Investigating marginal effect of economic growth on environmental quality based on six environmental indicators: does financial development have a determinative role in strengthening or weakening this effect?
Economic growth
Environmental indicators
Financial development
Panel analysis
Journal
Environmental science and pollution research international
ISSN: 1614-7499
Titre abrégé: Environ Sci Pollut Res Int
Pays: Germany
ID NLM: 9441769
Informations de publication
Date de publication:
Oct 2021
Oct 2021
Historique:
received:
19
04
2021
accepted:
14
05
2021
pubmed:
27
5
2021
medline:
30
9
2021
entrez:
26
5
2021
Statut:
ppublish
Résumé
Given the complexity of the correlation of economic growth with financial development, and their interactive impacts on environmental quality, this study attempted to present new insights into indecisive outcomes from the contribution of financial development in determining the impressionability of environmental indicators under economic growth conditions. Previous studies only employed a single environmental indicator for analyzing the correlation between economic factors and environmental quality. However, six environmental indicators are adopted in this study to evaluate environmental quality and to reach major goals of this research. To this end, using 2-stage system generalized technique of moment estimator, the association of economic growth, energy consumption, financial development, environmental indicators, and trade openness is determined in selected OPEC countries for years 2010 to 2019. Findings indicated that accompanied by the effects of economic growth on any EFI, ANS, PN, and EPI variables, the financial development enhances such effect. This is while, the financial development would weaken the economic growth effect on the ESI variable. Regarding EVI, no significant association was observed. Regarding to ESI, EPI, and PN, trade openness applies a significantly positive impact on environmental quality; on the other hand, it has positive role in environmental degradation based on EFI and ANS. This is while, according to the EVI variable, trade openness has not meaningful impact on environmental status. Finally, energy use has significant and positive effects on environmental degradation in each of environmental indicators. However, this variable has not shown significant impact on EPI and ANS. Alternatively, findings indicated that financial development can be considered an important and key variable in improvement of the environmental quality due to the moderating role it plays relative to the negative economic growth effect on the environmental quality. At the end of this paper, some limitations are presented, and some suggestions for further studies are provided as well.
Identifiants
pubmed: 34036491
doi: 10.1007/s11356-021-14470-9
pii: 10.1007/s11356-021-14470-9
doi:
Substances chimiques
Carbon Dioxide
142M471B3J
Types de publication
Journal Article
Langues
eng
Sous-ensembles de citation
IM
Pagination
53679-53699Informations de copyright
© 2021. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.
Références
Abbasi F, Riaz K (2016) CO2 emissions and financial development in an emerging economy: an augmented VAR approach. Energ Policy 90:102–114. https://doi.org/10.1016/j.enpol.2015.12.017
doi: 10.1016/j.enpol.2015.12.017
Achy L (2004) Financial Liberalization, Saving, Investment and Growth in MENA Countries. http://129.3.20.41/eps/fin/papers/0411/0411004.pdf (10.11.2008)
Ahmad M, Khan Z, Rahman ZU, Khan S (2018) Does financial development asymmetrically affect CO emissions in China? An application of the nonlinear autoregressive distributed lag (NARDL) model. Carbon Management 9:631–644. https://doi.org/10.1080/17583004.2018.1529998
Ahmad M, Zhao Z-Y, Irfan M, Mukeshimana MC (2019) Empirics on influencing mechanisms among energy, finance, trade, environment, and economic growth: a heterogeneous dynamic panel data analysis of China. Environ Sci Pollut Res 26(14):14148–14170. https://doi.org/10.1007/s11356-019-04673-6
doi: 10.1007/s11356-019-04673-6
Ahmed AD, Mmolainyane KK (2014) Financial integration, capital market development and economic performance: Empirical evidence from Botswana. Econ Model 42:1–14. https://doi.org/10.1016/j.econmod.2014.05.040
doi: 10.1016/j.econmod.2014.05.040
Ahmed Z, Wang Z, Mahmood F, Hafeez M, Ali N (2019) Does globalization increase the ecological footprint? Empirical evidence from Malaysia. Environ Sci Pollut Res 26:18565–18582. https://doi.org/10.1007/s11356-019-05224-9
doi: 10.1007/s11356-019-05224-9
Allard A, Takman J, Uddin GS, Ahmed A (2018) The N-shaped environmental Kuznets curve: an empirical evaluation using a panel quantile regression approach. Environ Sci Pollut Res 25:5848–5861. https://doi.org/10.1007/s11356-017-0907-0
doi: 10.1007/s11356-017-0907-0
Al-Mulali U, Ozturk I, Solarin SA (2016) Investigating the environmental Kuznets curve hypothesis in seven regions: the role of renewable energy. Ecol Indic 67:267–282. https://doi.org/10.1016/j.ecolind.2016.02.059
doi: 10.1016/j.ecolind.2016.02.059
Alola AA, Bekun FV, Sarkodie SA (2019) Dynamic impact of trade policy, economic growth, fertility rate, renewable and non-renewable energy consumption on ecological footprint in Europe. Sci Total Environ 685:709–709. https://doi.org/10.1016/j.scitotenv.2019.05.139
doi: 10.1016/j.scitotenv.2019.05.139
