Modeling the dynamic linkage between financial development, energy innovation, and environmental quality: Does globalization matter?
Citations Over TimeTop 1% of 2020 papers
Abstract
Abstract In the modern era of the wave of globalization, financial development is leading toward a higher rate of economic expansion and promoting energy innovation around the globe. Nevertheless, environmental impact of financial development has preoccupied government officials to circumvent adverse impact on environmental quality. Thus, this paper examines the nexus between financial development, economic growth, energy innovation, and environmental pollution for the period of 1990–2017 for the panel of Organization for Economic Cooperation and Development (OECD) countries. To obtain robust and unbiased results, this study utilizes Pooled Mean Group Autoregressive Distributed Lag (PMG/ARDL) estimator that counters the issue of heterogeneity and cross‐sectional dependence. Empirical evidence suggests that financial development promotes energy innovation and improves environmental quality. Globalization also has a long‐term relationship with energy innovation and reduces greenhouse gas (GHG) emissions. Moreover, findings validate the environmental Kuznets curve for OECD countries in the significance of financial development, globalization, and energy innovation.
Related Papers
- → Investigating the presence of the environmental Kuznets curve (EKC) hypothesis in Kenya: an autoregressive distributed lag (ARDL) approach(2015)301 cited
- → Economic structure, development policy and environmental quality: An empirical analysis of environmental Kuznets curves with Chinese municipal data(2012)208 cited
- → The ARDL Method in the Energy-Growth Nexus Field; Best Implementation Strategies(2019)206 cited
- → Environmental awareness and environmental Kuznets curve(2019)163 cited
- → An A–Z guide for complete research when using the autoregressive distributed lag (ARDL) bounds test approach in the broader energy-growth nexus(2020)4 cited