommended to help reduce carbon emission. Policymakers need to promote environmentally friendly economic growth and development agenda. Originality/value The contribution of this study to the environmental degradation literature is that it offers evidence from Tunisia, which has not received much empirical attention. It also examines the effect of various forms of energy usage on carbon emission. To the best of the author’s knowledge, this is the first study to examine the interaction effect between urbanization and financial development on carbon emission. Also, if not the first, this study is among the earliest to use the principal component analysis as a part of the prediction of the carbon emission effect of energy variables.

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The nexus between financial development, income level, and environment in Central and Eastern European Countries: a perspective on Belt and Road Initiative

Cited by 104 publications

References 104 publications

The link between urbanization, energy consumption, foreign direct investments and CO₂ emanations: An empirical evidence from the emerging seven (E7) countries

The link between urbanization, energy consumption, foreign direct investments and CO₂ emanations: An empirical evidence from the emerging seven (E7) countries

Income Inequality and CO2 Emissions in Developing Countries: The Moderating Role of Financial Instability

The long-run effects of energy use, urbanization and financial development on carbon dioxide emissions

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The nexus between financial development, income level, and environment in Central and Eastern European Countries: a perspective on Belt and Road Initiative

Cited by 104 publications

References 104 publications

The link between urbanization, energy consumption, foreign direct investments and CO2 emanations: An empirical evidence from the emerging seven (E7) countries

The link between urbanization, energy consumption, foreign direct investments and CO2 emanations: An empirical evidence from the emerging seven (E7) countries

Income Inequality and CO2 Emissions in Developing Countries: The Moderating Role of Financial Instability

The long-run effects of energy use, urbanization and financial development on carbon dioxide emissions

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The link between urbanization, energy consumption, foreign direct investments and CO₂ emanations: An empirical evidence from the emerging seven (E7) countries

The link between urbanization, energy consumption, foreign direct investments and CO₂ emanations: An empirical evidence from the emerging seven (E7) countries