Aluko OA, Obalade SS (2020) Financial development and environmental quality in sub-Saharan Africa: Is there a technology effect? Sci Total Environ 747:141515. https://doi.org/10.1016/j.scitotenv.2020.141515
doi: 10.1016/j.scitotenv.2020.141515
Anderson TW, Hsiao C (1981) Estimation of Dynamic Models with Error Components. J Am Stat Assoc 76(37):589–606. https://doi.org/10.2307/2287517
doi: 10.2307/2287517
Anwar S, Robert W, Alexander J (2016) Pollution, energy use, GDP and trade: estimating the long-run relationship for Vietnam. Appl Econ 48(53):5221–5232 https://doi.org/10.1080/00036846.2016.1173182
Arcand JL, Berkes E, Panizza U (2015) Too much finance? J Econ Growth 20(2):105–148. https://doi.org/10.1007/s10887-015-9115-2
doi: 10.1007/s10887-015-9115-2
Arellano M, Bond S (1991) Some Test of Specification for Panel Data: Monte Carlo Evidence and Application to Employment Equations. Rev Econ Stud 58(2):277–297. https://doi.org/10.2307/2297968
doi: 10.2307/2297968
Arminen H, Menegaki AN (2019) Corruption, climate, and the energy-environment growth Nexus. Energy Econ 80:621–634. https://doi.org/10.1016/j.eneco.2019.02.009
doi: 10.1016/j.eneco.2019.02.009
Arrelano M, Bover M (1995) Another look at the instrumental variable estimation of error-components models. J Econ 68(1):29–51. https://doi.org/10.1016/0304-4076(94)01642-D
doi: 10.1016/0304-4076(94)01642-D
Asici AA (2013) Economic Growth and its Impact on Environment: A Panel Data Analysis. Ecol Indic 24:324–333. https://doi.org/10.1016/j.ecolind.2012.06.019
doi: 10.1016/j.ecolind.2012.06.019
Ayadi R, Arbak E, Naceur SB, De Groen WP (2015) Financial Development, Bank Efficiency, and Economic Growth across the Mediterranean. In: Ayadi R, Dabrowski M, De Wulf L (eds) Economic and Social Development of the Southern and Eastern Mediterranean Countries. Springer, Cham, pp 219–233. https://doi.org/10.1007/978-3-319-11122-3_14
doi: 10.1007/978-3-319-11122-3_14
Aydin C, Esen O, Aydin R (2019) Is ecological footprint related to the Kuznets curve a real process or rationalizing the ecological consequences of the effluence? Evidence from PSTR approach. Ecol Indic 98:543–555. https://doi.org/10.1016/j.ecolind.2018.11.034
doi: 10.1016/j.ecolind.2018.11.034
Baloch MA, Zhang J, Iqbal K, Iqbal Z (2019) The effect of financial development on ecological footprint in BRI countries: evidence from panel data estimation. Environ Sci Pollut Res 26:6199–6208. https://doi.org/10.1007/s11356-018-3992-9
doi: 10.1007/s11356-018-3992-9
Batuo M, Kupukile Mlambo K, Asongu S (2018) Linkages between financial development, financial instability, financial liberalization and economic growth in Africa. Res Int Bus Financ 45:168–179. https://doi.org/10.1016/j.ribaf.2017.07.148
doi: 10.1016/j.ribaf.2017.07.148
Bekhet HA, Othman NS (2018) The Role of Renewable Energy to Validate Dynamic Interaction between CO2 Emissions and GDP towards Sustainable Development in Malaysia. Energy Econ 72:47–61. https://doi.org/10.1016/j.eneco.2018.03.028
doi: 10.1016/j.eneco.2018.03.028
Ben Jebli M, Ben Youssef S (2015) The environmental Kuznets curve, economic growth, renewable and non-renewable energy, and trade in Tunisia. Renew Sust Energ Rev 47:173–185. https://doi.org/10.1016/j.rser.2015.02.049
doi: 10.1016/j.rser.2015.02.049
Benczúr P, Karagiannis S, Kvedaras V (2018) Finance and economic growth: Financing structure and non-linear impact. J Macroecon 62:103048. https://doi.org/10.1016/j.jmacro.2018.08.001
doi: 10.1016/j.jmacro.2018.08.001
Blundell R, Bond S (1998) Initial conditions and moment restrictions in dynamic panel data models. J Econ 87(1):115–143. https://doi.org/10.1016/S0304-4076(98)00009-8
doi: 10.1016/S0304-4076(98)00009-8
Boubaker S, Nguyen DK, Piljak V, Savvides A (2019) Financial development, government bond returns, and stability: International evidence. J Int Financ Mark I 61:81–96. https://doi.org/10.1016/j.intfin.2019.02.006
doi: 10.1016/j.intfin.2019.02.006
Boufateh T (2019) The environmental Kuznets curve by considering asymmetric oil price shocks: evidence from the top two. Environ Sci Pollut Res 26(1):706–720. https://doi.org/10.1007/s11356-018-3641-3
doi: 10.1007/s11356-018-3641-3
Brambor T, Roberts WR, Golder M (2006) Understanding interaction models: improving empirical analyses. Polit Anal 14(1):63–82. Accessed 21 May 2021. https://www.jstor.org/stable/25791835
Chandia KE, Gul I, Aziz S, Sarwar B, Zulfiqar S (2018) An analysis of the association among carbon dioxide emissions, energy consumption and economic performance: an econometric model. Carbon Manag 9(3):227–241. https://doi.org/10.1080/17583004.2018.1457930
doi: 10.1080/17583004.2018.1457930
Charfeddine L, Kahia M (2019) Impact of renewable energy consumption and financial development on CO2 emissions and economic growth in the MENA region: A panel vector autoregressive (PVAR) analysis. Renew Energy 139:198–213. https://doi.org/10.1016/j.renene.2019.01.010
doi: 10.1016/j.renene.2019.01.010
Charfeddine L, Mrabet Z (2017) The impact of economic development and social-political factors on ecological footprint: A panel data analysis for 15 MENA countries. Renew Sust Energ Rev 76:138–154. https://doi.org/10.1016/j.rser.2017.03.031
doi: 10.1016/j.rser.2017.03.031
Charoenkit S, Kumar S (2014) Environmental sustainability assessment tools for low carbon and climate resilient low-income housing settlements. Renew Sust Energ Rev 38:509–525. https://doi.org/10.1016/j.rser.2014.06.012
