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Financial Efficiency and Its Impact on Renewable Energy Demand and CO 2 Emissions: Do Eco-Innovations Matter for Highly Polluted Asian Economies?

Authors :
Hafeez, Muhammad
Rehman, Saif Ur
Faisal, C. M. Nadeem
Yang, Juan
Ullah, Sana
Kaium, Md. Abdul
Malik, Muhammad Yousaf
Source :
Sustainability (2071-1050); Sep2022, Vol. 14 Issue 17, p10950, 12p
Publication Year :
2022

Abstract

The analysis aims to examine the impact of eco-innovation and financial efficiency on CO<subscript>2</subscript> emissions and renewable energy consumption in highly polluted Asian economies, including China, India, Russia, and Japan. For empirical analysis, we have applied the ARDL pooled mean group (ARDL-PMG) model. The long-run estimated coefficient of environmental innovations is positively significant in both renewable energy models and negatively significant in the CO<subscript>2</subscript> emissions model. These results imply that environmental innovations help facilitate renewable energy consumption and reduce CO<subscript>2</subscript> emissions. On the other side, the estimates of financial development are insignificant in both renewable energy and CO<subscript>2</subscript> emissions models. However, the estimates of financial institution efficiency and financial markets are positively significant in both renewable energy and CO<subscript>2</subscript> emissions models, implying that financial institutions and market efficiency increase renewable energy consumption and decrease CO<subscript>2</subscript> emissions. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
20711050
Volume :
14
Issue :
17
Database :
Complementary Index
Journal :
Sustainability (2071-1050)
Publication Type :
Academic Journal
Accession number :
159035011
Full Text :
https://doi.org/10.3390/su141710950