doi: 10.1016/j.rser.2014.06.012
Chen J, Li Z, Song M, Dong Y (2021) Decomposing the global carbon balance pressure index: evidence from 77 countries. Environ Sci Pollut Res 28:7016–7031. https://doi.org/10.1007/s11356-020-11042-1
doi: 10.1007/s11356-020-11042-1
Cheng Z, Li L, Liu J (2019) The effect of information technology on environmental pollution in China. Environ Sci Pollut Res 26:33109–33124. https://doi.org/10.1007/s11356-019-06454-7
doi: 10.1007/s11356-019-06454-7
Combes JL, Kinda T, Ouedraogo R, Plane P (2019) Financial flows and economic growth in developing countries. Econ Model 83:195–209. https://doi.org/10.1016/j.econmod.2019.02.010
doi: 10.1016/j.econmod.2019.02.010
Danish, Wang Z (2019a) Investigation of the ecological footprint’s driving factors: What we learn from the experience of emerging economies. Sustain Cities Soc 49:618–626. https://doi.org/10.1016/j.scs.2019.101626
doi: 10.1016/j.scs.2019.101626
Danish, Wang Z (2019b) Does biomass energy consumption help to control environmental pollution? Evidence from BRICS countries. Sci Total Environ 670:1075–1083. https://doi.org/10.1016/j.scitotenv.2019.03.268
doi: 10.1016/j.scitotenv.2019.03.268
Danish, Baloch MA, Suad S (2018) Modeling the impact of transport energy consumption on CO2 emission in Pakistan: Evidence from ARDL approach. Environ Sci Pollut Res 25(10):9461–9473. https://doi.org/10.1007/s11356-018-1230-0
doi: 10.1007/s11356-018-1230-0
Danish, Ulucak R, Khan SU-D (2020) Determinants of the ecological footprint: Role of renewable energy, natural resources, and urbanization. Sustain Cities Soc 54:101996. https://doi.org/10.1016/j.scs.2019.101996
doi: 10.1016/j.scs.2019.101996
Dar JA, Asif M (2018) Does financial development improve environmental quality in Turkey? An application of endogenous structural breaks based cointegration approach. Manag Environ Qual An Int J 29:368–384. https://doi.org/10.1108/MEQ-02-2017-0021
doi: 10.1108/MEQ-02-2017-0021
Dauda L, Xingle L, Mensah CN, Salman M, Boamah KB, Ampon-Wireko S, Kofi Dogbe CS (2020) Innovation, trade openness and CO2 emissions in selected countries in Africa. J Clean Prod 281:125143. https://doi.org/10.1016/j.jclepro.2020.125143
doi: 10.1016/j.jclepro.2020.125143
Dehghan Shabani Z, Shahnazi R (2019) Energy consumption, carbon dioxide emissions, information and communications technology, and gross domestic product in Iranian economic sectors: A panel causality analysis. Energy. 169:1064–1078. https://doi.org/10.1016/j.energy.2018.11.062
doi: 10.1016/j.energy.2018.11.062
Deidda L, Fattouh B (2002) Non-linearity between finance and growth. Econ Lett 74(3):339–345. https://doi.org/10.1016/S0165-1765(01)00571-7
doi: 10.1016/S0165-1765(01)00571-7
Deltuvaitė V, Sinevičienė L (2014) Investigation of Relationship between Financial and Economic Development in the EU Countries. Procedia Econ Finance 14:173–180. https://doi.org/10.1016/S2212-5671(14)00700-X
doi: 10.1016/S2212-5671(14)00700-X
Demetriades PO, Rousseau PL (2016) The changing face of financial development. Econ Lett 141:87–90. https://doi.org/10.1016/j.econlet.2016.02.009
doi: 10.1016/j.econlet.2016.02.009
Destek MA, Sarkodie SA (2019) Investigation of environmental Kuznets curve for ecological footprint: the role of energy and financial development. Sci Total Environ 650:2483–2489. https://doi.org/10.1016/j.scitotenv.2018.10.017
doi: 10.1016/j.scitotenv.2018.10.017
Destek MA, Sinha A (2020) Renewable, non-renewable energy consumption, economic growth, trade openness and ecological footprint: Evidence from organisation for economic Co-operation and development countries. J Clean Prod 242:118537. https://doi.org/10.1016/j.jclepro.2019.118537
doi: 10.1016/j.jclepro.2019.118537
Dogan E, Inglesi-Lotz R (2020) The impact of economic structure to the environmental Kuznets curve (EKC) hypothesis: evidence from European countries. Environ Sci Pollut Res 27:12717–12724. https://doi.org/10.1007/s11356-020-07878-2
doi: 10.1007/s11356-020-07878-2
Dogan E, Ulucak R, Kocak E, Isik C (2020) The use of ecological footprint in estimating the Environmental Kuznets Curve hypothesis for BRICST by considering cross-section dependence and heterogeneity. Sci Total Environ 723(25):138063. https://doi.org/10.1016/j.scitotenv.2020.138063
doi: 10.1016/j.scitotenv.2020.138063
Ductor L, Grechyna D (2015) Financial development, real sector, and economic growth. Int Rev Econ Financ 37:393–405. https://doi.org/10.1016/j.iref.2015.01.001
doi: 10.1016/j.iref.2015.01.001
El-Aasar KM, Hanafy SA (2018) Investigating the Environmental Kuznets Curve Hypothesis in Egypt: The Role of Renewable Energy and Trade in Mitigating GHGs. Int J Energy Econ Policy 8(3):177–184 https://www.econjournals.com/index.php/ijeep/article/view/6316
Elsalih O, Sertoglu K, Besim M (2020) Environmental performance, comparative advantage of crude oil and the role of institutional quality. Environ Sci Pollut Res 27:3489–3496. https://doi.org/10.1007/s11356-019-06838-9
doi: 10.1007/s11356-019-06838-9
Erdogan S, Okumus I, Guzel AE (2020) Revisiting the Environmental Kuznets Curve hypothesis in OECD countries: the role of renewable, non-renewable energy, and oil prices. Environ Sci Pollut Res 27:23655–23663. https://doi.org/10.1007/s11356-020-08520-x
doi: 10.1007/s11356-020-08520-x
Ertugrul HM, Cetin M, Seker F, Dogan E (2016) The impact of trade openness on global carbon dioxide emissions: evidence from the top ten emitters among developing countries. Ecol Indic 67:543–555. https://doi.org/10.1016/j.ecolind.2016.03.027
doi: 10.1016/j.ecolind.2016.03.027
Esty DC, Levy M, Srebotnjak T, de Sherbinin A (2005) Environmental sustainability index: benchmarking national environmental stewardship. Yale Center for Environmental Law & Policy, New Haven
Esty DC, Levy M, Srebotnjak T, de Sherbinin A, Kim CH, Anderson B (2006) Pilot 2006 Environmental Performance Index. Yale Center for Environmental Law and Policy, New Haven
Fakher HA (2019) Investigating the determinant factors of environmental quality (based on ecological carbon footprint index). Environ Sci Pollut Res 26(10):10276–10291. https://doi.org/10.1007/s11356-019-04452-3
doi: 10.1007/s11356-019-04452-3
Fakher HA, Abedi Z (2017) Relationship between Environmental Quality and Economic Growth in Developing Countries (based on Environmental Performance Index). Environ Energy Econ Res 1(3):299–310. https://doi.org/10.22097/eeer.2017.86464.1001
doi: 10.22097/eeer.2017.86464.1001
Fakher HA, Ahmadian M, Abedi Z, Shaygani B (2018) Bayesian Econometrics Approach in Determining of Effecting Factors on Pollution in Developing Countries (based on Environmental Performance Index). Pollution 4(3):447–457. https://doi.org/10.22059/poll.2018.243987.335
doi: 10.22059/poll.2018.243987.335
Galli A, Kitzes K, Niccolucci V, Wackernagel M, Wada Y, Marchettini N (2012) Assessing the global environmental consequences of economic growth through the Ecological Footprint: A focus on China and India. Ecol Indic 17:99–107. https://doi.org/10.1016/j.ecolind.2011.04.022
doi: 10.1016/j.ecolind.2011.04.022
Ganda F (2019) The environmental impacts of financial development in OECD countries: a panel GMM approach. Environ Sci Pollut Res 26:6758–6772. https://doi.org/10.1007/s11356-019-04143-z
doi: 10.1007/s11356-019-04143-z
Gnègnè Y (2009) Adjusted net saving and welfare change. Ecol Econ 68(4):1127–1139. https://doi.org/10.1016/j.ecolecon.2008.08.002
doi: 10.1016/j.ecolecon.2008.08.002
Godil DI, Sharif A, Rafique S, Jermsittiparsert K (2020) The asymmetric effect of tourism, financial development, and globalization on ecological footprint in Turkey. Environ Sci Pollut Res 27:40109–40120. https://doi.org/10.1007/s11356-020-09937-0
doi: 10.1007/s11356-020-09937-0
Grassa R, Gazdar K (2014) Financial development and economic growth in GCC countries: A comparative study between Islamic and conventional finance. Int J Soc Econ 41(6):493–514. Accessed 14 Jun 2014. https://ssrn.com/abstract=2449522
Haider Zaidi SA, Zafar MW, Shahbaz M, Hou F (2019) Dynamic linkages between globalization, financial development and carbon emissions: Evidence from Asia Pacific Economic Cooperation countries. J Clean Prod 228:533–543. https://doi.org/10.1016/j.jclepro.2019.04.210
doi: 10.1016/j.jclepro.2019.04.210
Haseeb A, Xia E, Danish, Baloc MA, Abbas K (2018) Financial development, globalization, and CO2 emission in the presence of EKC: evidence from BRICS countries. Environ Sci Pollut Res 25(31):31283–31296. https://doi.org/10.1007/s11356-018-3034-7
doi: 10.1007/s11356-018-3034-7
Hassan ST, Xia E, Khan NH, Ali shah SM (2019) Economic growth, natural resources, and ecological footprints: evidence from Pakistan. Environ Sci Pollut Res 26:2929–2938. https://doi.org/10.1007/s11356-018-3803-3
doi: 10.1007/s11356-018-3803-3
Ho HC, Wong MS, Man HY, Shi Y, Abbas S (2019) Neighborhood-based subjective environmental vulnerability index for community health assessment: Development, validation and evaluation. Sci Total Environ 654:1082–1090. https://doi.org/10.1016/j.scitotenv.2018.11.136
doi: 10.1016/j.scitotenv.2018.11.136
Ibrahim M, Alagidede P (2017) Nonlinearities in financial development–economic growth nexus: Evidence from sub-Saharan Africa. Res Int Bus Financ 46:95–104. https://doi.org/10.1016/j.ribaf.2017.11.001
doi: 10.1016/j.ribaf.2017.11.001
Imamoglu H (2019) Environ. The role of financial sector in energy demand and climate changes: evidence from the developed and developing countries. Sci Pollut Res 26(2):22794–22811. https://doi.org/10.1007/s11356-019-05499-y
doi: 10.1007/s11356-019-05499-y
Inekwe JN, Jin Y, Valenzuela MR (2018) The effects of financial distress: Evidence from US GDP growth. Econ Model 72:8–21. https://doi.org/10.1016/j.econmod.2018.01.001
doi: 10.1016/j.econmod.2018.01.001
Inglesi-Lotz R, Dogan E (2018) The role of renewable versus nonrenewable energy to the level of CO2 emissions A panel analysis of Sub- Saharan Africa’s Βig 10 electricity generators. Renew Energy 123:36–43. https://doi.org/10.1016/j.renene.2018.02.041
doi: 10.1016/j.renene.2018.02.041
Iorember PT, Goshit GG, Dabwor D (2020) Testing the nexus between renewable energy consumption and environmental quality in Nigeria: The role of broad-based financial development. Afr Dev Rev 32(2):163–175. https://doi.org/10.1111/1467-8268.12425
doi: 10.1111/1467-8268.12425
Jamel L, Maktouf S (2017) The nexus between economic growth, financial development, trade openness, and CO2 emissions in European countries. Cogent Econ Financ 5(1):1341456. https://doi.org/10.1080/23322039.2017.1341456
doi: 10.1080/23322039.2017.1341456
Jiang C, Ma X (2019) The impact of financial development on carbon emissions: A global perspective. Sustainability. 11(19):5241. https://doi.org/10.3390/su11195241
doi: 10.3390/su11195241
Jiang Y, Zhou Z, Liu C (2019) The impact of public transportation on carbon emissions: a panel quantile analysis based on Chinese provincial data. Environ Sci Pollut Res 26(4):4000–4012. https://doi.org/10.1007/s11356-018-3921-y
doi: 10.1007/s11356-018-3921-y
Kais S, Sami H (2016) An econometric study of the impact of economic growth and energy use on carbon emissions: panel data evidence from fifty-eight countries. Renew Sust Energ Rev 59:1101–1110. https://doi.org/10.1016/j.rser.2016.01.054
doi: 10.1016/j.rser.2016.01.054
Kamran Khan M, Teng GZ, Imran Khan M, Owais Khan M (2019) Impact of globalization, economic factors and energy consumption on CO2 emissions in Pakistan. Sci Total Environ 688:424–436. https://doi.org/10.1016/j.scitotenv.2019.06.065
doi: 10.1016/j.scitotenv.2019.06.065
Kang YK, Zhao T, Yang YY (2016) Environmental Kuznets curve for CO2 emissions in China: a spatial panel data approach. Ecol Indic 63:231–239. https://doi.org/10.1016/j.ecolind.2015.12.011
doi: 10.1016/j.ecolind.2015.12.011
Kanjilal K, Ghosh S (2013) Environmental Kuznet’s curve for India: evidence from tests for cointegration with unknown structural breaks. Energ Policy 56:509–515. https://doi.org/10.1016/j.enpol.2013.01.015
doi: 10.1016/j.enpol.2013.01.015
Karasoy A (2019) Drivers of carbon emissions in Turkey: considering asymmetric impacts. Environ Sci Pollut Res 26(9):9219–9231. https://doi.org/10.1007/s11356-019-04354-4
doi: 10.1007/s11356-019-04354-4
Kashyna O (2011) Investigating the Environmental Kuznets Curve hypothesis using Environmental Performance Indices. School of Economics and Management, Lund University http://lup.lub.lu.se/student-papers/record/1973804
Katircioğlu ST, Taspinar N (2017) Testing the moderating role of financial development in an environmental Kuznets curve: empirical evidence from Turkey. Renew Sust Energ Rev 68:572–586. https://doi.org/10.1016/j.rser.2016.09.127
doi: 10.1016/j.rser.2016.09.127
Kim DW, Yu JS, Hassan MK (2017) Financial inclusion and economic growth in OIC countries. Res Int Bus Financ 43:1–14. https://doi.org/10.1016/j.ribaf.2017.07.178
doi: 10.1016/j.ribaf.2017.07.178
King RG, Levine R (1993a) Financial Intermediation and Economic Development. Cambridge University Press, pp 156–189. https://doi.org/10.1017/CBO9780511752056.011
King RG, Levine R (1993b) Finance, Entrepreneur ship and Growth. J Monet Econ 32(3):513–542. https://doi.org/10.1016/0304-3932(93)90028-E
doi: 10.1016/0304-3932(93)90028-E
Kongbuamai N, Zafar MW, Zaidi SAH, Liu Y (2020) Determinants of the ecological footprint in Thailand: the influences of tourism, trade openness, and population density. Environ Sci Pollut Res 27:40171–40186. https://doi.org/10.1007/s11356-020-09977-6
doi: 10.1007/s11356-020-09977-6
Lai X, Lu C, Liu J (2019) A synthesized factor analysis on energy consumption, economic growth, and carbon emission of construction industry in China. Environ Sci Pollut Res 26:13896–13905. https://doi.org/10.1007/s11356-019-04335-7
doi: 10.1007/s11356-019-04335-7
Lau L-S, Choong C-K, Ng CF, Liew F-M, Ching S-L (2018) Is Nuclear Energy Clean? Revisit of Environmental Kuznets Curve Hypothesis in OECD Countries. Econ Model 77:12–20. https://doi.org/10.1016/j.econmod.2018.09.015
doi: 10.1016/j.econmod.2018.09.015
Law SH, Moradbeigi M (2017) Financial development and oil resource abundance–growth relations: evidence from panel data. Environ Sci Pollut Res 24(28):22458–22475. https://doi.org/10.1007/s11356-017-9871-y
doi: 10.1007/s11356-017-9871-y
Law SH, Singh N (2014) Does too much finance harm economic growth? J Bank Financ 41:36–44. https://doi.org/10.1016/j.jbankfin.2013.12.020
doi: 10.1016/j.jbankfin.2013.12.020
Le T-H, Chang Y, Park D (2016) Trade openness and environmental quality: International evidence. Energy Policy 92:45-55. https://doi.org/10.1016/j.enpol.2016.01.030
Lee Y, Lin S (2020) Vulnerability and ecological footprint: a comparison between urban Taipei and rural Yunlin, Taiwan. Environ Sci Pollut Res 27:34624–34637. https://doi.org/10.1007/s11356-019-05251-6
doi: 10.1007/s11356-019-05251-6
Long X, Ji X (2019) Economic Growth Quality, Environmental Sustainability, and Social Welfare in China - Provincial Assessment Based on Genuine Progress Indicator (GPI). Ecol Econ 159:157–176. https://doi.org/10.1016/j.ecolecon.2019.01.002
doi: 10.1016/j.ecolecon.2019.01.002
Long X, Naminse EY, Du J, Zhuang J (2015) Nonrenewable energy, renewable energy, carbon dioxide emissions and economic growth in China from 1952 to 2012. Renew Sust Energ Rev 52:680–688. https://doi.org/10.1016/j.rser.2015.07.176
doi: 10.1016/j.rser.2015.07.176
Magazino C (2014) The relationship between revenue and expenditure in the ASEAN countries. East Asia 31(3):203–221. https://doi.org/10.1007/s12140-014-9211-5
doi: 10.1007/s12140-014-9211-5
Maji IK, Habibullah MS, Saari MY (2016) Financial development and sectoral CO2 emissions in Malaysia. Environ Sci Pollut Res 24(8):7160–7176. https://doi.org/10.1007/s11356-016-8326-1
doi: 10.1007/s11356-016-8326-1
Masron TA, Subramaniam Y (2018) The environmental Kuznets curve in the presence of corruption in developing countries. Environ Sci Pollut Res 25(13):12491–12506. https://doi.org/10.1007/s11356-018-1473-9
doi: 10.1007/s11356-018-1473-9
Matyas L, Sevestre P (2008) The Econometrics of Panel Data: Handbook of Theory and Applications. Springer Verlag. Third Completely New Edition.
Menyah K, Nazlioglu S, Wolde-Rufael Y (2014) Financial development, trade openness and economic growth in African countries: New insights from a panel causality approach. Econ Model 37:386–394. https://doi.org/10.1016/j.econmod.2013.11.044
doi: 10.1016/j.econmod.2013.11.044
Muhammad B (2019) Energy consumption, CO2 emissions and economic growth in developed, emerging and Middle East and North Africa countries. Energy. 179:232–245. https://doi.org/10.1016/j.energy.2019.03.126
doi: 10.1016/j.energy.2019.03.126
Naqvi SAA, Shah SAR, Anwar S, Raza H (2021) Renewable energy, economic development, and ecological footprint nexus: fresh evidence of renewable energy environment Kuznets curve (RKC) from income groups. Environ Sci Pollut Res 28:2031–2051. https://doi.org/10.1007/s11356-020-10485-w
doi: 10.1007/s11356-020-10485-w
Narayan PK, Narayan S (2013) The short-run relationship between the financial system and economic growth: New evidence from regional panels. Int Rev Financ Anal 29:70–78. https://doi.org/10.1016/j.irfa.2013.03.012
doi: 10.1016/j.irfa.2013.03.012
Nathaniel SP (2020) Ecological footprint, energy use, trade, and urbanization linkage in Indonesia. Geo J. https://doi.org/10.1007/s10708-020-10175-7
Nathaniel S, Nwodo O, Adediran A, Sharma G, Shah M, Adeleye N (2019) Ecological footprint, urbanization, and energy consumption in South Africa: including the excluded. Environ Sci Pollut Res 26(26):27168–27179. https://doi.org/10.1007/s11356-019-05924-2
doi: 10.1007/s11356-019-05924-2
Nathaniel S, Anyanwu O, Shah M (2020) Renewable energy, urbanization, and ecological footprint in the Middle East and North Africa region. Environ Sci Pollut Res 27:14601–14613. https://doi.org/10.1007/s11356-020-08017-7
doi: 10.1007/s11356-020-08017-7
Naz S, Sultan R, Zaman K, Aldakhil AM, Nassani AA, Abro MMQ (2018) Moderating and mediating role of renewable energy consumption, FDI inflows, and economic growth on carbon dioxide emissions: evidence from robust least square estimator. Environ Sci Pollut Res 26(3):2806–2819. https://doi.org/10.1007/s11356-018-3837-6
doi: 10.1007/s11356-018-3837-6
Neagu O, Ardelean DI, Lazar V (2017) How is environmental performance associated with economic growth? A world cross-country analysis. Studia Universitatis “Vasile Goldis” Arad Econ Ser 27(3):15–32. https://doi.org/10.1515/sues-2017-0010
doi: 10.1515/sues-2017-0010
NFA (2019) Working guidebook to the national footprint accounts: 2019 edition. Glob Footpr Rep 73
Olafsson S, Cook D, Davidsdottir B, Johannsdottir L (2014) Measuring countries′ environmental sustainability performance – A review and case study of Iceland. Renew Sustain Energy Rev 39:934–948. https://doi.org/10.1016/j.rser.2014.07.101
doi: 10.1016/j.rser.2014.07.101
Omri A, Euchi J, Hasaballah AH, Al-Tit A (2019) Determinants of environmental sustainability: Evidence from Saudi Arabia. Sci Total Environ 657:1592–1601. https://doi.org/10.1016/j.scitotenv.2018.12.111
doi: 10.1016/j.scitotenv.2018.12.111
Ouyang Y, Li P (2018) On the nexus of financial development, economic growth, and energy consumption in China: New perspective from a GMM panel VAR approach. Energy Econ 71:238–252. https://doi.org/10.1016/j.eneco.2018.02.015
doi: 10.1016/j.eneco.2018.02.015
Ozcan B, Tzeremes P, Dogan E (2019) Re-estimating the interconnectedness between the demand of energy consumption, income, and sustainability indices. Environ Sci Pollut Res 26:26500–26516. https://doi.org/10.1007/s11356-019-05767-x
doi: 10.1007/s11356-019-05767-x
Ozcan B, Tzeremes PG, Tzeremes NG (2020) Energy consumption, economic growth and environmental degradation in OECD countries. Econ Model 84:203–213. https://doi.org/10.1016/j.econmod.2019.04.010
doi: 10.1016/j.econmod.2019.04.010
Paramati SR, Alam MS, Apergis N (2018) The role of stock markets on environmental degradation: A comparative study of developed and emerging market economies across the globe. Emerg Mark Rev 35:19–30. https://doi.org/10.1016/j.ememar.2017.12.004
doi: 10.1016/j.ememar.2017.12.004
Pata UK (2018) The influence of coal and noncarbohydrate energy consumption on CO2 emissions: Revisiting the environmental Kuznets curve hypothesis for Turkey. Energy. 160:1115–1123. https://doi.org/10.1016/j.energy.2018.07.095
doi: 10.1016/j.energy.2018.07.095
Pata UK (2021) Renewable and non-renewable energy consumption, economic complexity, CO2 emissions, and ecological footprint in the USA: testing the EKC hypothesis with a structural break. Environ Sci Pollut Res 28:46–861. https://doi.org/10.1007/s11356-020-10446-3
doi: 10.1007/s11356-020-10446-3
Patrick HT (1966) Financial development and economic growth in underdeveloped countries. Econ Dev Cult Chang 14:174–189. Accessed 21 May 2021. https://www.jstor.org/stable/1152568
Peter H (2010) Determinants of the adjusted net saving rate in developing economies. Int Rev Appl Econ 24(5):591–608. https://doi.org/10.1080/02692170903426070
doi: 10.1080/02692170903426070
Piaggio M, Padilla E, Román C (2017) The long term relationship between CO2 emissions and economic activity in a small open economy: Uruguay 1882–2010. Energy Econ 65:271–282. https://doi.org/10.1016/j.eneco.2017.04.014
doi: 10.1016/j.eneco.2017.04.014
Popova L, Rasoulinezhad E (2016) Have Sanctions Modified Iran’s Trade Policy? An Evidence of Asianization and De-Europeanization through the Gravity Model. Economies 4(4):1–15. https://doi.org/10.3390/economies4040024
doi: 10.3390/economies4040024
Rahman S-u, Chen S, Saud S, Saleem N, Bari MW (2019) Nexus between financial development, energy consumption, income level, and ecological footprint in CEE countries: do human capital and biocapacity matter? Environ Sci Pollut Res 26:31856–31872. https://doi.org/10.1007/s11356-019-06343-z
doi: 10.1007/s11356-019-06343-z
Ritia JS, Shu Y, Song D, Kamah M (2017) The contribution of energy use and financial development by source in climate change mitigation process: A global empirical perspective. J Clean Prod 148(1):882–894. https://doi.org/10.1016/j.jclepro.2017.02.037
doi: 10.1016/j.jclepro.2017.02.037
Rousseau PL, Wachtel P (2011) What is happening to the impact of financial deepening on economic growth? Econ Inq 49(1):276–288. https://doi.org/10.1111/j.14657295.2009.00197.x
doi: 10.1111/j.14657295.2009.00197.x
Ruiz JL (2017) Financial development, institutional investors, and economic growth. Int Rev Econ Financ 54:218–224. https://doi.org/10.1016/j.iref.2017.08.009
doi: 10.1016/j.iref.2017.08.009
Sabir S, Gorus MS (2019) The impact of globalization on ecological footprint: empirical evidence from the South Asian countries. Environ Sci Pollut Res 26:33387–33398. https://doi.org/10.1007/s11356-019-06458-3
doi: 10.1007/s11356-019-06458-3
Saidi K, Mbarek MB (2017) The impact of income, trade, urbanization, and financial development on CO2 emissions in 19 emerging economies. Environ Sci Pollut Res 24(14):12748–12757. https://doi.org/10.1007/s11356-016-6303-3
doi: 10.1007/s11356-016-6303-3
Salahuddin M, Gow J (2019) Effects of energy consumption and economic growth on environmental quality: evidence from Qatar. Environ Sci Pollut Res 26:18124–18142. https://doi.org/10.1007/s11356-019-05188-w
doi: 10.1007/s11356-019-05188-w
Samargandi N, Fidrmuc J, Ghosh S (2014) Financial development and economic growth in an oil-rich economy: The case of Saudi Arabia. Econ Model 43:267–278. https://doi.org/10.1016/j.econmod.2014.07.042
doi: 10.1016/j.econmod.2014.07.042
Samargandi N, Fidrmuc J, Ghosh S (2015) Is the relationship between financial development and economic growth monotonic? Evidence from a sample of middle-income countries. World Dev 68:66–81. https://doi.org/10.1016/j.worlddev.2014.11.010
doi: 10.1016/j.worlddev.2014.11.010
Sarkodie SA (2018) The invisible hand and EKC hypothesis: what are the drivers of environmental degradation and pollution in Africa? Environ Sci Pollut Res 25:21993–22022. https://doi.org/10.1007/s11356-018-2347-x
doi: 10.1007/s11356-018-2347-x
Saud S, Chen S, Danish., Haseeb, A. (2019) Impact of financial development and economic growth on environmental quality: an empirical analysis from Belt and Road Initiative (BRI) countries. Environ Sci Pollut Res 26(3):2253–2269. https://doi.org/10.1007/s11356-018-3688-1
doi: 10.1007/s11356-018-3688-1
Schumpeter JA (1911) The theory of economic development. Harvard University Press, Cambridge
Seetanah B, Sannassee RV, Fauzel S, Soobaruth Y, Giudici G, Nguyen APH (2019) Impact of economic and financial development on environmental degradation: evidence from small island developing states (SIDS). Emerg Mark Financ Trade 55:308–322. https://doi.org/10.1080/1540496X.2018.1519696
doi: 10.1080/1540496X.2018.1519696
Shah SAA, Zhou P, Walasai GD, Mohsin M (2019) Energy security and environmental sustainability index of South Asian countries: A composite index approach. Ecol Indic 106:105507. https://doi.org/10.1016/j.ecolind.2019.105507
doi: 10.1016/j.ecolind.2019.105507
Shahbaz M (2013) Does financial instability increase environmental degradation? Fresh evidence from Pakistan. Econ Model 33:537–544. https://doi.org/10.1016/j.econmod.2013.04.035
doi: 10.1016/j.econmod.2013.04.035
Shahbaz M, Lean HH (2012) Does financial development increase energy consumption? The role of industrialization and urbanization in Tunisia. Energy Policy 40:473-479. https://doi.org/10.1016/j.enpol.2011.10.050
Shahbaz M, Shahzad SJH, Ahmad N, Alam S (2016) Financial development and environmental quality: The way forward. Energ Policy 98:353–364. https://doi.org/10.1016/j.enpol.2016.09.002
doi: 10.1016/j.enpol.2016.09.002
Shahbaz M, Nasir MA, Roubaud D (2018) Environmental Degradation in France: The Effects of FDI, Financial Development, and Energy Innovations. Energy Econ 74:843–857. https://doi.org/10.1016/j.eneco.2018.07.020
doi: 10.1016/j.eneco.2018.07.020
Shahzad SJH, Kumar RR, Zakaria M, Hurr M (2017) Carbon emission, energy consumption, trade openness and financial development in Pakistan: a revisit. Renew Sust Energ Rev 70:185–192. https://doi.org/10.1016/j.rser.2016.11.042
doi: 10.1016/j.rser.2016.11.042
Sharif A, Baris-Tuzemen O, Uzuner G, Ozturk O, Sinha A (2020) Revisiting the role of renewable and non-renewable energy consumption on Turkey’s ecological footprint: Evidence from Quantile ARDL approach. Sustain Cities Soc 57:102138. https://doi.org/10.1016/j.scs.2020.102138
doi: 10.1016/j.scs.2020.102138
Sharma SS (2011) Determinants of carbon dioxide emissions: empirical evidence from 69 countries. Appl Energy 88(1):376–382. https://doi.org/10.1016/j.apenergy.2010.07.022
doi: 10.1016/j.apenergy.2010.07.022
Shaw ES (1973) Financial deepening in economic development. Oxford University Press, New York
Singh A (1997) Financial liberalization, stock markets and economic development. Econ J 107(442):771–782. Accessed 21 May 2021. https://www.jstor.org/stable/2957801
Squalli J, Wilson K (2011) A New Measure of Trade Openness. World Econ 34(10):1745–1770. https://doi.org/10.1111/j.1467-9701.2011.01404.x
doi: 10.1111/j.1467-9701.2011.01404.x
Ssali MW, Du J, Mensah IA, Hongo DO (2019) Investigating the nexus among environmental pollution, economic growth, energy use, and foreign direct investment in 6 selected sub-Saharan African countries. Environ Sci Pollut Res 26:11245–11260. https://doi.org/10.1007/s11356-019-04455-0
doi: 10.1007/s11356-019-04455-0
Tamazian A, Rao B (2010) Do Economic, Financial and Institutional Developments Matter for Environmental Degradation? Evidence from Transitional Economies. Energy Econ 32:137–145. https://doi.org/10.1016/j.eneco.2009.04.004
doi: 10.1016/j.eneco.2009.04.004
Tamazian A, Chousa JP, Vadlamannati KC (2009) Does Higher Economic and Financial Development Lead to Environmental Degradation: Evidence from BRIC Countries. Energ Policy 37(1):246–253. https://doi.org/10.1016/j.enpol.2008.08.025
doi: 10.1016/j.enpol.2008.08.025
Ulucak R, Bilgili F (2018) A reinvestigation of EKC model by ecological footprint measurement for high, middle and low-income countries. J Clean Prod 188(1):144–157. https://doi.org/10.1016/j.jclepro.2018.03.191
doi: 10.1016/j.jclepro.2018.03.191
Usman O, Alola AA, Sarkodie SA (2020) Assessment of the role of renewable energy consumption and trade policy on environmental degradation using innovation accounting: Evidence from the US. Renew Energy 15:266–277. https://doi.org/10.1016/j.renene.2019.12.151
doi: 10.1016/j.renene.2019.12.151
World Development Indicator (WDI) (2019) World Bank Development Indicators database (online) available at https://data.worldbank.org/ Accessed date 24.10.2019
Xu Z, Baloch MA, Danish, Meng F, Zhang J, Mahmood Z (2018) Nexus between financial development and CO2 emissions in Saudi Arabia: analyzing the role of globalization. Environ Sci Pollut Res 25(28):28378–28390. https://doi.org/10.1007/s11356-018-2876-3
doi: 10.1007/s11356-018-2876-3
Yang F (2018) The impact of financial development on economic growth in middle-income countries. J Int Financ Mark I 59:74–89. https://doi.org/10.1016/j.intfin.2018.11.008
doi: 10.1016/j.intfin.2018.11.008
Yilanci V, Gorus MS (2020) Does economic globalization have predictive power for ecological footprint in MENA counties? A panel causality test with a Fourier function. Environ Sci Pollut Res 27:40552–40562. https://doi.org/10.1007/s11356-020-10092-9
doi: 10.1007/s11356-020-10092-9
Zafar MW, Saud S, Hou FJ (2019) The impact of globalization and financial development on environmental quality: Evidence from selected countries in the Organization for Economic Co-operation and Development (OECD). Environ Sci Pollut Res 26:13246–13262. https://doi.org/10.1007/s11356-019-04761-7
doi: 10.1007/s11356-019-04761-7
Zaidi SAH, Danish, Hou F, Mirza FM (2018) The role of renewable and non-renewable energy consumption in CO2 emissions: a disaggregate analysis of Pakistan. Environ Sci Pollut Res 25:31616–31629. https://doi.org/10.1007/s11356-018-3059-y
doi: 10.1007/s11356-018-3059-y
Zaidi SAH, Zafar MW, Shahbaz M, Hou FJ (2019) Dynamic linkages between globalization, financial development and carbon emissions: Evidence from Asia Pacific Economic Cooperation countries. J Clean Prod 228:533–543. https://doi.org/10.1016/j.jclepro.2019.04.210
doi: 10.1016/j.jclepro.2019.04.210
Zakaria M, Bibi S (2019) Financial development and environment in South Asia: the role of institutional quality. Environ Sci Pollut Res 26:7926–7937. https://doi.org/10.1007/s11356-019-04284-1
doi: 10.1007/s11356-019-04284-1
Zhang J (2019) International production fragmentation, trade in intermediate goods and environment. Econ Model 87:1–7. https://doi.org/10.1016/j.econmod.2019.06.015
doi: 10.1016/j.econmod.2019.06.015